Sephora Opens First Store in Korea
Since Consumers are no longer brand loyal nor celebrity, the desire to have more experiences on various products at same place is rising. Drugstores/Parapharmacies is getting more popular, as consumers can take a look and give some try on various products at one place compared to one brand only shop. While one brand shop and department store which used to be the main channels for beauty products have been kept decreasing, they also have been trying to evolving themselves by introducing new types of multi-brand shops. Especially, Shinsegae group launched its premium multi-brand beauty retailer Chicor in 2017, where consumers can purchase high-end foreign brands such as YSL, Lancôme, premium K beauty brand including Huxley and hince, as well as its own private label brand named Chicor collection. Chicor is expanding to broader portfolio in premium K-beauty brands.
While Chicor is more focusing on premium K-beauty brands, Sephora, as a premium multi-beauty brand shop under LVMH group, is expected to introduce more on premium brands which are available to buy oversea, and foreign luxury cosmetic brands. In addition, Sephora will be able to have competitiveness over local health and beauty stores by introducing different product line ups. Therefore it would be expected that the main products would be Sephora’s private label brands or popular brands like Hourglass as this is the distinguish point where Sephora can differentiate itself from other drugstore like Olive Young, Lalavla and LOHBS.
Source: Euromonitor International
In the meantime, one brand shop and drugstore players should be able to have different strategies to deal with Sephora’s market entrance. Hence, LG Household has been changing their one brand shop including The Face Shop, Beyond into multi-brand shop named Nature Collection where LG Household’s mid-low price cosmetic brands are sold and Able C&C also changing its Missha store to NUNC where consumers can purchase various brands not only from Able C&C but also other manufacturers’ brands. Local drugstore players including Olive Young and LOHBS are also expected to have more high quality but reasonable price range products such as Manyo and Bbia and foreign dermatology brands to have competitiveness over premium multi shops.