Introduction
With the COVID-19 pandemic normalizing the trend of buying beauty products online, e-commerce platforms are now fiercely competing for a slice of the pie. This article delves into Coupang's unique venture into the online beauty market through an in-person experience at a trendy Seongsu-dong venue.
A Snapshot of the Event
On a sunny Sunday afternoon, around 40 people stood in line at 'Cenne' in Seongsu-dong, Seoul, to attend Coupang's 'Mega Beauty Show Virtual Store'. Coupang limited the crowd by allowing only 60 visitors every 30 minutes. A 30-year-old attendee shared, "The entry ticket was only 100 KRW, so I bought it right away. I was able to purchase 20,000 KRW worth of moisturizing cream and even received a box of samples."
Growing Competition in the Online Beauty Market
E-commerce giant Coupang recently stepped into the offline world with customer interactive events to strengthen its foothold in the beauty sector. After their 'Rocket Luxury' initiative of shipping luxury cosmetic brands through their rapid delivery service, they are now extending their influence by organizing offline events.
Other Market Players
While Coupang is taking innovative steps, they're not alone. SSG.com, affiliated with Shinsegae Group, has partnered with Fragrance.com, the top perfume e-commerce site in the U.S., to enhance its beauty offerings. Delivery service Baedal Minjok has also introduced a 'Beauty Zone' in its quick commerce platform 'B Mart'.
Rising Trend of Beauty Products on Various Platforms
In addition to specialized beauty e-commerce platforms, various other types of apps like fashion and grocery shopping apps are also incorporating beauty products into their offering. This indicates an intense competition in a sector known for its high margins and price points compared to fresh produce.
Market Analysis
According to Orin Ah of eBest Securities, "There's room for growth in the online beauty market as there are no dominant players apart from Olive Young." Park Shin-ae from KB Securities mentioned that using the existing logistics system, "Curly’s average selling price for cosmetics is over three times higher than that of food, which will help in increasing revenue and profit."
Conclusion
The rising trend of purchasing beauty products online has led to diversification and increased transaction volume for various platforms. Existing retailers are also devising strategies to differentiate themselves in this competitive market. As the struggle for market share heats up, it's clear that the online beauty industry is anyone's game.
This shift to online buying has been attributed to increasing consumer comfort and familiarity with e-commerce platforms, suggesting a promising future for companies venturing into this vertical.