Fashion App 'Queenit' Targeting Women in Their 40s and 50s...Industry's Rising Star
Achieved 200 Billion KRW Valuation in Just One Year...Cumulative Investment of 16.5 Billion KRW
"1.8 to 2 Times the Purchasing Power of MZ Generation...Population Size Also a Key Growth Factor"
From the left in the photo, Hong Ju-young and Choi Hee-min, co-CEOs of Rapolabs. [Photo by Rapolabs]
[Asia Economy Reporter Junhyung Lee] The era of fashion platforms has dawned, fueled by the growth of e-commerce. Last year, as offline shopping stagnated due to the impact of COVID-19, large fashion companies such as Samsung C&T and LF struggled. In contrast, startups boasting fashion applications (apps) like Musinsa, Zigzag, and Ably continued their rapid growth. In fact, Zigzag's transaction volume last year reached approximately 750 billion KRW, nearly four times the roughly 200 billion KRW recorded in its early service year of 2016.
Rapolabs is a startup that has emerged as a ‘rising star’ in the fashion platform industry. Although the company was established only in May last year, its achievements over the past year and a half are significant. The 4050 women's fashion app ‘Queenit,’ launched in September last year, surpassed 2 million cumulative downloads within one year of its release. The platform's transaction volume recorded a weekly growth rate of 20%. In July this year, Rapolabs secured a bridge investment worth 10 billion KRW from SoftBank Ventures and others, recognizing a corporate valuation of 200 billion KRW. Including the previously raised 5.5 billion KRW Series A investment, the total accumulated investment amounts to approximately 16.5 billion KRW.
Targeting 4050 Instead of MZ
Rapolabs’ secret to success is unique. Existing fashion apps like Musinsa focused on targeting the MZ generation (Millennials + Generation Z). The industry also cited the support of the MZ generation as the key reason these startups established themselves as ‘new powerhouses’ in the fashion industry. However, Rapolabs targeted middle-aged women in their 40s and 50s. They judged that attracting the relatively higher purchasing power 4050 generation to an e-commerce platform would provide sufficient market potential. Co-CEOs Heemin Choi and Jooyoung Hong of Rapolabs agreed, stating, “The 4050 generation is a blue ocean for fashion apps.”
Rapolabs focused on middle-aged women because of their economic power. CEO Choi explained, “The consumption level of people in their 40s and 50s is considerably higher compared to those in their teens and twenties,” adding, “Preliminary research showed that the purchasing power of the 4050 generation was about 1.8 to 2 times higher than that of teenagers.”
The population size of middle-aged women is another reason. According to the Ministry of the Interior and Safety, as of last year, there were approximately 8.36 million women aged 40 to 50 in South Korea, about 27.4% more than the roughly 6.56 million women in their 20s and 30s. Women in their 40s and 50s account for 16.1% of the total domestic population (approximately 51.83 million). CEO Choi said, “The consumption level and population size of women in the 4050 generation were key growth points that attracted investors’ attention,” adding, “We also saw the recent trend of clothing brands for middle-aged women disappearing from department stores as an opportunity.”
The 4050 women's fashion app 'Queenit' launched by Rapolabs in September last year. [Photo provided by Rapolabs]
Focus on 'Simplifying UX·UI'
To captivate the middle-aged women identified as their target customers, the company placed emphasis on ‘simplifying UX·UI (user experience and interface).’ Considering that the 4050 generation is less familiar with online shopping environments than the MZ generation, unlike existing fashion apps, Rapolabs avoids displaying multiple products on a single screen. Discount coupons are automatically applied whenever a product is purchased. CEO Hong explained that over 300 middle-aged women were interviewed during the service planning stage to provide optimized UX and UI. Hong said, “Before launching the service, we conducted user interviews to investigate the 4050 women’s understanding of mobile shopping,” adding, “We made great efforts to simplify the app, such as increasing font sizes and avoiding cluttering many elements on one screen.”
The company also supports the launch of brands by rookie designers. This is a strategy to proactively secure fashion brands preferred by middle-aged women. The company offers interest-free loans of up to 100 million KRW to designers who want to create brands targeting the 4050 generation. It also supports various tasks necessary for product launches, such as distribution and photo shoots, using company resources.
To expand its user base, the company is accelerating category expansion. Starting with outdoor wear in the second half of this year, Rapolabs plans to significantly broaden the fields of its partner brands to include beauty, golf wear, and jewelry. CEO Hong stated, “Our target transaction volume for next year is 200 billion KRW,” adding, “We will also start live commerce with our partner brands within this year.”
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