Skip to main content

Korean Beauty Trends & Industry News: 24-01-24


Kurly, a Dawn Delivery Service, Achieves First Monthly Profit – Boosted by 'Beauty Kurly' Sales

For the first time in its 9-year history since its establishment in 2015, the South Korean dawn delivery service Kurly has recorded its first monthly profit. A significant contributor to this achievement is the growth of 'Beauty Kurly,' its cosmetic sales division. Kurly has managed to achieve a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), notably with a 10 billion won increase in EBITDA in December compared to the same month in the previous year. However, concerns are raised about the sustainability of this profit, as it largely stems from cost-saving measures.

Last year, Kurly focused on reducing expenses, including cutting TV ads and administrative costs, leading to a 2.8% decrease in sales management expenses compared to the previous year. This strategy, combined with the launch of Beauty Kurly, which attracted new customers and increased average sales per customer, contributed significantly to the company's financial turnaround.

To maintain profitability, Kurly is exploring various revenue-generating ventures. These include the introduction of 'Kurly Members' and modifying payment cycles with partners to enhance liquidity. The company is also developing a quick-commerce business in the Gangnam area.

Industry insiders, while skeptical about Kurly's long-term sustainability, recognize the potential for a turnaround driven by the growth of ventures like Beauty Kurly. With the achievement of monthly EBITDA profitability, Kurly aims for greater improvements this year and positively impacts its potential re-attempt at an IPO.


Olive Young Innovates Overnight Delivery with Eco-Friendly PHA Packaging

Olive Young, a leading health and beauty store in South Korea, has started using an eco-friendly vinyl packaging material developed by CJ CheilJedang for its instant delivery service 'Today's Dream.' This packaging material is made from biodegradable bio-based material PHA (Polyhydroxyalkanoates), derived from microbes, which naturally decompose in soil and marine environments. This initiative replaces the traditional PVC (Polyvinyl Chloride) packaging, known for releasing harmful substances like environmental hormones.

The PHA packaging is durable enough to hold heavy or sharp-edged items, provides opacity to conceal contents, and has adhesive qualities that prevent shipping labels from detaching, making it ideal for delivery packaging. Currently, it's being used in two urban logistics centers (MFC) located in Gyeonggi Province, and plans are underway to expand its use to other regions.

On average, about 40,000 deliveries are made per month, and this number rises to about 100,000 during sale periods. This move is part of Olive Young's ongoing efforts to reduce plastic usage, which began in October last year with the adoption of paper cushioning and tape for parcel packaging.

CJ CheilJedang is actively working to expand the application of PHA material. Recent developments include microwave-safe PHA paper coating for CU convenience store's cup noodle containers. In collaboration with CJ Olive Young, Yuhan Kimberly, Banila Co, and others, the company aims to apply PHA in various fields, including cosmetic containers and household packaging. CJ CheilJedang's White BIO CIC Business Leader Seungjin Lee commented, "We look forward to introducing more consumers to PHA, a material of the future, and accelerating its commercialization."
Location: 한국

Comments

Post a Comment

Popular posts from this blog

Korean Beauty Trends & Industry News: 24-12-20

Korean Convenience Stores Enter the Affordable Beauty Market      Korean convenience stores are now competing aggressively in the affordable beauty market, targeting younger consumers in their teens and twenties with skincare products priced around 3,000 KRW (about $2.50). These products emphasize small, travel-friendly sizes, practical use, and budget-friendly pricing, making them particularly appealing to younger shoppers. GS25 recently launched six affordable beauty products, including the "Scinic Moist Tone-Up Sun Cream," priced at 3,000 KRW for six individually packaged 2mL units. Earlier this year, GS25 introduced 700 KRW sheet masks and 1,000 KRW moisture pads, doubling its skincare offerings from 10 products last year to 20 in 2024. Similarly, CU launched three affordable skincare products in September, selling 30,000 units in just three months. CU's lineup has expanded to include skin-repairing ampoules and hand creams. Even Seven-Eleven has joined the trend with...
Post a Comment
Read more

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...
Post a Comment
Read more

Helena Rubinstein: Unveiling the Life and Legacy of a Cosmetics Pioneer

Helena Rubinstein (1872-1965) was more than just a name in the world of beauty; she was a trailblazer who revolutionized the cosmetics industry.  From her modest beginnings in Poland to her reign as a global beauty titan, Rubinstein's journey remains an inspiration. Through her brand, Rubinstein pushed boundaries, championing the idea that beauty could be a powerful tool for women's empowerment. From Humble Beginnings to the Cosmetics Throne Helena Rubinstein was born in 1872 in Krakow, Poland. Leaving her homeland at a young age, she initially moved to Australia, where her career in the cosmetics industry began. Rubinstein noticed the harsh effects of the Australian sun on the skin and developed a cream to protect and moisturize it. This innovation led to the launch of Helena Rubinstein's first product, Valaze, a face cream formulated with herbs from the Carpathian Mountains. The success of Valaze was pivotal in Rubinstein's career, propelling her into the global cosme...
Post a Comment
Read more