South Korean fashion platform Musinsa acquires StyleShare and 29CM for 300 billion won

South Korea's online fashion industry is making waves again following the acquisition of South Korea's leading fashion e-commerce company Zigzag by South Korean IT giant Kakao.

According to a report by Korea Tech, Musinsa has acquired 100% of the equity of StyleShare and 29CM for 300 billion won (US$265 million) in an effort to attract young female consumers and strengthen its influence overseas.

Founded in 2011, StyleShare is a social media platform that provides fashion and beauty content, providing service information about fashion trends to more than 6 million global users. In 2018, it acquired 29CM , an e-commerce platform that sells clothing , daily necessities , home appliances and food.

According to Korean media reports, the three platforms will continue to be managed independently, but will develop synergistic plans to focus on supporting the growth of brands and the infrastructure required for platform upgrades. Musinsa is also expected to invest in an integrated logistics center and logistics system.

Founded in 2001, Musinsa has quickly gained the attention of young Korean consumers with its fashionable and affordable products . In addition to regular sales of trendy clothing and accessories, it also provides products for fashion brands on the platform through collaborations and special promotions .

In November 2019, the platform received a $2 billion investment from US venture capital firm Sequoia Capital, becoming a unicorn company.

As of this month, Musinsa has 6,000 brands and 8.4 million users. Last year, it had a total turnover of 1.2 trillion won ($1 billion).

The company's global ambitions are emerging as more consumers around the world become interested in Korean fashion and culture.

"Entering overseas markets is crucial to activate the domestic brand fashion ecosystem and provide customers with more diverse fashion content," said Zhao Wenhao, CEO of Musinsa, in a statement. "This will be an opportunity for Musinsa to become a global fashion e-commerce platform."

With Musinsa's acquisition of StyleShare and 29CM, the already fierce competition among online fashion platforms in South Korea will intensify again.

South Korea

Acquisition

Fashion e-commerce