29CM Accelerates Growth After Musinsa Acquisition
Ultra-Low-Priced Shein Closing in on Queenit and Zigzag
Competition in the women’s fashion platform market is intensifying. '29CM,' which grew based on domestic designer brands under Musinsa, has surpassed Shinsegae's 'W Concept' and is closely trailing Dongdaemun-based fashion platforms 'Ably' and 'Zigzag.' Meanwhile, Chinese women’s fashion platform 'Shein' is rapidly attracting consumers by offering ultra cost-effectiveness.
According to the fashion industry on November 14, 29CM surpassed 1 trillion won in gross merchandise volume (GMV) as of the end of last month. After surpassing 1 trillion won in GMV for the first time last year, it is expected to maintain this level for the second consecutive year. In contrast, W Concept’s GMV in the first half of this year was 300 billion won, and is estimated to have reached 500 billion won for the same period.
Brand Fashion Platform 29CM Takes the Lead
29CM also leads in user numbers. According to WiseApp Retail, a mobile app analytics platform, W Concept’s monthly active users (MAU) stood at approximately 1.15 million, while 29CM recorded 1.76 million.
Both 29CM and W Concept are fashion platforms that have grown based on domestic designer brands. They were acquired by Musinsa and Shinsegae in July and April 2021, respectively. In 2021, W Concept’s GMV (327.1 billion won) slightly outpaced that of 29CM (270.5 billion won).
The key factor behind 29CM’s ability to triple its GMV after being acquired by Musinsa is the expansion of partnerships with women’s designer brands. The platform quickly onboarded brands with strong product quality and clear identity, especially targeting women in the '2539' age group. As a result, the number of brands generating over 5 billion won in annual GMV through 29CM increased more than elevenfold compared to 2021.
Another success factor is the rapid expansion into categories likely to interest women, such as home, living, kids, and beauty. This year, 29CM launched the lifestyle select shop '29Home Seongsu,' the kids’ brand select shop '29Kids Seongsu,' and its own lifestyle brand store '29Upperstrophy Seongsu.'
In contrast, W Concept recorded an operating loss of 1 billion won in the first half of this year, as coupon and marketing expenses increased by 50% and 35%, respectively, compared to last year. Although the company sought to strengthen profitability last year by controlling costs, intensified competition among platforms led to increased spending on coupons and marketing, putting pressure on profits. The company has also withdrawn from offline stores. In mid-September, W Concept completely withdrew from three department store locations to focus on outlet-centered operations. This came just three years after opening its first store at Shinsegae Department Store Gyeonggi Branch in March 2022.
Fierce Competition in Women’s Fashion Platforms... Shein Gains Ground with Cost-Effectiveness
Currently, the women’s fashion platform with the largest MAU is Ably, followed by Zigzag and Queenit. Zigzag and Ably, which grew based on Dongdaemun wholesale fashion, are now rapidly expanding their scale by attracting designer brands and brand companies. These platforms are also expanding into various categories such as food, webtoons, tickets, and lifestyle, putting significant effort into increasing their MAU. Queenit is a fast-growing women’s fashion platform targeting women in their 40s and 50s, rapidly increasing its MAU by recommending clothes tailored to different body types for middle-aged women.
The industry is paying close attention to the rapid increase in users of the Chinese women’s fashion platform Shein. At the beginning of this year, Shein’s MAU was only 670,000-the lowest among the platforms. However, last month, it surpassed Queenit’s MAU. Shein is expanding its customer base from teenagers to those in their 30s by offering dresses in the 10,000 to 20,000 won range, T-shirts for about 5,000 won, and various accessories.
The background of Shein’s rapid growth lies in the trend of cost-effective consumption. There is a growing tendency for consumers to purchase inexpensive items for work or daily wear, while not hesitating to spend on special brands that allow them to express themselves. There is also a perception that the quality of Shein’s ultra-low-priced fashion is not significantly different from existing Dongdaemun wholesale clothing or some designer brands, which is driving demand for these products.
Marketing effects from TikTok and short-form video reviews of Shein purchases have also fueled consumer desire to buy. An industry insider in the fashion platform sector said, "Trends in the fashion industry show that consumers either seek expensive or affordable products, but recently, the pursuit of extreme cost-effectiveness among affordable options has become even stronger. Existing platforms are expanding their categories to find new alternatives, but the rapid growth is likely to intensify the competition for ranking within the women’s fashion market."
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