"K-Beauty Hallyu Edition Launched for the First Time... Will Revive Tentacles"… 'Noongkeu' Platform Opening at the End of March

Interview with Kim Sun-min, Head of Online Division at Able C&C

Focusing on 'Multi-shop, Online, Overseas' for a New Leap Forward

[Asia Economy Reporter Jo Yoo-jin] Able C&C is laying the groundwork for a new leap forward by focusing on 'multi-shop, online, and overseas.' Amid severe market stagnation following the THAAD incident, the company is converting offline single-brand shops into multi-brand shops called 'Nunk' and is building a new online platform linked to this transformation.

On the 20th, Kim Sun-min, Executive Director and Head of the Online Division at Able C&C, whom we met at the Seocho-dong headquarters, said, "We will break the four-year trend of decline and successfully achieve a turnaround in the online sector." He was recruited as the head of the online division in September 2018 during the process of transforming the business model centered on online and offline Nunk.

Starting in 2003 as an MD for home appliances and digital products at Hyundai Home Shopping, Kim has held positions at 11st, Naver Shopping Knowledge, TMON as Head of Product Division, and Lotte Mart as Head of Mobile Division. With 20 years of experience, he is an 'online veteran.' He emphasized, "We plan to increase the sales proportion generated through online channels to 20-30% of total sales within 2-3 years."

As of the end of last year, Able C&C's online sales ratio rebounded to 12% (16% domestically). Compared to the industry average, which is below 10%, this is a considerable achievement. Although sales through partner malls currently exceed those from the company’s own mall, it is expected that the goal will be easily met once the new online platform Nunk opens at the end of March.

To this end, organizational changes are underway to strengthen the online team. The e-commerce 'department,' which had 17 members at the time of his appointment, was upgraded to a 'division,' comprising four teams: sales, marketing, planning, and development. Team leaders for each team, who will play key roles, have been appointed, and through external recruitment, the workforce has increased to 52 members. Hiring will continue for the foreseeable future.

Kim’s key focus this year is the successful launch of the online platform Nunk. Able C&C plans to convert more than 300 of its approximately 600 offline single-brand Missha stores into multi-brand shops by the end of next year. Kim plans to maximize synergy by linking the currently separately operated offline Missha stores with online channels.

Kim said, "There isn’t even a single prompt in offline Missha stores encouraging customers to install the mobile Missha app." He added, "We will create a structure where customers are guided to visit stores through online channels, and when sales are generated, profits will be shared with each franchisee." Starting with this 'win-win model,' in-store pickup service and quick delivery within three hours will also be introduced within the year. He added, "We plan to continue creating models that correct franchisees’ misunderstandings about losing sales to online channels and share profits to realize mutual growth."

Able C&C originally started as an online community called 'BeautyNet.' It attracted members by removing unnecessary costs with the slogan 'There is no reason for cosmetics to be expensive because of ingredients' and offering sensational prices of '3,300 won.' The community function was activated through frequent product inquiries, comments, and member interactions, which helped spread word of mouth.

Kim emphasized, "Our unique strength is that we can transfer the know-how of launching an online community 20 years ago to an online platform." He stressed, "We have two DNAs: offline distribution networks and online expertise." The ultimate goal is to create a structure where content is produced within the online community and sales are generated through it. Kim added, "Health & Beauty (H&B) stores that are becoming like supermarkets are not our competitors," and "We will not infinitely expand categories both online and offline."

In the long term, there are plans to strengthen overseas business through the Nunk platform. The Thai market, in particular, is seen as having high potential. Having experienced the Thai market during his time at Naver, Kim has a deep understanding of this market. He emphasized, "Online strategy can be a great weapon for overseas expansion," and added, "Thailand, among ASEAN countries, has a relatively high income level, stable demand, and well-established internet infrastructure, making it a market with great potential."

This content was produced with the assistance of AI translation services.