The Rise of Hannam Flagships and 4 District Formulas

Gorpcore brand SAN SAN GEAR has opened its first flagship store in Hannam-dong. Fashion brands including Massimo Dutti, Toomuchtax, aerse, and LE17SEPTEMBRE are setting up hubs in Hannam-dong one after another. With global brands such as On, Alo Yoga, Gentle Monster, Marine Serre, and Diesel joining in, Hannam-dong has firmly emerged as a key strategic location for flagship stores.

If Seongsu-dong, packed with pop-up stores, has been the center for building brand awareness over the past several years, Hannam-dong has recently been making its presence felt as another key hub where brands settle their worldviews.

We've summarized the decisive difference between Seongsu and Hannam, and why brands are choosing Hannam-dong, into four key formulas.

Buzz in Seongsu, Settling Down in Hannam

Seongsu-dong and Hannam-dong play clearly distinct roles as shopping districts. If Seongsu-dong is the "epicenter of buzz," generating attention through short-term pop-up stores and drawing in the MZ generation and visitors, Hannam-dong is the "street for settling down," where brands establish their worldview through flagship stores and build steady sales and fandom.

As a result, a growing number of brands are following a hub expansion path of "entering Seongsu with a pop-up → settling in Hannam with a flagship." It's a structure that turns the brand momentum secured in Seongsu into a tangible offline experience in Hannam-dong.

High-Spending Resident Demand and a More Refined District Structure

Behind the practical reasons for choosing Hannam-dong is a stable consumer base. With high-end residential complexes such as Nine One Hannam and Hannam The Hill nearby, there's a substantial resident population with high spending power. Unlike districts with large swings in foot traffic, it's an environment well suited to securing stable, steady sales.

Changes in the district's makeup also support this trend. Hannam-dong's vacancy rate remains low at around 11%, and as the district's structure, once dominated by F&B (about 70%), has been reshaped to roughly 50% F&B and 45% retail, it is transforming into a retail-centered premium district.

The Positioning Effect Created by Location

Global luxury and premium brands are already concentrated in Hannam-dong. Simply opening a store in a hub where major brands have settled effectively conveys a brand's tier and positioning.

For emerging brands, a Hannam-dong flagship goes beyond marketing buzz, serving as a permanent hub that draws in both high-spending customers and inbound international shoppers.

A Location That Draws Global Inbound Tourists

Hannam-dong has become a must-visit destination not only for high-spending Korean consumers but also for international tourists. Given its location, where the calm of a luxury residential area meets global shopping trends, it has the advantage of drawing in both resident demand and inbound customers at the same time.

This means flagship stores go beyond spaces targeting only Korean customers, simultaneously serving as "global showrooms" that introduce the brand to international consumers visiting Korea.

💡 Fashion Business Insights

• Brands: Design a space strategy by stage
  It's necessary to determine whether the brand's current stage calls for building buzz or for cementing its worldview and settling its fandom, and to build a multifaceted location strategy across Seongsu (pop-ups) and Hannam (flagships) accordingly.
• Marketers: Use store location as a positioning asset
  A flagship store's location goes beyond the concept of a simple real estate lease; it's a key marketing message that determines a brand's credibility and standing. Choosing a location with synergy with neighboring brands in mind is important.