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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

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