W Concept
SEOUL, April 8 (Korea Bizwire) — Despite intensifying competition from Chinese e-commerce giants AliExpress, Temu, and Shein—often collectively referred to as “Al-Te-Shi”—South Korea’s leading online fashion platforms posted robust growth in both revenue and profitability last year, marking a notable defense of their market positions.
According to industry data released Monday, Musinsa, the country’s top online fashion retailer, reported record consolidated revenue of ₩1.24 trillion in 2024, a 25.1% increase from the previous year. This marks the first time the company, founded in 2012, has surpassed the ₩1 trillion revenue milestone.
Transaction volume also surged 14% to a record ₩4.5 trillion. After reporting an ₩8.6 billion operating loss in 2023, Musinsa rebounded dramatically, posting an ₩102.8 billion operating profit—the first time it has hit a four-digit profit figure.
Ably Corporation, another major player, also set new records with consolidated revenue of ₩334.2 billion and transaction volume of ₩2.5 trillion. On a standalone basis, Ably became the first women-focused fashion platform in Korea to exceed ₩2 trillion in transaction volume. The company recorded a second consecutive year of operating profit.
Kakao Style, which operates Zigzag, reported consolidated revenue of ₩204 billion, up 21.5% year-over-year. Combined transaction volume across its platforms Zigzag and Poshy approached ₩2 trillion. The company swung to profitability for the first time in five years, with ₩2.2 billion in operating profit and ₩3.1 billion in net income.
W Concept, a subsidiary of Shinsegae Group, increased its transaction volume by 11% to ₩572.2 billion and recorded an ₩1.65 billion operating profit—its fourth consecutive year in the black since joining the conglomerate.
These strong results come despite the “three highs” that dominated 2024—high inflation, high interest rates, and a strong dollar—which dampened overall consumer spending. Industry analysts credit the platforms’ success to their strategic defense against Chinese competition and a simultaneous focus on revenue growth and profitability.
A major factor was the rising global and domestic demand for K-fashion brands, especially among younger consumers. Platforms aggressively onboarded emerging local labels, many of which have become breakout hits, driving both user engagement and transaction growth.
Musinsa
Data from WiseApp Retail shows all four major platforms experienced monthly active user (MAU) growth in March 2025: Zigzag saw a 38.1% increase, followed by W Concept (27.5%), Ably (21.0%), and Musinsa (6.2%). Zigzag also reported a 40% increase in new buyers year-over-year, further strengthening its customer base.
An industry insider noted that “consumers in their 20s and 30s are increasingly prioritizing quality and design over price, shifting away from fast fashion in favor of investing in better garments that last longer. This trend is benefiting domestic platforms.”
The expansion into adjacent lifestyle categories such as cosmetics, home décor, and food also contributed to broader customer appeal and improved financial performance.
Looking ahead to 2025, expectations are high for continued growth, particularly in overseas markets. Musinsa and Ably are intensifying their efforts in Japan, while W Concept, through its U.S. subsidiary, is exporting Korean brands to 45 countries, including the United States, Australia, and the United Kingdom, via its global app.
Industry observers see this global push as a natural extension of the momentum built in 2024, with Korean platforms poised to ride the international K-fashion wave well into 2026.
Lina Jang (linajang@koreabizwire.com)
