Asia Fashion Weekly News Bulletin – ISSUE 2 Week of 17 February 2025
(1) Net-a-Porter to exit China by 20 March 2025
Net-a-Porter’s China joint venture, Fengmao, a partnership between Alibaba and Yoox Net-a-Porter (YNAP), will be terminated on 20 March 2025.
(2) AI Becoming More Widely Used in Japan’s Fashion Industry
Generative AI is becoming increasingly prevalent in Japan’s fashion industry, enabling designers to create unique patterns and streamline production, but the lack of specific guidelines raises concerns about counterfeiting and the potential impact on creativity.
(3) SBA partners with Taobao to boost Seoul fashion brands through live commerce
The Seoul Business Agency has partnered with Taobao to enhance the global expansion of Seoul’s fashion and beauty brands through live commerce.
(4) New Balance extends agreement with E-Land World, plans Korea branch by 2027
New Balance has extended its licensing agreement with E-Land World to continue their partnership in South Korea, focusing on children’s footwear and apparel until 2030.
(1) Net-a-Porter to exit China by 20 March 2025
(Photo Credit: YNAP)
Net-a-Porter will cease operations in China on 20 March 2025, discontinuing orders through platforms like Tmall and WeChat, although after-sales services will continue until 22 April 2025. This decision follows a strategic shift initiated by former CEO Yating Wu to exit the Chinese market and focus on more profitable areas, which has involved significant discounts to clear inventory.
The closure is also influenced by Richemont’s efforts to streamline its business ahead of the planned sale of YNAP to Mytheresa, expected in early 2025. Richemont is exchanging YNAP for shares in Mytheresa, while also providing financial support, which includes a revolving credit facility, and acquiring a 33% stake in the new company, LuxExperience.
Since entering China in 2013, Net-a-Porter has faced increasing competition and a changing e-commerce landscape, leading to challenges in maintaining market presence. In contrast, Mytheresa is strengthening its foothold in China with a new WeChat Mini Program that offers a tailored luxury shopping experience, signalling a shift in strategy to engage Chinese consumers more effectively.
News Source: https://www.theindustry.fashion/net-a-porter-to-exit-china-by-20-march/
(2) AI Becoming More Widely Used in Japan’s Fashion Industry
(Photo Credit: The Yomiuri Shimbun)
Generative artificial intelligence is increasingly being utilised in Japan’s fashion industry, influencing runway styles and aiding in the creation of garments for broader distribution. Designers like Yoshio Kubo have embraced this technology, using it to generate unique patterns for collections, such as a white jumpsuit for the Spring/Summer 2025 season. Kubo emphasises the importance of adding personal touches to AI-generated designs to maintain originality.
Tools like Maison AI, developed by Tokyo-based OpenFashion, enable users to create intricate patterns and designs rapidly, showcasing the potential of AI to streamline the design process. The introduction of systems like Toyoshima & Co.’s “Virtual Standard AI-Pattern” has demonstrated significant efficiency improvements in product development, allowing designers to generate numerous pattern options quickly and reduce the time spent on revisions.
Despite the advancements in AI usage, the fashion industry lacks specific national or industry guidelines to address issues such as counterfeiting and design theft, which have long plagued the sector. While some guidelines exist for other content industries, the absence of regulations for fashion raises concerns about the impact of AI on creativity and the need for discussions around protecting originality and intellectual property in this evolving landscape.
News Source: https://japannews.yomiuri.co.jp/culture/fashion/20250216-238592/
(3) SBA partners with Taobao to boost Seoul fashion brands through live commerce
(Photo Credit: SBA)
The Seoul Business Agency (SBA) has signed a memorandum of understanding with Taobao, China’s largest e-commerce platform, to enhance the global reach of Seoul’s fashion and beauty brands. The signing ceremony took place at the Dongdaemun Design Plaza (DDP), attended by key representatives from both organisations, including Kim Hyun-woo from the SBA and Mandy Wang from Taobao. This partnership aims to leverage Taobao’s live commerce capabilities to promote products from Dongdaemun fashion wholesale brands.
As part of the collaboration, the SBA plans to utilise the DDP showroom as a venue for live commerce events, showcasing high-quality clothing samples from Dongdaemun’s wholesale brands. The showroom features a B2B space with a sample store and various concept studios designed for content creation, attracting fashion sellers and influencers. This initiative is expected to engage approximately 900 million Chinese consumers on the Taobao platform, with participation from over 30 prominent Chinese influencers.
Kim Hyun-woo expressed optimism about the partnership, emphasising that showcasing K-fashion through the DDP showroom combined with Taobao’s global live commerce leadership could significantly enhance the visibility and sales of Seoul’s fashion and beauty products in international markets. Taobao is also set to provide substantial advertising support, estimated at up to 60 billion won annually, further supporting the initiative’s potential success.
News Source:https://biz.chosun.com/en/en-industry/2025/02/19/HPBYNXKAO5EC7H2QCAZ5JYZS5U/
(4) New Balance extends agreement with E-Land World, plans Korea branch by 2027
(Photo Credit: New Balance)
On the 17th, New Balance announced the extension of its licensing agreement with E-Land World, reaffirming their long-term partnership in South Korea. Since 2008, E-Land World has been responsible for distributing and operating the New Balance brand in the country, achieving impressive annual sales of over 1 trillion won last year. The renewed agreement will see E-Land continue as a core partner, focusing on collaboration in the children’s footwear and apparel sector until 2030.
E-Land World CEO Joo Dong-joo expressed satisfaction with the extended cooperation, highlighting its significance in reinforcing the importance of the South Korean market and strengthening the relationship between the two companies. Additionally, New Balance plans to establish its own Korean branch on 1 January 2027, to enhance communication with local consumers while ensuring that E-Land World remains a key business partner even after the branch opens.
Joo Preston, President and CEO of New Balance, stated that this decision demonstrates the brand’s commitment to engaging with global consumers and expanding aggressively in the market. He acknowledged E-Land World’s vital role in South Korea and noted that their shared vision for strategic growth will be crucial for future success.
News Source: https://biz.chosun.com/en/en-retail/2025/02/17/4HMIYOQWS5HWPK5X2LMI2MNO5Q/
