Musinsa, launched as a mobile-based fashion retail platform in 2009, has quickly garnered the attention of young consumers with trendy and affordable items. In November 2019, the platform received a $2 billion investment from Sequoia Capital, an American venture capital firm, and became a unicorn enterprise. Customers favor purchasing brand products through Musinsa because they do not have to worry about buying a rip-off.
Musinsa gave away hefty benefits to customers who uploaded reviews including photographs of them wearing purchased items. The photo review became the platform's iconic characteristics. Customers heavily relied on mobile reviews to check the size and design of clothes. A free-delivery strategy also played a role in attracting cost-conscious consumers. Other online shopping malls normally receive a delivery fee of about 4,000 won (3.52).
Musinsa said in a statement that through a memorandum of understanding, the retailer started an acquisition process to buy a 100 percent stake in Styleshare and its shopping mall subsidiary, 29cm, for 300 billion won ($26.4 million). Styleshare acquired 29cm in 2018.
About six million global users access Styleshare's social media to gain information about South Korea's fashion trends. Styleshare has received a total of about 55 billion won investment from venture capital companies including Stonebridge Capital.
"It is inevitable to make a foray into the global market in order to vitalize the domestic fashion market and offer a wider range of fashion content," Musinsa CEO Cho Man-ho was quoted as saying. Styleshare and 29cm will continue to be operated independently. Musinsa would develop an integrated logistics system.
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