Rising on the wave of global interest in K-pop and K-dramas, the Korean fashion industry has carved an international reputation for its distinctive luxury street-chic and minimalist streetwear styles. This transformation reflects not only cultural trends but also significant innovations on the manufacturing side. Korean apparel manufacturers have evolved from traditional OEM roles to becoming highly capable ODMs, integrating specialized know-how, systematic processes, and comprehensive data management to add value beyond production. This approach exemplifies “glocalization”—balancing globalization with local responsiveness—a strategy that has propelled Korean companies to dominate more than half of the top ten players in global fashion manufacturing, according to financial and industry data.
Hansae, a leading South Korean apparel manufacturer established in 1982, exemplifies this evolution. The company works with major global brands such as Gap—which named Hansae Supplier of the Year 2024—Zara, Carhartt, H&M, and Vans, among others. Hansae produces nearly a third of all clothes worn in the United States today, serving a diverse portfolio of clients across casual, athleisure, and other apparel sectors. Through OEM and ODM contracts, Hansae’s garments reach large retailers like Walmart, Target in the US, and Coles in Australia. The company has strategically expanded its production footprint to six countries—Vietnam, Indonesia, Myanmar, Guatemala, Nicaragua, and Haiti—taking advantage of lower labor costs and export incentives.
The COVID-19 pandemic accelerated shifts in the apparel industry, accelerating the growth of athleisure brands such as Lululemon, HOKA, and Alo Yoga, which Hansae supported as a manufacturing partner. The pandemic also catalysed the integration of data intelligence and artificial intelligence (AI) into supply chains and production planning. Hansae has been at the forefront of this transformation, leveraging AI tools to analyse market trends and optimise production decisions in real time. For example, when Walmart placed large orders with diverse SKUs, Hansae used sales data feedback to scale production favoring best-selling colours and sizes while reducing waste from low-performing items. This shift repositions manufacturers from passive order executors to strategic partners actively shaping product offerings and market responsiveness.
Hansae’s manufacturing strategy balances global reach with localized production. Its pioneering move into Vietnam early on helped secure a competitive position in a now-established manufacturing hub. The company also operates large-scale, vertically integrated facilities such as its $300 million investment in Guatemala, consolidating spinning, dyeing, knitting, and garment production in one location. This not only reduces costs and lead times but improves environmental sustainability, responding to rising industry and governmental demands for supply chain transparency and ethical sourcing. Hansae’s diversification of production bases across Asia and Latin America provides resilience amid geopolitical tensions—particularly the drive in the US to reduce dependence on China—and enables flexibility in meeting increasingly stringent sourcing regulations, such as bans on Xinjiang cotton due to forced labor concerns.
Sustainability forms a core part of Hansae’s identity beyond regulatory compliance. Since 2019, its “10% for Good” initiative has donated a portion of profits from eco-friendly product lines to environmental causes. Hansae invests in circular economy technologies like garment-to-garment recycling and supports ocean plastic collection efforts, alongside community-focused programs such as health education and book donations for workers and children in Vietnam. Energy efficiency gains have been so significant the company symbolically powers New York City for over a day annually with saved electricity. Furthermore, Hansae fosters social responsibility and innovation equally in its workforce development, partnering with academic institutions like Hongik University to create hands-on programs for training globally competitive fashion professionals—addressing the skills gap observed even among graduates from top international fashion schools.
The global Korean fashion phenomenon is not limited to manufacturing. On the cultural front, South Korea’s influence continues to swell through “Hallyu,” the Korean wave that encompasses music, dramas, and fashion. Luxury brands increasingly tap into this trend; for instance, Louis Vuitton held its first women’s pre-fall show in Seoul in collaboration with leading Korean creatives to merge cultural influence with global marketing. Korean streetwear brands like ADER Error and STYLENANDA blend minimalism with bold, avant-garde urban styles, achieving rapid international growth and attracting significant investment from global fashion and beauty companies. The Korean fashion scene has also been a frontrunner in gender-neutral styling, breaking conventional norms with oversized silhouettes and soft palettes embraced by K-pop idols and influencers, a movement that inspires inclusive designs worldwide.
Hansae’s outlook remains expansive and adaptive. The company intentionally maintains a diversified client and product portfolio to navigate shifting retail landscapes—from specialty stores to mass markets—and to fully exploit growth areas such as activewear, swimwear, and emerging outdoor apparel segments. While the US market remains a primary focus, Hansae is broadening its reach into Europe with a new office in Barcelona serving brands like Zara and H&M, and is strengthening its presence in Japan through a dedicated design office. The company is open to operational flexibility, considering global efficiency over national headquarters location, and continues to attract top international talent.
In summary, Hansae exemplifies the dynamic integration of Korean fashion’s cultural ascendancy with cutting-edge manufacturing innovation and sustainability. Its strategic balancing of global production with local markets, investment in AI-driven supply chain agility, and commitment to ethical standards position it as a transformative leader. As Korean fashion continues to influence global trends from streetwear to luxury, Hansae’s story illustrates how industry players can thrive by embracing technological, social, and geopolitical complexities shaping the future of apparel.
Source: Noah Wire Services
