K2 expands through NEPA acquisition as race for top spot in outdoor market heats up

[Financial News] A major shake-up in the outdoor market is expected as K2 Korea Group, which operates the outdoor brand K2, steps up its multi-brand strategy following its acquisition of NEPA. In particular, competition for the lead between K2 Korea Group, now with revenue on a trillion-won scale after acquiring NEPA, and industry leader The North Face is expected to intensify further.
According to industry sources on the 22nd, the combined revenue of K2 Korea Group's six companies came to 974.5 billion won last year. Including the 288.8 billion won in revenue from NEPA, which it acquired last month, the total comes to 1.2633 trillion won.
As a result, K2 Korea Group's revenue has surpassed that of industry leader Youngone Outdoor Corporation. Youngone Outdoor Corporation, which operates The North Face, posted revenue of 1.0564 trillion won last year. K2 Korea Group operates outdoor brands including K2 and Eider, sports brand Dynafit, and golf apparel brand Wide Angle.
The gap narrows considerably even when comparing only the two companies' outdoor sales. Last year, K2 and Eider had combined revenue of 590.6 billion won, nearly 500 billion won less than The North Face, but K2 Korea Group's outdoor revenue rises to 879.3 billion won when NEPA's sales are included. The difference with The North Face is 170 billion won. 
The industry is watching to see whether K2 Korea Group's multi-brand strategy, pursued through its acquisition of NEPA, can deliver results in the outdoor sector. The group has expanded its outdoor portfolio, starting with Eider in 2006 and adding brands such as Nordisk in 2023, but sales at each brand have stagnated.
K2 Korea's revenue fell from 424.6 billion won in 2022 to 367.4 billion won last year. Eider's revenue declined from 250.4 billion won to 223.2 billion won over the same period. Even after adding Nordisk, D&A Works' revenue grew slowly, remaining in the 160-billion-won range.
NEPA is also facing a difficult situation. Its revenue has declined every year since reaching 329.5 billion won in 2022.
As sales stagnate at affiliated brands, including K2, the industry's second-largest player, the gap with The North Face is widening. Youngone Outdoor Corporation has continued to grow for six consecutive years since 2020. After surpassing 500 billion won in revenue in 2021, it nearly doubled in size in just four years.
K2 Korea Group plans to strengthen its focus on customers in their 20s and 30s through its acquisition of NEPA. Its strategy is to differentiate the brand identities of K2 and NEPA, which have strong customer bases among people in their 50s and 60s, and capture demand across age groups with a multi-brand portfolio that also includes existing brands Eider and Nordisk.
However, restoring the competitiveness of individual brands remains a challenge. Since major brands such as K2, Eider, and NEPA focus on outdoor apparel, competition within the group could intensify if their customer bases and product lines overlap.
An industry official said, “The key is whether NEPA can reduce costs through collaboration with K2 Korea Group, restore its performance, and return to growth,” adding, “It will be important to strengthen the competitiveness of individual brands so that competition within the group does not dilute the benefits of the acquisition.”
[email protected] Kang Myung-yeon Reporter