Expanding the Frame
At 2 p.m., in the VIP room of Royal Department Store.
Vice President Kim Jun-hyuk welcomed Seung-hyun with formal courtesy.
Behind him stood Executive Director Bang Sang-hoon of the sales strategy office, along with two staff members.
“President Jung, thank you very much for coming today.”
Seung-hyun bowed lightly in greeting.
The last time they had met, at the Promemoria launch party hosted by Mirae Department Store, it had not been a pleasant memory. He had not expected to see him again so soon.
So this was what people meant when they said one should always stay humble?
Kim Jun-hyuk’s manner now was so impeccably polite that it was hard to believe this was the same man who had looked down on him with those dismissive eyes at the party.
“Thank you for inviting me.”
The two men sat across from each other at the table.
With a friendly smile on his face, Vice President Kim Jun-hyuk got straight to the point.
“President Jung, our Royal Department Store was deeply moved by the elegance, comfort, and ease embodied in the bedding brand GyeolBit. We were also disappointed that it could only be enjoyed overseas. How can it be anything other than discriminatory that Korean consumers cannot enjoy bedding produced by a Korean company?”
His smooth talk surprised Seung-hyun a little.
At the party, this man had brushed him off so casually. Could someone really change this much just because the situation had changed?
“Ah, yes...”
“What if you now sold the GyeolBit bedding that overseas consumers have praised so highly, right here in Korea? Our Royal Department Store is prepared to support a spectacular domestic launch for GyeolBit. We can provide marketing on a level beyond the collaboration between Mirae Department Store and Promemoria.”
Honestly, it was ridiculous, but Seung-hyun kept it off his face and asked, “What kind of plan do you have in mind?”
Vice President Kim glanced at Executive Director Bang Sang-hoon, who immediately turned on a tablet and began the presentation.
“What we are proposing is not a simple placement, but a partnership. We plan to create a dedicated GyeolBit space throughout the department store event hall, fully realizing the brand’s world. In addition, through an intensive marketing campaign during the first three months, we will strongly establish GyeolBit among Korean consumers.”
Vice President Kim Jun-hyuk continued, “Most important of all is the guaranteed minimum sales amount. For the first year, we will guarantee monthly revenue of at least 500 million won. No other department store can offer terms this bold.”
Seung-hyun was honestly taken aback by their proposal.
Royal Department Store’s aggressive attitude went beyond what he had expected.
He could vaguely understand what was driving their presentation.
“It is certainly a pretty attractive proposal.”
“Frankly speaking, its scale is in no way inferior to the high-end luxury invitation events held overseas until now.”
“But GyeolBit has never been sold domestically before. It has only been produced for export overseas. I think it will take time to adjust the lineup for the local market.”
Kim’s smile remained confident.
“We’ve already considered that. Our MD team can actively support you in organizing a collection that fits Korean consumers’ tastes. And the launch timing can also be adjusted to match your company’s preparation schedule.”
Seung-hyun nodded at Kim Jun-hyuk’s passionate pitch, but he still could not fully shake off the discomfort he had felt at their first meeting.
And more than anything, he could not ignore his relationship with Cha Hee-ju.
“Thank you for the good offer. I’ll review it internally and get back to you.”
At a response that was neither positive nor negative, Vice President Kim Jun-hyuk finally let go of his business smile and spoke with a more natural expression.
“I remember the first time I met you, President. At the time, I was careless toward you because I was busy talking with Cha Hee-ju, wasn’t I?”
Calling that “careless” was impressive in its own right.
“Well, I mean...”
“What I said about being deeply impressed by GyeolBit bedding wasn’t just lip service. I never imagined high-end luxury bedding of that caliber would come out of our country. That’s why I hope this launch event can become more than just a sales opportunity for the GyeolBit brand. I want it to be a chance for Haesol Textile, which has limitless potential, and our Royal Department Store to grow closer.”
He was smoother than oil on the tongue.
“Yes. I understand.”
“Please take your time to review it fully before making a decision. We’ll be ready whenever you are.”
As Seung-hyun left the meeting, he fell deep in thought.
Royal Department Store’s offer was undeniably attractive.
But when he considered his relationship with Mirae Department Store, especially his connection with Cha Hee-ju, it was not something he could decide lightly.
*
Busan, Hwa-in Trading.
President Kang Min-ho stared at the box that had arrived by courier.
It was a fabric sample sent from Haesol Textile, and his expression as he examined it was a mixture of fatigue and tension.
Beyond the office window, the factory interior looked desolate.
The machines that had once hummed busily with military uniform production were now mostly still.
“So this is the fabric?”
President Kang muttered as he opened the box.
Inside were neatly folded swatches of gray-toned fabric. They had said it was 100 yards’ worth, but it looked smaller than he had expected.
He pulled some out and ran his hand over it.
The outer face felt fairly firm, but overall there was a softness to it.
“What, are they saying this can be used for military uniforms? No way this gets through...”
After feeling the fabric for himself, Kang was deeply disappointed.
For Hwa-in Trading to be sold, the sample made from this material had to pass the Defense Acquisition Program Administration’s tests, but he could not imagine this fabric making it through.
To be honest, even when he first heard that Haesol Textile wanted to acquire his company, he had been skeptical.
Who would try to buy Hwa-in Trading, with its 4.1 billion won in debt and aging equipment?
He took the fabric and called over the production team leader.
“Make a military uniform sample with this fabric. Use a digital pattern. Since they’re saying the Defense Acquisition Program Administration will test it, make it as carefully as you can.”
The production team leader took the fabric and studied it for a moment.
“Which company is this fabric from?”
“Haesol Textile. They’re the ones trying to buy our company. If this passes, our company gets sold, and you get your paycheck next month.”
“Oh, really? Then we’d better make it well, no matter what.”
The production team leader nodded, steeling himself, and Kang Min-ho merely nodded absentmindedly in return.
For him, there was only one thing that mattered: whether this deal went through and the company’s debts were finally cleared.
For the past three years, he had even drawn down his personal assets to keep the company alive, and now he had no strength left to keep going.
“Anyway, make it well. If this goes well, maybe our company can be saved too.”
“Yes, sir. I’ll put my heart into it, stitch by stitch.”
The production team leader took the fabric and headed for the workshop.
Kang Min-ho stood by the window and let out a sigh.
It had been more than twenty years since he started the company, and there had once been a time when annual sales topped 10 billion won and everything was going smoothly. But after losing the military uniform supply contract a few years ago, the decline had been swift.
Now the factory was running at less than 30 percent capacity.
This might be the last chance.
He looked out the window and thought it over.
If the acquisition by Haesol Textile failed, he would have no choice but to file for bankruptcy.
He waited with his mind full of worry, and then, a day later, the production team leader came back carrying a freshly finished military uniform and said in amazement, “President, what is this fabric? It’s incredible.”
Kang Min-ho looked over the completed uniform with a doubtful expression.
Outwardly, it looked no different from an ordinary military uniform.
It followed the standard design exactly, with digital-patterned top and bottom pieces.
“What’s so special about it?”
“Try wearing it. Or at least touch it.”
Kang lifted the uniform with a puzzled look.
And in that instant, his expression changed.
The uniform was astonishingly light.
He slowly ran his fingertips over the texture of the cloth.
“Is this... really a military uniform? This looks like someone just printed a uniform on cloth. Is this really going to pass?”
The production team leader laughed and nodded.
“I was worried about that too. But try it on. It has great stretch, and the breathability is excellent. It also absorbs sweat well, but the most surprising thing is that it has a bit of water resistance, so it doesn’t get soaked easily.”
“Really? It’s that good?”
“Yes! And it weighs only about 70 percent of a regular uniform. On top of that, the elasticity is excellent, so it’s incredibly easy to move in. It’s better than any fabric we’ve ever worked with.”
Kang Min-ho held up the uniform top and brought it toward the window.
In the sunlight, he could see the fabric’s weave glinting faintly, and he rubbed it lightly between his fingers.
It felt soft, yet strong.
Now he could understand why Haesol Textile had taken an interest in his company.
“It’s done. It’s really done...”
He gripped the finished uniform, his hands trembling.
At last, he could begin to picture the debt that had weighed so heavily on his shoulders being wiped away in a single stroke.
*
Several days later, at Hanil Global headquarters.
Seung-hyun listened carefully as Executive Director Han Se-gyeol conducted the presentation on entering the Japanese market.
On the conference room screen were projected analyses of the Japanese fashion market and graphs showing Lesser Factory’s market fit.
“Lesser Factory’s Dual-Tex fabric aligns perfectly with the needs of Japanese consumers. They are especially sensitive to functionality and quality, while also tending to value price-to-performance. In that respect, Lesser Factory can have a major competitive edge.”
The staff presentation laid out in detail, with concrete numbers and data, how much of a chance Lesser Factory had in Japan.
The comparative analysis against local SPA brands such as Uniqlo, the purchasing power of the target consumer base, and even the projected market share had all been carefully calculated.
“According to our analysis, Lesser Factory can aim for roughly 2 percent of Japan’s mid- to low-priced casualwear market in its first year. That corresponds to about 20 billion won in sales.”
Seung-hyun was deeply impressed by the number.
Hanil Global’s thorough market research and analytical power were clearly a strength of a major corporation.
But Executive Director Han Se-gyeol soon raised one concern.
“That said, stable production capacity is essential for entering Japan. Given Haesol Textile’s current output, I’m concerned whether you can handle domestic demand and Japanese exports at the same time. Japanese consumers, in particular, place great importance on consistent product quality and reliable supply.”
“I’ve been worrying about that as well. Right now, I’m reviewing several options for expanding our production facilities.”
Han Se-gyeol’s eyes brightened.
“Do you perhaps have something concrete in mind?”
Seung-hyun did not mention the Hwa-in Trading acquisition directly.
“Nothing has been finalized yet, but I think there will be a decision soon that can significantly increase our production capacity.”
“In that case, there’s nothing better. Hanil Global has more than twenty years of experience and a solid distribution network in the Japanese market. We’ll be the best partner for Lesser Factory’s entry into Japan.”
The meeting continued for another hour and a half, and Seung-hyun was able to hear a concrete roadmap and marketing strategy for entering the Japanese market.
Then, just as the meeting was nearing its end, President Jeong Man-sik walked in.
“That’s all, is it? Good work, everyone.”
As the executives bowed and left, leaving the two of them alone, President Jeong said to the puzzled Seung-hyun, “What brings you here...?”
He looked a little embarrassed as he sat down opposite Seung-hyun and continued, “Since I came to the company, I thought I’d at least stop by to say hello, and I also wondered if I might ask you for one more favor.”
“Ah... I was planning to greet you before leaving, of course. What’s the favor?”
He drew in a breath for a moment, then began.
“As you know, our own brand, Motion-X, has had a very poor sales year. But one thing we can be grateful for is that we’ve left our competitor Vian far behind in revenue. The reason we’ve been able to secure that competitive advantage is Aero Coolbreeze, our functional fabric.”
Seung-hyun nodded.
“I agree with that assessment as well.”
“I heard that Haesol Textile has been handing over fabric-related technology and patterns to Roche Bobois and earning royalties from it. Is that true?”
How had he heard about that too?
“Yes, that’s correct.”
“I see. It’s remarkable, really. I don’t even know how many innovations Haesol Textile has achieved since President Jung Seung-hyun took the helm.”
“That was mostly luck...”
“You don’t need to be modest with me. I know very well how incredible that is. In that sense, I’d like to make you one request, and one proposal.”
“What is it...?”
“Would you be willing to collaborate with our outdoor brand, WindRover?”
“Pardon?”
“Of all the companies I’ve seen so far, I haven’t found one that develops fabric as well as Haesol Textile. WindRover is an outdoor brand exported to 30 countries. If the results are good, you could generate a substantial income from royalties alone.”
At the unexpected offer, Seung-hyun found himself unable to answer for a moment.