Musinsa expands offline presence to attract diverse customer base

[Courtesy of Musinsa Co.]

Musinsa Co., a Seoul-based online and mobile fashion marketplace, is actively diversifying its customer base by launching offline stores for its private brand, Musinsa Standard, at department stores and shopping malls.

While the brand previously attracted young customers in their 20s and 30s through its mobile app, it is now drawing the 40s and 50s demographic, who are significant offline spenders.

According to the company on Wednesday, 30 percent of customers at its shop-in-shop stores within department stores and malls are from the 40s and 50s age group.

This is more than double the percentage at standalone stores, which is around 10 percent. Many of these customers are families shopping for their teenage children or middle-aged newcomers who come across Musinsa Standard while browsing other brands.

Musinsa Standard, which started as an online-exclusive modern casual wear brand in 2017, quickly gained popularity among young people with its affordable prices, such as T-shirts for around 10,000 won ($7.22) and slacks for about 30,000 won.

Since opening its first official offline store, Musinsa Standard Hongdae, in May 2021, the brand has been expanding its standalone and shop-in-shop locations.

Musinsa Standard made headlines when its first shop-in-shop store at Lotte Time Villas Suwon achieved 1 billion won in sales within a month of opening in March.

The brand has since expanded to various locations, including Hyundai Department Store Jungdong, Starfield Suwon, AK Plaza Bundang, Lotte Mall Dongbusan, and Lotte Department Store Centum City.

Initially perceived as a cost-effective online brand for young people, Musinsa Standard’s offline stores have allowed customers to touch and try on clothes, garnering positive responses from the middle-aged demographic.

The brand’s clean design suitable for work attire, along with various lines including kids and sportswear, has contributed to this success.

Musinsa explained that the shop-in-shop stores, located alongside other SPA brands like Uniqlo and Zara, have been effective in attracting new customers unfamiliar with Musinsa Standard.

The cumulative number of visitors to Musinsa Standard’s shop-in-shop stores has reached about 2 million. This growing synergy between online and offline channels has driven significant sales growth for Musinsa Standard, with the brand’s product sales reaching 260.5 billion won last year, up 48 percent from the previous year.

Musinsa Standard is evolving into a brand that appeals to all age groups by diversifying its product range.

In addition to modern basic casual wear, it has launched separate brands for kids, beauty, sports, and women’s wear, enhancing its product offerings.

Recently, the brand gained further recognition by designing the official uniforms for the Korean national team for the Paris Olympics opening and closing ceremonies.

Musinsa Standard’s flagship stores in Myeongdong and Seongsu are also becoming popular destinations for foreign tourists seeking Korean fashion.

The Myeongdong store in central Seoul, which opened in March, noted that 45 percent of its sales in May came from foreign tourists. Similarly, stores in other popular Seoul districts like Hongdae and Seongsu also report around 30 percent of their sales from international visitors.

To strengthen the synergy between its online and offline channels, Musinsa plans to increase the number of offline stores, including road shops, to 30 by the end of the year. The company plans to continue to expand its shop-in-shop locations, particularly in major shopping malls and department stores.