Recently, amidst a burgeoning running craze, the running shoe market is also undergoing a transformation. While established giants like Nike and Adidas have faltered, emerging forces such as SIS Dental and On are increasing their market share. The distribution industry is also reinforcing the running category. In particular, the trend of using running shoes and related products in daily life, known as 'running core,' has increased sales on fashion platforms among the 2030 generation.
According to the Korea Apparel Industry Association on the 20th, the sneaker market size last year was approximately 4 trillion won. Of this, the share of running shoes is estimated to be 25%, or about 1 trillion won. This is expected to expand to 40% this year. Running has emerged as a popular sport in the wake of the COVID-19 pandemic, as it is safer from infectious diseases than indoor gyms and can be started with just a pair of sneakers, lowering the entry barriers.
In South Korea, the trend of 'running crew' is spreading among the younger 2030 generation, fostering a related culture. According to industry sources, the domestic running population is estimated to be between 5 million and 6 million. The running-related industry is also growing.
As interest in running grows, a generational shift is occurring in the running shoe market, which has traditionally been dominated by Nike and Adidas. Brands specializing in running shoes that strike a balance between design and performance are gaining attention. For example, of the 25 shoes listed in a 'running shoe hierarchy' that attracted attention on online communities last year, only eight were products from Nike and Adidas. The rest were taken by emerging players such as SIS Dental, On, Asics, and New Balance.
A popular running shoe brand among the 2030 generation is the American sneaker brand Hoka. Hoka has become a representative of the running shoe boom, gaining popularity despite its high price range of 200,000 to 300,000 won. It has gained runner preference with shoes that add more than double the cushioning compared to conventional running shoes and have exaggerated outsoles suitable for rough terrain.
The popularity of the Swiss brand On, created by retired triathlete Olivier Bernhard with the motto of 'running shoes that can be worn without injury,' is skyrocketing. U.S. economic media Business Insider reported that 'Nike's biggest threat has been sparked by younger brands such as Hoka and On.'
Nike's downward trend is also evident in South Korea. Nike Korea reported an operating profit of 39.5 billion won for the last fiscal year (June 1, 2023, to May 31, 2024), a 43% decrease from the same period last year (69.2 billion won). During the same period, sales dropped by 0.3% to 2.005 trillion won. Adidas has not disclosed its sales figures in South Korea.
With the growth of the running shoe market, specialized stores such as RAY and runners' clubs are also on the rise. The number of these stores has more than doubled compared to last year. Multi-shoe shops such as ABC Mart and S Market have also opened specialized running shoe stores and expanded their locations.
Both online and offline distributors are strengthening the running category. Online platforms are establishing dedicated running sections, while department stores and outlets are attracting specialized brands. Shinsegae Department Store has created a specialty sports shoe section in the basement of its Centum City branch in Busan.
Coupang opened a specialty section named 'Running Specialty' last month. This section is characterized by its segmentation of demand from beginners to experts, and features a total of 11 brands, including Puma, New Balance, Salomon, Nike, Hoka, Adidas, Mizuno, Asics, Altra, and On.
Direct entries by global brands are also continuing. On Running officially entered Korea for the first time last year and opened its first pop-up store in Seongdong-gu, Seoul, in November. On plans to accelerate its domestic expansion this year.