Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

South Korea’s OEMs, ODMs begin nurturing own brand

South Korea’s original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who supply products to top global clothing labels have started nurturing their own brands. These include well-known OEM and ODM companies include Hansae, Sae-A Trading, Youngone Corporation and Simone.

OEM and ODM companies often face growth limitations as they are in an environment where they need to offer end-products at cheaper prices than actual labels would receive. They are also under the burden of having had to constantly shift their production bases - for example from China to Southeast Asia where labour cost is cheaper.

Hansae for example has been expanding based on its own brands by promoting aggressive merger and acquisitions. Last month, the company made news when it acquired MK Trend, a local apparel maker with $253 million worth of annual sales. MK Trend has fared well despite a slump in business. Brands include casual-wear TBJ, Andew, Buckaroo and NBA. The company also recently launched golf-wear brand, LPGA.

Industry observers note that Hansae decided to acquire MK Trend as it judged that growth would be limited by producing goods on a consignment basis for American fashion brands including Gap, Nike, American eagle and Kohl’s.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo