Uniqlo reclaims 1 trillion won in annual sales in Korea

Uniqlo reclaims 1 trillion won in annual sales in Korea

최초입력 2024.12.09 11:38:42

Uniqlo, a leading Japanese fast-fashion brand, has regained its position in South Korea‘s “1 trillion won ($700 million) club” six years after a significant decline in sales. The brand’s annual revenue, which had fallen to 500 billion won in 2021 due to the Covid-19 pandemic and a widespread boycott of Japanese products, has doubled in three years. Uniqlo now joins Nike and The North Face as one of only three single-brand fashion labels in Korea to surpass annual sales of 1 trillion won.
On Sunday, FRL Korea, a joint venture between Japan’s Fast Retailing (51 percent stake) and South Korea‘s Lotte Shopping (49 percent stake), reported in its latest audit that Uniqlo’s South Korean revenue for the fiscal year ending August 31st, 2024, hit 1.06 trillion won, up 15 percent from 2023. Operating profit rose 5.4 percent year-on-year to 148.9 billion won, while net profit grew 3.8 percent to 132 billion won. This marks the brand‘s return to the “1 trillion won club” after six years, supported by consecutive double-digit growth in sales.
Uniqlo first entered the South Korean market in 2005, gaining rapid popularity as fast-fashion brands grew in demand. Uniqlo became the first single-brand fashion retailer in South Korea to surpass annual sales of 1 trillion won by 2015 and its revenue peaked at 1.37 trillion won in 2019, making it the highest-grossing fashion brand in the country. At its height, Uniqlo operated 187 stores nationwide and accounted for a 4.7 percent share of Korea’s apparel market, according to Euromonitor.
However, sales plummeted in 2020 following the “No Japan” boycott triggered by Japan‘s restrictions on semiconductor material exports to Korea in 2019. Annual revenue bottomed out at 582.4 billion won by 2021, less than half of its peak.
The brand’s recovery is attributed to improved South Korean-Japan relations and shifting consumer sentiments. The fading “No Japan” sentiment, coupled with increased travel to Japan due to a weak yen, has softened resistance to Japanese brands. Additionally, fast-fashion brands such as Uniqlo have gained renewed appeal as inflation drives consumers to seek value-for-money options.
Uniqlo’s seasonal staples, such as “Airism” in the summer and “Heattech” in the winter, have cemented their status as wardrobe essentials, bolstering sales. The summer heatwave and growing interest in fitness also boosted demand for items like bra tops. The brand’s affordable yet stylish offerings, often dubbed “dupes” of luxury products, further fueled its resurgence. Uniqlo’s “U Line,” a collaboration with Christophe Lemaire, creative director at luxury brand Lemaire, has garnered significant attention for its high-end aesthetic at accessible prices.
Uniqlo expanded its appeal in 2024 by launching the “C Line,” a new collection designed by former Givenchy creative director Clare Waight Keller, which has also received an enthusiastic response.
After downsizing its store network to 127 locations in 2022, Uniqlo has been gradually reopening stores. It operates 132 stores nationwide as of December 8th, 2024, including its flagship store in Seoul’s Lotte World Mall, which ranks among the brand‘s most profitable locations globally.
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Uniqlo reclaims 1 trillion won in annual sales in Korea

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