[THE INVESTOR] Many outdoor gear and apparel brands are closing down their business in response to the sliding domestic sales in the already-saturated outdoor market.
Fashion Group
Hyungji recently decided to withdraw its outdoor apparel brand Northcape after five years in business. According to industry insiders, Hyungji has already notified its 70 franchise owners across the country.
Actress Ha Ji-won and actor Ji Chang-wook model for Northcape
In 2011, Hyungji clinched a deal to exclusively sell Northcape, an English outdoor brand that was established in 1973, in Korea and opened the first store the following year, riding the tide of the outdoor goods boom from 2005 to 2013.
But starting from 2013, the outdoor industry, which boasted yearly growth rates of 20 percent or more, showed declining sales. Experts cited the stagnation as the result of too many small and big players joining the market in such a short period.
Pyungan L&C, which operates womenswear PAT, is also planning on closing down its camping gear and clothing brand Offroad after the summer season.
Last year, sports apparel brand FILA closed its outdoor arm Fila Outdoor, while Shoemaker Kumkang stopped selling Norweigian brand Helly Hansen in Korea.
Shinsege International also pulled out from selling French brand Salomon Outdoor after only two years in business.
By Ahn Sung-mi (
sahn@heraldcorp.com)