Korea’s Coupang expands beauty category items to boost market share

Coupang “Rocket Luxury” [Image captured form Coupang homepage]

South Korean e-commerce platforms are penetrating deeper into the country’s beauty sector, in addition to food and beverages, as they expand product categories to boost market share.

According to multiple sources from the retail industry on Monday, the beauty sector has been the fastest-growing e-commerce segment in recent months. Companies like Coupang Inc., Kurly Inc., and SSG.com Corp. have successfully increased their share in the online food and beverage market and now they are eyeing the beauty sector for further growth.

Coupang is at the forefront.

The e-commerce company launched “Rocket Luxury,” a specialized beauty service, on July 3. Coupang Rocket Luxury offers 16 brands, including Estée Lauder, MAC, and Hera. All products are authentic and directly sourced from the brands’ Korean subsidiaries.

Coupang’s established infrastructure in operating Rocket Delivery allows Wow members to benefit from free shipping and returns.

Among the brands, Amorepacific Corp. is the most popular on Coupang Rocket Luxury as consumers prefer purchasing well-established products quickly and safely through Coupang.

As of July 10, the best-selling product was Hera Black Cushion Refill, followed by Hera Sunmate Daily Sunblock, both from Amorepacific. Estée Lauder Double Wear Stay-in-Place Makeup ranked third.

Coupang has ambitious plans to attract more beauty brands. It is hoping to achieve a 5 percent share in the overall retail market by this year.

According to Euromonitor International, the local retail industry, excluding duty-free shops, reached 602 trillion won ($460.7 billion) last year.

Shinsegae E-Mart Inc. and Shinsegae Group secured the top position with 30.46 trillion won, accounting for 5.1 percent of the market. Coupang held a 4.4 percent share at 26.5 trillion won, with a significant portion coming from food, beverages, and processed foods.

While Euromonitor predicts the local retail market to grow to 700 trillion won by 2026, Coupang has been putting out efforts to identify new growth engines. Recognizing the potential, Coupang has set its sight on the local cosmetics market, which generated sales of 37 trillion won last year, up 15 percent from the previous year.