At 10:30 a.m. on the 12th, Musinsa opened a Musinsa Standard store at Hyundai Department Store's Mok-dong branch in Seoul. Across from the store selling apparel and accessories, a separately created beauty section drew a steady stream of customers. It featured only Musinsa's private brand (PB) cosmetics, including skincare, serums, sunscreen, and perfumes.
It is the first time Musinsa has built a standalone beauty-only section inside a Musinsa Standard store. Previously, beauty products were displayed alongside apparel and accessories. A Musinsa official said the move is "intended to actively secure customers who come solely for beauty products, beyond cross-purchasing by those who came to buy apparel."
The beauty section, at 30㎡ (about 9 pyeong), was not large, but it carried more than 20 core products. Most items gained word-of-mouth traction for their cost-effectiveness (price-to-performance). Prices are mainly in the 3,000–5,000 won range. Even the prices of offline-only curated set products do not exceed 10,000 won.
Recently, Musinsa has been accelerating efforts to strengthen competitiveness in its beauty business while expanding offline. After opening 14 offline stores last year, the company plans to expand domestic and overseas locations to a 60th store this year. New stores will feature dedicated beauty zones, and some existing stores will add beauty sections through renewal (facelifts).
A strategy led by an ultra-low-price line stands out. In September last year, the company rolled out ultra-low-price skincare products in collaboration with cosmetics manufacturers such as COSMAX. The products caused a sellout frenzy immediately after launch and drew attention. Since then, the lineup has expanded to hand cream, lip essence, sunscreen, and more.
Musinsa's beauty business is showing growth. Last year, Musinsa's beauty gross merchandise value increased by more than 161% from a year earlier. After the ultra-low-price line was launched, beauty gross merchandise value at Musinsa Standard's offline stores in the fourth quarter of last year rose 170% from a year earlier.
About 60% of the core customer base is in their 20s and 30s, and there is also a possibility that the share of foreign customers will rise. At Musinsa Megastore Yongsan, which opened in December last year, foreign tourists accounted for 25% of Musinsa Standard's beauty gross merchandise value.
Because the core customer base is people in their 20s and 30s, more department stores and shopping malls are positioning Musinsa's offline stores as an "anchor tenant" (key store). Anchor tenants, as core lessees with strong drawing power, play a role in activating commercial areas. Typical anchor tenants include cinemas, well-known franchise cafes, big-box supermarkets, and bookstores.
Musinsa's expansion into department stores is indeed growing. Musinsa Standard is now present in 10 department stores nationwide, including Lotte Department Store Centum City and Dongtan. On the 25th of last month, the select shop Musinsa Store opened at Lotte Department Store Jamsil. It is the first time Musinsa Store has entered a department store.