Shinsegae Inter Online Mall Surpasses 100 Billion KRW in Sales

Achievements Four Years After Launch... Doubling Growth Every Year

[Asia Economy Reporter Yujin Cho] Shinsegae International's own online mall, SI Village, has surpassed its annual cumulative sales target of 100 billion KRW (as of the 29th of last month) ahead of schedule this year.

SI Village's sales, which were 2.7 billion KRW at its launch in September 2016, have doubled approximately every year, growing more than 37 times in four years. As of the 29th of last month, sales exceeded 100 billion KRW, and the company is aiming to reach 140 billion KRW by the end of the year.

The company attributes this rapid growth to its luxury online platform strategy. Unlike other fashion malls that sell parallel imported products, SI Village holds the official distribution rights, guaranteeing authentic products and offering the widest variety of fashion and beauty brands.

They sell about 70 high-end brands, ranging from fashion brands like Armani, Brunello Cucinelli, and Maison Margiela to beauty brands such as Byredo, Diptyque, and Santa Maria Novella.

In June, SI Village was the first in Korea to quickly sell stock duty-free items. They sold popular overseas luxury brand products like Valentino, Balenciaga, and Yves Saint Laurent, with 93% of the total stock sold out on the first day, creating a huge buzz and solidifying their position as a luxury sales channel.

This strategy of securing various high-end brands and selling only 100% authentic products has built strong customer trust in their products and created a new trend called ‘Simaeul Certification’ in online communities. Simaeul is a nickname for SI Village coined by the MZ generation, and the Simaeul Certification indicates the purchase of authentic products.

Not only fashion but also beauty, living brands, high-end artworks, audio electronics, and pet products cover a wide range of categories, enhancing customer shopping convenience, which is another strength.

About 50.3% of customers purchased products from two or more categories such as fashion and living or beauty and living, and among customers who bought high-priced fashion products, 74.7% also purchased niche perfumes, showing a high cross-purchase rate. This year, sales in the high-end beauty category increased more than sixfold compared to the same period last year.

Additionally, SI Village created an online select shop called Select449 to showcase various brands, including domestic fashion designers, lifestyle, and artworks, with a total of 169 brands currently participating, resulting in nearly a fourfold increase in sales compared to the previous year.

A Shinsegae International SI Village representative said, “As the paradigm of luxury purchases shifts online, we plan to introduce new brands every year to provide customers with the joy of shopping,” adding, “We will build Korea’s best luxury online platform where customers can confidently purchase high-end brands.”

This content was produced with the assistance of AI translation services.