In South Korea, specialty retailers known as SPAs have gained traction among consumers during economic challenges caused by high interest rates and increased material costs. Notably, sales of local affordable clothing brands owned by major retailers have seen a boost compared to 2022.
These SPAs in South Korea are recognized by customers for offering well-made clothing at reasonable prices. Given the rapid changes in fashion trends, young consumers in their twenties prefer buying clothes from these SPAs. Many believe it’s smarter to invest in reasonably priced clothing each season rather than splurging on luxury brands and potentially lagging behind in style.
Statista, a global market research firm, predicts substantial growth in the South Korean SPA market. Valued at 20.6 trillion won in 2022, this market is estimated to reach 22.7 trillion won by 2077. Currently, the Japanese brand Uniqlo leads the SPA market with yearly sales of 803.6 billion won in 2022. Following closely, TOPTEN by South Korean retailer Shinsung Group stands at 780 billion won, while Eland’s SPAO secures the third spot with 400 billion won.
Eland recently announced that SPAO’s 2023 sales hit 480 billion won, marking a 20 percent increase from 2022. Sales data indicated a significant rise in fleece coats by 357 percent, puffer jackets by 52 percent, and light down jackets by 30 percent year over year. The company plans to expand its offline store count from 108 in 2023 to a maximum of 145 by 2024.
