KOSPI 10,000 Era, Why Are Consumer Goods in Crisis? The Possibility of K-Shoes as Told by the Korean Footwear Industry | Cho Sung-won, Elcanto CEO [Weekend Interview]

Summary

Elcanto CEO Cho Sung-won traces the history of the Korean shoe industry, from rubber shoes to the leather shoe boom and the collapse of formal footwear due to lifestyle changes. He argues that AI is creating a paradigm shift where small consumer brands can thrive, and that investors should look beyond crowded AI/semiconductor/defense plays to consumer goods for alpha. The discussion draws parallels with K-beauty's global expansion and outlines Elcanto's own turnaround strategy, including a new premium comfort brand.

• Korean shoe industry evolved from rubber shoes to formal leather shoes and later to sportswear, with the leather shoe market collapsing as lifestyles became casual.
• Elcanto once exported shoes to New York in 1963 and was a top domestic brand before struggling through the IMF crisis, commodity vouchers, and shifting demand.
• The guest sees AI as a disruptive force that reduces the advantage of large capital, allowing smaller consumer brands to succeed through networks and personalization.
• K-beauty's global success, driven by ODMs like Kolmar and Cosmax and platforms like Musinsa, serves as a template for Korean shoe brands to expand globally.
• Elcanto is pursuing a margin-up strategy and launching a new premium comfort shoe brand 'Deep' using high-end wool materials.
• The CEO suggests that consumer goods offer alpha opportunities in an AI-dominated market, citing APR's 24% margin vs LG H&H's low margin as evidence of strong brand potential.
• The conversation positions K-shoes as a potential follow-up to K-beauty, aiming for global recognition with quality and cultural branding.