[Asia Economy Reporter Yujin Cho] #Office worker Lee Su-gyeong (36) these days orders cosmetics through delivery apps. She used to try products in offline stores before purchasing, but due to the impact of COVID-19, outings have decreased and there is no need to try frequently used products. She said, "It is convenient to receive delivery within 40 minutes when I suddenly needed feminine products at work," adding, "If you purchase more than 20,000 to 30,000 won, you don't have to pay for delivery, so it is highly useful when buying daily products such as foam cleansers or basic skincare lines."


The COVID-19 pandemic is changing the landscape of cosmetics consumption. While health and beauty (H&B) stores are quiet, sales through cosmetics delivery services have surged, and beauty companies are accelerating the establishment of cosmetics delivery ecosystems. As contactless consumption culture spreads and the online market grows due to COVID-19, companies are strengthening their digital strategies.


Order at the Door in 30 Minutes... Cosmetics with Instant Delivery to Grow Your Business View original image


◆Beauty Industry Expands Delivery Services= According to related industries on the 17th, Able C&C, which operates the cosmetics brand Missha, is discussing additional delivery service contracts with two large food delivery agencies. Able C&C launched same-day cosmetics delivery service in April in partnership with the errand app 'Kimjipsa.' Currently, the cosmetics delivery service is available in a few stores in Songpa, Seoul, and some areas in Gyeonggi Province. An Able C&C official said, "Although the number of orders and user data are not yet at a significant level, we plan to increase the number of participating stores and the range of deliverable products as the related market grows."


Amorepacific, Tony Moly, and H&B stores such as Olive Young and Lalavla have also entered or are expanding their businesses in the cosmetics delivery market. Olive Young introduced the industry's first instant cosmetics delivery service 'Oneul Dream' in December 2018, and Amorepacific plans to start delivery services next month through 'Oneul Balsang' on the 11st platform in partnership with 11st. Tony Moly, after joining 'B Mart,' a small-package delivery service operated by the food delivery app Baedal Minjok, started a '30-minute delivery' service in early this month in collaboration with the mobile market Nowpick. Lalavla is also providing services in partnership with the food delivery app Yogiyo.


◆Sunscreens and Men's Cosmetics Popular= Although the service is in its early stages, results are good. The strengthened contactless trend due to COVID-19 is causing changes in the consumption structure of cosmetics. As the stay-at-home lifestyle lengthens due to COVID-19, young people who avoid going out have emerged as the main consumers, and products such as daily basic skincare lines and sunscreens, which see a surge in demand during the summer season, are gaining popularity.


Olive Young's second-quarter sales in the Oneul Dream segment grew 1100% year-on-year. Even considering the natural increase from expanding the number of products and stores by 17 times and 8 times respectively compared to the launch period, it is a smooth landing. On 11st, where Amorepacific is present, out of 520,000 total beauty product orders on the platform, about half (220,000 orders) were made through the same-day delivery service 'Oneul Balsang.' Over 4,000 beauty companies, including Amorepacific's Etude, participate on 11st.



An 11st official explained, "Recently, demand for 'Oneul Balsang' has been high for basic skincare products as well as summer season items such as sun care, nail care, and men's cosmetics." Tony Moly, which started cosmetics delivery service through Baedal Minjok's 'B Mart' last month, sold out two of its five listed items and is currently conducting a third reorder. A Tony Moly official said, "We plan to gradually increase the number of items by adding products suitable for seasonal issues."


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

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing