Uniqlo Closes Doors While PlayStation Sells Out... Will Japan Boycott Continue This Year?

Uniqlo Sales Halved, Operating Loss of 88.4 Billion Won
'Animal Crossing' and 'PlayStation 5' Sold Out
Criticism of 'Selective Boycott' Continues
Experts Say "Momentum for Japanese Product Boycott Will Weaken Compared to Before"

On the 6th, a closure notice was posted at the Uniqlo Myeongdong Central store.
Opened in November 2011, the Myeongdong Central store attracted attention as the world's second-largest flagship store after the New York 5th Avenue store at the time of its opening. It will operate until January 31 next year. [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] "I have no choice but to purchase because there are no substitutes."

Interest continues over whether the boycott of Japanese products, triggered by Japan's export restrictions in July 2019, will persist this year. While products like beer, cars, and clothing are being shunned by consumers, items such as Nintendo's console game "Animal Crossing: New Horizons" (Animal Crossing) and the console game system "PlayStation 5" (PS5), which have no suitable substitutes, continue to see steady purchases regardless of the boycott.

As a result, some argue that the boycott has already transformed into a 'selective boycott' based on consumer needs, expressing concerns that the enthusiasm for the boycott may not last long. Experts also predict that the fervor of the boycott will somewhat cool down this year.

The Japanese clothing brand "Uniqlo" became a major target of the boycott after Japan's export restrictions began in July 2019, suffering significant sales damage. At that time, so-called "Yuparazzi" (Uniqlo + paparazzi), who secretly filmed Koreans visiting Uniqlo stores to mock them, emerged, making Uniqlo a symbol of "anti-Japan" sentiment.

Consequently, the number of stores decreased from 187 at the end of 2019 to 165 by the end of November last year. Sales have also been declining. Uniqlo's domestic operator, "FRL Korea," announced that sales for the "2020 fiscal year" (September 2019 to August 2020) were 629.7 billion KRW, only about 45% of the 1.378 trillion KRW recorded a year earlier. Operating profit also turned to a loss. The operating loss amounted to 88.3 billion KRW, a decrease of approximately 287.7 billion KRW from the 199.4 billion KRW operating profit in 2019.

[Image source=Yonhap News]

On the other hand, the Japanese gaming industry is still enjoying a boom. Following the shortage of Nintendo's console game (Switch) "Animal Crossing" in the first half of last year, the "PS5" sold out in the second half.

Earlier, in April last year, a long line formed from early morning on weekdays at the Shin-Dorim Techno Mart in Guro-gu, Seoul, with people waiting to purchase Nintendo's "Animal Crossing" game.

The game gained attention as a "healing game," causing nationwide shortages and sparking a buying frenzy with hundreds of consumers lining up in front of stores to get it. Notably, this product was even sold on secondhand trading sites at more than twice the retail price.

Also, Sony Interactive Entertainment's console game system "PS5," released in September last year, sold out instantly in Korea during pre-orders. Starting from the 18th of the same month, pre-orders were held at 11 online shopping malls including Homeplus, SSG.com, and Hi-Mart, and the PS5 sold out within minutes, even causing website crashes.

Some criticized this, saying that the purpose of the Japanese boycott has effectively become meaningless.

Office worker A (27) said, "In the past, people would give you side glances just for being near a Uniqlo store. There was also skepticism about drinking Japanese beers like Asahi. But these days, that tendency has somewhat faded." He added, "For clothes or beer, there are substitutes, so the boycott can somewhat be maintained, but for games and such, there are no substitutes, so people seem to have no choice but to buy them."

He continued, "It's unfortunate to see the boycott being practiced selectively based on necessity, and it seems the boycott itself has lost momentum."

A poster promoting the boycott of Japanese products can be seen behind the statue of a girl in front of the former Japanese Embassy in Jongno-gu, Seoul.
[Image source=Yonhap News]

Given this situation, many citizens also predict that the enthusiasm for the boycott will be less than before. A survey conducted by 'Embrain Trend Monitor' targeting 1,000 adults nationwide found that 37.6% of respondents said they are willing to participate in the boycott of Japanese products but with less intensity. Those who said they are now less willing to participate or not willing to participate at all accounted for 6.1% and 4.1%, respectively.

Experts also pointed out that the fervor of the boycott is likely to weaken compared to before. Professor Lee Eun-hee of Inha University's Department of Consumer Studies analyzed, "There were several incidents last year, such as Nintendo's 'Animal Crossing' and the 'Uniqlo Jil Sander' collection. These incidents caused some consumers to question whether participating in the boycott of Japanese products is appropriate."

She added, "During the peak of the boycott, there were 'Yuparazzi' who secretly filmed customers entering Uniqlo stores. This was essentially putting pressure on consumers' purchasing behavior. At that time, consumers bought Japanese products while feeling scrutinized." She continued, "But now, people who do not participate in the boycott are freely consuming Japanese products. I think there will be many who continue to consume according to their own will in the future."

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