Domestic department stores are evolving into export platforms that help small and medium-sized K-brands enter overseas markets. By combining their global distribution networks with expertise in store operations, they are opening pop-up and flagship stores, connecting brand discovery with local consumer response validation and formal store entry to support brands’ establishment in foreign markets.
According to industry sources on the 12th, Shinsegae Department Store’s overseas expansion platform, “Hyperground,” took its first step into the United States earlier this month. It will operate “Shinsegae Hyperground New York” at Hudson Yards in New York until December 31, showcasing K-beauty and lifestyle content.
This pop-up focuses on introducing the daily life of Seoul to local audiences. It brings together the energy of Seongsu-dong, the traditional beauty of Bukchon, and the refined sensibility of Hannam-dong in a single space. More than 30 brands are participating, covering skincare, makeup, beauty devices, inner beauty, and lifestyle products.
Since 2023, Shinsegae Department Store has supported domestic brands’ overseas expansion by hosting pop-ups, showrooms, and order exhibitions in France, Italy, Germany, Thailand, Japan, China, Singapore, and Indonesia. A total of 168 domestic brands have entered overseas markets through Hyperground over the past three years.
Lotte Department Store recently launched “Lotte Department Store Next Lab,” a platform to support K-fashion brands’ overseas expansion. Its key feature is connecting domestic brand discovery with overseas pop-ups, incubation, and formal store entry. It supports individual brands in handling tasks such as export customs clearance, interior design, and marketing—burdens typically borne by the brands during their expansion process—by leveraging Lotte Department Store’s global infrastructure and local operational know-how.
The first stage is “Lotte Mall West Lake Hanoi” in Vietnam. Since July, it has operated a pop-up store for Museent, known as a K-streetwear brand, at this location. Lotte Department Store plans to continue collaborations with five domestic fashion brands, including Setter and No Manual, by the end of this year. In the second half of the year, it will also push forward with pop-up stores in shopping malls in Tokyo and Osaka, Japan.
The differentiator of Lotte Department Store Next Lab is its approach of not ending pop-ups as one-off events but connecting them to formal store entry. As the only domestic department store operating stores overseas, it can assist with store entry by partnering with foreign retailers or utilizing local branches.
Next year, plans are in place to establish permanent K-fashion pop-up specialty zones at Lotte Mall West Lake Hanoi and in Japan, aiming to showcase dozens of brands annually. To this end, Lotte Department Store also launched an internal organization called “Next Content Lab” earlier this year.
Hyundai Department Store is expanding its territory into Europe with its K-content export platform, “The Hyundai Global.” On the 6th of this month, it opened a pop-up store at the Galerie Lafayette Osman department store in Paris, France. It also displayed a large-scale advertisement on the building’s exterior wall for the first time among domestic companies.
Previously, Hyundai Department Store confirmed the potential of The Hyundai Global in Japan and Taiwan. Pop-ups held at Shibuya Parco in Tokyo and Shin Kong Mitsukoshi Department Store in Taiwan recorded the highest sales ever among pop-ups at those respective stores. “The Hyundai” in Tokyo, which serves as both the first overseas flagship store for The Hyundai Global and the first Japanese flagship store for a domestic department store, is achieving results that exceed its target sales by 30%. Hyundai Department Store aims to fully launch its European expansion following this Paris pop-up and plans to open more than 10 flagship stores in Asia, Europe, and North America by 2030.
The industry views department stores’ support for overseas expansion as a new channel for domestic brands to grow their businesses. An industry official said, “Brands seeking overseas entry can reduce the initial burden of securing and operating local stores while checking consumer reactions.” The official added, “Department stores can also discover differentiated K-brands to enhance the content competitiveness of their overseas branches and secure new business opportunities.”
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