Uniqlo’s reversal from Noh Japan… 52.9 billion left in Korea

Japanese companies are emerging from the influence of ‘NO Japan’, a boycott of Japanese products that began in 2019. Uniqlo, a Japanese fashion brand that recorded a massive loss last year, achieved a large surplus in Korea this year. Lexus, Toyota’s premium car brand, took the ‘best-selling model’ with the largest number of sales among imported cars for the first time in four years last month.

According to the Financial Supervisory Service on the 3rd, FRL Korea’s operating profit from September last year to August this year was 52.9 billion won. It turned into a black sharply from a loss of 88.4 billion won in the previous year. During the same period, sales decreased 7.5% from 629.7 billion won to 582.4 billion won. FR Korea is a joint venture between Uniqlo’s Japanese headquarters, Fast Retailing (51%) and Lotte Shopping (49%) in Korea.

Uniqlo succeeded in turning to black through new products in collaboration with global brands and reduction of high-cost stores. The closure of Uniqlo, which started due to a boycott, accelerated as the COVID-19 spread. There were 145 Uniqlo stores this year, down 45 (30%) from 190 at the end of August 2019. The Myeongdong branch, which was a representative high-cost store, as well as the Gangnam and Hongdae branches were arranged one after another.

Uniqlo changed the public mind of domestic consumers by putting products in collaboration with global fashion brands on the market. When selling the +J collection with designer Jil Sander, there was an ‘open run’ phenomenon in which people lined up in front of the store. Uniqlo opened a new store in Busan for the first time in over a year and started expanding its stores. Last month, Uniqlo opened its Saha store in Busan and reopened the Centum City store of Uniqlo Lotte Department Store in Busan.

Japan’s leading car brand, Lexus, is also showing signs of recovery in the domestic market. The ES300h, the representative sedan of Lexus, sold 698 units last month, the most among imported cars. It is interpreted that the effect of launching a new car with a partial design change in October was reflected.

It is the first time in about four years since July 2017 (660 units) that Lexus has been listed as the ‘best-selling imported car’. Until the first half of 2019, Lexus sold 1,200 to 1,500 units per month, but in the second half of the year, when the ‘boycott of Japanese products’ broke out, it was cut in half to 400 to 800 units. The sales volume gradually recovered from the second half of last year, and more than 1,000 units were sold in May and July of this year. Cumulative sales from January to November this year surpassed the total sales volume of 8911 units last year with 8994 units. Honda’s sales from January to November this year were also 4,055 units, more than last year’s (3056 units).

However, Japanese beer has not been able to recover its status, which has been lost due to the boycott. According to the three convenience stores, CU, GS25, and 7-Eleven, Japanese beer sales have fallen by more than 90% since the 2019 boycott. Japanese beer marketing has disappeared from the domestic distribution industry and substitutes have appeared in large numbers due to the craft beer craze. Domestic craft beers such as CU’s ‘Gompyo Wheat Beer’ and French beer ‘1664 Blanc’ and various imported beers are gaining popularity.

By Bae Jeong-cheol / Kim Hyeong-gyu / Noh Yoo-jeong, staff reporters bjc@hankyung.com

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