Beyond Simple Sales, Home Shopping Companies Build Their Brands—PB Competition Expands into Non-Fashion Sectors

[Financial News] Major home shopping companies are accelerating efforts to strengthen their in-house and exclusive brands. Their strategy is to move beyond simply serving as sales channels by planning products themselves and developing brands, thereby securing both differentiation and profitability. What began as competition centered on fashion is rapidly expanding into non-fashion sectors, including beauty, living, and health functional foods.
According to industry sources on the 30th, Hyundai Home Shopping Network increased the number of products, or SKUs, offered under its fashion private brands (PBs) and exclusive licensed brands (LBs) from around 140 in 2023 to more than 300 last year. Related sales first surpassed 100 billion won in 2024 and have continued to grow by more than 15% this year, following the same growth trend last year. Material LAB, its flagship PB, exceeded 10 billion won in annual sales just one year after its launch in 2024. The brand stands out for its differentiated materials, including Egyptian Giza cotton and premium Japanese fabrics. Living PB allevo has recorded cumulative sales of 50 billion won, and the company has also expanded into non-fashion categories with the recent launch of travel PB The Travel H.
At GS Shop, the expansion of differentiated products is translating into improved performance. Revenue reached 530.2 billion won in the first half of this year, while operating profit came to 56.4 billion won, up 1.2% and 18.5%, respectively, from the same period a year earlier. During the same period, the share of exclusive products increased by 12.5%, while the number of exclusive products focused on fashion, beauty, and living rose 46% year on year in the second quarter. Order value for exclusive fashion brands also climbed 15.6% in the first half. CHOR AUTHENTIC, a flagship brand, ranked first among all GS Shop brands last year with cumulative order value of approximately 95 billion won and grew 41% in the first half of this year. In the non-fashion sector, VU, GS Shop's in-house beauty brand, recorded cumulative sales of more than 210,000 units from January through August this year. Simple Bio, a health functional food brand developed from customer reviews, surpassed 100 million won in monthly sales on the mobile app and has expanded its retail presence to GS The Fresh.
Lotte Homeshopping is focusing on exclusive brands jointly developed with small and midsize partner companies. Order value for its exclusive fashion brands rose 10% year on year, accounting for approximately 40% of total fashion order value. LBL has recorded average annual order value of 100 billion won since its launch in 2016. As the brand was revamped for its 10th anniversary this year, products developed in collaboration with British brand Laura Ashley sold more than 15,000 sets during a single broadcast. neMMER, introduced last year, also sold approximately 3,000 sets during a designer collaboration broadcast last month. Outside fashion, the in-house wellness beverage El: Bottle Spike Zero has seen its average monthly order value rise by 70% since its launch and is expanding its sales channels to department stores, convenience stores, and other outlets.
Industry sources said the importance of in-house and exclusive brands is growing as traditional broadcast sales lose their competitive edge amid declining TV viewership and high broadcasting transmission fees. These brands allow companies to take the lead from the product-planning stage. A Hyundai Home Shopping Network official said, "We plan to continue expanding a diverse range of in-house brands tailored to customer demand, spanning fashion, living, travel, and more, regardless of whether the offerings are tangible or intangible. To that end, we operate a dedicated department for planning in-house brands and are continuing to increase its staffing."
[email protected] Kim Hyun-ji Reporter