[Recession-Type Special] ① Fashion Off-Season Warehouse Clearance... 200 Billion Won of Pocket Money Poured In

Musinsa's Massive Summer Bull Sale with 80% Discounts
200 Billion KRW in Sales... 45% Increase from Last Year
'Recession-Type Consumption' Spreads... Fashion Platform Discount Event

The domestic vertical commerce industry specializing in fashion saw a significant increase in performance last month, which is traditionally an off-season period. This surge is attributed to large-scale discount events launched by fashion platforms, as consumers with thinner wallets due to the economic downturn and high inflation flocked to these sales.

According to the fashion industry on the 5th, Musinsa's '2024 Mujinjang Summer Black Friday (Mujinjang Summer Bl프)', which started at 7 PM on the 23rd of last month, achieved cumulative sales of 10 billion KRW within just four hours by 11 PM. By the 28th of last month, only five days later, sales exceeded 100 billion KRW, and the final sales amount reached 204 billion KRW by the 3rd of this month.

The number of products sold during this period reached approximately 5.9 million. When converted to an hourly rate, about 24,000 items were sold every hour. Considering that the final sales amount of last year’s summer Black Friday event held during a similar period was 140 billion KRW, this represents an increase of more than 45% compared to last year.

June is traditionally considered the 'off-season' for fashion. This is because consumers tighten their spending after concentrated consumption in May, the month of family celebrations. Additionally, as the weather becomes hotter, customers tend to wear lighter clothing, which also affects sales performance. Summer season products generally have relatively lower selling prices. This year, the early heatwave starting last month accelerated the impact on the fashion industry.

For this reason, Musinsa chose to hold a large-scale discount event tailored to the off-season. The Mujinjang Summer Black Friday is a discount event that sells summer season products as well as leftover items at reasonable prices, establishing itself as Musinsa’s largest discount event in the first half of the year. Over 2,700 brands participated in this event. The total cumulative discount amount during this event was approximately 177.4 billion KRW, and considering the total sales amount based on the original price was 204 billion KRW, the discount rate for this event is estimated to be over 80%.

Zigzag, a fashion specialty mall operated by Kakao Style, also saw an increase in transaction volume last month. Zigzag announced that its total transaction volume last month increased by about 30% compared to the same period last year. The rise in Zigzag’s transaction volume was driven by the beauty category and same-day delivery services. The year-on-year transaction volume growth rates for the beauty category 'Jikjak Beauty' and the same-day/dawn delivery service 'Jikjin Delivery' last month reached 165% and 74%, respectively.

Zigzag is also presumed to have benefited from discount events and promotions held during the June fashion off-season. In June, Zigzag conducted discount promotions such as the 'Athleisure Festa' and the '9th Anniversary Promotion of Service Launch,' and from the end of June, it held the 'Jikjak Sale Summer Black Friday.'

In particular, the Jikjak Sale Summer Black Friday, the largest discount event in the first half of the year, opened consumers’ wallets during the off-season. On the second day of the event, the 25th of last month, Zigzag’s total transaction volume increased by 32% compared to a week earlier, supporting this trend. Over 4,700 brands are participating in this ongoing event, which runs until the 8th, offering discounts of up to 95% on products. Additionally, during the event period, customers can receive coupon packs with up to 20% discounts and unlimited overlapping coupons that provide an additional 5% discount. The Jikjak Sale Summer Black Friday runs until the 8th.

[Image provided by Abley]

[Image provided by Zigzag]

Another fashion specialty mall, Ably, also succeeded in growing its transaction volume in June. Ably’s monthly transaction volume in June increased by 40% compared to the same period last year. During this period, the number of users of the Ably app exceeded 2 million. According to app and retail analysis services WiseApp, Retail, and Goods, Ably’s daily active users (DAU) in June recorded approximately 2,043,000. The number of newly active users in June also increased by about 20% compared to the same period last year.

Ably analyzed that the increase in transaction volume was due to strengthening products that match customer preferences. This year, Ably newly onboarded popular shopping malls such as 'Blackup,' 'Purbit,' and 'Attrangs,' which recorded high transaction volumes immediately after joining.

With off-season discount events exceeding expectations, discount events by fashion specialty malls from June to August are showing signs of becoming regular occurrences. A Kakao Style official stated, "In the face of intensified competition across the e-commerce industry, achieving double-digit monthly transaction volume growth during a period traditionally considered off-season means there is a solid customer base that goes beyond simple app visits to actual purchases."

The success of off-season discount events is interpreted as a typical example of 'recession-type consumption.' Recession-type consumption refers to consumer behavior where, amid high inflation and economic downturns, consumers purchase mainly inexpensive products or open their wallets only during discount periods. A fashion industry insider explained, "The recent economic downturn has contributed to the popularity of such off-season discount events," adding, "It can also be seen as 'recession-type consumption,' where consumers stock up on sale items during discount events."