Uniqlo Aims to Erase 'No Japan' Movement... Reapproaches Korea Amid Sales Rebound

Uniqlo Sales Recovery... Re-targeting Through Social Contribution Activities

Uniqlo is actively working to erase the 'No Japan' movement as its performance begins to recover.

[Image source=Yonhap News]

According to the industry on the 27th, Uniqlo Korea's operating company, FAL Korea, recorded sales of 704.2 billion KRW for the 2022 fiscal year (September 2021 to August 2022), a 20.9% increase compared to the previous fiscal year (582.4 billion KRW). Operating profit rose 116.8% to 114.8 billion KRW from 52.9 billion KRW the previous year.

The sales recovery is attributed to the fading 'No Japan' sentiment and the sharp increase in fashion demand following the reopening. Uniqlo is actively targeting the domestic market again to maintain this momentum. In particular, it is adopting a strategy to foster emotional connection and consensus through various social contribution activities. Since it was one of the most affected by the 'No Japan' movement, the company has chosen a direction that contributes to Korean society while enhancing its corporate image.

Recently, Uniqlo partnered with the social welfare foundation Children and Future Foundation to launch the 'Slowly Together' campaign to support children with learning difficulties. With a 1 billion KRW donation, the campaign aims to provide various programs to improve basic learning abilities, interpersonal relationships, and social skills for these children. Last year, Uniqlo also ran the 'Our Children’s Happy Table' campaign with the Green Umbrella Children’s Foundation, providing healthy food to children at regional child centers nationwide. Additionally, this year, Uniqlo plans to continue various activities including a clothing reform support campaign for people with disabilities, the 'Our Children’s Happy Table' campaign, a shopping event for children at childcare centers in the Busan area, and marine environmental cleanup activities.

Uniqlo entered Korea in 2005 and became the first fashion brand to surpass 1 trillion KRW in sales in 2015, ten years later. It maintained this level, achieving sales of 1.4188 trillion KRW in 2018. However, with the full-scale emergence of the Japanese product boycott movement 'No Japan' in 2019, sales dropped sharply to 974.9 billion KRW that year and further to 574.6 billion KRW in 2020. The number of stores, which once exceeded 180, also significantly decreased to 125 as of last month.

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