Nyunyu (NYUNYU), a fashion accessories select shop brand that fronts ultra-low prices like Asung Daiso Co., is rapidly bulking up. Centered on accessories from the Dongdaemun wholesale market, Nyunyu displays hats, glasses, bags, and apparel in bulk and sells them starting at around 1,000 won. In key Seoul shopping districts such as Seongsu and Myeongdong, it is regarded as a must-visit course for shoppers in their teens and 20s and for foreign tourists.
On the 14th, according to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART), Nyunyu's sales last year were 60.6 billion won, up 40.6% from 43.1 billion won a year earlier. Total assets also accelerated in scale, rising about 52% over the same period from 7.6 billion won to 11.6 billion won. Operating profit, however, was 1.2 billion won, a slight decrease from 1.7 billion won a year earlier.
Nyunyu started in Jul. 2018 as the country's first accessories SPA (vertical manufacturing and retail) company. While it initially focused on accessories from the Dongdaemun wholesale market, it now handles more than 30,000 fashion accessory items. By combining ultra-low-priced products with a warehouse-style display, it has been growing its presence as the so-called "Daiso of fashion."
Starting with its Dongdaemun flagship, it now operates offline stores in major commercial districts such as Myeongdong, Gangnam, Seongsu, and Hongdae. Store formats are segmented by category and concept. Representative formats include the extra-large Nyunyu Wholesale store that sells fashion accessories, as well as Nyunyu House, Girls, Gift Shop, and Lab.
Nyunyu in particular is spreading by word of mouth as a value-for-money shopping mecca among shoppers in their teens and 20s and foreign tourists. With a large-store strategy of occupying entire buildings in prime locations, it increased accessibility and, by fronting ultra-low-priced assortments, is seen as having captured demand from price-sensitive students, entry-level workers, and foreign tourists.
In fact, at the recently visited Myeongdong and Seongsu Nyunyu stores, foreign tourists made up more than half of the visitors. The stores were equipped not only with foreign payment systems such as WeChat Pay and Alipay but also with duty-free devices, and English, Chinese, and Japanese notices were posted throughout.
The Myeongdong store spans four floors, with categories divided by floor. The first and second floors are centered on accessories, general goods, and kids' items; the third floor is apparel; and the fourth floor is a gift shop. The gift shop, which has been operating since last year, hosts about 100 domestic fashion, living, stationery, and food and beverage (F&B) brands, and many products target souvenir demand from tourists.
Among some foreign visitors, Nyunyu stores are also taking hold as spaces to experience the brand's unique product layout and atmosphere, take photos, and share them on social media (SNS). On Instagram and YouTube, photos and videos keep appearing with Nyunyu stores as backdrops, where keyrings, hats, socks, and more are densely displayed by color and type.
Meanwhile, as the company has grown in size over a short period, expense pressures have increased as well. Last year Nyunyu's rent was 3.2 billion won, up about 66% from a year earlier, and inventories nearly tripled to 4.5 billion won. The moves are seen as accelerating aggressive store expansion and securing product volume.