이 기사는 2021년 07월 14일 07:37 thebell 에 표출된 기사입니다.

South Korean fashion ecommerce platform Musinsa is set to acquire StyleShare and 29CM in a move to differentiate itself with diverse offerings and expand its customer base to younger women and social media-savvy consumers.

The company last Friday agreed to buy 100% of StyleShare, including its subsidiary 29CM, in a cash and share-swap deal worth 300 billion won ($261.8 million). If the transaction is completed, which is subject to regulatory approval, StyleShare and 29CM will be wholly owned by Musinsa.

Post the acquisition, Musinsa intends to operate both platforms independently to maintain their own characteristics. But the three companies are expected to actively collaborate with each other to add offerings, develop new services and market products.

Founded in 2001 as an online fashion community, Musinsa has strength in male and unisex apparel and accessories, with 8.4 million users at the end of April this year. The latest deal will be used as a springboard for the company to enhance its presence in the female apparel space.

StyleShare has more than 7.8 million users, most of which are women in their teens and 20s. As implied in the company’s name, its users not only purchase products but share information on fashion styles and upload their own content on the platform. The site’s average number of daily users is more than 300,000.

While StyleShare primarily relies on its social media-like characteristics to attract younger Generation Z consumers, 29CM is more like a select shop with diverse offerings ranging from clothing and accessories to home interior items and cosmetics. 29CM recently launched its shoppable TV service, 29TV, focusing on younger generations who are more comfortable consuming content on video than text.

StyleShare and 29CM’s business strategies have much in common with those of Musinsa, which could make a post-acquisition integration process easier. Expansion of offerings and services could bring more potential synergies.

“We will use the deal to expand our customer base and fashion offerings as well as to lay the groundwork to expand into overseas markets,” an official at Musinsa said. “We intend to let each platform operate independently at least until the end of this year, while exploring ways to create synergies.”

Musinsa will start to build its new headquarters later this year, which is expected to be completed in two to three years. StyleShare and 29CM may also move its offices to the building after its completion. (Reporting by Nuri Moon)