South Koreans start boycotting Japanese retail goods
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As a South Korean consumer boycott of Japanese goods gains momentum, consumers are starting to share information on new and upcoming Japanese retailers coming to the country.
The intention, reports Korea Bizwire, is to include the retail brands on the boycott list and hurt sales as soon as the stores open. Among them, Japanese brands GU and Muji are being mentioned online as possible targets.
GU is Uniqlo’s sister brand, owned by Fast Retailing. It plans to open its second and third stores in Yongin, Gyeonggi Province and Seoul’s Times Square Mall by early next month.
Netizens are posting articles that emphasize the relationship between Uniqlo and GU as well as FRL Korea, which currently operates the Uniqlo Korea business.
Discord between the two countries dates back to Japan’s colonial occupation of the Korean Peninsula before and during the Second World War and controversy over forced labor and sexual slavery. It expanded into a diplomatic crisis last week when Japan threatened to throttle exports of materials essential to South Korean industries.
Last weekend, thousands of protestors marched in Seoul, accusing Japan of an “economic invasion”. The boycott campaign against Japanese retailers has stemmed from there.
South Korea’s Lotte Shopping and Japan’s Fast Retailing invested US$19.7 million to establish FRL Korea, owning 49 percent and 51 per cent of the company’s shares, respectively.
That business partnership is being subject to public criticism for taking the lead in importing Japanese goods into South Korea after GU set up its flagship store at Jamsil’s Lotte World Mall and its second franchise at Lotte Mall in Yongin.
Muji, one of the best-known Japanese brands on the boycott list, is planning to renovate its store in Times Square Mall later this month.
The news is being shared on social media, and many netizens are already calling for a boycott of the new store.
GU and Muji have no current plans to suspend expansion or shut down stores already in operation. However, experts who spoke to Korea Bizwire agree that the new stores won’t be able to attract customers through the ‘grand opening’ effect unless the boycott movement subsides.
Questions & Answers
Q.Which Japanese brands are consumers specifically mentioning online as boycott targets?
Which Japanese brands are consumers specifically mentioning online as boycott targets?
Consumers are mentioning Japanese brands GU and Muji online as possible targets for the boycott. These brands are being highlighted due to their origin and expansion plans in South Korea.
Q.What is the relationship between GU and Uniqlo, and why is this being emphasised?
What is the relationship between GU and Uniqlo, and why is this being emphasised?
GU is Uniqlo’s sister brand, both owned by Fast Retailing. Netizens are emphasising this relationship, along with FRL Korea, to associate GU with the existing Uniqlo business amid the boycott.
Q.What investment structure created FRL Korea, and how is it being perceived by the public?
What investment structure created FRL Korea, and how is it being perceived by the public?
South Korea’s Lotte Shopping and Japan’s Fast Retailing invested US$19.7 million to establish FRL Korea, owning 49 percent and 51 percent respectively. This partnership faces public criticism for leading Japanese goods imports.
Q.What do experts predict about the success of new stores opening amidst the boycott movement?
What do experts predict about the success of new stores opening amidst the boycott movement?
Experts believe new stores, like those planned by GU and Muji, will struggle to attract customers through a 'grand opening' effect. This is unless the consumer boycott movement significantly subsides.
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