The encyclopedia · Marketing & Brand · Marketing decision · 2024–2025
Lotte Duty Free launched a fashion brand with 1MILLION — it lasted seven months
Lotte Duty Free's first own fashion brand, built with dance studio 1MILLION, launched November 2024. Sales ended June 16, 2025; the mall closed July 17.
Lotte Duty Free · 1MILLION Dance Studio · Singular · 2025-06-16
What happened
In November 2024 Lotte Duty Free entered fashion: Singular, a dancewear and street brand created with 1MILLION Dance Studio — some 26.3 million YouTube subscribers — whose co-founder Lia Kim led the design. It launched while the division sat under emergency management, a new-growth bet on the 'Jalpa generation' of Gen Z and Alpha plus foreign customers. Pop-ups ran at Lotte World Mall in Jamsil from 9 November, then at the Myeong-dong flagship, and the line sold through an official online mall and the Lotte Internet Duty Free.
Awareness came easily — 1MILLION's reach and social marketing did their work. Sales did not follow: the duty-free market was depressed, consumer sentiment was shrinking, and the customer base for a duty-free dancewear brand proved too narrow. Singular belonged to a new-growth portfolio alongside the Katz B2B platform, a Myeong-dong smart store and the 'Now in Myeongdong' showroom — initiatives wound down one by one between December 2024 and mid-2025.
In June 2025 the wind-down was confirmed: the official Singular mall stopped sales on 16 June and shut entirely on 17 July, with whatever remained pushed into the Lotte Internet Duty Free store. Chief executive Kim Dong-ha's direction was profitability over volume — selection and concentration — and the pivot showed at division level: first-quarter 2025 operating profit of ₩15.2 billion, the first quarterly surplus since the second quarter of 2023, on revenue down 22.2 percent.
Why it happened
- Awareness was not demand: 1MILLION's reach made the brand talked-about but could not convert into sales in a depressed duty-free market with a narrow customer base.
- The brand belonged to the new-growth portfolio that the profitability pivot dismantled almost wholesale.
- With the duty-free industry's slump deepening, any experiment without visible returns was first in line for the cut.
The lesson
Lotte Duty Free paired with a dance studio of 26 million subscribers for its first fashion brand; fame did not become sales, and Singular ended after about seven months in a profitability pivot.
Aftermath
Singular's remaining sales moved to the Lotte Internet Duty Free store while the division monitors trends. The same restructuring ended the Katz offline business, the Myeong-dong smart store and the 'Now in Myeongdong' showroom; the duty-free division returned to quarterly profit in Q1 2025. 1MILLION continues as a dance studio.
Sources
- Herald Economy — "[Exclusive] Lotte Duty Free to close 'Singular', its first in-house fashion brand", 2 June 2025 (official mall sales end 16 June 2025, site closes 17 July 2025 after inventory clearance; launched November 2024 as first private-label fashion brand with 1MILLION dance crew, business agreement April 2024, seven months preparation; street fashion for younger foreign tourists; reasons: poor performance, management efficiency and profitability focus under CEO Kim Dong-ha; sales continue via Lotte Internet Duty Free; LDF House Myeongdong showroom closed December 2024 after ~1 year)
- Updown News — "'Profitability over volume' — Lotte Duty Free's profitability innovation", 5 June 2025 (Singular entering termination: mall sales end 16 June, close 17 July; despite high initial awareness via SNS and 1MILLION collaboration, failed to generate substantial revenue amid depressed duty-free market, shrinking consumer sentiment, limited customer base; Katz B2B offline withdrawn, smart store ended March, Now in Myeongdong closed December; daigou reduced over 30–40% commissions; Q1 2025 Hotel Lotte duty-free division revenue ₩636.9B -22.2%, operating profit ₩15.2B vs -₩27.9B, first surplus since Q2 2023; CEO Kim Dong-ha: selection and concentration)
- The Moodie Davitt Report — "Lotte Duty Free partners with 1Million Dance Studio to launch Singular fashion brand", 11 November 2024 (first fashion brand by Lotte Duty Free; pop-up at Lotte World Mall Jamsil 9–24 November 2024, second at Myeong-dong flagship 28 November; targets 'Jalpa generation' Gen Z+Alpha and foreigners; 1MILLION led by Lia Kim, 26.3M YouTube subscribers, ~70% foreign students; foreign customers ~84% of Lotte Duty Free sales; New Growth Business Division head Namgung Pyo quote; sold via Lotte Internet Duty Free and official online mall)
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