“In the process of going overseas, brands will prepare only products, and Musinsa will support all other complex procedures. We will focus on growth with the goal of achieving 3 trillion won in global transaction volume by 2030.”
Park Jun-mo, CEO of Musinsa, said this on the 10th at the 'Musinsa Global Partners Day' held at the Dongdaemun Design Plaza (DDP) in Seoul. This event is a venue to share visions and strategies to assist domestic fashion brands in entering overseas markets, and it is the first large-scale event hosted by Musinsa on the topic of global expansion.
Park noted, “Now is the optimal time for Korean brands to go overseas, as Korean culture is becoming mainstream and there are market reactions and opportunities different from the past,” but he also said, “There are no noticeable global success stories in the fashion sector.”
He added, “Behind the success of K-POP and 'Squid Game' were excellent entertainment agencies and a strong partner like Netflix. Now, Musinsa aims to play that role for Korean fashion brands.”
Previously, Musinsa laid the foundation for supporting the global expansion of Korean fashion brands after establishing its first overseas subsidiary, Musinsa Japan, in 2021. In the second half of 2022, it launched a global store, and it is currently operating platform businesses in 13 countries. In October of last year, it also opened its first overseas offline flagship store on the 8th floor of the Lotte Duty Free Ginza store in Tokyo, Japan.
Kim, the CEO, emphasized, “Through the process of going overseas, I learned that three elements are necessary: regional expertise, brand understanding, and content competitiveness. From the perspective of Korean brands, we are a prepared partner that can offer all three.”
Musinsa highlighted several strategies to support the overseas expansion of brands: ▲ Musinsa Fulfillment Service (MFS) ▲ interlinking domestic and global stores ▲ integration plans for domestic and global apps.
First, Musinsa plans to provide a one-stop service that manages the entire process of global logistics for its partnered brands. Brands can simply stock their inventory in Musinsa's logistics center in Korea, and Musinsa will offer a fulfillment service that covers the entire process of responding to orders from both domestic and overseas customers.
Currently, Musinsa is targeting the Japanese market with its advanced logistics services, having shortened the delivery time from about a week to 1-2 days. The brand Matin Kim, which is receiving related services in Japan, has reported a 75% increase in average daily transaction volume compared to before using the local fulfillment service.
Musinsa will also provide an interlinking system between domestic and global stores for partner brands starting in August. Park stated, “The number of brands in our global store, which is currently over 2,000, is expected to increase to more than 8,000 after August,” adding, “We will integrate domestic and global apps and provide services such as search, recommendations, rankings, and content to overseas customers.”
On that day, Park also shared his stance on Musinsa's initial public offering (IPO). He stated, “Significant investment is needed in logistics infrastructure and other areas to expand into global markets. We are considering the IPO as an important way to secure resources.”
He added, “We are preparing related procedures, such as selecting an underwriter for the IPO. We have not yet decided on the listing location, whether it will be domestic or overseas, but we are primarily reviewing the feasibility of raising the desired level of funds.”
Musinsa is set to officially enter Japan and China this year, and Singapore and Thailand next year. By 2030, it plans to make offline expansions into North America and Southeast Asia, including the United States, Canada, Indonesia, and Malaysia.
Park stated, “We are pursuing cooperation with the best partners in each region. Locals will have an experience akin to purchasing products from a local online platform in their own country.”