[Report] Uniqlo Becomes a 'Ghost Store', Online Stock Running Out Soon
On the Scene of the 'NO Japan' 7-Month Boycott Movement
[Asia Economy Reporter Jo Yoo-jin] Uniqlo, a manufacturing and distribution integrated (SPA) brand that suffered a significant blow due to the boycott movement against Japanese products triggered by Japan's export restrictions, is showing signs of recovery in online sales. In contrast, many people still hesitate to visit offline stores due to social pressure, creating a stark difference.
On the 8th, during Uniqlo's New Year regular sale, the XS size of the women's Fluffy Yarn Fleece Full-Zip Jacket was close to being sold out on the online mall. Out of a total of 16 colors, 13 were already sold out. The remaining colors are also expected to sell out soon. The number of Uniqlo app users is also showing a sharp rebound.
According to data platform company IGAWorks, the monthly active users (MAU) of the Uniqlo app, which sharply declined in July last year when the boycott movement ignited, increased significantly from 276,287 in September to 618,684 last month. A Uniqlo official said, "Although it has somewhat recovered compared to the early days of the boycott, the situation is still difficult."
Unlike the online response, offline stores were still under the influence of the boycott movement. On the afternoon of the 5th, a weekend, the Uniqlo Hongdae store was visited. Located on the 1st to 3rd floors of the Wise Park shopping mall, the Uniqlo store appeared deserted with almost no customers. Although the boycott due to Korea-Japan conflicts has entered its seventh month, Korean consumers' disregard for Uniqlo remained unchanged.
There were only five customers inside the store, including a foreign couple. The number of employees working was greater than the number of customers visiting. The old scenes of large crowds forming during the winter peak season, when 60-70% of Uniqlo's total sales occur and large-scale discount offensives take place, were nowhere to be seen.
Most of the few customers in the store were foreigners. Aria Burke (Scotland), who came shopping with her boyfriend, said, "Uniqlo prices in Korea are about 30% cheaper than in Scotland, so I came shopping with my boyfriend," while picking up a 'Premium Lambswool Turtleneck Sweatshirt.' A Chinese tourist staying at a nearby hotel was also browsing the sale item 'Ultra Light Down Volume Jacket.'
Fleece and Heattech, Uniqlo's representative popular products that quickly sold out at the start of the sale, did not record any sold-out items among the top-selling products on the first weekend of the sale.
The situation was similar at Muji located in the nearby AK Mall. Despite signs announcing New Year discount events, the store was empty without a single customer. As customer visits stopped, food items such as snacks nearing their expiration date were put on a drastic 50% discount.
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On the afternoon of the 7th, the Uniqlo Gwanghwamun store was visited again. Although not as fervent as when people were posting certification photos to promote the boycott, it was still quiet. When asked a male customer lingering in front of the store if he came to shop, he said, "I just came in to escape the cold while passing by," adding, "I work in sales and have been watching the Uniqlo boycott with interest. It seems that the number of customers coming and going has somewhat increased compared to when Korea-Japan relations were extremely deteriorated."
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