[THE INVESTOR] Japan-based fast fashion brand GU, a sister brand of Uniqlo, will open its first outlet in Seoul on Sept. 14.

“We hope to have a synergy effect in the Korean market,” GU CEO Osamu Yunoki said in a statement.

Fast Retailing in 2006 launched GU, which is a brand that sells products 20 to 30 percent cheaper than its sister brand Uniqlo. GU said it is currently discussing the overall prices of items that will be sold in Korea. The first GU outlet, which spans around 1,390 square meters, will be located on the first floor of Lotte World Mall in Jamsil, Seoul.

The Korean fast fashion market has grown dramatically in the last 10 years, from being worth 500 billion won to over 3.7 trillion won.

Many industry sources expect GU to be successful in Korea due to the outstanding performance of Fast Retailing’s sister brand Uniqlo.

Uniqlo is currently the top fast fashion brand in Korea with around one-third of the market share here. The Japanese brand entered Korea in 2005, and it is the only foreign fast fashion brand in Korean to have reached more than 1 trillion won in sales for three consecutive years, with more than 30 billion won of operating profit in 2017.

GU currently has over 393 stores worldwide, including outlets in Japan, Hong Kong, China and Taiwan. The brand’s sales increased by 6 percent, reaching 199.1 billion yen (US$ 1.77 billion) in 2017.

By Song Seung-hyun(ssh@heraldcorp.com)