(관련영어기사) 

Samsung Everland scales back luxury fashion unit


 Passion for fashion may get rain check amid business transformation 



Samsung Everland’s fashion division is shelving “hexa by kuho,” a high-end women’s wear label targeting fashion-savvy people in the global market, according to a company insider.

The decision was made three months after the fashion company was relocated from Cheil Industries to Everland in December 2013 in a move aimed at widening Everland’s business scope, and spearheading Cheil’s transformation into a parts and materials manufacturer.

However, some believe shutting down hexa may be a sign of Everland’s abandonment of its vision to become a global luxury fashion powerhouse initiated by its president Lee Seo-hyun, the second daughter of Samsung Electronics chairman Lee Kun-hee.

Cheil had three brands targeting global markets -- hexa by kuho, Derercuny and Juun.J. But with hexa and Derercuny shut down, it is natural that the global strategy has been shaken from the roots, onlookers say. Juun.J, led by star designer Jung Wook-jun, will remain in the market.

The departure of hexa comes after the company’s executive managing director and chief designer Jung Ku-ho left the company in November 2013.

Jung, who had worked for Cheil Industries since 2003, after his own brand KUHO was acquired by the company, left Samsung amid rumors that there was no room for his future performance in the new Everland and was let go.

As the name suggests, hexa by kuho was led by Jung and presented at fashion shows in New York and Paris in front of international press and merchandisers.

“The absence of the designer has been quite huge and the overall image making of the brand. KUHO can survive thanks to loyal fans but hexa, the younger one, can be tricky,” an insider said.

Cheil shut down another brand, Derercuny, in August 2013. Hailed as Samsung’s fashion darling, Derercuny was launched in 2004 targeting elderly women around the world and held fashion shows in Milan with A-list press.

The brand marked $3 million in sales in 2007 but has plummeted since then. It suffered a business hiatus during the world economic meltdown in 2008 but returned to the fashion scene shortly after, only to be shut down again. Some attribute the failure to boring designs, while others blamed poor marketing.

The withdrawal of hexa and Derercuny suggests that Lee Seo-hyun may have to face a rain check on her dreams of establishing a global fashion powerhouse with domestic labels.

“It is natural that businesses want to trim their portfolio to become more profitable. But at the same time, it seems Lee will face some tough times,” a fashion industry insider said. “It’s always painful mixing art with money.”

Lee, who has been the de facto leader of Samsung’s fashion unit since 2002, has received much spotlight for her passion for fashion.

As a graduate of the prestigious Parsons The New School of Design, Lee has diversified Cheil’s business portfolio from a menswear-focused local clothing firm to a cutting-edge fashion company. She was responsible for the acquisition of KUHO and also the launch of hexa and Le Beige.

With her luxury line being halted, Lee is likely to take a detour to more affordable lines, including specialty store retailer of private label apparel, Eight Seconds.

The brand is a homegrown SPA, and in 2013, it garnered 130 billion won from off and online sales in just two years since it launched.


By Bae Ji-sook and Lee Woo-young

(baejisook@heraldcorp.com) (wylee@heraldcorp.com)