'Musinsa', which used to sell shoes, enters Gangnam.. "Creating a K-Fashion Hub" [Report]

[Financial News] On the 31st of last month, upon entering the 'Musinsa Store Gangnam' located in front of Sinnonhyeon Station on Gangnam-daero, Seoul, a huge billboard displaying various brand videos representing K-fashion caught the eye. One wall was occupied by a 'Shoe Museum' where hundreds of pairs of shoes could be seen at a glance from floor to ceiling. 
Musinsa opened the offline select shop Musinsa Store Gangnam on the 1st. This store is the fourth offline base of Musinsa Store following Seongsu, Daegu, and Hongdae. Located in the core commercial district of Gangnam, it is expected to establish itself as a new hub for K-fashion distribution. Musinsa Store Gangnam spans a total of 3 floors from basement level 1 to the second floor, covering an area of 1170㎡ (354 pyeong) and featuring about 6000 products from over 130 brands. Among the domestic and overseas brands that have entered, over 80 are filled with emerging and small to medium-sized brands that do not have their own stores in the Gangnam area.
The commercial district along Gangnam-daero from Sinnonhyeon Station to Gangnam Station has an average daily floating population of 170,000. Reflecting the characteristics of the commercial district, which is densely populated with women in their 20s, categories such as 'Musinsa Young', 'Musinsa Girls', and 'Musinsa for Women' have been subdivided. Like the Seongsu and Hongdae branches, English, Japanese, and Chinese guides and a tax-free payment system have been introduced to target foreign customers. 
The expansion of offline stores by online brands targeting the MZ generation is a strategic approach to enhance brand experience beyond simply expanding sales channels. After securing a certain level of fandom and influence online, actual experience through exposure becomes important for repurchase and spread. An industry official said, "In expanding the influence of MZ generation and online-focused brands, securing and strengthening fandom is the most important strategic aspect of expanding from online to offline."
In particular, offline stores are the most effective way to significantly increase sales. A representative case is Matinkim, operated by Hakohouse, which saw its annual sales grow by 50% to 1500 billion won in 2023 by aggressively expanding offline stores in 2022. With the constraints of exposure algorithms, advertising costs, and fees being significant online, offline stores are gaining attention as a stable means of securing revenue. Musinsa also expects co-growth online and offline by exposing the brand to domestic and international customers in commercial districts with high floating populations.
Musinsa plans to expand its offline select shop business in earnest starting with the opening of the Gangnam branch. In the first half of next year, a 2000-pyeong 'Musinsa Megastore Seongsu' will be opened in Seongsu-dong, Seoul, showcasing a complex retail space encompassing fashion, beauty, shoes, sports, and food and beverage (F&B).
A Musinsa official said, "We will expand offline select shops centered on major commercial districts to provide more opportunities for domestic designer brands to meet more customers," adding, "It will become an important base for the global expansion of K-fashion."


clean@fnnews.com Lee Jeong-hwa Reporter