Japanese Brand Uniqlo Reaches 1 Trillion Won Mark In Annual Sales In South Korea
In South Korea, Japanese clothing designer, manufacturer and retailer Uniqlo reportedly hit a record-breaking one trillion won in annual sales for a fashion brand since it first opened its store in the country in 2005, reported Korea Times on Tuesday.
Officials of the company announced a 1.11 trillion won in sales from Sept. 1, 2014 until Aug. 31, 2015, an increase by 25 percent from last year's sales. Uniqlo South Korea's operating profit also rocketed by 45 percent to 156.4 billion won, as well as its net profit by 47 percent to 119.4 billion won.
Last year, Uniqlo reportedly reached 895.4 billion won in annual sales, surpassing all other competitors, including local brands.
The brand's casual but functional clothing is very much welcomed by the South Korean market, especially its Heattech line that is made up of thin fabric capable of retaining heat to battle the cold weather in some regions. Heattech was developed through Uniqlo's collaboration with world-class textile manufacturer Toray.
According to Pulse News on Tuesday, Uniqlo's latest feat in South Korea is considered remarkable amid the slow growth of the country's fashion industry since 2014. Even local brands, including Bean Pole, K2 and Black Yak have been struggling with the low demand, earning a range of 700 billion won in annual sales, while Kolon Sport is at 600 billion won.
Fashion industry experts note that of the reasons why Uniqlo was able to raise their sales this year is through the brand's basic pieces and simple designs that consumers really need. Added to their simplicity is the brand's efforts to produce quality materials for their clothing through collaboration with fabric experts, as well as their affordable price strategy through mass production and simple distribution scheme.
Industry watchers encourage South Korean brands to learn from Uniqlo's simplicity and affordability in order to cater to a broader market, thereby boosting the industry's sales.