Market View by Brandash

Qoo10 is expanding its product range by introducing eco-friendly items and launching a series of private label (PB) products. This strategy aims to enhance product competitiveness and reclaim customers from rivals like Coupang and AliExpress. Surge in PB Product Sales According to Qoo10 Group, sales of Interpark Shopping’s PB products have surged by approximately 400% within seven months since their launch in September last year. Interpark Shopping, now the base for the group's PB product planning and production, oversees all processes from planning to production. Since last July, Interpark Shopping has launched 14 PB products, including water, capsule coffee, probiotics, tights, and kitchen towels. The company plans to release around 10 new PB products in the first half of this year, expanding from household items to functional cosmetics and health supplements. Customization and Market Expansion A Qoo10 representative stated, "Each platform has distinct strengths and caters t...

Quality over Price in private label products in Korea Private Brand (PB) Products Shift Focus from Price to Quality As inflation drives fierce "ultra-low price discount competition" in the distribution industry, companies are increasingly focusing on enhancing the product quality of their private brands (PB) rather than merely competing on price. This shift aims to increase customer loyalty by offering differentiated quality that meets long-term demand rather than engaging in price wars. Customers shopping Lotte Mart's PB products Lotte Mart and Supermarket's 'Today Good' Brand According to the distribution industry, Lotte Mart and Supermarket's PB brand 'Today Good' has expanded its product range to over 500 items as of May, a fivefold increase within a year of its launch. Out of 200 product categories, 22 have become best-sellers, demonstrating the brand's strong product quality. Consequently, Lotte Mart's overall PB product sales increas...

CJ Olive Young (Olive Young) announced on April 30th that it wolud launch a health promotion called ‘Olive Young Health Dive’ on May 1st. This initiative aims to foster the health category. Aiming to Lead the K-Health Market Olive Young plans to make this health promotion as significant as its well-known 'Olive Young Sale.' By doing so, it aims to lead the growth of the health market, making it a core category comparable to K-beauty. Significant Growth in Health Category In 2023, Olive Young saw a 27% increase in health category sales compared to the previous year. The number of wellness products, including health items, has more than doubled since before the pandemic. The health market has expanded as people increasingly view health management as an investment in themselves, attracting a younger demographic, especially the MZ generation. Introduction of 'Health+' In response to these market changes, Olive Young introduced a personalized wellness curation service called...

New cross-border personal importing regulation announced by Korean government on May 16th, 2024 Introduction of New Safety Regulations Starting June 2024, the Korean government will implement a new regulation prohibiting the import of 80 specific items through direct overseas purchases unless they have safety certification. This measure aims to protect public health and safety. Announcement of New Measures On the May 16th, at a meeting chaired by Prime Minister Han Duck-soo, the government announced a plan to enhance consumer safety and boost corporate competitiveness in response to the surge in overseas direct purchases. Previously, products imported through official channels required the KC (Korea Certification) mark, but items bought directly from overseas lacked these safety checks. Impact on Children's Products and Electronics Due to the recent rise in direct purchases from platforms like AliExpress and Temu, the import of potentially harmful products has also increased. Now, ...

Maximizing Brand Experience Through Flagship and Pop-up Stores - A trend Among Gen Z  Expanding Customer Touchpoints with Pop-up and Flagship Stores In the retail industry, opening flagship stores and pop-up stores has become a significant trend. These stores help brands connect with customers and convey their value effectively. For Gen Z, visiting brand spaces for Instagram-worthy photos and unique experiences has become a cultural norm. Retailers leverage this trend by offering special, short-term experiences through pop-up stores. The Beverage Industry's Innovative Brand Spaces The beverage industry is also catching on to this trend, creating unique brand spaces that attract attention. As the domestic alcohol market trends towards Gen Z, beverages are seen not just as consumables but as part of a lifestyle and value-based consumption. The industry responds by providing immersive brand experiences through innovative marketing spaces. The Balvenie Bar: A Flagship Store with a Cult...

  Choosing Healthier Options: The Rise of Functional Beverages "If I'm going to eat, I might as well choose something healthy." Jejoong Lee, a 32-year-old office worker living in Gwangjin-gu, Seoul, has been drinking protein beverages as a breakfast substitute for the past two months. With limited time to prepare meals and the need to maintain nutritional intake, Lee has found functional beverages to be a convenient solution. “Many people around me drink functional beverages regularly,” Lee said. “It's an easy way to take care of my health, so I often use them.” The Shift Towards Health-Conscious Consumption The trend of prioritizing health has led to an increase in beverages with low sugar content and health benefits. According to the Food Industry Statistics Information, the per capita beverage consumption in South Korea rose from 148% in 2018 to 169.7% in 2022. Additionally, beverage imports in 2022 reached $350.29 million, a 3.8% increase from the previous year. ...

Summary: E-commerce companies are targeting the senior generation as significant market players, adapting to their increased use of digital platforms. Spending by seniors on online shopping and delivery apps has surged. Companies like Kakao Style and iHerb are offering personalized services and health-focused products to attract this demographic, seeing it as a new growth opportunity. The e-commerce industry is focusing its efforts on attracting the senior generation. As we enter an era of low birth rates and an aging population, middle-aged and older adults are emerging as significant players in the market. According to industry reports on the 12th, the term "active seniors" is being used to describe the middle-aged and older generations who, with stable capital, actively engage in consumption and cultural activities and are quick to adapt to digital environments. As the use of smart devices among seniors has increased, so has their spending on shopping malls and delivery ap...

Fighting Fire with Fire : South Korea's E-Commerce Giants Ramp Up Investments in Response to Chinese Platforms. In the face of rapid expansion by Chinese e-commerce platforms such as AliExpress, Temu, and Shein—collectively known as C-commerce—major South Korean players like Coupang and Naver are aggressively stepping up their investment game. Rise of C-commerce in Korea As of April 2024, the monthly active users (MAU) for these C-commerce platforms reached a total of 14 million in South Korea: AliExpress at 6.68 million, Temu at 6.93 million, and Shein at 600,000, according to mobile data platform MobileIndex. The recent surge from China's direct purchase market is estimated at about 3 trillion KRW (approximately 2.46 billion USD), surpassing the annual revenue of Coupang back in 2017, which was shortly after they launched their Rocket Delivery service. In comparison, the growth rate of C-commerce platforms in the first quarter of this year was 54%, significantly outpacing Cou...

Good news! Now you can buy and sell dietary supplement health products like Korean red ginseng and vitamins directly from individuals. Starting from the 8th, the Ministry of Food and Drug Safety is trying out a new program called the "Health Functional Food Individual Transaction Pilot Project" for a year. This project aims to make it easier for people to trade small amounts of health products between themselves. They're doing this because back in January, a group suggested making it easier for people to buy and sell health products. But they also want to make sure everything stays safe and regulated. To make this work, they're using two popular platforms, Karrot Market ( link ) and Bunjang ( link ), which have systems to make sure things are safe and in good condition. Here are some rules: the products have to be unopened and have clear labels. They should also have at least 6 months before they expire, and they should be okay to store at room temperature. Anything t...

Through consistent care, the trend of 'slow aging', where one ages slowly and healthily, has taken its place as a beauty trend, with growing interest in cosmetics ingredients that have anti-aging functions such as wrinkle reduction and elasticity improvement. In this regard, the UK beauty media, Cosmetic Business, selected peptides as the first of the top five skincare trends for 2024. Peptides are substances composed of 2 to 20 amino acids that regulate important metabolic functions in the body along with proteins. When applied to the skin, peptides stimulate the production of proteins like collagen and elastin, contributing to skin brightening, wrinkle reduction, and elasticity improvement. As a result, the cosmetics industry is launching skincare products utilizing peptides one after another, targeting the anti-aging market. Peptide 20 Ampoule, LABCLE, Hyundai Pharma Hyundai Pharmaceuticals' LABCLE has introduced products such as 'Peptide 20 Cream', 'Peptide ...