Musinsa Expands Win-Win Measures for Small and Medium Fashion Brands

[Asia Economy Reporter Seungjin Lee] Musinsa is expanding its support program for small and medium-sized fashion brands.

Musinsa announced on the 3rd that it attended the ‘Win-Win Agreement Ceremony for the Rebound of the Distribution-Supply Industry’ hosted by the Fair Trade Commission as a representative of online fashion platforms and discussed win-win measures for tenant brands.

At the webinar-style agreement ceremony, tenant brands promised ▲production fund support ▲early payment of settlement funds ▲accounts receivable secured loans ▲promotion event support. Among online mall operators participating in the agreement ceremony, Musinsa is the only one implementing a production fund support program for tenant companies.

First, Musinsa will expand the ‘Co-Growth Project,’ which has been underway since 2015, within this year. The Co-Growth Project is a representative Musinsa win-win program that lends interest-free production funds for the next season so that brands can focus stably on production and marketing activities. Since 2018, the scale of support has been expanded by more than 40% annually, and by the fall/winter season of 2020, 39.9 billion KRW was provided to about 120 brands. This spring/summer season, the number of supported brands and the scale will be further expanded.

Measures to facilitate smooth fund circulation for tenant brands will also be strengthened. Starting this year, ‘early payment of settlement funds’ has been regularized for all brands listed on Musinsa Store. The settlement date has been moved up by 15 days, and the previous month’s sales proceeds are paid on the 10th of each month.

Musinsa will also expand the ‘Pre-Settlement Program,’ which supports sales secured loans for small and medium brands by securing loan limits based on Musinsa’s credit. The Pre-Settlement Program is a program where financial companies linked with Musinsa pay settlement funds to tenant companies in advance, and Musinsa repays the financial companies on the actual settlement date later. Tenant brands can secure liquidity by receiving part of the expected weekly settlement amount in advance at minimal financial costs corresponding to Musinsa’s credit rating.

Additionally, ‘Outdoor Digital Advertising Support’ to promote small and medium fashion brands will continue. Since 2018, Musinsa has operated outdoor advertising slots in major Seoul areas such as Gangnam-daero, Dosan Park, and Hongdae Entrance, providing advertising services to tenant brands. This year, the scope of application and provision will be expanded to increase brand awareness and contribute to sales growth.

A Musinsa official said, “Last year, we sought various ways to coexist with tenant companies based on the management philosophy of co-growth with brands,” adding, “We will continue to make greater efforts to provide a growth foundation for small and medium fashion brands.”

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