Shinsegae Inter "Increasing Young Customers Seeking Yeonjak... 60% of Sales from 2030 Generation"

[Asia Economy Reporter Yujin Cho] Shinsegae International's luxury cosmetics brand Yeonjak has seen a significant increase in the sales proportion from young customers in their 20s and 30s.

On the 2nd, Shinsegae International announced that Yeonjak's cumulative sales from January to May this year increased by 76.4% compared to the same period last year. During the same period, sales through online channels, which are the main purchasing channels for young customers, increased by 454% compared to the previous year, and among these, the sales proportion of the 20s and 30s generation accounted for 58% of the total.

Yeonjak is a new-concept herbal cosmetics brand launched by Shinsegae International in October 2018 targeting the global millennial generation. It complements the drawbacks of traditional herbal products such as unique scent and stickiness while simultaneously achieving high functionality and low irritation.

The influx of young customers was mainly driven by the popularity of the flagship product, 'Jeoncho Concentrate.' Yeonjak held two events in department stores, in September last year and May this year, where customers could exchange empty essence bottles from other brands for a full-sized Jeoncho Concentrate product.

Among the customers who participated in the event, 60% were young people in their 20s and 30s. Through communities and social networking services (SNS), reviews such as “I was hesitant about herbal cosmetics, but the scent is nice and sophisticated,” “It is non-sticky and absorbs moistly,” and “I want to try other Yeonjak products” started to spread word-of-mouth about the product.

In fact, the second empty bottle event held last month saw about a 129% increase in customer participation compared to the first event, and the actual purchase rate relative to the number of visitors nearly doubled, enjoying a strong promotional effect. It also earned the nickname ‘Porcelain Ampoule Serum’ for creating bright and smooth porcelain-like skin.

The 'Motherhood Babyhood Line' is also popular. Sales of this line from January to May this year increased nearly 2.5 times compared to the same period last year. As millennial consumers who have started becoming parents began seeking high-quality prenatal and postnatal care products and baby skincare products, the number of consumers purchasing Yeonjak noticeably increased.

Earlier this month, Yeonjak launched the ‘Longwear Porcelain Cushion Foundation’ targeting young female customers, marking the start of a full-scale sales expansion. It effectively improves the yellow undertone, which is the biggest concern for Asian women, creating a clean porcelain-like complexion. With high coverage and thin adhesion, it keeps makeup, which is easily disturbed by masks, clean for a long time. Containing Yeonjak’s unique ingredient, Whole Plant Effect (Jeoncho Complex), it provides a refreshing feel and long-lasting moisture.

A Shinsegae International Yeonjak representative said, “Yeonjak was developed as a new alternative for millennials who like the high functionality of herbal cosmetics but feel averse to the old-fashioned scent and feel,” adding, “We will develop high-functionality products with good ingredients to satisfy wise consumers who carefully check cosmetic ingredients and create differentiation unique to Yeonjak.”

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