The Marche-based company, led by Roncucci&Partners, adopts an omnichannel strategy: in Seoul the first in-shop in the Jamsil Lotte Department Store, e-commerce, showcase of iconic pieces, Instagram
The fashion supply chain drives Italian exports to South Korea, with a share of more than 50 percent worth $4.2 billion (source: Korea Customs Service). And Made in Italy footwear plays a decisive role. With this in mind, Roncucci&Partners accompanied B.A.G. SpA, owner of NeroGiardini, a leading Italian brand with men’s, women’s and children’s collections, on a development path in the Korean market.
The entry into the Asian market is part of a broader strategy aimed at increasing BAG Spa’s internationalization process, which, at the moment, marks 35 percent of its sales (120 million in 2022, forecast growth of 20 percent this year) thanks to Europe, the United States and Canada.
On March 7, NeroGiardini opened in Seoul, in the prestigious Jamsil Lotte Department Store, the first in-shop in the Far East. The first step in a project that will see the opening of three stores by 2023.
The distribution strategy includes a direct presidium of offline and online channels. Korean consumers will be able to learn about the NeroGiardini collection on the 4th floor of the Lotte Department Store Jamsil as well as purchase through e-commerce (www.nerogiardini.kr). The brand’s collections will also be promoted through the Instagram account dedicated to Korea, while a selection of iconic pieces will be exhibited in the High Street Italia spaces created by ICE in collaboration with the Italian Embassy in Seoul with the aim of promoting Made in Italy and Italian culture in Korea.
As Alessandro Bracalente, managing director of B.A.G. SpA to Pambianconews:
“Along the way, basic has been the consulting firm Roncucci & Partners.”
“As a consulting firm, it has not been easy these past three years to be able to achieve such an important result for NeroGiardini. We are particularly pleased about this. After a careful analysis of the market and the choice of positioning, the winning key was the enhancement of services in addition to the product, what is now called servitization: logistics for re-assortment, communication, and the choice of omnichannel were key in defining the strategy.”
Present at the ribbon-cutting ceremony of the first NeroGiardini in-shop in Korea were the Italian Embassy in Seoul, the president of Lotte Department Store, Mr. Junho Jung, Korean and Italian authorities. In particular, Ambassador Dr. Federico Failla expressed his satisfaction regarding the excellent results that Italian companies are achieving in South Korea, demonstrating both the dynamism of the Korean market – the first market in Asia for per capita imports of Italian products – and the excellence of Made in Italy, synonymous with quality and tradition. “The Italian Embassy in Seoul,” said the Ambassador, “is constantly committed to fostering the further strengthening of economic and trade relations between Italy and South Korea, and to assisting companies that intend to enter the Korean market.
Within the top ten most exported Made in Italy sectors globally, as many as 6 items belong to the fashion supply chain. Leather goods is the top one with a 21% share of our exports and a value of over 1.7 billion USD. This is followed by footwear with a 6.8 percent share and a value of 572 million USD and apparel with 6.5 percent for 530 million USD, in third and fourth position respectively. In fifth place is jewelry (mainly goldsmithing) with 4.4 percent share and 370 billion USD. Closing the ranking are knitwear in seventh place with 4.2 percent and 350 million USD and eyewear in tenth place with 2.4 percent for 200 million USD. (Source: Korea Customs Service).
In all these sectors, Italy ranks among the top exporting countries to South Korea. When considering the target market of reference, the Belpaese reaches the top for leather goods, clothing, jewelry and knitwear. The growth trend has lasted for several years now and was reconfirmed in 2022 as well, in some cases with rates higher than the average for our exports (+4.4 percent): the most significant growth was recorded by knitwear with +20.4 percent compared to 2021, then jewelry with +18.8 percent and apparel with +16.7 percent.
The Korean consumer appreciates of Italian products the unique combination of the highest quality of workmanship and materials with unparalleled design content and creativity. “Although it is still strongly dominated by big brand names – as stated by Dr. Ferdinando Gueli, ICE Director in Seoul – the Korean fashion market, especially thanks to the younger generation and more recent trends that have emerged as a result of the pandemic phase, is increasingly receptive to high-quality and innovative products with a growing focus on contemporary style, casual, sustainability, and a functional and comfortable look.”
At Roncucci&Partners, we help companies develop themselves and their business, embrace change and evolve to thrive as a method and rigor within in a world that is increasingly complicated, treacherous, and requires many skills.