COVID-impact in KR

2020 SOUTH-KOREAN MARKET OVERVIEW

South Korea beauty / personal care products market is projected to grow at a CAGR of 5.22% during the forecast period (2021-2026)

  • France represents 29.6% of total cosmetics import in KR

  • Only England has seen an increase on its cosmetics export to KR, all countries took a step back.

  • Export of French cosmetics decreased by 11.8% (didn't happen since 2009)

Due to COVID19, consumers have changed their priority in terms of cosmetic products. Skincare takes the lead ahead of makeup.

2020 purchase results

OFFLINE SALES CHANNELS

LEADING DRUGSTORES

OLIVE YOUNG

  • opened 13 new stores in 2020

  • H&B 1st outlet profit: KRW 100.1 billion

LALAVLA

  • closed 16 new stores in 2020

  • started opening beauty stand in GS25 (2.500 by 2022)

LOHB

  • closed 28 stores in 2020

  • creation of wider LOHBs stores combined with Lotte Mall

Department stores

HYUNDAI

  • Channel expansion strategy

  • New: the hyundai seoul = 100 billion KRW in sales within a month

  • Increase of imported cosmetics sales helped improve

LOTTE

  • 88 stores in total

  • drop in store performance = close stores to reduce cost & increase profit

  • decrease in cosmetics sales at discount stores

AK PLAZA

  • Suffered more than others depart,stores because of weak luxury lineup

  • Creation of: animation store, concept store, art exhibition are the solutions to stimulate sales

SHINSEGAE

  • Proportion of cosmetics among operating profit: increases every year, 81% in 2019 & 93% in 2020

  • Speed up the expansion of its premium cosmetics business = launch of poiret

DIGITAL SALES CHANNELS

Thanks to the strategies adopted by the various cosmetics groups following COVID19, in October 2020, online payments amounted to $13 billion, 20% more than in 2019.

  • TODAY'S DREAM PICKUP SERVICE: purchase online = go get at offline stores

  • (3!4) SERVICE: which allows consumers to choose their own time zone to receive the product

  • SMART RETURN: consumers will also be able to return items delivered through online purchases at offline stores

LOTTE ON

  • Customers who use Lotte Shopping's 5 apps (department stores, marts, supermarkets, LOBS, and Hi-Mart) = immediate discounts & point-giving benefits through QR codes when visiting the store.

  • Online malls offer special benefits for 'first- time' customers.

Shinsagae X Naver

  • To speed up the expansion of its premium cosmetics business

  • Strengthen its advertising, e-commerce and fintech services

E-LAND

QUAL QUAL

Based on Kakao, anyone can choose and sell about 3 million products owned by E-Land according to their taste and receive rewards, aiming to achieve KRW 300 Bn in 2022.

BIG DATA

Collecting, processing, and analyzing data of 10 million customers to find "core values“ to better fit the consumer’s expectations.

 

LALAVLA

PARTNERSHIP SERVICE

100 range, including brand sale cosmetics, monthly event products, beauty props... (plans to expand its range of deliverable products to more than 200)

30-DAY SHIPPING FEE 0 WON

Free shipping coupons for all customers of Lalabla per day and can be applied to all products without a minimum order amount

beauty, salesLisa L'hirondellemarket overview, korea, le laïus