Musinsa is accelerating its offline expansion from the start of the year, putting weight behind its O4O (Online for Offline) strategy. It is diversifying its store-opening channels, not only in the areas where stores are located but also across department stores, outlets, and mixed-use malls.
Musinsa is preparing for an IPO as early as the first half of this year. The move is seen as an attempt to grow brand influence and maximize corporate value through aggressive offline expansion.
According to the industry on the 19th, Musinsa opened "Musinsa KICKS" in Hongdae, Mapo District, Seoul, on the 11th, launching its first domestic offline store of the year. Musinsa KICKS is Musinsa's first shoe specialty store and carries a wide range of products from various brands, including Nike and Adidas.
Including Musinsa KICKS, Musinsa plans to open seven stores in just January–February this year: ▲ Musinsa Standard One Grove (Jan. 22) ▲ Musinsa Store Lotte Department Store Jamsil (Jan. 23) ▲ Musinsa Standard Starfield Village Unjeong (Jan. 29) ▲ Musinsa Store Myeong-dong (Jan. 30) ▲ Musinsa Standard Shinsegae Premium Outlet Paju (Feb. 12) ▲ Musinsa Standard Hyundai Department Store Mok-dong (Feb. 12). If all goes as planned, Musinsa's domestic and overseas offline stores will increase to 65 by the end of February this year.
Musinsa's offline openings, which used to focus on downtown Seoul, have been expanding to suburban areas such as Paju and Ilsan since last year. At the same time, the channels where stores are located are diversifying beyond stand-alone stores to department stores, outlets, and mixed-use malls. The strategy is seen as aiming to maximize customer touchpoints, given that each distribution channel differs in customer age groups and spending patterns.
Alongside apparel, Musinsa is broadening its categories to sports, home and living, and beauty. Recently, ahead of a new eyewear launch this summer, it also filed English trademarks for "Musinsa Standard Eyewear" and "Musinsa Standard Glasses."
The main reason Musinsa is leaning into offline is to build a virtuous O4O cycle. Musinsa is strategically designing a flow that induces new app sign-ups at offline stores and then converts them into first online purchases.
For example, unlike other clothing stores, garments displayed at Musinsa's offline stores have a QR code printed on the tag. When customers access the QR code L.I.N.C via smartphone, it leads to the Musinsa online app, where they can check various information in real time, such as member discount prices and reviews. Musinsa provides discount coupons to online app members every month, and those coupons can be applied to purchases made at offline stores to buy at a discounted price.
Musinsa's PB (private brand) "Musinsa Standard" has the most stores, with 33 as of last year, playing a key role in expanding online membership. In the first half of last year, the number of new members who signed up to the platform via QR codes in Musinsa Standard stores doubled from a year earlier. As of June last year, "cross-purchase" cases—where a first purchase offline led to a first purchase online—also more than doubled year over year.
A Musinsa official said, "Customers who come into the online app through Musinsa Standard stores are buying not only Musinsa Standard's new products but also a variety of third-party brand items, contributing to activating transactions across the platform."
The main backdrop to Musinsa's accelerated offline expansion is the IPO. The interpretation is that it is a strategy to boost sales and shape the corporation's narrative to maximize corporate value at the time of listing.
In December last year, Musinsa selected Korea Investment & Securities Co. and KB Securities, and Citigroup Global Markets and JPMorgan as overseas bookrunners, as lead underwriters, and began full-fledged IPO preparations. It plans to file a preliminary listing review with the exchange, aiming to list on the main board as early as the first half of this year.
The corporate value Musinsa seeks to be recognized for in the market is around 10 trillion won. However, some point out that the valuation looks rich given the company's growth and profitability. Musinsa's revenue topped 1 trillion won for the first time in 2024, and it swung to a profit with an operating income of 102.8 billion won.
An industry official said, "To be recognized at around 10 trillion won, there needs to be a growth rationale that convinces market participants," adding, "Offline expansion can serve not only as a short-term sales booster but also as a storytelling tool that demonstrates the platform's scalability."