"More than just the number of branches"… What is the criteria for determining the No. 1 self-storage?

Key indicators include technological capabilities, store infrastructure, operation history, and return rate, in addition to the number of branches
DaLock recorded 120,000 cumulative members and a 92% repurchase rate… Exceeded 18,000 units

Mini Storage DaLock indoor image [Source = Second Syndrome]

As the self-storage (shared storage) industry has entered a full-fledged growth phase since the COVID-19 pandemic, competition for the 'No. 1 title' to seize market leadership is also intensifying. However, in a situation where market growth is accelerating, critics point out that to determine the leading company, we must comprehensively look at its own technology, store infrastructure, operation history, and return rate, rather than just the simple number of branches.

According to related industries on the 29th, the domestic self-storage market size is estimated to be around 200 billion won as of the end of December last year. Assuming that it grows by 8% every year, the market size is expected to expand to 293.9 billion won by 2030. At 15% growth, it will grow to 402.2 billion won, and at 30% growth, it will grow to 742.6 billion won. In 2034, the market is expected to grow from at least 399.8 billion won to a maximum of 2.1209 trillion won.

The increase in single-person households and the demand for efficient residential space are cited as reasons for the visible growth of the domestic self-storage industry.

Industry experts advise that consumers should look at least a few key indicators to identify the leading brands.

First is in-house technology and store infrastructure. Beyond simple space rental, the key is whether they have secured environmental control and security systems prepared for humidity, condensation, leakage, and fire with their own technology. Along with the operating history that proves long-term operational stability, operating area, number of units (storage rooms), and return rate, which show actual storage supply capacity, are also mentioned as major indicators.

Currently, Second Syndrome, which operates the mini storage 'DaLock', is considered a representative company in the domestic self-storage industry. DaLock, which operates over 230 stores nationwide, has recorded 120,000 cumulative members and a 92% repurchase rate. The total store operating area has exceeded 12,000 pyeong, and the number of units secured in stores nationwide is over 18,000. In addition, it was the first in the industry to succeed in attracting investment, with cumulative funding exceeding 17 billion won.

Furthermore, DaLock is diversifying its business model from business-to-consumer (B2C) to business-to-business (B2B) and B2G (government/public) fields. It has decided to partner with major domestic construction companies such as GS E&C to introduce DaLock as part of apartment household storage. It is scheduled to be released in 2028.

In collaboration with the Korea Land and Housing Corporation (LH) and the Seoul Housing and Communities Corporation (SH), a project is also underway to convert semi-basement houses where living is difficult into self-storage as part of an urban regeneration project. Among domestic self-storage brands, Mini Storage DaLock is the only one that has expanded its business axis beyond B2C to B2B and B2G fields. The company plans to expand its business area by entering overseas markets in earnest in the second half of this year.

An official from the real estate industry said, "The domestic self-storage market is expected to continue to grow at about 7-8% annually," and "Marketing competition for 'No. 1' in the industry is expected to become fiercer in the future."

At the same time, they predicted, "Beyond the simple weight competition of being evaluated by the number of branches, only brands with operational stability and continuous business portfolio competitiveness will survive."

SH Share Yangjae Branch. [Source = Second Syndrome]

By reporter Namseok Lee leens0319@ebn.co.kr