UNIQLO, Japan’s leading SPA (Specialty store retailer of Private label Apparel) brand, has regained its position in South Korea's "1 Trillion Won Club" after six years, achieving annual sales of over 1 trillion KRW.
In South Korea, only three fashion brands Nike, The North Face, and UNIQLO have achieved annual sales surpassing 1 trillion KRW.
On December 6, FRL Korea announced that UNIQLO's revenue in South Korea for FY2024 (September 1, 2023 – August 31, 2024) had reached 1.0601 trillion KRW, reflecting a 15% year-on-year increase.
During the same period, operating profit rose 5.4% year-on-year to 148.9 billion KRW , while net profit grew 3.8% to 132 billion KRW.
Dividends paid to its two largest shareholders Japan’s Fast Retailing (which holds a 51% stake) and Lotte Shopping (which holds a 49% stake) remained unchanged from the previous year at 180 billion KRW.
UNIQLO entered the South Korean market in 2005, and by 2015, it became the first single fashion brand to surpass 1 trillion KRW in sales.
For four consecutive years, UNIQLO maintained sales exceeding 1 trillion KRW, peaking at 1.378 trillion KRW in FY2019 the highest annual revenue among fashion brands in South Korea at the time.
However, sales plummeted following the "No Japan" boycott movement that began in July 2019, prompted by Japan's restrictions on exports of semiconductor materials to South Korea.
As a result, UNIQLO’s sales for FY2020 dropped sharply to 629.7 billion KRW, and sales continued to decline to 582.4 billion KRW in FY2021.
According to Euromonitor, as of November 2019, UNIQLO had 187 stores in South Korea, commanding a 4.7% share of the local apparel market, ranking first in market share.
To combat declining sales, UNIQLO initially reduced its distribution network by closing unprofitable stores. However, since last year, the company has resumed expansion of its offline operations.
Although the number of stores dropped to 127 in 2022, UNIQLO gradually increased its presence, opening 10 new stores. As of December 2024, it operates 132 stores in South Korea.
One of the key factors driving UNIQLO's sales recovery is the rise in "recessionary consumption," with consumers seeking affordable yet high-quality products amid rising prices.
UNIQLO’s flagship products AIRism for summer and HEATTECH for winter have strengthened their position as essential seasonal wear, thanks to their reputation for high cost-performance value. This shift in consumer perception is seen as a major driver behind the brand's resurgence.
The popularity of UNIQLO's UT Collection, featuring collaborations with famous designers and beloved characters, also played a pivotal role in helping the brand rejoin the "1 Trillion Won Club."
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