Formal wear market vs. casual wear market
The Korean apparel market has grown significantly over the past 20 years, and the market structure has experienced constant change. The formal wear market, which once occupied more than half of the fashion market in the early 2000s, is now only about 15 percent. Due to the influence of the business casual trend, consumption of formal wear items shifted to the casual wear and sportswear market. In addition, the consumption of formal wear is expected to further stagnate in the future following the social restrictions due to the COVID-19 pandemic. South Korean male consumers purchased their formal wear mainly at department stores, followed by outlets and brand shops. For female consumers, department stores were the most preferred place to purchase their business wear, with non-store shopping using online or home shopping the second preferred purchasing channel.Contrary to the stagnation of the formal wear market, casual wear occupies an increasing proportion of the Korean apparel market. While many apparel items recorded negative growth, the casual wear market has recorded an average annual growth rate of 4.5 percent over the past five years. In the Korean casual wear market, T-shirts accounted for the largest portion, followed by pants, shirts, and jeans. In terms of purchase channels, Korean consumers preferred to buy their casual wear via non-store retailing such as online shopping or TV home shopping. During the past few years, Uniqlo has maintained the leading position as the most purchased casual brand in South Korea. However, the difference between Uniqlo and other domestic brands, such as Hazzys and Beanpole, has decreased in recent years. Other than brand products, over 73 percent of respondents stated that they purchased non-branded casual wear.
