The boom of cost-effective fashion, the rising popularity of ultra-low-cost brands like Workup

As the economic downturn and high inflation continue, a 'super low-cost wind' is sweeping through the South Korean fashion market.

Cost-effective brands boasting reasonable prices and basic designs are making a mark even amid the overall slump in the fashion industry. Notably, the growth of low-cost fashion centered around SPA (Specialty Store Retailer of Private Label Apparel) brands is particularly remarkable.

According to the fashion industry on the 15th, the cost-effective brand 'Workup' has been gaining attention in the market with its impressive growth.

Remarkable Growth

Starting last year, Workup has embarked on a significant store expansion, opening more than 130 new locations in just over a year.

By consecutively opening flagship stores in key districts of Seoul such as Seongsu, Myeongdong, and Hongdae, the brand is rapidly increasing its recognition in areas with high foot traffic.

Strong Quality and Reasonable Prices Capture Consumers' Hearts

The secret to Workup's popularity is clear.

Affordable price points starting at 4,900 KRW for T-shirts, along with durable materials and simple, basic designs, have captivated consumers.

Although Workup offers workwear-style products, its practical designs are well-suited for everyday life.

This reasonable pricing and solid quality have garnered word-of-mouth attention, expanding its customer base beyond the 20-30 MZ generation to include the 40s demographic that values practical consumption.

A fashion industry insider explained, "While high-end brands can't easily lower their prices due to the burden of production costs and marketing expenses, cost-effective brands secure price competitiveness through efficient production and straightforward distribution structures. Brands based on workwear are gaining consumer preference due to their strengths in quality and reasonable prices."

The Rise of Domestic SPA Brands and Their International Expansion

The strength of cost-effective fashion is not limited to Workup.

Samsung C&T's fashion division, 8SECONDS, is strengthening its operations in South Korea while entering the Philippine market to expand business opportunities in Asia.

8SECONDS plans to open its third store in the Manila area during the second half of this year, starting with a location in the large shopping mall 'SM Mall of Asia' in Manila.

While traditional brands of large fashion companies are stagnating in the domestic market, the strategic movements of competitively priced SPA brands are accelerating.

E-Land Retail's SPA brand NC Basic, launched earlier this year, is also receiving consumer response. NC Basic emphasizes that approximately 80% of its products are priced under 30,000 KRW, enhancing its competitiveness by being more affordable than existing SPA brands.

Strong Performance of SPA Brands, Reentering the '1 Trillion Club'

Large SPA brands are also reporting good performance. Uniqlo achieved an annual revenue of 1.0601 trillion KRW last year, reentering the '1 trillion club.'

Topten recorded sales of about 970 billion KRW last year, an increase of approximately 8% compared to the previous year, while E-Land Retail's traditional SPA brand Spao also achieved record sales of around 600 billion KRW.

As consumers' 'cost-effective' consumption patterns become more than just a temporary trend and become normalized, the rise of brands that prioritize value for money in the fashion industry is expected to continue.

While existing fashion companies struggle, the growth of cost-effective brands like Workup is likely to accelerate further.

Image source: Workup SNS, 8SECONDS store located in SM Mall of Asia, Manila, Philippines / Samsung C&T Fashion Division, Uniqlo / Photo = Insight