Korean brand F&F's $903 million business in China with MLB apparel showcases potential through diversification

Like many other brands, the prevalence of MLB merchandise in the People's Republic of China has undergone a decrease in popularity in the nation of over 1 billion. Owing to a consumer reorientation towards domestically-produced goods, several western brands has found doing business in the Middle Kingdom substantially harder.

However, some firms have found a way to circumvent this change in domestic consumption, spurred on by the trade war between the USA and China.

F&F, a South Korean fashion firm, has reported sales of some $903 million in Mainland China selling MLB branded items over the past three years recently. The high sales figures are a result of a 1997 licensing agreement between F&F and thw league, which paved the way for the firm to sell North American baseball apparel in China.

Much of the branded MLB items that are sold in China differ from similar goods on the US market. Some of the branded material includes swimsuits, and non-athletic jackets. For the upcoming series between the Los Angeles Dodgers and San Diego Padres in Seoul, F&F has also released some products not available in the US market.

"F&F (official licensee of #MLB caps and apparel in Korea) just released new #Dodgers and #Padres caps for the #SeoulSeries (These are only available for sale in Korea for now)" - Daniel Kim

Since F&F was established in 1992, licensing in inaccessible markets has been a big part of their strategy. In 2012, the South Korean firm partnered with US media giant Discovery Inc to produce a line of outdoor fashion pieces, known as the Discovery Expedition brand.

Unlike other brands, which rely on importing foreign apparel, F&F has been able to work independently.

MLB jersey change controversy will be among risks threatening F&F

As the new season enters its beginnings, fans do not know what to think about MLB jerseys, even in America. Through a three-way licensing agreement with Nike and Fanatics, a new line of jerseys have been announced. However, they have not been too popular, with Philadelphia Phillies shortstop Trea Turner even claiming that "everyone hates them".

Although F&F's strategy in China has worked exceedingly well, it is not immune from risks. If MLB keeps opening avenues to radically change jersey designs and schemes, then perhaps the Chinese market will lose interest in F&F's offerings. Otherwise, head over to China to pick up the latest edition of a Major League Baseball swimsuit.