Myongji University Professor Lee Useok and Chonnam National University Professor Kim Jongdae Joint Research
Presented at the Korean Distribution Science Association Fall Conference
"The More Non-Standard Sales Increase, the More Positive the Effect on the Entire Platform"
Musinsa's private brand (PB) 'Musinsa Standard' has been found to have a positive impact on overall performance improvements such as activating transactions within the platform and increasing sales of tenant brands.
According to Musinsa on the 8th, academic research results presented at the '2024 Korean Distribution Science Association Fall Conference' last October showed that the increase in sales and transactions of Musinsa Standard has a significant positive (+) effect on the overall transaction activation of Musinsa.
The study, titled "The Impact of PB Launches on Tenant Brand Performance in Fashion Distribution Platforms: Focusing on the Case of Musinsa," was conducted by Professor Lee Yoo-seok of Myongji University Business School and Professor Kim Jong-dae of Chonnam National University Business School.
According to the research results, as Musinsa Standard sales increased, both Musinsa's total transaction amount and sales per transaction (total transaction amount divided by the number of transactions) grew together. Additionally, it was revealed that as the sales per transaction of Musinsa Standard increased, the number of new members on the entire platform also expanded.
Analysis of the correlation between sales of competitive and non-competitive brands?divided based on similarity to Musinsa Standard?and PB sales among Musinsa tenant brands also confirmed a significant positive (+) effect.
Positive effects were also observed regarding the impact of PB sales on non-competitive brands. This is explained as a positive ripple effect where the launch of Musinsa Standard increases the influx of new customers within Musinsa, naturally leading to increased purchases of non-competitive brands.
In particular, the researchers emphasized that brands in a competitive relationship with Musinsa Standard due to similar product categories can also benefit from the positive effect of new customer inflow resulting from the PB launch. This can be interpreted as having a positive impact even on brands with similar positioning.
However, the researchers explained that since this investigation used data within Musinsa, it is difficult to interpret the results as universally applicable to all fashion platforms. Furthermore, due to the unique characteristics of vertical fashion platforms, different results may emerge on general commerce platforms such as open markets and comprehensive malls.
Professor Lee Yoo-seok of Myongji University, who led the research, stated, "We confirmed that the launch of a PB by a fashion platform operator positively affects the overall platform performance as well as both non-competitive and competitive brands," adding, "The launch of a PB by a distributor does not simply create a competitive relationship with tenant brands but can form a complementary relationship, so it should be discussed separately from the recently controversial preferential treatment policies for in-house brands."
Meanwhile, this study was conducted at Musinsa's request to verify the influence of Musinsa Standard within the online platform. Musinsa provided only the data at the researchers' request, and the research process and analysis were conducted independently.
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