Coupang, LOreal Korea membership linkage
Yves Saint Laurent, Lancome, Armani, etc.
Naver introduces 63 luxury brands
Offers higher savings than department stores
[Seoul Economy]
Naver and Coupang, the leading e-commerce players in Korea, increased their handling of luxury beauty brands to secure new customers. They are not only increasing the number of brands in stores, but are also increasing their ability to handle luxury brands by adding customer benefits to gain an edge in competition with department store channels. In the mid- to long-term, it is expected to target not only luxury beauty but also luxury fashion and lifestyle.
According to the retail industry on the 20th, Coupang plans to provide a membership linkage service with LOreal Koreas online and offline integrated mileage membership program My Beauty Box as early as this month. My Beauty Box is an official membership service that allows you to receive points and event benefits accumulated when purchasing LOreal Korea brand products. 11 brands including Yves Saint Laurent, Kiehls, Lancome, Biotherm, and Armani Beauty are included in the membership service. It is expected that customers will receive the same membership benefits they receive from purchasing the brand product at an offline store when purchasing from Coupang.
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Start to focus on luxury, which was considered a weakness
Linking the benefits of My Beauty Box is interpreted as strengthening the luxury beauty category, which has been considered a weakness of Coupang. In other words, it is interpreted as a strategy to embrace department store customers by enhancing customer convenience and product competitiveness. Coupang is being evaluated as excellent in selling daily necessities to the extent that it replaces large marts based on ‘rocket delivery’, but it has not been successful in the luxury market, such as being engulfed in controversy over counterfeit goods. However, in April 2020, it launched ‘C. Avenue,’ a fashion premium specialist, to strengthen its competitiveness, and in May of last year, it expanded its sales area to luxury beauty products. The number of brands in stores, including Mac and Bobbi Brown, increased to 16 recently.
Amid Coupangs move, Naver is more aggressively strengthening its luxury beauty category. After Naver renewed its ‘Luxury’ window in July of last year, it introduced a large number of various luxury fashion and beauty brands. Currently, 63 luxury beauty brands have entered the store. In February, sales in the luxury beauty sector increased by 87% compared to the same period last year. A Naver official said, “Several luxury brands are showing growth as they enter stores and conduct various online marketing.” Naver also introduced services linked to My Beauty Box membership early. For example, since January, Naver has been offering up to 3 months of Naver Plus Membership free trial vouchers for up to 3 months of Naver Plus Membership when you sign up for Naver Plus Membership, which costs 4,900 won per month, along with My Beauty Box through Lancomes Naver Brand Store. In addition, the same Lancome integrated mileage points as in department stores and up to 8% of Naver Pay points are provided. In addition, Naver pre-releases the brands new products or introduces exclusive products.
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In addition to Coupang and Naver, Lotte On and Ssuk.com also strengthened luxury goods.
Besides Coupang and Naver, other e-commerce companies are also strengthening the luxury beauty sector. Lotte Shoppings integrated online mall Lotte On plans to open a new beauty shop On and the Beauty next month based on its luxury competitiveness in department stores. SSG.com is also focusing on strengthening the platforms luxury product competitiveness by renewing the Shinsegae Department Store Mall and introducing 63 new brands including luxury cosmetics. The SSG.com Shinsegae Department Store Mall plans to attract more than 100 new brands such as luxury overseas fashion, cosmetics and lifestyle within the year.
