"How Cheap Is It? 44,000 Flocked in Four Days to Sweep Up Musinsa's Inventory Outlet" [Report]

"With such significant discounts, it's easy to pick out several outfits you like."

On the morning of March 9, on the basement first floor of Lotte Mall Eunpyeong in Seoul, customers at the newly opened "Musinsa Outlet" store, which began operations on March 5, were scanning QR codes attached to product tags with their smartphones to check prices after selecting clothing. A customer in her 20s, who had visited the store with a friend early on Monday, carefully inspected the condition of pre-owned clothing in the used clothing section before deciding to make a purchase.

Morning of the 9th, a view of Musinsa Outlet located on the 1st floor of Lotte Mall Eunpyeong in Seoul. Even early on Monday, customers of various ages visited the store for shopping. Photo by Yaeju Han

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This is Musinsa's first offline outlet store. It occupies 1,573 square meters (about 476 pyeong) on the basement first floor of Lotte Mall Eunpyeong, which is directly connected to Gupabal Station on Seoul Subway Line 3. The store features a striking red interior and displays products from platform brands such as "Musinsa Used," "Musinsa Girls," "Musinsa Young," "Musinsa Boutique," and "Musinsa Bag and Cap (Bar&Cap)." True to the outlet concept, all product categories are sold at outlet prices with discounts of up to 80%.

The response has been enthusiastic since opening. According to Musinsa, about 200 customers flocked to the store on opening day, and over 100 people participated in the "open run" on the morning of the second day. Over the first four days since opening, the store recorded around 44,000 visitors and an accumulated transaction amount of 320 million won.

The "Musinsa Boutique" section displays products from luxury brands such as Prada and Thom Browne. Photo by Hanyeju

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The purchasing patterns are also noteworthy. The average purchase amount per person is around 90,000 to 100,000 won, with many customers buying more than three items in a single visit. Given that high discount rates at outlets usually result in lower per-customer spending, this is considered unusual.

The customer base was broader than expected. In addition to the primary target demographic of those in their teens and twenties, there were also many family customers in their forties and fifties visiting with their children. The northwest area of Seoul, where Lotte Mall Eunpyeong is located, is a residential district with a high share of family customers in their thirties and forties. The outlet store's pricing strategy is designed to attract not only young consumers but also family shoppers, reflecting a deliberate location strategy.

Sandro knitwear sold in the "Musinsa Used" section. Scanning the QR code on the product tag links to the Musinsa app, allowing you to check the price and stock status. Photo by Yeju Han

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The "Musinsa Used" section, which offers pre-owned fashion, has drawn particular attention in the store. This is the first time Musinsa has applied its full-cycle service-including collection, care, listing, and delivery-to an offline retail space. Only items rated "A+" or higher are displayed in the store, and over the first four days since opening, sales exceeded 2,300 items. When the reporter visited, for example, a Sandro pullover knit that would normally sell for between 300,000 and 500,000 won was being offered at a discount of more than 50%, priced at 152,000 won.

This store also incorporates an O4O (Online for Offline) strategy that integrates the online shopping experience into an offline setting. By scanning the QR code on the product tag, customers can check discounted prices and stock status via the Musinsa app, and they can also order online for home delivery after viewing items in-store. The prices are the same as those at the online Musinsa Outlet. This approach aims to maintain the familiar experience for tech-savvy customers in their teens and twenties, while also reducing the "leakage" of customers who check out products offline but make their purchases online elsewhere.

In the center of the store, a "Special Price Zone" will be set up throughout March. This event offers select products at uniform prices of 19,900 won, 29,900 won, etc., with discounts of up to 80% or more. Photo by Hanjae Han

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One of the motivations for Musinsa launching an offline outlet is to address the structural issue of inventory that fashion platforms face. Currently, about 4,500 brands participate in the Musinsa Outlet, which was launched in 2022, and the transaction amount for January and February this year increased by 44% compared to the same period last year. However, there have been ongoing concerns that online-based brands face limitations in clearing out past-season inventory through online discount events alone. A Musinsa representative explained, "Brands that find it difficult to open independent stores have responded positively to being able to sell their inventory to the very end, not only online but also offline."

The industry is paying attention to the potential for the Musinsa Outlet to become an offline distribution channel that can absorb online brand inventory. This is because it can provide a new sales outlet for online-focused brands that have difficulty entering department stores or traditional outlet distribution networks.

An industry source commented, "Until now, fashion platforms mainly played the role of sales intermediaries, but recently, there has been a movement to directly expand their distribution functions. For online-based brands, it is often difficult to gain access to department store or outlet distribution networks, but with the platform offering a new offline sales channel, brands now have more options."

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