Affordable private label apparels thrive amid inflation in S. Korea

[Photo by MK DB]

As inflationary pressures drive Korean consumers to reduce clothing expenditure, South Korean specialty retailers offering private label apparel (SPA) brands are gaining traction in the domestic fashion market by emphasizing their cost-effectiveness.

According to Eland Group, which operates SPA brand SPAO, sales for SPAO are projected to reach 480 billion won ($370 million) this year, up 20 percent from the previous year.

Notably, the brand’s light jacket sales from January to November surged by 357 percent compared to last year. Fleece and puffer sales were also up by 52 percent and 30 percent, respectively. SPAO is enhancing its affordable pricing strategy by lowering the price of its thermal underwear Warmtech to 12,900 won from 15,900 won this year. And it froze prices on key basic items such as puffers ($69.99) and fleeces ($29.99). SPAO plans to expand its domestic stores to 145 next year from the current 108 stores.

Another SPA brand Top Ten from Shinsung Tongsang Co. is also expected to achieve its highest sales this year. According to the brand, its underwear product sales from January to November this year increased by 259 percent compared to the same period last year, with 1.3 million sets sold.

The brand also sold 900,000 sets of its thermal innerwear and 720,000 pairs of denim this year. The brand’s kid’s wear also witnessed positive results, with lounge wear, windbreakers, and lightweight outerwear each recording sales of 720,000 pieces, 350,000 pieces, and 180,000 pieces, respectively.

“We’re planning to take an aggressive branding approach to achieve 1 trillion won in sales,” said a Top Ten official, adding that the brand will upgrade materials and designs for consumer satisfaction.

SPA brand 8seconds of Samsung C&T’s fashion group also saw cumulative sales increase by more than 10 percent from January to November compared to last year.