[E-Daily Reporter Shin Ha-yeon ] K-fashion company #AU BRANDZ Co., Ltd is set to expand its business in Japan by launching its Japanese joint venture (JV), “AU BRANDZ JAPAN.” The company’s strategy is to continue pursuing revenue growth in China through store expansion while diversifying its growth drivers in Asia by combining its brand premium with local distribution networks in Japan.

AU BRANDZ Co., Ltd. announced on the 18th that it will fully launch its Japanese joint venture structure, centered on AU BRANDZ JAPAN, starting this month. AU BRANDZ Co., Ltd. holds a 90% stake in the joint venture, while its Japanese fashion distribution partner, TOYODA TRADING, holds the remaining 10%.

While the company’s existing Japan operations were centered on exports and wholesale, the launch of the joint venture marks a shift to a direct operating structure centered on the local subsidiary. The company expects to expand its business by leveraging TOYODA TRADING’s local distribution network and retail operational capabilities, and anticipates that the contribution of its Japan operations to consolidated earnings will increase as the joint venture is consolidated into the financial statements. The company forecasts that the revenue contribution from its Japan operations will expand to approximately two to three times the current level.

The company is also expanding its brick-and-mortar presence. It plans to officially open a store at Lumine in Shinjuku, Tokyo, this September and is working toward opening a flagship store in Osaka this November. The plan is to expand its local retail business primarily in major cities such as Tokyo and Osaka.

AU BRANDZ Co., Ltd plans to strengthen Rockfish Weatherwear’s brand identity and premium lifestyle image in Japan. The company intends to secure a stable revenue base by integrating offline retail, online channels, and local marketing efforts, with a focus on “All Season” categories such as Mary Janes and sneakers.

Its business in China is also expanding rapidly. AU BRANDZ Co., Ltd currently operates 26 stores in China and aims to establish a network of 40 stores by the end of the year. Recently, the company has been expanding its consumer reach to major Asian shopping districts, such as ION Orchard in Singapore and The Venetian in Macau.

Previously, AU BRANDZ Co., Ltd posted its best-ever quarterly results for the second quarter, with consolidated revenue of 30.3 billion won and operating profit of 6.3 billion won. Compared to the same period last year, revenue increased 2.2-fold, and operating profit rose approximately 2.5-fold. Overseas revenue expanded 5.3-fold, with revenue from Greater China alone surging 6.9-fold to 12.7 billion won.

The company is pursuing its “One Asia Platform” strategy, which connects Korea’s branding and content capabilities, China’s retail and manufacturing capabilities, and Japan’s distribution know-how. The plan is to reduce reliance on any single country by combining volume growth in China, brand premium growth in Japan, and expansion into key retail markets in Southeast Asia.

AU BRANDZ Co., Ltd. stated, “As the effect of consolidating our Japanese joint venture begins in earnest starting in August, we expect the revenue contribution from our Japanese operations to increase to approximately two to three times the previous level.” The official added, “Based on our collaboration with Toyota Trading, we will expand our key locations in major Japanese cities—such as Shinjuku Lumine and our Osaka flagship store—and actively grow our Japanese retail business.”