Lexus, Asahi, Uniqlo make comeback in Korea amid warming Japan-Korea ties

Industry

Published: 24 Jun. 2023, 06:00

Lexus, Asahi, Uniqlo make comeback in Korea amid warming Japan-Korea ties

The photo shows the exclusive gate for Japan-bound flights within the departure area of Incheon International Airport. [YONHAP]

A revival in sales for Japanese brands, including in the automobile and beer sectors, as well as a significant increase in the demand for travel to Japan are observed in Korea sparked by positive diplomatic developments between the two countries.

Japanese household automakers like Toyota and Lexus are making a stellar comeback in Korea after a subdued presence.

Lexus reported a substantial 119.7 percent increase in Lexus sales from January to May compared to the same period last year, with 5,295 units sold, according to the Korea Automobile Importers & Distributors Association.

Toyota also experienced growth, selling 3,012 units during that timeframe, marking a 34.6 percent increase. Toyota has been implementing an aggressive sales strategy, introducing eight new models this year to further strengthen its presence in the market.

Lexus and Toyota have been engaged in their latest efforts to boost Korean sales after Japanese export restrictions led to a Korean boycott of Japanese products in 2019.

Officials from Lexus International pose at a Lexus press event in Jamsil, southern Seoul, on Wednesday. [YONHAP]

Lexus held a launch event on Wednesday in southern Seoul's Jamsil area, where they unveiled two electric vehicle models: the all-electric RZ 450e and the RX series. The RZ 450e SUV is its first all-electric model equipped with the e-TNGA EV-dedicated platform.

Japanese companies in Korea are making noteworthy strides following the agreement between the two countries' leaders to fully restore "shuttle diplomacy" between the two countries. This development aims to improve strained ties and inject fresh momentum into cooperation across sectors such as semiconductors, batteries, and energy.

In addition to automotive success, Japanese beer brands like Sapporo and Asahi are making a comeback in Korean markets, just in time for the summer season.

Japanese import beers are displayed at an isle of a discount store in Seoul. Japanese beer imports mounted to $3.07 million in April, up 866.7 percent on-year, according to trade statistics compiled by Korea Customs Service. [YONHAP]

While no Japanese beer products made it to the top 10 in May last year, Asahi currently holds the second position in this year's May sales rankings at major convenience store chains.

Sapporo opened its first-ever pop-up store in Seoul near Hongik University, called "Sapporo Premium Beer The First Bar." The company has gone to great lengths to enhance the beer-tasting experience by introducing specially crafted thin glass mugs imported from Japan.

Asahi Super Dry canned beer, known for its unique fully-open lid design and rich foam, will officially launch in Korea next month, after facing scarcity in some convenience stores. Lotte Asahi Liquor has announced that its products will feature a Korean-exclusive design with Hangeul labels, making them easily accessible in convenience stores and large supermarkets.

The import volume of Japanese beer is steadily increasing, according to the Korea Customs Service.

In May, the import volume of Japanese beer surged by 330 percent compared to the same month last year, reaching 2,091 tons, with this surge significantly impacting the sales rankings of imported beers in convenience stores.

Japanese fashion brands, which were previously affected by the "No Japan" boycott movement, are now experiencing a notable recovery in demand.

Uniqlo, in particular, witnessed a significant sales increase, soaring from 613.9 billion won ($468.8 million) in 2021 to 803.6 billion won last year, solidifying its position as the top-selling SPA fashion brand in Korea.

The characters of Sanrio, the Japanese content company famous for its characters like Hello Kitty, Cinnamoroll, Pompompurin, Kuromi, and My Melody, are gaining popularity among Korean consumers, thanks in large part to the influential Alpha and MZ generations.

On Valentine's Day this year, the Sanrio character carrier introduced by Korea Seven, the operator of 7-Eleven stores in Korea, witnessed its entire stock of over 100,000 units selling out. The cumulative sales of Sanrio carriers launched on special occasions such as Valentine's Day and White Day surpassed 8 billion won, the convenience store chain reported. Additionally, Korean confectionery company SPC Samlip's Sanrio character bread series, released in April, sold over one million units within a mere week of its market debut.

Japan, already a favored destination among Koreans due to its short flight duration which is ideal for quick weekend trips, is currently witnessing an even greater surge in popularity.

Korean travelers, accounting for the highest number among foreign visitors to Japan in Japan, line up for check-in at Incheon International Airport, heading towards Japanese destinations on Thursday. [YONHAP]

According to the Japan National Tourism Organization, out of the 1,898,900 foreign visitors to Japan in May, Koreans made up the largest group with 515,700 visitors.

From January to May, out of the total 8,638,500 foreign visitors, Koreans accounted for 2,583,400 visitors, constituting 30 percent of the overall tourist arrivals.

Recent data from Hana Tour showed during the week of June 12 to 18, reservations increased by 29.1 percent compared to the previous week, with a particular focus on destinations such as Hokkaido and Osaka. Similarly, Modetour witnessed a growth rate of approximately 80 percent in Japanese travel reservations from June 1 to June 21 compared to the same period last month.

"There is a noticeable surge in new reservations for Japan," commented a Hana Tour spokesperson. "We expect further growth in travel to Japan due to the recent improvement in bilateral relations between Korea and Japan as demonstrated during the recent summit, the expansion of airline services, and the Japanese currency's weakness."

BY SEO JI-EUN, YOO JI-YOEN [seo.jieun1@joongang.co.kr]