Korea's convenience stores get a makeover with new shelves of cheap cosmetics

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Korea's convenience stores get a makeover with new shelves of cheap cosmetics

Published: 02 Oct. 2024, 06:00

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

Models take a selfie at the new 7-Eleven store in DunDun shopping mall in Jung District, central Seoul [7-ELEVEN]

Korea's convenience stores are zeroing in on cosmetics — particularly small, affordable cosmetics — in hopes that a younger, more price-constrained crowd might stop by in times of need.

The new 7-Eleven convenience store in the DunDun mall exemplifies the trend, dedicating a significant area to fashion and K-beauty products rather than the commonly seen drinks and grab-and-go foods. The branch is also over three times the size of a typical 7-Eleven convenience store.

The 7-Eleven branch opened Sept. 27 alongside the DunDun shopping mall, a renovated all-in-one shopping center near Dongdaemun Design Plaza (DDP) in Jung District, central Seoul, operated by Lotte Property & Development. One side of the 264-square-meter (2,841-square-foot) 7-Eleven store features K-beauty products, including ma:nyo, Mediheal, Cell Fusion C and Derma:B. Next to the cosmetics are hoodies and clothing from the streetwear brand Mwoong — brands that appeal to foreigners and young Koreans who visit the area often.

The 7-Eleven also did not neglect its foodies, emphasizing HBAF almond snacks and CJ CheilJedang’s Bibigo instant meals alongside specialized K-food courts to attract tourists.

It’s not only convenience stores that are expanding and transforming. The Nano Square occupying the two basement floors below features five different showrooms peddling smaller versions of existing home appliances. Electronic goods retailer Lotte Hi-Mart, traditionally specialized in home appliances and electronics, it as a new “experience-oriented” store dabbling across housekeeping, music and videography, beauty, games and the kitchen.

“Thirty percent of the products in The Nano Square are products that you usually don’t see in conventional Hi-Mart branches,” Lotte Hi-Mart said. “Air purifies made for smaller rooms, smaller trash cans and mini shoe racks are all designed for one person households, which we plan to introduce more in the future.”

Angel Looka mask packs, serums and facial creams sold at the CU convenience stores. [BGF RETAIL]

“We are currently preparing a second branch that keeps the concept of The Nano Square.”

Other major convenience stores, meanwhile, have also hopped on the tiny cosmetics train.

CU, for example, developed products in collaboration with Korean cosmetic brand Angel Looka that are tailored to convenience stores. The mask packs, serums and facial creams are all one-third the size of their counterpart products sold in conventional stores and significantly cheaper, costing just 3,000 won ($2.27).

The collaboration aims to appeal to teenagers and young Koreans in their 20s who accounted for almost 75 percent of CU's skin care sales in CU between January and September of this year.

Emart24 worked with the cosmetic brand plu to launch three new skin care products in its convenience stores after reporting 11 percent growth in its cosmetic product sales in 2022, a 36 percent increase in 2023 and another 21 percent jump between January and August of this year. The face essence, body scrub and cleansing foam all come in the same 75-milliliter (2.5-fluid ounce) size and with 7,900 won price tag.

Still, operators emphasize, some of these operations are in the testing phase.

“The Dongdaemun DunDun branch is a test bed to move into a new retail platform that provides consumers with new experiences as it expands convenience stores to sell more than just commodities,” a 7-Eleven representative said.

“We may expand the specialized stores to Hongdae and other areas if the customer receptions are positive.”

BY CHO YONG-JUN, OH SAM-GWON [cho.yongjun1@joongang.co.kr]