South Korean SPAs (specialty retailers of private label apparel) garnered popularity among consumers amid the economic recession induced by high interest rates and increased material prices. Sales of domestic budget clothing brands operated by major retailers increased compared to 2022.
Customers in South Korea are aware of SPA brands as being ones that offer reasonably priced, well-made clothing. Because fashion trends change fast, consumers in their 20s prefer to purchase clothing from SPA brands. Many believe that it is better to buy reasonably priced clothing for each season rather than spending a lot of money on luxury brands and falling behind in terms of style.
According to global market research firm Statista, the South Korean SPA market, which was valued at 20.6 trillion won in 2022, is predicted to grow to 22.7 billion won by 2077. With yearly sales of 803.6 billion won, Japanese brand Uniqlo leads the SPA market as of 2022. TOPTEN, run by South Korean retailer Shinsung Group, is in second with 780 billion won, while fashion giant Eland’s SPAO is placed third with 400 billion won.
Eland said on 26th December that SPAO’s 2023 sales were 480 billion won, a 20 per cent increase over 2022 sales. According to the site, sales of fleece coats, puffer jackets, and light down jackets rose by 357 per cent, 52 per cent, and 30 per cent year over year, respectively. The company intends to expand its offline store count from 108 in 2023 to a maximum of 145 in 2024.
