Korean retail platforms expand business turf into all lifestyle categories

Liquors are on display at a CJ Olive Young store. [Photo provided by CJ Olive Young]

Retail companies in South Korea are expanding their business scope beyond “category killers” to encompass all lifestyle product categories. One notable expansion is occurring in cosmetics, an area known for its high profit margins compared with groceries and other products.

Korean grocery delivery platform Market Kurly recently attracted new investments of 100 billion won ($76.8 million) from Anchor Equity Partners and 20 billion won from Aspex Management. The company plans to leverage the investments to expand its categories and is aiming to go public after boosting its beauty subsidiary, Beauty Kurly, which was launched in November last year.

Even lifestyle store DAISO is setting its sights on the cosmetics industry. DAISO has identified students as a key customer group who purchase cosmetics at affordable prices from its stores, said an industry insider.

CJ Olive Young, faced with intensifying competition in the cosmetics market, turned its attention to alcoholic beverages. The company recently added online sales brokerage to its business objectives and expanded its online mall to include traditional liquors, aiming to increase sales.

With the relaxation of regulations allowing customers to pick up wine and whiskey at stores, CJ Olive Young sees the liquor market as a new growth opportunity and actively expands its presence in the area. The decision to transition into a lifestyle platform ahead of its IPO is seen as an urgent move to increase its market value.

The traditional boundaries between online and offline retail markets are also becoming blurred. A notable example is Shinsegae Universe Club announced by Shinsegae Group on June 8. Shinsegae has garnered attention in the industry for its strategy to increase market share in both online and offline retail markets.