Shinhan Korea (CEO Kim Han-cheol)'s golf wear brand 'JDX' has successfully improved body shapes. It is seeing significant effects from the efficiency improvement efforts it began two years ago. 

The company has restructured its brand focusing on ▲store condition upgrades and ▲improving planning accuracy. Since last year, each store's sales have returned to growth compared to the previous year, and the growth trend has been maintained even into this year, as the golf market enters a stable period.

First and foremost, JDX upgraded its distribution network to increase product turnover. By reducing inefficient stores and supplying their inventory to upper-mid-tier stores, they maximized sales. Despite reducing the number of stores from 271 in 2020 to around 230 at present, total sales remain at the same level as the previous year. Per-store sales have increased by about 15%. They are aggressively pursuing distribution network upgrades through measures such as improving the locations of existing stores and developing new commercial areas.

Efficient distribution and inventory depletion are being pursued simultaneously. At the same time, JDX focused on reducing inventory levels and increasing planning accuracy. With 70% of its stores operating on a limited basis, the company determined that reducing inventory and increasing the proportion of new products are essential to keep the brand fresh and foster growth.

Over the past two years, the company has made concerted efforts to deplete its inventory. Unlike other brands that have reduced production of new items from this Spring/Summer collection onwards, JDX has expanded its production of new items by 10% compared to the previous year. Currently, efforts are being made to enhance the capabilities of employees to further increase planning accuracy.  Hyuntae Lee, the Executive Director of Sales at Shinhan Korea, who joined the company at the end of 2020 and led overall changes, stated, "Sales team members need to understand not only sales but also product planning, production, and logistics to effectively manage operations. We developed our capabilities in business by improving store conditions and going beyond allocating inventory to increasing insights gained from sales operations, thereby enhancing planning and inventory accuracy."

He further explained, "The sales team consists of approximately 28 employees, with five managers at the level of assistant manager or higher, and the rest are operational staff. Due to the very young and dynamic atmosphere within the team, we were able to drive change and enhance the team's capabilities. In 2021, employees followed the company's instructions, and last year, it was a stage of mutual agreement. This year, we have progressed to a stage where employees are taking the initiative to propose ideas."

With an annual revenue of 150 billion won and the nurturing of 24 lines, JDX is determined to revitalize its distribution by attracting new mega stores in core commercial areas, aiming for a jump in annual revenue to the 150 billion won range.

Additionally, there are plans to enhance sales of the 'X24' line, targeting younger demographics, to keep the brand fresh. Currently, the brand consists of three lines: the performance-oriented 'X1' favored by golf professionals, the everyday-wearable 'X2', and the trendy 'X24' line with a Korean-English fusion sensibility.

By further highlighting the characteristics of X1 and X2 and segmenting products, efforts will be made to foster the X24 line, which can appeal to sophisticated golfers in the 30-40 age group.

The company is also diversifying its global expansion. With exports of approximately 1 billion won annually through its US branch, JDX America, discussions are underway for direct exports to Thailand following the US market. In addition, plans include further streamlining and diversifying distribution, including the addition of a company-owned mall with an annual revenue of 10 billion won.

[Fashionbiz=Reporter Kang Ji-soo] ＜Copyright ⓒ Fashionbiz, Unauthorized Reproduction and Redistribution Prohibited＞ 

Source: http://www.fashionbiz.co.kr/TN/?cate=2&recom=2&idx=200395