[07.15.09] SNSD line – E-Land, challenging UNIQLO – release of SPA brand SPAO

“If there’s ZARA for Spain, UNIQLO for Japan and GAP for America, then there is SPAO for Korea.”

Fashion business group E-Land announced its challenge with Japan’s UNIQLO with the launch of the global SPA brand “SPAO”. Produced based on SPA product plans, it’s the first time that a domestic fashion company is using the method of direct distribution and announcing a brand like “Global SPA”. E-Land’s “SPAO” was created by adding the english initial letter “O” (from “Original, OK, Oasis”) to “SPA”.

E-Land’s vice president Park Seungkyung said at a press conference on the 15th: “Fast planning, global sourcing and by concentrating in the gained capabilities of E-Land for the last 30 years, we’ve prepared “SPAO” since 2006. The first store with a space of 3300 m^2 will open in Seoul Myeongdong in October.” The goal is to achieve sales of 15,000,000,000 won with 5 stores this year and 1,000,000,000,000 won with 100 stores in 2012.

“SPAO” represents the “Korean UNIQLO”. With the same direct manufacturing method like UNIQLO does with the basic style, it maintains the quality and the prize level will be 20% cheaper compared to UNIQLO with prizes like 9900 won for a T-shirt, 25900 won for a shirt, 29900 won for a sweater, denim. Furthermore, designs and color tones matching Korean’s figure were emphasized and the strategy is to cover all the age groups with 11 separate categories, from children to middle age.

E-Land plans to raise the brand’s recognition and the design competition by working together with famous designers and running a star marketing. Especially with the establishment of a joint-venture company with SM Entertainment (E-Land 51%, SM 49%), it’ll advertise its products with So Nyuh Shi Dae, Super Junior as models and feature a “So Nyuh Shi Dae line” and a “Super Junior line”.

Vice president Park said: ” It provides the best capabilities to expand SPA with E-Land’s business strategy, and to aim at 3500 retail seller with about 50 brands and a low price strategy. With new releases of products every week and an independently built fast production system, I think that in 2011, we’ll leave UNIQLO behind in Korea.”

Source: Hankyung.com
Written by Ahn Sangmi
Translated by [email protected]/forums
Edited by [email protected]/forums