Musinsa Links K-Pop IP to K-Fashion and Expands in Asia
Musinsa is pairing SM's artist IP with brands on its platform and opening stores in China and Taiwan, with overseas growth emerging as a key factor in its IPO valuation.
Key Issues
• A K-pop partnership signed on September 14: Musinsa and SM Entertainment signed an MOU to combine SM's artist IP with fashion brands sold on Musinsa. Musinsa Chief Commerce Officer Choi Jae-young and SM co-CEO Tak Young-jun signed the agreement.
• Artist collaboration products: Brands sold on Musinsa will work with SM artists to plan fashion products and other merchandise using artist IP. The products will be sold through Musinsa's online platform and its offline stores.
• Official merchandise and joint marketing: The companies will also cooperate on official merchandise distribution and run coordinated online and offline promotions to broaden customer reach for both the brands and the artists.
• A shared push in key overseas markets: The two will run joint promotions in the countries and regions each company has targeted abroad. Choi said SM's artist IP and Musinsa's distribution power and platform would create new business opportunities.
• Overseas growth under IPO scrutiny: Musinsa applied on September 7 for a preliminary review to list on the KOSPI. Its overseas performance and other new growth drivers are cited as key factors in its future valuation.
• Two stores in Shenzhen: On October 31, Musinsa will open a Musinsa Store carrying about 30 Korean brands alongside a Musinsa Standard store at ONE AVENUE in Shenzhen, taking its offline presence into southern China after Shanghai and Hangzhou.
• Taiwan demand picks up: Transactions from Taiwan on Musinsa Global Store rose about 4.4-fold year over year from January to mid-September, with women's fashion accounting for 41 percent. Musinsa set up a Taiwan branch in July and plans 15 stores there over five years.
※ For more detailed information, please see the attached file (PDF).