Spains Zara Opens First Store in Korea
By Jane Han
Staff Reporter
It's finally here. The much-awaited and talked about inexpensive and chic Spanish clothing chain will open its first two Korea stores today, making it the latest ``affordable'' foreign brand entering the local fashion business.
The flagship stores are in Lotte Department Store's Young Plaza in central Seoul, and the COEX Mall in southern Seoul.
Inditex, the owner of Zara, is making its debut here through a joint venture with Lotte Group, the nation's biggest department store operator. The European retail giant owns 80 percent and Lotte owns 20 percent.
Currently running 93 stores in the Asia-Pacific region, Inditex says the Korea expansion is an integral part of its regional expansion.
``We are seeing strong results in the Asian region, therefore we will continue to watch the long-term growth potential of the vast market,'' Inditex Chief Communications Officer, Jesus Echevarria, told reporters at the launching press conference.
Zara's arrival follows the most recent kickoff of U.S. brands Gap and Banana Republic, operated locally by Shinsegae International, a unit of mega retailer Shinsegae. Spanish brand Mango and Japanese UNIQLO are among other foreign retailers operating here.
Although these brands saw a moderate performance, consumers have pointed out they have to pay more here than they do overseas. Therefore, industry insiders say Zara's pricing chart will be critical to their local success.
Zara is well-known for its ``fast-fashion'' system, in which the company claims it can take a design from sketch to store shelves in just two weeks, which allows Zara to introduce new selections every week. Company officials said the same approach will be applied to local shops.