Competition among private labels (PB) targeting beauty niche markets that the so-called "Ol-Da-Mu" stores (Olive Young, Daiso, and Musinsa) have missed is heating up. Centered on e-commerce platforms, they are rolling out products that reflect segmented targets and branding rather than price competitiveness.
According to the industry on the 9th, the shopping platform ably will unveil a new beauty PB brand within the year. Based on a co-growth model built on a partner collaboration structure, it focuses on developing specialized products aimed at people in their teens and 20s. ably has already filed trademark applications for "Bybly," "Twikin," and "Twikit."
ably's strategy is to target the middle ground between Olive Young, Musinsa, and Asung Daiso Co. Although Olive Young, the established powerhouse, is accelerating the expansion of its PB, some products are perceived as less cost-effective due to higher prices. Musinsa's PB also tends to show price differences by brand and product.
Asung Daiso Co. keeps all product prices ultra-low at 5,000 won or less across six fixed price tiers. While its low prices have made it popular among Millennials and Gen Z and foreign tourists, there is a limitation in that some consumers continue to raise concerns about ingredients and quality.
ably plans to break into the gap left by the so-called "Ol-Da-Mu" stores (Olive Young, Daiso, and Musinsa) with PBs focused on differentiated concepts and imagery. The company intends to leverage the fact that people in their teens and 20s respond sensitively to influencer-based content and trendy, fresh branding rather than brand awareness.
The characteristics of beauty products are also cited as a reason for the rise in PBs. Cosmetics have relatively long shelf lives and small volumes, which reduce the burden of inventory management, and they tend to have high margins. As online-centric consumption has become routine, the heightened visibility of marketing through social networking services (SNS) is also working in favor of new brands.
Kurly is also expected to launch a beauty PB within the year. It has filed trademarks for "Lurity," "Lovrin," "Miroel," "Lurion," "Ludexa," and "Duera." There is speculation that Kurly will introduce products focused on ingredients and functionality, based on the premium image and curation capabilities it has long touted as strengths.
A PB launch targeting middle-aged and older women has also been signaled. Rapport Labs, which acquired the data home shopping (T-commerce) company SK Stoa, will launch the PB brand "Tempera" and sell a neck cream as its first product. The strategy reflects the fact that the main users of the currently operated e-commerce platform Queenit are women in their 40s and 50s.
Coupang began ramping up its PB expansion last year. Early last year, it launched "Elle Paris" through its PB subsidiary CPLB and introduced 18 products, including ampoules, creams, serums, and mists, centered on a skincare line. Priced between 4,900 won and 11,900 won, it is targeting cost-effective demand.
Korea's online transaction amount for cosmetics has been steadily increasing. According to the Ministry of Data and Statistics (MODS) online shopping trends, last year's online transaction amount for cosmetics was 13.8153 trillion won, up 7.7% from a year earlier. During the same period, the share of cosmetics purchased online rose 4.7 percentage points (P) to 41.4%.