Must-It and Trenby report efforts to boost profitability and expand globally, while Balan moves toward corporate rehabilitation and early business normalization amid a tough market landscape.
Online luxury platforms Must-It and Trenby are reporting efforts to boost profitability, while fellow platform Balan is proceeding through corporate rehabilitation with plans for early business normalization.
Must-It announced on March 24 that it has been reshaping its business toward profitability and actively reducing fixed costs since the second half of last year. The platform reported that key performance indicators, including transaction volume, increased about 25% month-on-month in March. Additionally, the number of new sellers nearly doubled compared to the same period last year, and the number of active sellers also saw gains, addressing previous market concerns.
Since the end of February, Must-It implemented a temporary two-week policy to pay settlements to sellers on the next business day after confirmed purchases. Due to positive seller feedback, this faster settlement system was formalized beginning March 13. Must-It explained that its relatively stable financial position compared to other players in the industry allowed for this flexibility. At the end of last year, Must-It’s current assets stood at approximately 8.3 billion won, with current liabilities at 270%, and deposits equivalent to settlement amounts totaling 3.3 billion won, fully covered by cash holdings.
Cho Yong-min, Must-It’s CEO, said, speaking to ????, “Settlement is a standard that symbolizes trust with partners. In the future, we will continue to provide a stable and transparent trading environment for both sellers and consumers, continue to invest and improve overall technology and finance policies, and realize a sustainable platform.”
Trenby likewise emphasized its focus on profitability improvement and global expansion through partnerships. Trenby recently signed agreements with key luxury market players Luxboy (operated by Wiz Company) and Label Russo (under Eroom Korea) to advance into international markets including North America (the United States and Canada), the Middle East (United Arab Emirates), and Australia.
The company began overseas business activities via its global platform “Trenby DotNet” in December 2023, and cumulative overseas transactions exceeded 1 billion won within three months. Trenby highlighted ongoing talks with additional major partners, anticipating further expansion of its luxury seller ecosystem through the Trendy DotNet platform.
Meanwhile, Balan is undergoing corporate rehabilitation under court receivership. The Seoul Rehabilitation Court granted permission on March 17 for Balan to pursue mergers and acquisitions ahead of approving its rehabilitation plan, following the company’s application on March 11.
Balan reported that it sent service proposals (RFPs) to the nation’s top five accounting firms to select a sales organizer last year. The company stated, “Through this M&A, we will accelerate the normalization of our business by attracting external funds early, repaying unpaid partner commercial bonds, and ensuring the employment of members to close the rehabilitation process early and lay the foundation for sustainable growth.”
These developments indicate ongoing restructuring and strategic initiatives among South Korea’s online luxury platforms amid challenging market conditions.
Source: Noah Wire Services
