Luxury goods are all the rage on KakaoTalk

Industry

Published: 18 Aug. 2020, 18:17 Updated: 18 Aug. 2020, 19:56

Luxury goods are all the rage on KakaoTalk

An ad announces Chanel's arrival on the KakaoTalk gift store. [KAKAO]

As the growing popularity of online shopping moves into the cosmetics sector, luxury brands like Chanel and Estée Lauder are scrambling to follow the trend.

Chanel last month started selling products through KakaoTalk's gift store, an e-commerce platform built in to the messaging app where users can purchase and send gifts and gift coupons.

The gift platform, which has mainly been used for cheaper products like coffee coupons, has been expanding its range as consumer patterns change. A total of 22 Chanel beauty products including lipstick, perfume and hand lotion are currently available through the store.

Chanel isn't the only luxury cosmetics brand to join KakaoTalk's gift shop — currently over 66 premium brands are available on the platform, including Yves Saint Laurent, Christian Dior and Estée Lauder.

According to Kakao, sales of luxury beauty items nearly doubled in the first half of the year compared to the same period last year, though the company wouldn't give specific figures.

A screenshot shows luxury cosmetics products on sale on KakaoTalk's gift store. [SCREEN CAPTURE]

The trend is largely due to the dramatic rise in online shopping amid the prolonged Covid-19 pandemic.

According to data from the Ministry of Trade, Industry and Energy, sales of beauty products via online stores in the first half of the year increased 15.7 percent compared to the same period a year earlier. In February and March, online sales surged by 37.5 percent and 19.1 percent respectively.

Shinsegae Group's cosmetics store chain Chicor’s online store, Chicor.com, has reached 65,000 registered users in the month since it launched in July.

According to Shinsegae Department Store on Monday, Chicor.com has been selling beauty products from some 450 brands including luxury cosmetics brands such as MAC, NARS, and Sulwhasoo, alongside newcomers like hince and Dear Dahlia. Of the 65,000 registered users, 56,000, or about 86 percent, are people in their 20s and 30s.

“As people’s consumer patterns have been changing following the 'untact' trend, the online cosmetics industry has been growing rapidly,” said a spokesperson for Chicor.

"Untact" is a portmanteau of the prefix “un” and contact, meaning “no contact.”

Delivery services are also getting competitive in the cosmetics industry.

Cosmetics giant Amorepacific in June signed a partnership agreement with internet giant Naver to strengthen its online business. The company also entered a strategic partnership with e-commerce operator 11st last month and started same-day and next-day delivery services.

LG Household & Health Care is currently working with CJ Logistics to provide delivery services to customers. People who place orders for the company’s products via Naver’s brand store can receive items within 24 hours.

Able C&C, which operates popular brands Missha and Nunc, is also offering same-day delivery services in partnership with delivery app Kimzipsa. The service is currently available in some areas including southern Seoul’s Songpa District and Yongin, Suwon and Bundang in Gyeonggi.

B Mart, which is operated by food delivery company Baedal Minjok, offers several beauty products. Customers who order items and accessories such as cotton pads and hair rollers through B Mart are able to receive their order within an hour.

BY BAE JUNG-WON, CHEA SARAH [chea.sarah@joongang.co.kr]