"Asung Daiso Co. padded vest (5,000 won), Emart knit (9,900 won)."
Clothing outlets and products in the retail industry are diversifying. Not only big-box stores but also fixed-price stores like Asung Daiso Co. and convenience stores have jumped in. They are creating private-label (PB) clothes or teaming up with fashion corporations to set up dedicated displays. The strategy features cost-effectiveness—selling basic, trend-proof apparel at lower prices than specialty clothing stores.
According to related industries on the 23rd, Emart last month launched the 9,900 won "The Soft Knit" through its clothing PB DAIZ. The product had sold in the 10,000 won range as recently as 2023, but starting last year Emart signed direct contracts with overseas manufacturers to cut costs, lowering the retail price by 38%. After releasing women's knits last year and seeing an 18% increase in women's apparel sales, the company expanded the lineup this year to include men's knits and fleece zip-up jumpers. It plans to unveil new products during Sseuk Day, Shinsegae Group's biggest shopping event, at the end of this month.
Homeplus Co. has also rolled out fleece jackets and vests, as well as underwear, through its clothing PB F2F. A signature item is a lightweight down vest priced at 29,900 won. According to Homeplus Co., sales of windbreaker-type jumpers are up 13% from a year earlier this year, and fleece zip-ups and vests are up about 6%. Last year, overall apparel sales rose about 9%. By category, the growth rate was 46% for pants, 10% for jumpers, and 13% for sweaters.
Convenience stores are also expanding their clothing assortments. Initially they carried only emergency items such as socks and underwear, but recently they have moved into higher-end apparel. Seven-Eleven followed its first clothing PB product, the Seven Select T-shirt released in April, with a cashmere-blend knit priced at 32,000 won. The item blends cashmere (5%) and wool (5%) with polyester and acrylic.
The company said, "Since launching clothing products in April, sales in the fashion category have doubled from last year," adding, "As convenience stores are evolving into lifestyle platforms, we planned apparel products that include high-end materials like cashmere."
GS25 is exclusively selling Musinsa Standard Express products in collaboration with Musinsa, a fashion platform. The goal is to create synergy by partnering with Musinsa, whose customer base overlaps with convenience stores' primary shoppers in their teens to 30s. It sells jackets, pants, T-shirts, belts, underwear, and socks, and sales over the past two weeks (Oct. 7–20) are up about 187% from the initial launch period (March 5–18). Short-sleeve T-shirts, socks, underwear, and windbreaker jackets are popular.
The fixed-price household goods store Asung Daiso Co. introduced 5,000 won Man to Man and hooded T-shirts, earning reviews that it led an "ultra cost-effective apparel craze." According to Asung Daiso Co., first-half sales of clothing items this year rose 60% from the same period a year earlier.
Industry watchers say retailers are seeking new revenue by leveraging nationwide offline stores for "accessibility" and mass production for "cost-effectiveness."
The polarization of clothing consumption amid an economic downturn also created an opening. In the past, consumers cared about brand image, but recently, as people increasingly buy the cheapest daily necessities and invest only in items that express individuality, it has become natural to buy clothes at convenience stores or Asung Daiso Co.
Meanwhile, clothing sales are also rising at Costco, the U.S. warehouse club. According to estimates by GlobalData, Costco's apparel sales last year were about $9.7 billion (about 13.7937 trillion won), up 40% from 2019 ($7 billion). That is around 4% of total sales. Costco sells clothing made through its PB Kirkland Signature, along with discounted inventory from well-known brands such as Gap and Columbia.