Shinsegae Department Store Launches 'Nomad Consumer' Campaign, Starts Producing Cosmetics Directly

Focus on Diversifying MD Composition
Shinsegae Department Store Launches Skincare Specialist 'Onoma'
Sold on Chicor and SSG.com as a 'K-Beauty' Brand
Expanding from Women's Apparel and Jewelry PB to Cosmetics

[Asia Economy Reporter Minyoung Cha] As so-called 'nomad consumers' who do not settle in specific distribution channels increase, department stores and others are turning their attention to the cosmetics business as part of a strategy to diversify merchandise planning (MD) composition. Shinsegae Department Store announced on the 21st that it will launch a new skincare specialty brand, 'Onoma,' through its own beauty select shop, Chicor, and the integrated online mall SSG.com. Pre-orders through Chicor have also started first on SSG.com.

Onoma, which means 'name and reputation' in Greek, is an essence-specialized brand with six types of customized essences for different skin types as its representative products. Since operating Chicor in 2016, Shinsegae Department Store has focused on the high demand from domestic and international consumers for Korean skincare products, represented by 'K-Beauty.' Based on customer big data, Shinsegae Department Store handles merchandise planning and distribution, while cosmetics production is managed by Cosmax, an OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) specialized company.

A Shinsegae Department Store official said, "While operating Chicor, we realized that customers positively perceive the clean and clear skin expression of Koreans and that K-Beauty remains a competitive and promising field," adding, "We will offer cosmetics with good ingredients at more affordable prices and expand various private brand products like the existing women's wear 'Delarana' and luxury jewelry brand 'Adir.'"

Shinsegae Group's fashion and cosmetics affiliate, Shinsegae International (SI), has also succeeded with its own cosmetic brands such as 'VDIVOV' and 'Yeonjak.' VDIVOV, popular in department stores and duty-free shops, is a mega brand that recorded sales in the 200 billion KRW range in 2019.

The attempt to diversify MD composition is not limited to Shinsegae Department Store. Emart introduced the basic cosmetics brand 'Sentense' in 2016 and the color cosmetics brand 'Stonebrick' in 2019 through domestic Emart stores and Starfield shopping malls. In particular, despite the limitations of being a 'mart cosmetics' brand, Sentense has contributed to cosmetics exports by expanding into Saudi Arabia, Mongolia, and the Philippines.

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