Try before you go home and buy: Brick-and-mortar K-beauty displays lead to spike in online sales

Before the click comes the real-world trial. A swipe of lipstick on the lips, a smear of foundation on the back of a hand and a glance in the mirror now often precede an online purchase.

The growing tendency among consumers to test products in stores before purchasing them online is driving a surge in online sales for brands after they appear on shelves at brick-and-mortar outlets.

The average daily online transaction value of more than 500 beauty brands displayed at Musinsa Megastore Seongsu increased by 35 percent last month compared to the period before they entered the store, according to Musinsa Beauty on May 29. The pre-entry period covered Jan. 23 to April 21. 

Some brands, including Ofra Cosmetics and Heart Percent, posted triple-digit growth in average daily online sales after being physically present in the store.

“The increase in online purchases appears to be linked to the store's experience-focused layout, which encourages customers to spend more time browsing products,” a Musinsa source said.

Similar results were seen at Musinsa Beauty Space 1, a Seongsu-dong venue dedicated to pop-up stores for beauty brands. Participating brands also saw a significant rise in online sales.

Musinsa Beauty additionally plans to open new stores in Seongsu in September and near Hongik University in western Seoul in November in a bid to strengthen its offline presence.

K-beauty companies are also accelerating the expansion of their brick-and-mortar networks overseas.

On May 29, CJ Olive Young opened its first U.S. store in Pasadena, Los Angeles.

The Pasadena store is heavily focused on Korean skincare products, which account for 60 to 70 percent of its merchandise and continue to enjoy strong overseas demand, according to industry sources.

The retailer has also broadened its makeup shade range to accommodate customers of different ethnic backgrounds and skin tones.

At the heart of the store is a hands-on testing area where shoppers can wash up and try cleansing products for themselves, alongside a skin analysis station that recommends products tailored to individual needs.

CJ Olive Young plans to open additional locations in major commercial districts across the United States. Industry observers expect that a broader offline footprint will further boost both brand recognition and sales for K-beauty companies.

Elsewhere, K-beauty brands are expanding their distribution networks by securing placements in a growing range of offline channels, including supermarkets, convenience stores and department stores worldwide.

Industry analysts predict that Korea's cosmetics exports could surpass 20 trillion won ($13 billion) if Korean beauty brands step up their push into overseas offline markets this year. 

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY LIM SUN-YOUNG [[email protected]]