Musinsa Supporting K-Fashion's Overseas Expansion... "Q3 Global Transaction Volume Doubled YoY"

First Quarterly Profit Achieved Successfully

Musinsa announced on the 2nd that its global store transaction volume in the third quarter of this year doubled compared to the same period last year, while achieving its first quarterly profit.

According to Musinsa, the global store transaction volume in the third quarter of this year increased by about 2 times compared to the same period last year. Looking at the monthly transaction growth rate, it increased by 124% in July, more than doubling. Growth continued in August and September with 90% and 64% increases, respectively.

The scene of the pop-up store held last July at Laforet Harajuku in Tokyo, Japan, under the theme "Digging Seoul by Musinsa."
[Photo by Musinsa]

By region, Japan, where there is strong interest in Korean fashion brands, showed particularly high interest. The transaction growth rate in Japan for the third quarter recorded over 120%, surpassing the overall global store growth rate. In the United States, Musinsa Global Store’s third-quarter transaction volume also increased by more than 80% compared to the same period last year.

The number of members of Musinsa Global Store is also rapidly increasing. As of the third quarter of this year, the cumulative number of Musinsa Global Store members increased more than threefold (200%) compared to the same period last year. Musinsa explained that this is due to more overseas customers signing up based on their experiences at offline stores such as Musinsa Standard and Musinsa Store select shops during their trips to Korea. The strengthening of localized marketing activities, including pop-up stores held by Musinsa Global in Japan, Taiwan, and other locations, also had an impact.

Additionally, Musinsa Global Store achieved its first profit in the third quarter of this year. This is the first time since Musinsa opened the Musinsa Global Store in the second half of 2022 that it has recorded a quarterly profit. It is explained that profitability was achieved as a result of increased investment in the overseas market entry process of tenant brands and improved operational efficiency.

Musinsa also conducts seasonally tailored promotional events in the global store. Starting with the 'SS Season Off' in July, followed by 'Back to School' in August and 'New Season' promotions in September, these campaigns contributed to expanding overseas transaction volumes for tenant brands during the relatively off-season third quarter.

A Musinsa representative said, "Achieving more than double the transaction growth rate and profitability simultaneously during the costly process of entering overseas markets indicates that we have a clear business structure capable of seeking long-term stability," adding, "K-fashion brands will actively pioneer overseas sales channels and, together with strengthening partnerships with global brands, focus on sustainable growth."