Uniqlo sees record payments and app users in South Korea, signaling strong comeback

Japanese fashion brand Uniqlo is solidifying its position in the South Korean market, with both its estimated payment volume and app user numbers hitting all-time highs last month. This resurgence marks a significant turnaround for the brand after facing boycotts and the pandemic.

According to WiseApp/Retail/Goods, a real-time app and payment data analysis firm, Uniqlo's estimated monthly payment volume reached 323.5 billion won in May. This figure represents a substantial 93% increase compared to May of the previous year, when the estimated payment was 168 billion won. The brand's mobile app also saw a surge in activity, with its monthly active users (MAU) reaching 1.81 million, a 43% rise from 1.26 million users a year earlier.

Uniqlo's recovery follows a challenging period. The brand experienced a downturn after the 'No Japan' boycott movement, which began in 2019 in response to a South Korean Supreme Court ruling on forced labor during the Japanese colonial era and subsequent economic retaliation by Japan. The COVID-19 pandemic further impacted its business, leading to the closure of its Myeongdong flagship store, once its largest in South Korea, in 2021.

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Uniqlo's estimated monthly payment volume reached 323.5 billion won in May, an all-time high.

Despite these setbacks, Uniqlo has shown a consistent recovery trend in both payment volume and app usage over the past four years. The brand has actively sought to re-engage with the South Korean market, culminating in the recent reopening of its global flagship store in Myeongdong on May 22nd, signaling an intensified focus on domestic sales.

The data on payment volume is an estimate based on a sample survey of credit and check card payment data from Korean users. WiseApp/Retail noted that the figures exclude payments made via bank transfers, cash, or gift certificates, and may differ from the company's actual sales revenue.

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The monthly active users (MAU) for the Uniqlo app reached 1.81 million, a 43% increase from the previous year.