In collaboration with 29CM, a brand that celebrates its 10th anniversary this year, high-speed growth material quality improvement returns average 5% per month, so a wide range of popular best-selling products regardless of age are knitwear
“URAGO,” a fashion brand widely loved by women in their 20s and 40s, exceeded 10 billion won in sales last year. U-Lago, which captivated women with its comfortable silhouette and neat yet easy-to-wear design, has set a record of doubling sales every year since its brand launch in 2015. Based on this growth, the company set a goal of achieving 20 billion won in sales this year. Q1 performance has already exceeded its target.
The recent rapid growth of the euro is inseparable from Select Shop 29CM. This is because transaction volume and fandom increased sharply as collaboration began to be strengthened in 2022. As of last year, 29CM transactions alone exceeded 6 billion won. In addition, Yurago’s summer collection, which was introduced through 29CM’s content “Showcase Plus” in June last year, more than doubled the transaction amount in the month of June compared to the same period last year.
Why do so many women love Yuga. At the Hannam-dong flagship store in Yuro, which recently completed its renewal, I met with CEO Hong Yu-ra, the founder and CEO of the brand, and asked him about the secret of his brand’s popularity.
▷Yurago’s growth is great. 10 billion won in sales, how do you feel.
-After launching the brand in 2015, we continued to lose money for the first four to five years. But I didn’t feel like I should fold it. Actually, at that time, there were few brands like Yu-ra, so it was difficult for me to make the way I had to go. I endured by making everything from the packaging box design to the things I’ve never done before. I think it was possible because there were customers who increased little by little every year. I’m proud that I’ve been doing it steadily without getting tired and giving up.
I’m curious about how you came to make ▷ Yuga.
-Ten years ago, the term designer brand was unfamiliar. Around the time of the start of Yugo, when men’s brand launches were active at Musinsa, I noticed that the domestic fashion market gradually changed from bonded to a market that preferred brand consumption. That’s why I decided to create a brand. Also, I’ve always had a lot of interest in fashion. major in fashion design I changed my major to metal craft design, but I eventually turned around and became a fashion designer again.
How was the brand name ▷ Yuga born? Is it from the CEO’s name.
-That’s right. I’ve had a long-cherished dream of launching a brand under my name. It was a dream that I was desperate enough to put my name on it.
▷What is the amazing item that made the current Yuro.
-The most popular products are knitwear. Nits account for more than 30% of the products in yurago. In fact, knitwear is an item that requires expertise more than other product lines. There are many fashion design majors in Korea, but few majored in knit design. As I started my social life as a knit designer, it was relatively easy to make knitwear in Yurago.
Then, the product that became very popular is the Jacquard Hoodie Cardigan. It was released in the fall of 2023 and has now established itself as a steady seller for the FW season. Also, a popular product for the spring and fall season is the Mac Half Trench Coat. It is so popular that it is ranked in the popularity of 29CM women’s outerwear during the change of seasons. It was released in February 2022, and it recorded more than 2.5 billion won in cumulative sales as a single product.
If you have a memorable product in the process of making ▷, can you tell me with an episode.
-Our product came out on a broadcasting entertainment program ‘Camping Club’ in 2019. Fin.K.L member Sung Yuri appeared in a Kachion jumpsuit. From that day on, when I sleep and wake up every morning, my order has doubled and tripled. It was an opportunity to promote Yuro to many customers. It was enough to pay off the four-year debt that had accumulated since the brand launch. The team members put off their summer vacation, but I have a special memory of wrapping and delivering the good news with joy.
▷I heard that the return rate is very low. How much is it.
-Yurago’s product return rate is low, averaging less than 5% per month. Usually, the return rate is around 20 percent in the industry, and even if the actual return rate is less than 10 percent, it can be said to be a brand with high customer satisfaction. It has consistently maintained a product return rate that is definitely lower than the industry average. U-Lago is conducting inspection directly inside before sending the goods to customers. Continuously raising materials and making materials and diversifying sizes from the customer’s point of view will also be a factor in reducing the return rate. According to the customers’ reviews, there were many opinions that they were satisfied when they received and tried on the actual product.
▷When taking a lookbook or introducing a product on Instagram, if there is a principle that you consider important to express your identity well.
-Every time I release a lookbook once a month, the most important thing is to suggest a mood that customers can easily combine. In a word, it can be said that it is based on a lookbook that can be referred to from the perspective of the wearer. Recently, we also conducted a survey of our customers. There were a lot of people who asked me to show them a lot of lookbooks with various styles of yurago products because it can be a monotone background. We listen to these customers’ voices and make our styling content really colorful. We continue to focus more on suggesting styling and coordination in the direction our customers want.
▷I think there will be a lot of inquiries from various distribution channels, so can you share your plans to expand your distribution channels in the future.
-Actually, I thought I should focus on online during COVID-19, and I’ve been strengthening my collaboration with 29CM since 2022. At that time, 29CM was a time to expand competitiveness in women’s fashion, so it was a good time to grow together. In particular, I think 29CM’s strategy of expanding its portfolio to women’s fashion brands in a variety of moods, from casual to feminine styles, created synergy with the growth of Yuro. Yu-ra is a brand that can be harmonized with various fashion styles because simple styles dominate.
However, in recent years, there have been more requests for entry on various distribution channels, and customers have also increased their demands to meet Yuro at offline stores. So this year, we’re going to meet our customers through a pop-up store. Earlier this year, we also set up a new team dedicated to offline pop-ups. From now on, there will be a Yurago pop-up in various places.
▷If you could advise the CEO what fashion means and juniors who dream of starting a fashion brand.
-I enjoyed this job a lot. I think I was able to endure even though it was hard and difficult because I was happy and happy. In the end, I think the answer to life is ‘to endure and continue to do it’. If you focus on one area, a good day will come someday. It’s a value I’ve learned from running the brand steadily for 10 years. I hope you believe in yourself and continue to challenge yourself.
