Market watchers see the rising popularity of SPA fashion brands that produce, distribute and sell their own clothing exclusively, as well as the economic downturn, as the main factors contributing to the growth of street brands. (image: Stylenanda)
SEOUL, July 8 (Korea Bizwire) – Street brand clothes at department stores are growing rapidly, powered by the popularity of SPA fashion, surpassing the growth rates of other brands.
According to Lotte Department Store on July 7, sales of street brands like “Style Nanda,” “Naning9,” “Naingirl” and “Wonderplace” have grown more than 27 percent annually since they entered the department store in 2013. ‘Street brands’ is a common term for low and middle priced apparel brands.
Sales growth was 35.2 percent in 2013 and 27 percent in 2014. During the first half of this year, sales increased 32.5 percent over the same period of the previous year.
Meanwhile, sales of more expensive clothing brands at the department store rose only 8.7 percent in 2013, 6.4 percent in 2014 and 8.2 percent in the first quarter this year.
Considering the fact that the total sales growth rate in the clothing department stayed at only 3.9 percent in 2013 and 1.5 percent in 2014 and even fell 0.3 percent in the first quarter, street brands are generating the bulk of the sales growth at the store.
Market watchers see the rising popularity of SPA fashion brands that produce, distribute and sell their own clothing exclusively, as well as the economic downturn, as the main factors contributing to the growth of street brands.
An official at a clothing retailer said, “The economic slump makes more customers sensitive to spending on clothes. The expansion of street brands in department stores will keep on for the time being.”
By Lina Jang (linajang@koreabizwire.com)
