SEOUL, Apr. 28 (Korea Bizwire) — Cosmetic shops that sell various brands under one roof have steadily expanded their presence in South Korea, giving sophisticated customers more options, according to industry officials Thursday.
AmorePacific Co., South Korea’s No. 1 cosmetic company, operates about 1,350 multi-brand stores, called “Aritaum,” nationwide, which offer a wide selection of its products, including such mass brands as Laneige and IOPE. The company also operates single brand shops such as Innisfree and Etude House in the lower-end and Sulhwasoo and Hera in the higher-end segment as part of a two-track strategy.
Also showcasing multi-brands are beauty and health care stores, such as CJ’s Olive Young and its smaller rival Watsons, which have expanded and enjoyed growing popularity among urban youngsters.
To catch up with the latest trend, local cosmetic companies have launched multi-brand cosmetic shops in major retail strips.
LG Household & Health Care Ltd., the nation’s second-largest cosmetic maker, launched a multi-brand shop called “Nature Collection,” in February, operating 11 stores in major retail strips in Seoul. The store features brands that focus on a natural look, including The Face Shop and Beyond.’
“Nature Collection is promoted through word-of-mouth, with various products and promotional events,” a company official said.
Able C&C Co., which created the boom for the single brand shop with Missha, has recently opened a multi-brand shop called “Beauty Net” on a popular street in Seoul to display a wide range of select products.
Industry officials say multi-brand shops are effective in improving customer convenience and brand management and promotion, providing easier access to new brands.
“Expansion of these multi-brands provide the other brands with more chances to be introduced to customers,” said a company official of Able C&C.