Musinsa’s SoldOut gets $89 million investment as limited-edition sneakers resale heats up

The market for limited-edition sneakers resale has been gaining momentum for the last few years. Resale values for the limited editions are skyrocketing as they are bought at a much higher price than their original value. A pair of sneakers with an original price tag of $2500 can get resold for a rate as high as $13,500. Korean fashion unicorn startup Musinsa’s spin-off subsidiary SoldOut has become a popular platform for sneaker lovers to grab limited-editions put on resale.

Musinsa recently announced that it is set to create a business subsidiary SLDT to handle SoldOut as it secured 10 billion won or $89.5 million worth of investment from Dunamu. SoldOut was first unveiled in July 2020 as a limited edition sneaker brokerage platform made with the expertise and know-how of Musinsa. The sneaker resale app offers listings of limited-edition sneakers as well as a wide range of fashion items.

An authentic market for limited-edition sneakers

Since its launch, SoldOut has attracted attention for its original content that introduces 100% authentic inspection solutions and limited edition items. The app has got more than 250,000 downloads in just two months of its launch. Since last November, SoldOut has also expanded to street fashion items. As per the company reports, SoldOut has recorded a monthly average growth rate of over 120% and is continuing a steep rise in the resell market.

SoldOut has been able to secure stability and reliability as a limited-edition product brokerage platform in a short span despite quite a competition in the market. Naver Corp.’s Kream is another recently launched online sneaker resale platform in Korea. SoldOut has a strong backing because of its existing synergy with the Musinsa store, which has over 8.4 million members. Musinsa plans to use the latest investment to SoldOut in marketing activities, upgrade the service and expand its market share.

Musinsa opens first offline store in Korea

 

musinsa
Queues at Musinsa’s first offline store in Korea.

Meanwhile, Musinsa opened its first offline store in Korea n May 26. The store sells Musinsa brand products, including seasonal apparel and men’s and women’s clothing. Musinsa announced that despite it being a rainy weekend, a total of 6,500 people had visited the flagship store ‘Musinsa Standard Hongdae’ for three days until the weekend, recording cumulative sales of 170 million won or over $153,359.

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