Global SPA (single process of manufacturing and retail) brand Uniqlo is causing a "collaboration craze" in the domestic market by partnering with well-known designer brands and characters. As demand grows to enjoy high-end brands with reasonable prices and quality and limited editions, it is leading to store open-run lines (lining up before the doors open) and resale transactions with markups.
According to the industry on the 18th, on secondhand and resale platforms such as Karrot Market and KREAM, transactions of collaboration products between Uniqlo and the Japanese designer brand Needles, dubbed "Uni-Needles," are increasing. As most products such as cardigans and pants became sold out at official stores and online, cases have emerged of reselling or rebuying them with a premium added.
Most products are being transacted at 10,000–20,000 won or more above Uniqlo's official retail prices. The cardigan was released at 49,900 won but is being traded at 60,000–65,000 won, and for pants, prices have risen to as high as 80,000 won depending on size. The fleece full-zip jacket has less demand than the cardigan and pants, but it is likewise listed at the high-60,000-won to 70,000-won range, above the release price (59,900 won).
The Uniqlo-Needles collaboration drew attention even before sales began. Needles is known as a brand with a strong enthusiast base, though it is less mainstream than other designer brands. Considering that average prices for Needles items exceed several hundred thousand won to 1 million won, the fact that the collaboration products were priced much lower also became a hot topic.
On the 31st, when the two brands' collaboration products were officially released in Korea, open-run lines formed at major stores. On the first floor of Uniqlo's D Tower store in Jongno-gu, Seoul, more than 50 people were lined up from the morning. Even though some stores limited the quantity per person, all sizes of popular products sold out in less than half a day. Preorders for additional stock to arrive early next year are now closed.
This is not the first time a Uniqlo-designer brand collaboration has been a hit. The company has repeatedly released collaboration products with high-end brands such as Jil Sander, JW Anderson, and Lemaire, and items with strong appeal sold out both online and offline right after launch. Some consumers made direct purchases from Japan for items out of stock domestically or used local proxy buying services.
A Uniqlo official said, "It seems popular because people can enjoy a brand with scarcity value at reasonable quality and prices," adding, "Through collaborations, the company diversifies its product lineup and gains inspiration for in-house design development, while brands can experience their products expanding to the mainstream through mass production." The official added, "We are doing our best to secure enough volume so as many customers as possible can purchase the products throughout the season."
While not with designer brands, collaborations with local brands conducted only in Korea are also receiving positive responses. Because most products are released as limited editions under licensing terms, they drew high interest to the point of open runs and queues. Collaboration T-shirts with the Jeju citrus brand "Gyul Medal," sold only in Jeju, sparked a frenzy, and collaborations featuring Daejeon's mascot Kkumdori and Isaac Toast also drew attention.
Uniqlo is expected to accelerate a rebound in performance in the domestic market on the back of consecutive collaboration hits. FRL Korea, which operates Uniqlo, surpassed 1 trillion won in sales last year for the first time in five years. Sales, which had plunged due to the aftermath of the No Japan (boycott of Japanese products) movement following the Japanese government's export controls in July 2019, have recovered. This year's results are due next month, and parent company Fast Retailing posted record highs in both sales (about 32 trillion won) and operating profit (about 5 trillion won).