Lululemon opens logistics center in S.Korea

Global sports brand Lululemon Athletica Inc. opened its first logistics center in South Korea. It's located in Icheon, Gyeonggi Province. 

This marks Lululemon's third logistics center in the Asia-Pacific region, following Hong Kong and Australia. The company aims to accelerate its efforts to establish a strong presence in the key Asian market by shortening product delivery times.

Through the Icheon logistics center, Lululemon plans to reduce product delivery and exchange/return times. "Previously, orders from Korean consumers were shipped from the logistics center in Hong Kong to Korea," a Lululemon source said. "With the establishment of the Icheon logistics center, we will be able to provide faster and more efficient delivery and exchange/return services." 

Lululemon's decision to invest heavily in South Korea stems from the rapid growth of the market, which it deemed necessitated the need for a dedicated logistics center. According to the Financial Supervisory Service, Lululemon Athletica Korea recorded sales of 85.2 billion won ($62.9 million) for the fiscal year 2022 (from February 2022 to January 2023), a 46.6% increase year-over-year. Operating profit showed an 80.0% increase, reaching 3.6 billion won ($2.66 million).

Lululemon currently runs 18 stores in South Korea and has expanded to non-capital regions, opening brick-and-mortar stores in Daegu in September, and following stores in Busan and Daejeon.

"South Korea is a trendsetter and a key market that influences other markets in the Asia-Pacific region. We established the logistics center to respond quickly to various demands," said Gareth Pope, Senior Vice President for Asia Pacific at Lululemon Athletica.

Write to Kyeong-je Han at hankyung@hankyung.com