Attack of Musinsa Standard... The Top Contributor to '1 Trillion Won Sales'

Musinsa PB 'Musinsa Standard'
Offline Store Expansion... 5 Locations Expected in First Half
Aggressive Expansion with 20 Shop-in-Shop Stores in Second Half

Musinsa's private brand (PB), Musinsa Standard, is establishing itself as a core driver of Musinsa's sales. Its affordable prices and high-quality products have gained word-of-mouth popularity, increasing its share of Musinsa's total sales each year.

According to Musinsa's audit report on the 9th, Musinsa Standard's sales revenue grew from 87 billion KRW in 2021 to 179 billion KRW in 2022. Its sales proportion increased from 19% to 25% of total sales. Industry insiders predict that Musinsa's transaction volume this year will increase by 1 trillion KRW from 2022 to 4 trillion KRW, with sales revenue reaching 1 trillion KRW. Assuming conservatively that the sales proportion remains similar to last year, it is estimated that Musinsa Standard generated sales exceeding 250 billion KRW.

Musinsa Standard is a key pillar of Musinsa's growth. Han Moon-il, CEO of Musinsa, stated at a press conference held last November that they plan to increase Musinsa Standard's share to 50% both online and offline. This confirms the company's high expectations for the growth of Musinsa Standard. In particular, CEO Han announced plans to aggressively open offline stores this year, with the expansion strategy centered on Musinsa Standard. Due to the nature of PB products, it is easier to strengthen brand awareness and rapidly increase profit margins.

Steady-selling products continue to attract new customers. Musinsa Standard's slacks have recorded cumulative sales of over 4 million units, blazers over 700,000 units, and denim over 500,000 units. Last year, the five offline stores (Hongdae, Gangnam, Seongsu in Seoul; Dongseong-ro in Jung-gu, Daegu; and Seomyeon in Busan) attracted 2.8 million visitors. A fashion industry insider commented, "Musinsa intends to connect offline consumer experiences to online sales," adding, "The realization of economies of scale has improved product quality compared to the past, significantly enhancing Musinsa Standard's competitiveness."

Musinsa aims to secure 30 Musinsa Standard offline stores within this year. Five offline stores are scheduled to open in the first half of the year. Starting with a standalone store in Myeongdong, Seoul, the brand plans to open stores consecutively at Lotte Mall Suwon, Starfield Suwon, Hyundai Department Store Jungdong, and AK Plaza Bundang. The Myeongdong store, opening this month, is expected to directly gauge global consumer responses due to the high foot traffic of foreign tourists. In the second half of the year, the company plans to aggressively increase the number of stores by about 20. To accelerate expansion, the company has chosen a 'shop-in-shop' strategy within large retail channels, as it is difficult to rapidly increase store numbers with standalone stores.

Additionally, Musinsa operates a brand edit shop that gathers designer brands offline. Stores are located in Hongdae, Seoul, and Daegu, with plans to open another edit shop in Seongsu-dong, Seoul, around June. However, unlike Musinsa Standard, there are no plans to expand the number of these stores significantly. A Musinsa representative stated, "Since we operate offline stores for designer brands by charging a fixed commission, this is a stage to test profitability," adding, "Offline bases will be actively expanded focusing on Musinsa Standard."