It was confirmed on the 17th that Musinsa, the country's leading fashion shopping platform, has entered its first emergency management system since its establishment. This emergency management system is the first in 13 years since Musinsa's corporation was established in 2012.
According to the related industry, Park Jun-mo, co-representative of Musinsa, declared the emergency management system during a town hall meeting for all employees on the 15th. At this meeting, Park noted, "In a situation where the complexity of the business is increasing, we must remain vigilant," emphasizing a sense of crisis among employees.
There are reactions of puzzlement regarding this emergency management declaration, as Musinsa succeeded in turning a profit for the first time last year, surpassing 1 trillion won in sales. According to consolidated figures, Musinsa recorded sales of 1.2427 trillion won last year, a 25% increase from the previous year, and an operating profit of 102.8 billion won, achieving a profit. The net profit for the period also reached 69.8 billion won, marking a turn to profit. Musinsa's annual transaction amount last year was counted at 4.5 trillion won.
According to industry reports, the background for Musinsa's emergency management appears to be influenced by falling short of the transaction target for the first quarter of this year. The management seems to believe that sluggish clothing consumption will continue due to recession and the impact of tariffs on U.S. interactions.
A spokesperson for Musinsa explained, "We have taken preemptive action as uncertainties have increased both domestically and internationally due to the consumption slump in the fashion market." As the company enters a structural transition phase where its business scope expands from the existing platform-centered model, it indicates a desire to overcome crises through proactive management due to increased complexity in risk management and organizational operations.
During the town hall meeting, Park told employees, "It is uncertain how long the emergency management period will last," adding, "If we make bold investments and execute well-developed plans, we can overcome the current situation."
As part of its emergency management, Musinsa will have executives work over the weekends and is pursuing organizational consolidation, streamlining, and efficient expense management. In fact, Musinsa has been working on efficiency measures through organizational restructuring, such as establishing a dedicated organization for brand operations at the beginning of this year and integrating product planning and procurement departments. They are also expanding new businesses beyond the primary platform into global, offline, and brand ventures.
Recently, the luxury platform Balaan has applied for corporate rehabilitation, highlighting the continued slump in the fashion commerce industry. The same is true for department stores where clothing consumption is high. Last year, the operating profits of Lotte, Shinsegae, and Hyundai Department Store all decreased. The first quarter of this year is also expected to be underwhelming for the fashion sectors of the three department stores due to the impact of weather and sluggish spring clothing sales. According to the Statistics Korea's industrial activity trends, the retail sales index for semi-durable goods, including clothing, shoes, and small home appliances, was 108.1 in February, a 4% decrease compared to the same period last year.