Changes in Leisure Culture Due to COVID-19 Increase 'Leggings' Sales
Functional Yarn Sales in September Up 20% Year-on-Year
[Asia Economy Reporter Hwang Yoon-joo] As the number of young hikers in the '2030 generation' increases due to the novel coronavirus infection (COVID-19), sales of Hyosung's athleisure fibers are also soaring.
According to Hyosung on the 1st, sales of functional yarns by Hyosung TNC in September this year increased by about 20% compared to the same period last year. Representative functional fiber products include ▲Creora Power Fit ▲Spandex ▲Aero Cool ▲AskIn ▲Cotna, among others. These products are gaining attention as demand for 'athleisure' (a combination of athletics and leisure) such as yoga wear and hiking clothes increases.
The product driving functional fiber sales is 'leggings.' In the domestic athleisure clothing market, the sales ratio of bottoms and tops is 70% and 30%, respectively. Among bottoms, leggings are the best-selling product. Hyosung TNC currently supplies functional fibers to the leading domestic yoga wear brand 'Andar' and the latecomer 'Sculpig.'
The increase in sales is interpreted as a result of changes in the leisure culture of the 2030 generation due to the impact of COVID-19. According to the Korea Federation of Textile Industries, the compound annual growth rate of leggings as a single item in the domestic athleisure market is 4.9%. The size of the domestic athleisure market is expected to double in five years, from 1.5 trillion won in 2016 to 3 trillion won this year.
A Hyosung official said, "Recently, the washable masks released together with Andar sold out in just three days, and an additional 150,000 masks were supplied," adding, "As young generations who find it difficult to use gyms focus on hiking or home training, domestic demand for functional fibers in 'athleisure' (a combination of athletics and leisure) seems to have increased."
As domestic yoga wear brands prepare to expand overseas, sales of functional fibers by Hyosung TNC are expected to grow further. Currently, Hyosung's spandex brand 'Creora' has maintained the number one market share worldwide since 2010. Andar opened an online mall in Japan and will enter the Chinese market through the Guanggun Festival next month. Brand X (Jeximix) also established a corporation in Japan last year and is preparing to enter Hong Kong.
As a result, there is also anticipation that Hyosung TNC's third-quarter performance this year will exceed consensus. The securities industry forecasts Hyosung TNC's third-quarter operating profit at 45.6 billion won and sales at 1.2489 trillion won.
Lee Dong-wook, a researcher at Kiwoom Securities, analyzed, "The textile sector is expected to turn to a large-scale surplus compared to the second quarter," adding, "Due to the impact of COVID-19, consumption of spandex for masks and protective clothing has increased, and sales of highly elastic yoga and sportswear have increased due to changes in people's awareness of health."
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