Uniqlo hitted by South Korean consumer boycott
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Fast-fashion chain Uniqlo is suffering from the South Korean consumer boycott of Japanese goods.
“We can confirm that there has been an impact on the sales in Korea,” a spokeswoman for Uniqlo owner Fast Retailing told Reuters. She declined to release any figures, however.
The two countries are involved in a diplomatic row relating to disagreements over the compensation for forced laborers during Japan’s occupation of Korea during the second world war. That dispute has spilled over into the populations with Japanese products in South Korea being boycotted by shoppers as a form of protest.
Uniqlo has nearly 200 stores in South Korea, selling around US$1.3 billion worth of clothing annually, equal to about 6.6 percent of its total sales. The South Korean consumer boycott may lead to delays in new stores opening if it continues
Questions & Answers
Q.Why are South Korean consumers boycotting Japanese goods like Uniqlo?
Why are South Korean consumers boycotting Japanese goods like Uniqlo?
The boycott stems from a diplomatic row between South Korea and Japan concerning compensation for forced labourers during Japan's occupation of Korea in the second world war.
Q.How significant is the South Korean market to Uniqlo's global sales?
How significant is the South Korean market to Uniqlo's global sales?
South Korea accounts for approximately US$1.3 billion in annual sales, which is about 6.6 percent of Uniqlo's total global sales.
Q.What potential long-term impact might the boycott have on Uniqlo's operations in South Korea?
What potential long-term impact might the boycott have on Uniqlo's operations in South Korea?
If the boycott persists, it may lead to delays in the opening of new Uniqlo stores within South Korea.
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