K-fashion DTCs lead cross-border sales to Japan

DTCs selling directly to Japan through Cafe24 see 3X GMV increase in the last 3 years
DTCs powered by Cafe24 make up 44.4% of the total fashion e-commerce direct sales to Japan

DTC stores specializing in K-fashion are significantly growing their influence in Korea’s e-commerce market by directly selling fashion goods to Japan.

Global e-commerce platform Cafe24 announced on Mar. 28 that the Gross Merchandise Volume (GMV) of online fashion stores using Cafe24’s platform made up 44.4% of Korea’s total online fashion direct sales to Japan last year. In 2017, direct sales of fashion-related products to Japan amounted to an estimated 84.4 million dollars, according to Statistics Korea. DTCs selling directly to Japan through Cafe24’s platform made up over 44% of the total GMV with 37.5 million dollars.

In the past three years, the GMV of fashion direct sales to Japan through Cafe24’s platform increased more than three-fold. Of the total GMV, Cafe24 stores generated 22.1% in 2015, 32.2% in 2016, and 44.4% in 2017, increasing an average of 10% each year.

Statistics Korea currently includes duty-free shop sales in its overseas direct sales count. If duty-free sales are excluded, the influence of DTCs on Korea’s overseas direct sales market is assumed to be even greater.

The rise of K-fashion DTCs can be attributed to the increasing popularity of K-fashion in Japan, as well as stores’ product quality and affordable pricing. The optimization of e-commerce platforms for Japanese shoppers is also seen as a driving factor.

HOTPING, a DTC brand specializing in women’s apparel, launched its Japanese online store through Cafe24 in 2015 and quickly gained popularity. Last year, the brand achieved about 4.7 million dollars in Japan sales alone, which is more than 66% year-on-year increase.

Jaesuk Lee, CEO of Cafe24, said, “The rising popularity of K-fashion in Japan reflects the growth potential in the direct sales market to Japan.” He added, “Cafe24 will continue to optimize its e-commerce platform so that DTCs selling to Japan can achieve high-speed growth by better meeting the needs of Japanese shoppers.”

Meanwhile, Cafe24 helps DTCs succeed in global markets by providing everything they need to do business online – services include payment systems, translation, advertising, shipping and logistics, business localization, and more. In Japan, said services are based on strong partnerships with key Japanese service providers such as Rakuten, SoftBank Payment Service, Sagawa, and Yamato.

Cafe24 provides services that make it easier for Korean DTCs to sell to Japan and Japanese consumers to conveniently shop online.

About Cafe24

Cafe24 is a global success platform that provides a one-stop business environment for e-commerce merchants so that they can achieve continued growth by focusing on their creativity. Cafe24 has established an e-commerce ecosystem with 1.7 million Direct-to-Consumer (DTC) merchants and various global partners in areas like payment, shipping, and marketing. Cafe24 is poised for growth as more DTC brands and e-commerce participants continue to join the burgeoning industry.