The following research report contains market research, analysis, statistics and business intelligence relating to research on Apparel Industry In Korea.

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ABSTRACT
The Korean apparel market continues to recover from the country s economic crisis, which had resulted in a sharp decline in sales in 1997 and 1998. At the same time, although Korea's strong economic recession during this period impacted most of the population, most relatively well-off consumers were able to continue their purchases of high-end items, resulting in the continued expansion of high-end clothing sales. With the continuing economic recovery and return of consumer confidence, the growth in sales of more-expensive, high-end apparel will accelerate. Local apparel firms and manufacturers, following this trend, are reshaping their product lines in order to target this market. End Summary.

Market Overview

Due to the 1997-98 economic crisis, the size of the Korean apparel market contracted 5.7 percent, from USD 15.8 billion in 1997 to USD 14.9 billion in 1998. With the country s economy recovery beginning and its economic restructuring process starting to bring positive results, the Korean apparel market segment is expected to expand by over 10 percent in 2000. The young casual wear segment, with sales of USD 3.8 billion in 1998, was the leading market segment, registering 25.4 percent of total apparel sales, followed closely by women s wear with 1998 sales totaling USD 2.7 billion (23.8 percent of the market). The men's wear segment accounted for 18.4 percent of total apparel sales, followed by children s apparel sales and inner wear, which accounted for 10.8 percent and 10.4 percent, respectively. Miscellaneous market segments accounted for the remaining 11.2 percent.

3.Korea s apparel market steadily expanded from 1988, contracting only in late 1997 and through 1998, with the onset of the economic recession. As depicted in the following tables, the three major market segments, men s wear, women s fashion and young casual wear, showed vigorous sales growth until 1998. Men s wear sales increased 294 percent, from USD 1,016 million in 1991 to USD 2,989 million in 1997. At the same time, the women's wear market segment expanded by 185 percent, while young casual clothing sales grew 179 percent. The economic recession led to a reversal in this steady growth. In 1998, shipments in the men's wear segment dropped 8.3 percent, women s wear sales were off 0.3 percent while young casual clothing sales declined 1.5 percent from the previous year. As Korea's economic recovery continues, the apparel market is expected to resume the brisk growth it exhibited before the recession.

Men s Wear Market

Year Value (USD million) Annual Growth Rate (%) 1991 1,016 125.8 1992 1,229 120.0 1993 1,639 133.4 1994 2,113 128.9 1995 2,620 124.0 1996 2,953 112.7 1997 2,989 101.2 1998 2,744 91.8

Women s Wear Market

Year Value (USD million) Annual Growth Rate (%) 1991 1,479 124.7 1992 1,770 119.7 1993 2,259 127.7 1994 2,698 119.4 1995 3,092 114.6 1996 3,445 111.4 1997 3,562 103.4 1998 3,550 99.7

Young Casual Market Year Value (USD million) Annual Growth Rate (%) 1991 1,358 120.4 1992 1,649 121.4 1993 1,952 118.4 1994 2,349 120.3 1995 2,854 121.5 1996 3,472 121.7 1997 3,847 110.8 1998 3,788 98.5

Source: Korea Trade Information Services, 1999

4.Market Analysis: While total sales in the Korean apparel market showed a sharp decline in 1997 and 1998, sales of high-priced garments continued their steady climb. Korean manufacturers, having misjudged consumer preferences, were carrying excessive inventories of lower-priced garments, and with the onset of the 1997-98 economic recession, sharply cut back on production. But, despite the sharp economic downturn, the growth in sales of more-expensive garments continued to increase, as wealthy consumers generally were able to continue purchasing high-end garments, including imported brand-name fashions. This trend can be seen in sales of men s business suits, which fell 25.4 percent during this period, while lower-priced business apparel sales were down by 5.8 percent. At the same time, however, sales of more expensive business attire increased by 8.4 percent.

While Korean manufacturers of high-quality fashions are starting to take advantage of this market trend, large Korean apparel manufacturers, including LG Fashion, Kolon, Shinwon, Nasan, and Cheil Textile, plan to target Korea s high-priced apparel market. The Tongdaemun wholesale and retail market district is rapidly emerging as a distribution center for imported clothing. In this vast and busy marketplace, approximately 800 import shops, handling boutique and designer brands, were active in 1999.

The near-term outlook for casual wear imports also looks very good. Sales of high-priced textile garments and imports will rapidly expand because of renewed consumer confidence and continued preference for higher-quality clothing. Most growth in casual wear imports will be in well-known luxury brands like Levi, Calvin Klein Jeans, DKNY, and Polo Jeans.

5.Conclusion: With the beginning of Korean's economic recovery, the country's apparel market trends indicate a more favorable import and investment climate for American apparel manufacturers and suppliers. Accordingly, increased market opportunities are emerging for foreign apparel suppliers that can offer high quality name-brand clothing to Korean customers. U.S. exporters looking to sell to the Korean market should consider this an excellent time to take advantage of Korea s economic recovery.

U.S. firms and distributors seeking more information about the Korean apparel market should contact:

Mitchel Auerbach, Commercial Attach Commercial Service Korea American Embassy Seoul 82, Sejong-ro, Chongro-gu, Seoul Tel: 82-2-397-4643/ Fax: 82-2-737-5357 Or, Susie So-Eun Joo, Commercial Specialist (APP) Commercial Service Korea American Embassy Seoul 82, Sejong-ro, Chongro-gu, Seoul Tel: 82-2-397-4583/Fax: 82-2-737-5357

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

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For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Korea
Industry: Apparel
Pages: 45
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