April 26, 2024

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[THE INVESTOR] French fashion brand Chloe is offering a 50 percent discount for its entire collection including newly arrived merchandise, a steep and untimely markdown for a luxury house.

The first markdown started in late September starting at 30 percent and has been expanded to the whole range offered at half the price. Knitwear and small goods are available at up to 80 percent off the original price tag. 

This was initiated by Handsome, a subsidiary of Hyundai Department Store Group, which failed to extend the import and sales agreement with the French label that ends in January 2017.

Instead of Handsome, Chloe has chosen Shinsegae International as its new partner, reportedly broaching the deal first, according to Korea Business Daily on Nov. 13.

Even considering that Handsome would not want to be burdened by the remaining stock, it is not common for a luxury fashion brand to give steep discounts, especially at a department store.

This is the third time an international luxury label introduced by Handsome has chosen Shinsegae instead of renewing the contract: Givenchy and Celine opted for Shinsegae International in 2012, right after Hyundai Department Store Group bought the 34.64 percent stake in Handsome for 420 billion won.

By Hwang You-mee (glamazon@heraldcorp.com)