Nonfashion Apparels

Discovery, National Geographic, Kodak, CNN, Jeep, MLB, PGA, and other non-fashion, non-Korean brands have turned fashionable in South Korea.

You might be surprised if you see a cool jacket with the National Geographic logo or a Jeep travel luggage, wondering if these brands have expanded their business into different sectors.

These brands are licensed to Korean companies seeking high revenues by making them fashionable, and it is a thriving business practice in South Korea due to some brand’s success. Discovery’s long-padded jacket hit the highest sales among other competitors’ identical products a few years ago. National Geographic is expanding its fashion business into the Chinese market.

Brand licensing is a practice where licensees lease or rent a brand’s intellectual property. Brand owners permit licensees to use their trademarks and logos. Then licensees can produce, manufacture, and promote the product and service without restraints in return for royalties from the sale. One of the biggest strengths of brand licensing is it creates an experiential shopping opportunity for customers to engage with beloved brands in novel ways. Brands can reach broader consumers and retain their loyalties by offering a wide range of products in different categories—it benefits both parties.

Brand licensing is a trend in South Korea, and we call it K-Licensed Brands.

How have they become a successful clothing line in Korea?

These brands have already established consumers’ trust through their original product and service for decades. They have a strong presence in their respective industry that is recognizable for many Koreans. National Geographic and Discovery Channel are the pioneers in exploring nature and the world. Jeep is famous for its off-road vehicles giving drivers a sense of freedom in their journey. They have a strong positioning in their category that aligns with the brand perception. Therefore, extending the core value of the brand to different products or services is desirable for consumers. 

Some brands have nostalgic factors that create an affinity towards the brand. Studies suggest that nostalgia inspires consumers to spend their money because it promises an immediate return in the form of happy memories and comfort. Fond brands exude one’s recollection. It is a psychological phenomenon that creates a deep level of emotional engagement with consumers.

For example, many consumers used Kodak’s instant camera to capture special moments in the past. However, instant cameras began fading out due to the rise of digital cameras, and slowly Kodak was falling out of people’s memory. Now Many users take photos with their smartphones, and it is hard to see Kodak cameras on the street. When Kodak launched its clothing line—it was a signal of resurgence. Consumers welcomed Kodak’s apparel because they had somewhat solid and positive relationships with the brand and their design looks incredible. Kodak has successfully repositioned itself from capturing the concept of time to a lifestyle that expresses Kodak’s identity. 

The quality of the product is superior. Korean fashion is gradually being recognized in many countries. Although these companies are riding on the brand’s IP, companies and designers strive to produce high-quality clothes with trending designs. I was not a fan of Korean fashion due to its quality and symmetrical designs across the fashion industry. However, licensees are committed to strengthening the brand identity, which prominently adds its USP to align with its core value. Therefore, consumers are likely to purchase their product by not only following their belief in brands but also the quality of clothing. 

There are many consumers not knowing these brands are licensed. Some felt deceived, and some did not care about it. Whether it is licensed or not, many consumers do not easily get swayed by this business practice. If they love the brand and the design, that’s what makes their purchase decision. It is interesting to watch these brands being part of Korean fashion and curious to see what other foreign brands they will bring into the fashion market.