"Thank You, Coupang"... 50,000 Won Coupon Targeted Marketing Doubles Beauty Transactions

Musinsa Distributes New Year Coupon Pack
Non-Fashion Transactions Surge in Beauty and Household Sectors

Following the distribution of large-scale discount coupons to celebrate the New Year, fashion platform Musinsa has seen a significant increase in transactions in non-fashion sectors such as beauty and household goods. The retail industry believes that the structure and presentation of these coupons evoke Coupang's compensation plan for its personal information leak, suggesting that this so-called "targeted marketing" has proven effective.

Musinsa New Year Coupon Image. Musinsa Online Store

On January 8, Musinsa announced that since distributing discount coupons worth a total of 50,000 won on January 1, transaction volumes for non-fashion category products in its online store have surged.

Non-Fashion Transactions Surge After New Year Coupons

According to Musinsa, from January 1 to 5, transaction volume in the beauty category doubled compared to the same period last year. By product group, body care transactions soared by 304%, while skincare and perfume transactions increased by 156% and 141%, respectively.

The household goods sector also saw a marked increase in transactions. During the same period, transaction volume rose by 34%, with bathroom product sales jumping by 214%. Hanger sales also grew by 83%, recording a high growth rate.

A similar trend was observed at 29CM, Musinsa's online select shop. During the same period, transaction volumes for beauty accessories and body care categories at 29CM increased by 194% and 153%, respectively, compared to the previous year. In the living and health segment, kitchenware transactions rose by 74%, and bathroom product orders increased by 45%.

Controversy Over Coupon Structure... Fierce Competition for "Leaving Coupang" Customers Begins

The retail industry attributes these results to Musinsa's New Year coupon promotion. On January 1, Musinsa distributed discount coupons to both existing and new members, with the coupons segmented for use in Musinsa Store (20,000 won), Musinsa Shoes (20,000 won), Musinsa Beauty (5,000 won), and Musinsa Used (5,000 won).

Coupang's compensation plan with purchase vouchers proposed after the personal information leakage incident. Coupang

Some in the industry interpret this approach as similar to Coupang's coupon policy, which was introduced on December 29 last year as compensation for customers affected by the personal information leak. At that time, Coupang divided coupons totaling 50,000 won for use across four services-Coupang, Coupang Eats, Coupang Travel, and Alux-suggesting that Musinsa's strategy mimics this approach.

Additionally, some observers point out that Musinsa's New Year coupon image uses colors reminiscent of Coupang's logo-red, yellow, green, and blue. This is interpreted as a form of "targeted marketing."

An e-commerce industry insider told Yonhap News, "While Coupang was embroiled in a series of controversies over customer compensation and its response to the personal information leak, a competitor launched responsive marketing and appears to have benefited. For the time being, competition for promotions targeting so-called 'leaving Coupang' customers in the e-commerce sector is expected to intensify."

Ongoing Musinsa-Coupang Conflict

Meanwhile, Musinsa and Coupang have had conflicts in the past as well. Last year, when two Coupang executives moved to Musinsa, Coupang filed for an injunction citing breach of trade secrets and non-compete agreements, but the court dismissed the case. After Coupang appealed and then withdrew, Musinsa disclosed details of the situation through a statement on January 2.

Previously, in 2023, controversy arose when the Coupang Play comedy series "SNL Korea" used the phrase "Musinsa smell" in a somewhat negative context regarding clothing styles.