The Trend of Online... Expanding Territory with 'Online-Only' Fashion and Beauty Products

[Asia Economy Reporter Yujin Cho] Fashion and beauty companies are accelerating their expansion into the online territory. As the prolonged COVID-19 pandemic has shifted the main consumption of fashion and beauty from offline to online, cases of launching new online-exclusive products or converting existing brand distribution channels to online along with investments in their own malls are increasing.

According to industry sources on the 24th, domestic underwear company BYC plans to introduce 2 to 4 types of easywear as an online-exclusive line. A BYC official said, "Since the COVID-19 pandemic, the popularity of easywear has increased as people spend more time at home," adding, "We decided to launch the easywear line as an online-exclusive product to target the younger generation who prefer non-face-to-face (untact) consumption."

Women’s lingerie company Namyoung Vivian has entered Naver Store Farm and Kakao Shopping Channel, and Shinsegae International launched an online-exclusive line targeting mainly the 10s to 30s age group through its own women’s brand, J. Cut.

Some companies have even launched entirely online-exclusive brands. Hyungji I&C launched the French contemporary women’s brand 'Bonie' last month. It is an online-exclusive brand targeting the 20s and 30s generation, expanding the existing men’s brand 'Bon' into the women’s category. LG Household & Health Care quickly collaborated with beauty influencer 'One Million' before the COVID-19 outbreak and is currently operating the online-exclusive beauty brand 'Million Beauty.'

Attempts to renew their own malls or move offline flagship stores online are also continuing. MBX, which leads K-beauty in the U.S., opened 'MBX Mall' in the form of an online flagship store. MBX plans to launch brands such as Kaja and I Dew Care through its online mall next month. Shinwon will launch its own comprehensive online shopping mall 'Show Window' in May or June. A Shinwon official said, "We are working on transforming it into a multi-brand shopping platform through collaboration with small and medium-sized fashion brands."

Online-exclusive lines have the advantage of increasing the cost ratio by lowering prices through a low-margin, high-volume strategy while reducing offline operating costs and inventory burdens. Compared to department stores with entry fees around 35%, the fees are lower at 4-10%, so the expansion of online business by fashion and beauty companies is expected to continue.

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