Musinsa Beauty is using offline stores to drive growth in online transaction value. Observers say it not only opened stores but also boosted brand awareness through experiential spaces and pop-up operations, prompting online purchases.
According to Musinsa on the 29th, the online average daily transaction value (from Apr. 22 to May 14) of some 500 brands that entered the first beauty store inside Musinsa Megastore Seongsu in Seongsu-dong last month rose about 35% from the period before entry.
Some brands saw triple-digit gains in transaction value. The vegan makeup brand "Ofra Cosmetic" logged about a 250% increase in online average daily transaction value after entering the Megastore. "Heartpercent" rose 213%, while ▲Rainbow Mansion (165%) ▲Toun28 (158%) ▲Village 11 Factory (151%) also showed growth.
Musinsa said brand exposure in offline stores led to more online purchases. Musinsa Beauty's first offline store was set up on the second floor of the recently opened Musinsa Megastore Seongsu in Seongsu-dong, spanning about 146 pyeong. It brings together emerging and indie brands that had been available only online.
In particular, running the store as an experiential space for brand engagement rather than for simple sales translated into online results. By enhancing experiential content such as a beauty gacha and a test zone, it increased customer dwell time and boosted brand interest.
Pop-up store (temporary store) operations are also active. A recent collaboration pop-up between the private label (PB) Wiji and TOMORROW X TOGETHER character "Bbulbatu" saw some products sell out in just half a day.
Musinsa Beauty plans to speed up the expansion of its beauty business by opening additional offline stores in Seongsu in September and in Hongdae in November this year. A Musinsa Beauty official said, "The online-offline linkage strategy is leading to greater brand awareness and growth in transaction value," adding, "We will continue to expand touchpoints where emerging brands can meet customers directly."