As manufacturing and direct-retail apparel (SPA) brands such as Uniqlo, which emphasize value for money, continue to grow in Korea, competition is also intensifying in the higher-priced mid-to-high-end SPA market. COS, ARKET, and Massimo Dutti are strengthening their push into the Korean market by opening new stores and expanding online sales channels.
According to the industry on the 24th, ARKET, a Nordic lifestyle brand under Sweden's H&M Group, recently opened a new store at Times Square in Yeongdeungpo, Seoul. It is the fifth in Seoul and the ninth in Korea. Since entering Korea in 2021, it has been expanding offline touchpoints, focusing on major department stores and mixed-use shopping malls.
ARKET is a brand that offers apparel, accessories, and homewear. It is known for higher prices than H&M and designs with a Scandinavian sensibility. Regarding the latest opening, the company called Korea an "important market" and said it plans to continue expanding its presence. Last year, it entered the online distribution channel for the first time by joining the fashion platform 29CM.
Massimo Dutti, part of Spain's Inditex Group that owns Zara, opened a roughly 200-pyeong flagship store in Hannam-dong last month. The space goes beyond simple retail, emphasizing brand experience by arranging a lounge, artworks, and objets and presenting exhibitions in collaboration with domestic artists and brands. It also provides personalized services through style advisors.
Although Massimo Dutti is in the same group as Zara, it is a brand that raises prices and emphasizes premium materials and restrained design. H&M Group also operates ARKET, COS, and & Other Stories, brands that differ in price range and concept from the mass-market H&M. Most are more expensive than typical SPA brands but more accessible than high-end contemporary or imported brands, and are classified as premium or mid-to-high-end SPA.
Even with high inflation and weakened consumption making price competitiveness more important, consumers are not only looking for the cheapest products. As demand continues to weigh design, quality, and brand image alongside price, analysts say mid-to-high-end SPA brands are moving to differentiate themselves in various ways.
COS is investing in elevating its brand in Korea. On Mar. 25 in Seoul, it held its first fashion show in the country, unveiling the 2026 spring/summer collection. COS has held shows in major European cities and has repeatedly participated in New York Fashion Week. The latest collection was noted for highlighting materials and tailoring.
Within the same H&M Group, & Other Stories chose a strategy of consolidating the key offline stores it opened when it entered Korea in 2017 and expanding consumer touchpoints online. & Other Stories is priced between H&M and COS and is fairly popular in the European market.
Earlier, in February last year, & Other Stories closed its Cheongdam store, which was its first location in Korea and the first in Asia. The Cheongdam store was the only road-shop format in Korea, while the rest are all located in shopping malls such as Starfield and IFC Mall. In May of the same year, & Other Stories officially joined 29CM, beginning to strengthen its online sales channels.
Meanwhile, among global SPA brands operating in the Korean market, Uniqlo's growth remains notable. In the 2025 fiscal year, FRL Korea, which operates Uniqlo, posted sales of 1.3523 trillion won, up 27.5% from a year earlier, surpassing 1 trillion won for the second consecutive year. H&M's Korea unit recorded sales of 377.8 billion won in the 2025 fiscal year, up only 1.3% year over year, while Zara Retail Korea's sales last year were 494.8 billion won, up 7.6% from the previous year.