Global sportswear makers stepped up competition in South Korea to take advantage of the country’s growing running craze with major brands such as Nike Inc. and Adidas AG in fights against smaller rivals.
French sporting goods retailer Decathlon plans to open about 10 stores in South Korea next year after launching six shops in 2024 in major shopping areas such as Gangnam, Seoul’s upscale and modern center, according to industry sources in the Asian country.
The company had opened only four branches by 2023 in Asia’s fourth-largest economy with one of them closed since it began operations in the country in 2018.
The rapid expansion came as the number of runners topped 10 million in the country with a population of 52 million, retail industry sources in Seoul said.
Younger generations are leading the craze as the sport costs less than others such as golf, while anyone can participate in running regardless of age, gender or fitness level, the sources added.
“More people run as they don’t have to spend as much money as they do on golf and tennis, which cost more for equipment,” said an official at a retailer in the country.
ASICS, HOKA RATHER THAN NIKE, ADIDAS
South Korean runners preferred gear including shoes and clothing manufactured by smaller foreign brands such as Asics Corp. and Hoka One One to those products sold by global giants such as Nike and Adidas.
Asics’s South Korean subsidiary reported sales of 109.7 billion won ($78.4 million) in 2023, up 22% from the previous year. Sales of Joy Works Co., a South Korean distributor of Hoka running shoes, surged 73.9% to 43.3 billion won.
On Holding AG, Switzerland’s athletic shoe and performance sportswear company, established a unit in South Korea to directly sell running shoes there.
DEPARTMENT STORES
Local department stores also took measures to take advantage of the growing popularity of running.
The Hyundai Seoul, the largest department store in the South Korean capital, plans to open a pop-up store for Puma X Coperni, the new collection of luxury apparel and sneakers, this month after operating flash retailing shops for Mizuno in September, Ridar in August and Gorewear in March.
Running shoe sales of Hyundai Department Store Co., which operates 16 branches including The Hyundai Seoul in the country, rose 24% in the first 10 months of 2024 from a year earlier.
The country’s largest Lotte Department Store expanded the sports and leisure section at its headquarters, while the rival Shinsegae Department Store enlarged shops Nike, New Balance Athletics Inc. and other sportswear brands at some branches to increase running shoe sales.
By Ji-Yoon yang
yang@hankyung.com
Jongwoo Cheon edited this article.
