South Korean fashion e-commerce giant Musinsa reported a 54% year-on-year increase in revenue in 2022, reaching KRW 708.3 billion ($536 million).
This robust growth is attributed to the company’s increased online and offline marketing efforts and expanding its customer base.
Female customers and new shoppers in the 25-35 age group contributed significantly to the increased sales of participating brands.
Musinsa’s focus on specialized services in the luxury, beauty, golf, sports, and kids categories led to a surge in new members.
The company’s acquisition of 29CM, an online store, resulted in a nearly 80% year-over-year increase in transaction volume in 2022.
In addition, SOLDOUT, a limited edition trading platform operated by Musinsa’s SLDT subsidiary, saw a 275% increase in transaction volume in 2022 compared to 2021.
Despite the increase in revenue, Musinsa’s standalone operating profit decreased to KRW 53.9 billion in 2022 due to aggressive investments in new businesses such as Global Store, Lazy Night, and Specialty Hall.
In addition, one-time stock compensation expenses of KRW 26.8 billion also contributed to the lower operating profit.
Musinsa’s global expansion efforts included opening a Global Store in September, which provides web and app services in 13 countries, including Japan, the United States, Singapore, and Thailand.
The company plans to target overseas markets, starting with Japan in April this year.
A Musinsa representative said they would continue to expand new businesses and focus on investment strategies for domestic and foreign brands to build a stable revenue base.
The company also plans to strengthen offline marketing for participating brands further to support the growth of the fashion eCommerce industry.