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.