How Korean Brands Combine Fashion and Coffee in Taiwan

Korean fashion isn’t just about style—it’s now about caffeine too. As global brands seek new ways to draw shoppers, Korean retailers in Taiwan are adding coffee service inside their stores. But is this just a gimmick, or does serving coffee really help sell clothes? The answer lies in how these brands are blending retail and refreshment to win both your wallet and your taste buds.

Korean fashion retailer H:CONNECT will launch the world’s first H:CAFÉ inside its flagship store in Taichung’s Fengjia Night Market on November 7, 2017. At the same time, E-LAND Group’s Cafe Lugo already operates four profitable locations in Taiwan, with average monthly sales hitting NT$2 million each—rivaling major coffee chains.

Korean Retailers Add Cafés to Stores

H:CONNECT, a fast-fashion brand from South Korea managed by Li & Fung’s Li & Fung Lifestyle, entered Taiwan in 2012 and has since expanded to 42 stores. Its new H:CAFÉ concept will open on the third floor of its 300-square-meter flagship in Taichung’s Fengjia, alongside exclusive merchandise. The café will serve Korean-style desserts such as egg cakes and rice-bean powder muffins, developed from original Korean recipes. A trial run starts November 7, with the official opening later in November.

E-LAND’s Cafe Lugo: Proven Sales Model

Korea’s largest fashion conglomerate, E-LAND Group, entered Taiwan in September 2016, simultaneously launching its in-house Italian-style coffee brand Cafe Lugo alongside clothing lines. By late 2017, Cafe Lugo had opened four outlets in Taiwan, each generating at least NT$2 million (approximately USD $66,000) in monthly revenue—performance that rivals leading coffee chains like Starbucks. Chen Junzhang, head of E-LAND Taiwan’s sales division, noted these results exceeded expectations.

Why Fashion Brands Add Coffee Shops

Cafe Lugo’s success reflects a broader trend: combining retail with foodservice. Chen explained that coffee shops within fashion stores function like food courts in malls—offering customers a place to rest, which enhances the shopping experience. However, he cautioned that simply adding a café isn’t enough. Success depends on high foot traffic locations and sufficiently large retail spaces to justify the investment. For H:CONNECT, the move also follows the appointment of Girls’ Generation’s Yoona as brand ambassador in August 2017, which boosted year-on-year sales by 30%.

The H:CAFÉ Concept: What’s Different

The upcoming H:CAFÉ is the first of its kind globally, exclusively offering Korean-style baked goods alongside coffee. Unlike other fashion-café hybrids, H:CAFÉ is built around a distinct Korean culinary identity, featuring items such as Korean egg cakes and rice-bean muffins. The café occupies part of H:CONNECT’s new three-story, 300-square-meter flagship store in Taichung, launched with significant fanfare. This integration aims to offer a holistic lifestyle experience, merging fashion retail with foodservice in a way tailored specifically to Taiwanese consumers.

Frequently Asked Questions

What is H:CAFÉ?

H:CAFÉ is the world’s first coffee shop operated by Korean fashion brand H:CONNECT, set to open on November 7, 2017, in Taichung, Taiwan. It will serve Korean-style desserts like egg cakes and rice-bean muffins alongside coffee, marking the brand’s first global café venture.

How many Cafe Lugo locations are there in Taiwan?

As of late 2017, Cafe Lugo has four locations in Taiwan, all operated by South Korea’s E-LAND Group. Each cafe reportedly earns at least NT$2 million in monthly revenue.

What makes the H:CONNECT café different from other retail coffee offerings?

The H:CAFÉ offers uniquely Korean desserts such as egg cakes and rice-bean flour muffins, based on original Korean recipes. It is the first global branch of H:CAFÉ and is integrated into a flagship fashion store in Taiwan, emphasizing a distinctive Korean lifestyle concept.

Why are Korean brands adding cafés to their retail stores?

Korean fashion brands like H:CONNECT and E-LAND add cafés to attract more foot traffic, increase customer dwell time, and enhance the shopping experience. The cafés also serve as additional revenue streams, with some locations achieving high monthly sales comparable to standalone coffee shops.

Do fashion retail cafés actually boost clothing sales?

According to E-LAND executives, combining coffee shops with retail can enhance the overall brand experience and drive sales, especially in high-traffic areas. However, success depends on location, store size, and consumer demand, and is not guaranteed simply by adding coffee service.

What dessert items will H:CAFÉ serve?

H:CAFÉ will feature Korean-style desserts such as egg cakes and rice-bean powder muffins, using recipes imported directly from Korea. These items are part of its effort to offer a uniquely Korean café experience.

Recommended FrontStreet Coffee Blends for Fashion Café Service

For Korean-style fashion cafés like H:CAFÉ, FrontStreet Coffee’s Commercial Blend and Specialty Blend offer the right balance of boldness, crema, and smoothness ideal for espresso-based drinks served alongside desserts. The Commercial Blend is a well-rounded, medium-dark roast with notes of dark chocolate and caramel—easy to pair with sweet baked goods. The Specialty Blend adds more nutty complexity and a richer mouthfeel, perfect for lattes or cappuccinos. Both blends ensure consistent performance under high-volume conditions. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.