Winter coats are displayed at an Eider shop in the shopping district of Myeongdong, Seoul, Monday. Yonhap
Affordable fast-fashion brands see rising numbers
By Ko Dong-hwan
The country’s largest fashion product makers saw a slump in sales last year compared to the previous year, as shifts in weather patterns caused by climate change have led to reduced spending on pricey winter items. Soaring retail market prices in the country last year also discouraged purchases, affecting companies’ sales.
In contrast, fast-fashion brands enjoyed brisk sales as more consumers became price-conscious amid the sluggish economy.
Four major fashion companies in the country saw sales and operating profits in 2024 drop from the previous year. Samsung C&T’s fashion department, which logged the highest sales among companies last year with brands like Beanpole and Menswear, saw its sales drop by 3 percent from 2.05 trillion won ($1.42 billion) in 2023. Operating profit dropped from 194 billion won in 2023 to 170 billion won, down 12 percent.
F&F, which logged the second-highest sales and highest operating profit among the four companies in 2024 with brands like MLB and Discovery, saw 1.89 trillion won in sales last year, a drop of 4 percent from 1.98 trillion won in 2023. Operating profit remained at 450 billion won last year, down 18 percent from 552 billion won in 2023.
During the same period, Handsome, a fashion arm of Hyundai Department Store, suffered a 3 percent drop in sales to 1.48 trillion won, while operating profit sank 36 percent to 63.4 billion won. Shinsegae International, with luxury brands like Giorgio Armani and Brunello Cucinelli, saw sales dipping 3 percent to 1.3 trillion won, with operating profit plunging 45 percent to 28.6 billion won.
A SPAO shop in Seoul's Myeongdong area is crowded with visitors in this November 2023 photo. Korea Times file
Market experts said companies that relied on temperature changes and seasonal styles for revenue saw lackluster sales during the fourth quarter of last year. With the winter season starting, the last four months of the year are considered the most lucrative period for fashion firms as they sell expensive winter coats and heat-insulating items.
But last year saw the winter season arrive later than usual, with subzero temperatures starting to hit the country in December. This led to a delay in consumers’ winter needs, slowing down companies’ sales in 2024.
Slowing domestic consumption due to the rise in retail market prices in 2024 also contributed to the companies’ reduced sales. Fashion is known as one of the retail categories people consider least essential, especially during a market freeze.
According to Statistics Korea, the country’s retail sales index in 2024 dropped by 2.2 percent from the previous year, with the clothing and shoe category seeing a drop of 3.7 percent from the previous year.
In contrast, the performance of fast-fashion brands saw a jump in sales during the same period.
FRL Korea, which operates Japan's Uniqlo stores here, saw its 2024 sales increase by 15 percent from the previous year to 1.06 trillion won while operating profits climbed 5.4 percent to over 148 billion won.
Korean firm Topten10 is projected to reach a double-digit percentage sales jump to 1 trillion won in 2024 from the previous year. The company’s 2023 sales logged 900 billion won, up 15.4 percent from the previous year’s 780 billion won.
SPAO, a subsidiary of Korean conglomerate Eland Group, also estimates its sales from 2024 will reach 600 billion won, up from 480 billion won in 2023 and 400 billion won in 2022.
English (United States) ·