Musinsa, South Korea’s fashion unicorn backed by KKR Co., is set to bring the K-style wave to China with ANTA Sports Products Ltd., the country’s leading sportswear company, amid growing interest in Korean fashion among younger generations in the world’s second-largest consumer market.
According to sources in the investment banking industry on Tuesday, Musinsa’s Chinese operation, Musinsa China, and ANTA have agreed to set up a 60:40 joint venture in China.
ANTA will make non-cash contributions to secure its 40% stake in the JV, while Musinsa will take control of management.
Under the agreement, the Korean fashion platform company will make fast inroads into China with both online and offline shops, with a plan to open its first offline store, Musinsa Standard, in Shanghai in the second half of this year.
Musinsa is placing a bold bet on China’s fashion market as it gears up for an initial public offering. It must prove its strong global expansion capabilities to investors to boost its enterprise value.
Having already entered Japan with both online and offline services, Musinsa sees even greater potential in China, where the market size far exceeds Japan’s, as it plans to leverage ANTA’s vast distribution network across the country.
CHINA’S TOP SPORTSWEAR COMPANY
ANTA is a leading sportswear company in China, operating multiple brands, such as FILA and Descente. It is the world’s third-largest sportswear company after Nike and Adidas.
In 2024, the company raked in 70.8 billion yuan ($9.9 billion).
ANTA has formed partnerships with various global sportswear brands, but its alliance with Musinsa marks its first collaboration with a casual and streetwear-focused fashion brand.
With Musinsa, ANTA is expected to broaden its offerings beyond sportswear and into lifestyle and casual fashion.
Earlier this year, the Chinese fashion giant invested 50 billion won in Musinsa to acquire a 1.7% stake in the company.
K-STYLE IS CATCHING ON WITH GEN Z IN CHINA
Musinsa’s potential success in China could open the door wider to other Korean fashion brands in a market that has long been a tough nut to crack.
About a decade ago, Samsung C&T Corp. entered China with its fast-fashion label, 8seconds, but failed to turn heads or win hearts among local consumers.
Worse yet, Korea’s decision in 2016 to deploy the US Terminal High Altitude Area Defense (THAAD) anti-missile system on its soil prompted retaliation from Beijing and a consumer boycott in China, further raising the barriers for Korean fashion brands trying to enter the market.
However, Korean style has seen a shift in perception among Chinese consumers in recent years – from resistance to growing appreciation, boding well for Musinsa’s China push.
“It is now common to see young Chinese consumers wearing Mardi Mercredi or Matin Kim T-shirts and Gentle Monster glasses, suggesting K-fashion’s growing popularity,” said an official in the fashion industry.
Mardi Mercredi and Matin Kim are popular Korean casualwear and contemporary fashion brands, while Gentle Monster is a high-end Korean eyewear and fashion brand.
Data also shows rising demand for Korean fashion in China.
In May, Chinese nationals accounted for 18.4% of total foreign purchases at 11 Musinsa Standard outlets in Korea, followed by Taiwanese with 15.7% and Americans with 12.4%.
Direct online purchases of Korean fashion items by Chinese consumers have also been climbing steadily.
Reflecting this trend, Korea’s clothing exports to China jumped 45.5% from 2020 to $545.6 million in 2024, according to data from the Korea Customs Service.
MORE KOREAN BRANDS ENTER THE RING
Amid the growing interest in Korean style, more Korean brands are entering the fray.
Samsung C&T has reintroduced Korean fashion to the Chinese market by opening physical stores for its high-end contemporary label Juun.J in SKP Department Store and REEL Shanghai, two of China’s leading luxury department stores.
Mardi Mercredi, known for its youthful and graphic style, now operates more than 30 stores across China, catering to local consumers in their 20s and 30s.
Matin Kim is also preparing to make its China debut following its expansion into Hong Kong last year.
“If K-fashion gains momentum in China, the second-largest market after the US, the Korean fashion industry is expected to take a major leap forward,” said an official from the Korean fashion industry.
By Sun A Lee and Jun-Ho Cha
suna@hankyung.com
Sookyung Seo edited this article.
