The strategic implementation of economic stimulus measures in South Korea, China, and the United States has begun to yield tangible results in the apparel retail sector. According to recent market analysis, clothing retail sales in these three powerhouse economies have maintained steady year-on-year growth. This upward trend, coupled with a significant depletion in global apparel inventories, has led analysts to believe that the stock prices of textile and garment-related companies—which have recently bottomed out—are now poised for a robust rebound.
In a report released in early January 2026, Shinhan Investment Corp maintained an "overweight" recommendation for the textile and apparel sector. Analysts noted that from the second half of last year through November, the growth rate for clothing retail sales in South Korea, China, and the U.S. averaged approximately 3 percent. Notably, certain segments, such as women’s apparel, outperformed the broader market with growth rates reaching low double digits. Currently, inventory levels in both South Korea and the United States are at their lowest points in three years, fueling expectations for a surge in shipments as retailers rush to restock.
"Youngone Corporation’s investment appeal may further increase, as its sales are expected to grow significantly due to benefits from certain clients, even though its correlation with consumer sentiment is low," stated Park Hyunjin, a researcher at Shinhan Investment Corp. He further noted that this environment presents a unique opportunity for price-earnings (PER) multiples to expand, particularly for industry leaders.
In South Korea, department stores have witnessed five consecutive months of growth in apparel sales—a milestone not seen in two years. Meanwhile, China’s retail clothing market is estimated to have grown by 3 to 5 percent in the latter half of last year. This momentum has encouraged brands like F&F, Gamsung Corporation, and AU Brands to accelerate their expansion plans into the Chinese market this year to capitalize on the sustained growth trajectory.
Despite the optimism, some uncertainty remains regarding the long-term purchasing power of American consumers in the face of tariff-driven inflation. While investors are currently concentrating their sentiment on original equipment manufacturing (OEM) companies due to the inventory crunch, the market is closely watching for lagging indicators after the first quarter of 2026. Nevertheless, the convergence of government stimulus and cleared inventories has created a favorable tailwind for the global fashion industry’s recovery.
