December 3, 2023

As the Covid-19 pandemic has prolonged the prevalence of non-face-to-face shopping, apparel and cosmetics companies are intensifying their online marketing strategies, specifically targeting Generation MZ (those born between the early 1980s and early 2000s). This younger demographic is increasingly recognizing the advantages of online shopping, which has led to a growing share of online sales for these industries.

Eland Spao, for example, anticipates that online sales will constitute approximately 30 per cent of its total sales for the current year. This marks a significant increase from 10 per cent in 2020 and 25 per cent last year. A spokesperson from Spao revealed, “In line with this trend, our offline strategy has also evolved from traditional multi-store and multiplex stores to flagship stores focused on experiential shopping locations. We are strengthening our branding by expanding immersive content in high-traffic areas.”

Samsung C&T’s fashion division is introducing new brands like Maison Kitsune, Ami, and Lemaire through SSF Shop, a specialized fashion and lifestyle mall. Furthermore, SSF Shop’s customer community, “Sesapae Diver,” was revamped in May to offer a “magazine” service highlighting fashion trends. The Diver community allows users to document their style in a diary format, enhancing online engagement and fostering loyal customers. 

There are also brands that exclusively operate online without physical stores. LF’s golf apparel brand DoubleFlag, which launched in September 2020, is an online-only brand that has gained significant traction, with sales more than tripling from January to September this year compared to the same period last year. LF Hedges’ “Heath Hedges” is another online-only brand, experiencing a 30 per cent increase in sales from January to October of this year compared to the same period last year. 

The cosmetics industry mirrors this shift to online channels. Cosmetics road shops, which traditionally sold individual products, are adapting to the evolving purchasing patterns by focusing on online and health and beauty store-oriented editorial shops. LG Household & Health is boosting its online promotional activities in collaboration with platforms such as Naver and Kakao.

Additionally, brands like The Face Shop and Nature Collection, which previously sold only their own cosmetics, are planning to diversify their offerings by incorporating products from various brands, including Olive Young. Amorepacific has enriched its official online store, Amore Mall, with features such as “I need to try it to know” and “Membership Plus,” a paid membership system that ships product samples to customers for a nominal shipping fee. 

An insider in the cosmetics industry noted, “The transition from offline to online purchasing has been robust during the pandemic, prompting each brand to adapt to this prevailing trend.” 

This story was originally published by Ashley Song, via Korea Bizwire.


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