Footwear Industry's 'Tearful Sale'

[Asia Economy Reporter Yujin Cho] Major domestic footwear companies are launching 'tearful sales.' As social distancing and remote work continued after the outbreak of COVID-19, the difficulties faced by native footwear companies, which relied mainly on offline stores as their primary distribution channels, have intensified, prompting them to clear inventory through online sales.

According to the industry on the 30th, Kumkang Shoe will hold a 'Heritage Family Day' event through its online mall from the 7th to the 14th of next month. Products with minor defects will be sold at discounted prices to clear sluggish inventory. Kumkang Shoe initially planned to hold sales events at eight offline stores but shifted to an online mall-exclusive event. This decision was made in response to changes in consumer demand, with offline store visits declining due to COVID-19 and the expansion of contactless (untact) demand.

Soda, part of the DFD Life Culture Group, will simultaneously hold regular sales and season-off sales until the 12th of next month. Brands participating in the regular and season-off sales include the shoe brand Soda, Daks, and the SPA (Specialty retailer of Private label Apparel) brand Shoespa, with all items subject to discounts. A DFD Group Soda representative said, "This year, we plan to hold regular and season-off sales simultaneously both offline and online," adding, "The discount rate has been increased to 20-30%." The DFD Life Culture Group is also planning a separate event on its online mall, DFD Plus, until the 5th of next month. Earlier, Misope held a family sale at its headquarters until the 28th. Misope sold special-priced women's and men's shoes at its non-trade headquarters.

The reason footwear companies are rushing into discount promotions is due to severe sales slumps caused by the COVID-19 crisis. Native footwear companies have been struggling for years due to changes in market trends and competition from imported brands. For example, Kumkang Shoe, the number one company in the footwear industry, saw its sales drop from 450.8 billion KRW in 2001 to 197.6 billion KRW last year, a decline of more than half (56%).

The damage was even greater due to the face-to-face, offline store-centered sales structure. An industry insider said, "The footwear industry, which had been experiencing declining sales for several years due to changes in consumer trends and market stagnation, has worsened due to the COVID-19 crisis," adding, "The offline store-centered sales structure took a direct hit from COVID-19." According to major domestic department stores, since the rapid spread of COVID-19 began, the sales growth rate of domestic footwear companies sharply declined compared to the same period last year: -60% in March, -35% in April, -22% in May, and -16% in June.

This content was produced with the assistance of AI translation services.