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Korean Beauty Trends & Industry News: 23-12-18


Intensifying Competition in Cosmetics Delivery: CJ Olive Young, Coupang, Daiso in the Fray

In the dynamic world of Korean beauty, CJ Olive Young, Coupang, and Daiso have plunged into a competitive race for cosmetics delivery. 

CJ Olive Young's same-day service, "Delivers Today," has seen a 70% increase in usage this year compared to the last. In Seoul, over half of the online orders are delivered through this rapid service. 

This company was the first in the cosmetics industry to introduce instant delivery, ensuring swift dispatch directly from stores near the delivery address through their mobile app and online mall.

With over 1,300 CJ Olive Young stores nationwide, 80% of which stock indie cosmetics brands, orders made before 8 PM are delivered within 3 hours, averaging around 45 minutes. The company is also expanding its urban logistics centers (MFC) to metropolitan areas next year.

Meanwhile, Coupang is focusing on delivering premium authentic cosmetics. In July, they launched the 'Rocket Luxury' section dedicated to luxury beauty brands, starting dawn deliveries. Brands like Estée Lauder, MAC, and Bobbi Brown have been introduced, selling products directly sourced from the Korean headquarters of these brands. Coupang has set its sights on enhancing its luxury beauty lineup.

Daiso has entered the fray with cost-effective cosmetics, reporting a 180% increase in basic and color cosmetics sales compared to last year. Collaborating with brands like Nature Republic, Danahan, and Clio, Daiso sells products at prices below 5,000 won. Orders placed before 2 PM on weekdays are delivered the next day, with free shipping on orders over 30,000 won.

Additionally, online fashion platforms such as Musinsa, Zigzag, and Ably are expanding their cosmetics delivery services. Musinsa Beauty's transaction amount this year has more than doubled compared to the last year. This participation of various platforms predicts an even more intense competition in cosmetics delivery services.


Rapid Growth of the Online Beauty Market: Coupang and Beautycully's Strategic Expansion

The online beauty market in Korea is experiencing rapid growth, driven by affordable prices and convenience. According to the 'October Online Shopping Trends' from the Korea Statistical Office, the online shopping transaction amount for cosmetics in October this year reached 1.636 trillion won, a 17.1% increase compared to the same period last year. This amount represents one-third of the total cosmetics market size last year. The online market's growth is attributed primarily to competitive pricing and convenience.

Coupang's 'Rocket Luxury' section offers luxury beauty products at reasonable prices. They sell famous brands like MAC and Bobbi Brown at prices lower than duty-free shops by directly sourcing from the brand's Korean headquarters.

Beautycully, too, has shown remarkable success, surpassing 4 million cumulative buyers. They have collaborated with luxury beauty brands to offer exclusive products under 'Cully Only.' These products, often sold at a lower price than in physical stores, are proving to be attractive to consumers.

As the online beauty market continues to grow, consumers seek competitive prices and convenience, and companies respond by offering more products and benefits. This trend is creating a new shopping experience, rapidly transforming the market beyond the limitations of offline stores.


Lotte Chemical's 'PET CLEAR' Material Earns Top Recycling Certification in Europe

Lotte Chemical's 'PET CLEAR' material has achieved the highest grade 'Class A' certification for recyclability from RecyClass, a European recycling verification organization. This material maintains the same chemical composition as standard PET but boasts improved recyclability and transparency, adding high value to the PET material.

During the certification process, various factors such as the material, design, type, and labeling of the plastic were evaluated. The material's recyclability and suitability were confirmed based on the guidelines of the RecyClass program.

Lotte Chemical's PET CLEAR provides a solution for replacing hard-to-recycle transparent materials in cosmetics containers, electronic products, and multi-use containers. This aligns with the growing demand from global cosmetics brands and beverage companies for environmentally friendly materials.

Last year, Lotte Chemical introduced 'PET CLEAR' utilizing this eco-friendly material. In July, they signed a business agreement with Pumtech Korea to develop and commercialize eco-friendly cosmetic packaging products, contributing to environmental protection and promoting sustainable industrial development.

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