"Rushing to Buy Warm Padded Jackets" Record Cold Wave Thaws Consumer Sentiment... Fashion Market Booming

Double-Digit Growth in Department Store Fashion Sales
Increased Weather Volatility Drives Outerwear Sales Amid Cold Wave
Rising Demand for "Luxury" Boosts Imported Fashion Sales
Fashion Industry Forecasts Sales Growth in the Fourth Quarter of Las

The domestic fashion market has been experiencing a positive trend since the beginning of the year. As the perceived temperature has dropped to as low as minus 20 degrees Celsius due to an unprecedented cold wave, there has been a surge in demand for thick padded jackets. This, combined with a base effect from last year-when consumer sentiment plummeted and spending stalled in the wake of the 12·3 Martial Law incident and the Jeju Air disaster-has led to a significant improvement in performance.

According to the retail industry on January 22, Lotte Department Store's fashion division posted a sales growth rate of nearly 30% year-on-year from the start of the year through the previous day. This is three times the increase seen at the beginning of last year, when the growth rate was in the 10% range.

After the 12·3 Martial Law incident in 2024, the ensuing impeachment crisis heightened political uncertainty, and the Jeju Air disaster at the end of the year further dampened consumer sentiment at the start of last year. However, consumer sentiment has rebounded rapidly since the second half of last year.

According to the Bank of Korea, the Consumer Sentiment Index stood at 88.40 in December 2024 and 91.20 in January last year. However, in December last year, the Consumer Composite Sentiment Index (CCSI) reached 109.90, surpassing the benchmark of 100. In November, it recorded 112.40, the highest since August 2017. The Consumer Sentiment Index uses 100 as a baseline; a reading above 100 indicates that consumer sentiment is more optimistic than the long-term average.

The weather has also played a role. While the monthly average temperatures from October last year through January this year were not significantly different from the previous year, temperature fluctuations increased, leading to more frequent cold spells. The Korea Meteorological Administration had previously forecast that, due to factors such as reduced Arctic sea ice, the expansion of cold continental high pressure would result in greater temperature volatility this winter.

As a result, department store fashion sales saw significant improvement in the fourth quarter of last year. According to Shinsegae Department Store, the fashion division's sales growth rates for October, November, and December last year were 14%, 8.3%, and 11%, respectively, all showing double-digit growth. This marks a substantial improvement compared to the same period the previous year (0.3% in October, 0.2% in November, and 5.3% in December).

A customer browsing winter outerwear products at a women's clothing store.

Imported fashion brands, in particular, drove this growth. During the same period, sales growth rates in the luxury fashion segment were 18.4%, 21.4%, and 19.3%, far outpacing general fashion. Winter products from Herno, UGG, and Sacai-brands distributed by Shinsegae International-saw a sharp increase in sales, with January sales rising by more than 30% year-on-year. LF's British brand Barbour posted domestic sales growth of over 20% last year, while the American outdoor footwear brand Keen saw its kids' category sales for the fall and winter season quadruple compared to the previous year.

An official in the fashion industry commented, "The combination of harsh winter weather and recovering consumer sentiment has led to a significant increase in sales. Even amid an economic downturn, the imported brand market is being reorganized around genuine demand, with more consumers seeking to express their individuality and complete their own style through 'new luxury' brands that offer rarity and uniqueness, rather than mainstream labels."

In line with this trend, fashion companies are expanding their imported and overseas fashion portfolios. Last fall and winter, LF added eight new brands to its fashion incubator select shop Raum, including the Danish outerwear brand UTTZON, jewelry brand RIESTUDIO, and Tokyo-based women's wear brands Mame Kurogouchi and Akiko Aoki. For the upcoming spring and summer season, LF plans to introduce seven additional new brands. In the second half of last year, Shinsegae International strengthened its imported fashion lineup by adding the Japanese brand CFCL and the Swiss brand Akris.