W컨셉의 새로운 리더 이지은, 패션 부문 경쟁력 강화의 비밀은?

Translation result.

[Digital Today reporter Ahn Sin-hye] W Concept, the women’s fashion platform under Shinsegae Group, has swapped CEOs and is doubling down on its core business. The company named fashion veteran Lee Ji-eun—who previously worked at LF and Kolon—as its new CEO, replacing strategy executive Lee Joo-chul from Gmarket. Analysts say the move is a strategic bet to improve profitability and sharpen the platform’s identity, especially as the transaction gap with Musinsa-acquired 29CM has widened to roughly double.

Industry sources say W Concept appointed Lee on the 6th, an unexpected change outside Shinsegae Group’s usual October personnel reshuffle. The company says the switch is intended to strengthen competitiveness in W Concept’s core fashion business.

Lee Ji-eun, born in 1972, is a seasoned fashion professional. She studied clothing at Chung-Ang University and built her career at fashion companies including Mido, LF and Kolon. After joining W Concept Korea in September, she took charge of private brands and activewear as an executive director.

Observers link the leadership change to W Concept’s recent profit performance. In 2023, Shinsegae Group appointed Lee Joo-chul—then head of strategy at Gmarket—to steer profitability, but the results fell short of expectations.

W Concept’s operating profit has largely stalled since its 2021 acquisition by Shinsegae SSG.com. Industry analysts say the company has struggled to deliver clear growth in scale or margins.

According to the Financial Supervisory Service’s electronic disclosure system, operating profit has fluctuated: KRW 3.09 billion (≈ $2.32M) in 2021; KRW 3.085 billion (≈ $2.31M) in 2022; KRW 5.8 million (≈ $4.35K) in 2023; and KRW 1.649 billion (≈ $1.24M) in 2024. Sources say last year’s profitability remained challenging.

Annual revenue has also failed to sustain a steady upward trajectory: KRW 101.4 billion (≈ $76.05M) in 2021; KRW 136.8 billion (≈ $102.60M) in 2022; KRW 145.4 billion (≈ $109.05M) in 2023; and KRW 116.9 billion (≈ $87.68M) in 2024.

Given these trends, management appears to have concluded that shoring up competitiveness in its core women’s fashion segment is urgent. While W Concept has expanded into non-fashion categories—bringing in lifestyle brands like Shinsegae Casa’s Jaju—the company believes fashion must remain its priority.

More than 80% of W Concept’s gross merchandise volume comes from fashion, so internally there’s a renewed emphasis on rebuilding strength in that category.

The rapid rise of 29CM, after its acquisition by Musinsa, has added pressure. That development raises questions about how effectively W Concept can sharpen its online platform competitiveness.

W Concept and 29CM became direct competitors in the vertical fashion-platform space after their respective 2021 acquisitions by Shinsegae SSG.com and Musinsa. Although 29CM was smaller at the time, it has since overtaken W Concept in transaction volume.

Industry sources say 29CM’s transaction volume topped KRW 1.3 trillion (≈ $975.00M) last year—about four times its size at the time of the 2021 acquisition by Musinsa. Over the same period, W Concept’s transaction volume was about KRW 650 billion (≈ $487.50M).

Under fashion expert Lee Ji-eun, the key challenge will be restoring core competitiveness and turning that momentum into improved profitability.

A W Concept spokesperson said, “We plan to strengthen the fashion segment—why consumers should choose W Concept—while continuing to expand non-fashion categories such as lifestyle.”