Korean Enterprises Expand Overseas To Rescue Market

At present, some companies have decided to find a breakthrough through overseas expansion. At the beginning of this month, Nepa announced the global development plan. The company will develop new products by increasing research and development, and will open more branches in Europe and China. Nepa president said: "in this situation, if outdoor clothing does not take action, it is just waiting to die."

Recently, the financial supervision agency of Korea revealed that the outdoor clothing sales in Korea were not good enough. Clothing brand Hit hard. It is reported that from last year, outdoor clothing sales in Korea began to decline, until this spring there is no sign of recovery.

Bbu Ryak is one of the biggest outdoor clothing companies in Korea. Last year, the company's sales volume was 572 billion 300 million won, down 1.4% compared with 2013. Although the decline is not apparent, it has caused a great shock to the company that has been growing in double-digit growth and the whole outdoor clothing market in Korea. Because this means that Bbu Ryak, the industry leader, has ended 3 years of explosive sales growth. According to statistics, in 2011, the company Sale The growth rate was 64.5%, 49.8% in 2012 and 28% in 2013. Last year, the company's operating profit fell sharply 26.7% to 81 billion won. Its other outdoor brand, Dongjin Leisure, lost 1 billion 600 million won last year, the first time since its operation.

　　 The North Face Nepa is also suffering from the same dilemma. In terms of sales volume, The North Face is the largest outdoor clothing brand. Last year, the brand only achieved 1% sales growth. At the same time, another brand Nepa in 2014 only achieved 0.6% sales growth, which is in sharp contrast to the sales growth rate of 78.5% in 2013. In 2014, Nepa's operating profit dropped by 20%. The industry believes that these outdoor clothing brands this year's sales performance is still, it is unlikely to rebound, because the demand for large retail stores is cold.

Indeed, recently, Korean large department stores have been reducing their prices. The discount rate is quite high, but sales are generally effective, and sales of outdoor clothing are still lower than expected. Take the new world department store as an example, in the spring promotion campaign, the store lowered the price of outdoor clothing by 60%, but it is still hard to get consumers' attention.

An outdoor product retailer said sales of Korean outdoor products rose rapidly in recent years. Therefore, the current slide should be seen as a reasonable adjustment. According to the data released by the first woolen textile company in Korea, in 2013, the total value of domestic outdoor products in Korea was about 6 trillion and 400 billion won, which was more than doubled compared to 3 trillion won in 2011. However, how long this downturn will last and how the enterprise will get through this difficult period has not yet been answered by the Korean industry. Insiders estimate that the current downturn will continue for some time, and urge manufacturers of outdoor products to take measures to survive in the market.