Domestic fashion platforms are expanding consumer touchpoints by traversing online and offline channels. Online, they are enhancing delivery services with a focus on existing customer convenience, while offline, they are increasing platform accessibility and securing loyal customers through pop-up stores.
According to industry sources on the 9th, the fashion platform Musinsa recently launched free shipping and same-day shipping services for over 200 popular brands listed on their platform. In addition, Musinsa also started a '7-day delivery' service that allows customers to receive products ordered on Saturday by Sunday in certain areas of Seoul and Gyeonggi.
The style commerce platform 'Zigzag,' operated by Kakao, also officially introduced a 7-day delivery system for its fast delivery service 'Direct Delivery' starting in April this year. The previous next-day delivery service, which was only available on weekdays, has been expanded to allow for orders placed by 10 p.m. on weekends to be delivered the following day. Earlier, in February of this year, the area for Direct Delivery was also extended from the existing Seoul, Gyeonggi, and Incheon to include Cheonan and Asan in South Chungcheong Province.
The top women's fashion platform ably also introduced its 'Same Day Shipping' service in October last year, which guarantees the dispatch of orders on the same day, and has been steadily expanding the range of products applicable to this service. It operates in two ways: either by brands and shopping malls delivering the goods themselves or by ably directly delivering via its own fulfillment center.
The effects of strengthening delivery services are also reflected in actual figures. The transaction value of ably's Same Day Shipping in April was approximately 252% higher compared to October last year when the service was first launched. During the same period, the number of orders and ordering customers increased by 279% and 179%, respectively.
Fashion platforms have recently been actively pursuing offline strategies as well. Musinsa plans to expand its private brand 'Musinsa Standard' offline stores to 30 locations this year.
Musinsa Standard has opened stores in key commercial areas, including Hongdae, Myeongdong, Seongsu, Sinchon, Jamsil, Suwon, and Busan, since launching its first store in Hongdae in 2021. As of today, it operates 25 stores, with cumulative offline visitors exceeding 15 million.
Although Zigzag and ably do not have offline stores, they are enhancing experiential elements through pop-up stores. Recently, they have been focusing on non-fashion sectors such as cosmetics and desserts, which are preferred by their core customer base. This is because pop-up store accessibility is good, and it creates a synergy effect by naturally connecting incoming customers to the fashion sector.
In mid-April, Zigzag opened a beauty pop-up store in Seongsu-dong, where customers could directly try out and compare various cosmetics. This was the first time Zigzag held a beauty pop-up store. During the three days of the event, a total of 15,000 people visited, and the transaction value in Zigzag's beauty sector increased by 129% compared to the previous month.
Since last year, ably has been onboarding famous dessert companies in Korea onto its platform and conducting offline pop-up stores linked with online sales. Customers can purchase desired products on a first-come, first-served basis online, select a pickup date via options, and then visit the store on the specified date to collect their items.
The three fashion platforms are rapidly expanding their scale by promoting competitive pricing. Musinsa reported sales of 1.2427 trillion won and an operating profit of 102.8 billion won last year. Compared to the previous year, sales increased by 25.1%, and it turned a profit.
Kakao Style, the operator of Zigzag, also recorded sales of 20.03 billion won last year, up 21.4% from the previous year, and an operating profit of 2.2 billion won, marking its return to the black for the first time in five years. Ably recorded sales of 33.43 billion won last year and an operating loss of 15.4 billion won. Despite reporting a loss due to the impact of new business investments, its sales amount increased by around 30% compared to 2023.
An industry source noted, 'The existing next-day and weekend delivery services have been limited to fresh food specialty platforms, but they have now become a basic requirement for all e-commerce platforms. Fashion platforms are following this trend.'
He added, 'Offline stores and pop-up stores provide opportunities to directly promote the brand and can also overcome the limitations of online platforms, which do not allow for experiences, and have recently gained particular attention.'