The fashion industry is focusing on exclusive products and post-purchase services to attract customers to their direct sales platforms. By offering unique items and styling content, companies aim to encourage repeat purchases through repair and care services, as well as compensation for secondhand clothing. This strategy is designed to increase the number of loyal customers while also selling on external platforms.
According to industry reports, Olivia Lauren's direct sales platform, OVLR, has seen a 130% increase in new member sign-ups from April to October 14 compared to the same period last year on the previous platform, Sejeong Mall.
In line with the launch of its independent corporation, Olivia Lauren introduced an 'online exclusive' line through its OVLR platform. This product range features basic items enhanced with seasonal colors, materials, and details, while also maintaining competitive pricing. The brand utilizes styling content from actress Ki Eun-se and influencers. Since the launch of the OVLR platform, the number of customers aged 20 to 30 has increased by 72% compared to the same period last year. A company representative stated, "Exclusive promotions and enhanced online competitiveness have contributed to revenue growth."
Hyungji I&C is also strengthening its official direct sales platform, Hygen.com. From May of last year to April of this year, sales increased by 52%, and visitor numbers rose by 58% compared to the first year of its launch in 2023. The company plans to expand its e-commerce operations based on online promotions and a dedicated team, with a revenue target of 6 billion won for its e-commerce division, including the direct sales platform.
Kolon FnC is emphasizing post-purchase services as a differentiator. In its offline stores for brands like Kolon Sports and Henry Cotton, customers are encouraged to install the app, which offers repair and care services for those who purchase directly from Kolon Mall. This strategy effectively connects in-store customers to online platforms, maintaining engagement even after purchase. Customers who buy from Kolon’s direct sales platform more than 12 times a year account for 60% of total transaction volume.
The company also links secondhand transactions to repeat purchases. Through its secondhand trading service, the OLO Relay Market, customers can sell their clothing and receive payment in the form of Kolon Mall points, which can be used for future purchases.
Fashion brands are increasingly focusing on enhancing their direct sales platforms because direct sales reduce intermediary fees from external platforms while allowing for better management of customer information. According to a survey released last month by the Korea Federation of Small and Medium Businesses, the average monthly total transaction cost for online shopping mall vendors reached 20.6% of their sales, including intermediary fees, advertising costs, and promotional expenses.
Effective inventory management is another factor driving the utilization of direct sales platforms. Clothing, which is sensitive to trends and seasons, can become long-term inventory if not sold in time, leading to larger discounts and increased storage costs that diminish profitability. Direct sales platforms can serve as a channel to alleviate inventory burdens through promotional events and discount sales.
An industry insider noted, "Direct sales platforms allow for the introduction and promotion of related products, which helps secure loyal customers," adding that, "While direct sales also incur costs for advertising and purchase incentives, companies are striving to convert customer traffic into ongoing purchases."
* This article has been translated by AI.
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