CNTUS, an advanced-material filter company founded by a former automotive researcher, has thrown down the gauntlet in the workwear market. As it built B2B (business-to-business) competitiveness around industrial masks and diversified its business, it took note of the potential in workwear.
CNTUS recently launched the workwear brand "Aerworks" and began a full-fledged push into the market. It will first act as the importer and seller of Japan's five leading brands in the more developed Japanese workwear market, introducing products not previously available in Korea. It plans to expand its directly managed stores to as many as 15 by the first half of next year and will sequentially review franchising and private brand (PB) businesses.
In recent years, Korea's workwear market has grown as fashion conglomerates, outdoor brands, and even steelmakers have entered. The sales of "Acud," a brand launched by Daehan Steel Co., Ltd. in 2022, more than tripled last year from a year earlier. Workwear-focused distribution companies have also emerged. Trading Post began outlet operations under the name Workup in Feb. last year.
Market research firm Insight Partners projected the global workwear market would reach $17.75 billion (about 26 trillion won) this year and grow to $27.87 billion (about 41 trillion won) by 2031. The Korean workwear market, which is keeping pace with the global market, is estimated at 1.5 trillion won.
CNTUS CEO Ha Chun-uk said in an interview with ChosunBiz on the 27th of last month at the AK Plaza Geumjeong store in Gunpo, Gyeonggi Province, "Workwear on domestic manufacturing floors has not changed much, whether 30 years ago when I worked at an automaker or now," adding, "When it comes to workwear, there is still a tendency to treat it simply as clothes worn by blue-collar workers, regardless of brand or quality."
Ha said, "As the level of manufacturing has advanced, perceptions of blue-collar workers have changed and work environments continue to evolve, so low-priced workwear also needs to change," adding, "Products must have functionality, efficiency, and safety, as well as style suitable for everyday wear."
Japan, the partner for Aerworks, has a significantly developed workwear market thanks to its long-standing manufacturing base, material technologies, distinctive uniform culture, and fashion sensibilities. Because the Japanese workwear market is more than twice the size of Korea's, Ha said the company can introduce products that are more competitive than domestic offerings in price, function, and design.
Ha projected that climate change and the introduction of artificial intelligence (AI) will reshape the workwear market. As hotter weather makes outdoor work more difficult, he noted the possibility of mandating cooling-function workwear, as in Japan. He added that in factories where robots work alongside people, safety standards for workwear will be strengthened, and workwear could even serve as an interface for exchanging information. The following is a Q&A.
―Your background as a former automotive company researcher is unusual. How did you come to start a filter company?
"I left the Hyundai Motor Production Technology Research Institute and started an engineering company that builds car factories. At the time, we were the first in Korea to do turnkey (design and construction) projects, and there were only a few others afterward. Initially, turnkey work was profitable, but as external conditions increased order uncertainty, we naturally shifted our business to focus on the filter operation we had acquired."
―What led you to enter the workwear market?
"By moving beyond health masks into industrial masks, we secured many B2B (business-to-business) customers. It's a network that is not easy to access, but because the transaction items were limited to masks, there were limits to generating sales. Business diversification was inevitable, and in that process we focused on the quietly growing workwear market."
―What potential did you see?
"In Korea, when it comes to workwear, there is still a tendency to treat it simply as clothes worn by blue-collar workers, regardless of brand or quality. There are many low-priced or Chinese-made products. But as manufacturing has advanced, many specialists have emerged, and perceptions of blue-collar jobs on the shop floor have changed, yet workwear has not kept up."
―Do you feel a big difference between the workwear from your days in the auto industry and today's workwear?
"In fact, there is little difference between the workwear worn on domestic sites 30 years ago and now. Unless it is a very specialized field, price constraints mean it is common to wear workwear made of ordinary materials. However, as manufacturing has become more sophisticated, not only have perceptions of blue-collar workers changed, but work environments and job characteristics continue to evolve. Workwear must enhance function, efficiency, and safety. That means making it less prone to contamination, with deodorizing, insulation, and cut-resistance effects. It also needs everyday-wear style."
―What changes do you expect in the Korean workwear market going forward?
"We need to watch how climate change affects the manufacturing ecosystem. As the weather gets hotter or colder, there will be changes in workwear for outdoor workers. For example, in shipbuilding, due to the nature of the work environment—mainly outdoors at docks—it cannot develop in hot regions. Globally, the last viable line is seen as somewhere like Korea's Geoje Island, but as the climate changes and temperatures rise, work has become more difficult. In Japan, laws have already changed since June this year to recommend and move toward mandating cooling vests for outdoor workers. Korea will soon follow."
"Another factor is the introduction of artificial intelligence (AI). Many factories have already adopted humanoids (human-shaped robots), and it will become common for people and robots to work together in the same space. In that process, safety standards required of workwear will be strengthened, and its role as an interface for exchanging information could come to the fore."
―Why did you decide to bring in Japanese workwear brands?
"Because they are significantly ahead in the global workwear market. There are only a handful of countries with strong manufacturing worldwide. Narrowing to East Asia, Korea and China are catching up, and Japan is representative. In addition, in Japan, the uniform industry grew around Hiroshima Prefecture, where cotton developed, and that, combined with capabilities in materials such as various polymers and basic chemicals, expanded the workwear market. With time and experience accumulated, the products are diverse and competitive in function, design, quality, and price."
―What are the characteristics of each brand?
"People say Japan has five major brands, but in practice they can be divided into Burtle and the rest. Burtle offers designs and prices with broad appeal in Japan. The others have many specialized enthusiast customers. Although not included among the six brands introduced this time, Japan even has brands that make only specialized belts within workwear."
―How do you plan to compete with domestic workwear corporations?
"Our strategy is fundamentally different. Domestic apparel corporations will roll out good products based on their existing distribution networks and capital. Aerworks plans to offer design, functions, and price benefits that domestic corporations cannot provide through workwear made on a Japanese manufacturing base different from Korea's. Price, in particular, ultimately comes down to volume. Japan's market is more than twice the size of Korea's, and with long-accumulated material partners, we expect to be competitive on price."
―Do you have a specific product positioning direction?
"Broadly two. First is 'workwear worn in everyday life.' In fact, workwear is highly functional and very comfortable to wear. It's similar to how Lululemon made yoga wear that became comfortable everyday clothing. Following Japan, we believe workwear in Korea can more than serve beyond traditional workwear. Second is specialized workwear needed in advanced, professional industrial fields mentioned earlier. The market is still in its early stages both at home and abroad, and we are conducting extensive research and development."
―You are currently only importing and selling. What are your future plans?
"For now, we will bring in finished goods recognized overseas to stimulate competition in Korea's workwear market and expand the market size. Competent corporations in apparel are entering the workwear market one by one. The more strong competitors there are, the more the market grows. As for the timeline, we plan to open 10 to 15 directly managed stores by the first half of next year and consider additional business expansion such as franchising."
―Are you considering launching private brand (PB) products?
"It is generally more advantageous on price to make products ourselves, so once the business stabilizes, we will consider PB. We could team up with existing manufacturing partners or find new vendors. There are many excellent domestic OEM (original equipment manufacturing) and ODM (original design manufacturing) corporations for the global market. We already operate our own plants at home and abroad, but the categories differ, so we are not sure whether we can use them until the business is more concrete."