The Troika of Korean Beauty Products : Set up yout marketing strategy in Korea

In the past, Korea’s offline beauty market revolved around single-brand road shops. However, the industry shifted its focus to Health & Beauty (H&B) stores, with Olive Young now commanding over 90% of the market share. This dominance has triggered a fierce competition, with platforms like Daiso, Beauty Kurly, Musinsa, and Zigzag entering the fray. The Korean beauty distribution sector has become nothing short of a battleground.

Among the contenders, two platforms stand out as significant challengers to Olive Young: Daiso and Beauty Kurly. Daiso saw a remarkable growth last year, with its skincare sales increasing by 240% and makeup sales by 130% compared to the previous year. Beauty Kurly, on the other hand, reached ₩300 billion ($250 million) in transaction volume within a year of launching its Beauty Kurly service and exceeded 4 million cumulative buyers.

Speed as a Game-Changer: Same-Day and Next-Day Delivery

What unites these three platforms—Olive Young, Daiso, and Beauty Kurly—is their focus on fast delivery strategies. Olive Young and Daiso leverage their extensive network of retail locations, while Beauty Kurly relies on Market Kurly’s logistics hubs to ensure delivery within a day.

Yet, each platform distinguishes itself with unique marketing strategies tailored to its strengths. Let’s explore how the three giants are shaping the future of Korea’s beauty industry.

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1. Olive Young: The Unrivaled Leader in Beauty Retail

Olive Young dominates the offline beauty market, wielding significant influence over women in their 20s and 30s as well as beauty brands.

One key to its success lies in availability heuristics—the psychological tendency to overvalue things that come easily to mind. For many Koreans, "beauty store" is synonymous with "Olive Young." This strong brand recall drives consumers to Olive Young as their first choice for beauty products.

Exclusive Launches and Limited Editions

Olive Young maximizes its market position through exclusive marketing strategies such as pre-launches, limited-edition colors, and exclusive bundles. By restricting access to certain products to its own channels, Olive Young ensures that customers inevitably turn to its stores for the latest beauty trends.

Experiential Retail at Every Corner

With over 1,350 stores across Korea, Olive Young ensures that consumers can physically interact with products anywhere. Flagship "Olive Young Town" stores go a step further by offering curated experiences, such as the Luxe Edit zone for premium products, fragrance bars, and trending brand showcases. These efforts solidify Olive Young's brand image as not just a retailer, but a comprehensive beauty experience hub.

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2. Daiso: Winning with Price and Accessibility

Often called the "₩1,000 Department Store," Daiso has emerged as a surprising dark horse in the beauty industry with its unbeatable prices and innovative strategies.

Affordable Quality Through Cost-Efficiency

Daiso cuts marketing costs for brands by utilizing its massive distribution network and simplifies packaging to maintain product quality at a fraction of the cost. This approach aligns with the "dupe culture," where budget-conscious consumers seek affordable alternatives to high-priced products without compromising on functionality.

Miniature Products and Second Brands

To lower entry barriers, Daiso offers small-sized products and launches second brands exclusive to its stores. These strategies appeal to younger consumers looking to try new products without committing to full-size versions.

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3. Beauty Kurly: Luxury for the Modern Consumer

Targeting women in their 30s and 40s, Beauty Kurly differentiates itself with a focus on luxury beauty marketing. Unlike Olive Young and Daiso, which cater to younger demographics, Beauty Kurly features high-end brands like Sulwhasoo, Hera, and Bobbi Brown.

Events and Unique Experiences

Beauty Kurly’s recent "Kurly Beauty Festa" showcased its luxury positioning by creating a premium offline experience. Visitors enjoyed flower bar events and exclusive gifts worth up to ₩600,000 ($500), reinforcing the platform's upscale image.

Bold Competitive Strategies

Beauty Kurly isn’t afraid to take direct shots at competitors. Its "Lowest Price Challenge" guarantees store credit to customers if its prices are higher than Olive Young’s, a rare example of comparative advertising in Korea.

 

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The Future of Korea’s Beauty Distribution Market

The rise of platforms like Coupang Beauty, Zigzag, and Musinsa Beauty further intensifies the competition. With consumers now actively comparing platforms for the best deals, the once-monopolized market is experiencing a seismic shift.

As the dust settles, which platform will emerge victorious? The answer will depend on each brand’s ability to craft marketing strategies that highlight their unique strengths. For marketers eyeing the Korean beauty market, understanding these dynamics is the first step toward success.

 

 

The Korean beauty market is evolving at a rapid pace, marked by intense competition among platforms and ever-changing consumer trends. Navigating this dynamic landscape requires not only a deep understanding of local preferences but also innovative marketing strategies tailored to each platform's unique strengths.

At TALENTism, we specialize in crafting bespoke marketing solutions for brands looking to establish or expand their presence in Korea's thriving beauty industry. From leveraging platform-specific campaigns to building impactful influencer partnerships, our expertise ensures that your brand stays ahead of the curve.

Let’s collaborate to unlock the full potential of Korea’s beauty market. With TALENTism as your trusted partner, you can achieve measurable results while creating lasting connections with your target audience. Reach out to us today to explore how we can support your success in this vibrant and competitive market.

 

https://talentism.co.kr/marketing-korea/

TALENTism - Korean Digital Marketing Agency