Value for Money Is No Longer Enough... SPA Brands Vie for Premium Positioning

[Financial News] Fashion brands operating under the specialty store retailer of private-label apparel (SPA) model, which have built their appeal around value for money, are now competing on product quality. As more consumers consider not only reasonable prices but also materials and quality, product competitiveness is emerging as a new differentiator. In response to Uniqlo, which has grown by emphasizing the strength of its materials, local SPA brands are also focusing on securing premium materials and strengthening their manufacturing capabilities.
According to industry sources on the 21st, SPA brands are moving beyond mid- to low-priced strategies and placing greater emphasis on improving product quality, including their materials. 8seconds, operated by Samsung C&T Fashion Group, has been strengthening strategic products centered on materials since this year. For the fall/winter (FW) season, it is highlighting products made with 100% cashmere.
Although 8seconds has previously released individual cashmere garments, this is the first time it has developed cashmere as a strategic product category. The brand worked with Erdos, a global cashmere producer based in China's Inner Mongolia, to secure high-quality fabric. It significantly expanded both the quantity and range of options for the season's initial production run, which totaled more than 30,000 items. Driven by the popularity of its cashmere collection, 8seconds' sales rose 41% year on year from the start of this month through the 13th.
E-Land Group, which operates SPAO and MIXXO, has been investing in in-house manufacturing centered on Thanh Cong, a Vietnamese apparel manufacturer it acquired in 2008. The group established a quick-response production system that can supply products domestically within five days of planning them, allowing it to respond rapidly to market demand. Unlike the traditional supply model, which builds inventory based on advance forecasts of demand, this system can adjust volumes according to sales trends. Backed by its proactive response to demand, MIXXO's sales rose 34% year on year in the first half of this year. SPAO also posted double-digit growth during the same period.
The group is expanding its capabilities beyond apparel manufacturing into materials development. Its manufacturing base has a vertically integrated structure covering everything from yarn production to fabric manufacturing, dyeing, and processing. Recently, it has focused on researching functional and eco-friendly materials such as EcoPET, made by recycling discarded plastic bottles, and EcoWood, a wood-based regenerated fiber. Since 2015, E-Land Group has increased its investment to strengthen Thanh Cong's role as a research and development center linked to the commercialization of its textile business.
Local SPA brands have entered the competition over materials and other aspects of quality to challenge industry leader Uniqlo. Uniqlo's sales once fell to the 600-billion-won range amid a boycott of Japanese products, but the company recovered to previous levels last year and has continued to outpace its local SPA rivals. As consumers increasingly seek value for money, Uniqlo is winning them over with products that are both affordable and high in quality. FRL Korea's sales for fiscal 2025, which ran from September 2024 through September 2025, totaled 1.3524 trillion won, up 27.5% from the previous year.
An industry official in the fashion sector said, "The era when SPA brands could compete on price alone has passed, as consumers have begun to demand quality even from mid- to low-priced brands," adding, "Competition to improve overall product quality, including materials, will become even more intense."
[email protected] Kang Myeong-yeon Reporter