GS25 partners with Beyond, expanding into cosmetics
By Won Ho-jungPublished : Feb. 21, 2017 - 15:43
Convenience store chain GS25 said Tuesday that it has partnered with LG Household & Health Care’s cosmetics brand Beyond, looking to expand its sales by setting up a new cosmetics category.
The two companies said they agreed to the launch after seeing growth potential in cosmetics sold through convenience stores. GS25’s sales in the personal care category have been rising steadily, with a 10.3 percent on-year rise in 2014, 16.9 percent rise in 2015 and 19.7 percent in 2016.
“We have existing personal care products such as mask packs and hand creams, but Beyond is essentially our first cosmetics-specialized brand,” said a spokesman from GS25.
The retail company said that it chose to partner with Beyond because of its eco-friendly image. The brand is known for its minimal use of artificial coloring and chemicals such as parabens, which are used as preservatives in cosmetic products.
Popular products from Beyond will be produced in smaller packages for sale at GS25. The first products to be released in April will include skin care sets for men and women, as well as sheet masks.
The two companies said they agreed to the launch after seeing growth potential in cosmetics sold through convenience stores. GS25’s sales in the personal care category have been rising steadily, with a 10.3 percent on-year rise in 2014, 16.9 percent rise in 2015 and 19.7 percent in 2016.
“We have existing personal care products such as mask packs and hand creams, but Beyond is essentially our first cosmetics-specialized brand,” said a spokesman from GS25.
The retail company said that it chose to partner with Beyond because of its eco-friendly image. The brand is known for its minimal use of artificial coloring and chemicals such as parabens, which are used as preservatives in cosmetic products.
Popular products from Beyond will be produced in smaller packages for sale at GS25. The first products to be released in April will include skin care sets for men and women, as well as sheet masks.
According to GS25, the company expects that the availability of inexpensive cosmetics in small packaging will bring in more female customers. The products to be launched in April are all priced at 10,000 won ($8.70) or less.
The introduction of an established cosmetics brand into GS25 is the latest in a series of developments that are bringing quality brands into ubiquitous convenience stores.
As manufacturers take note of the power of convenience stores’ extensive network, particularly in residential areas that are difficult to penetrate through traditional retail shops, they are making moves to harness that accessibility.
Brands in high-end categories such as whiskey and desserts are producing smaller-quantity products to make them more suitable for convenience store consumers, hoping to attract consumers outside their traditional customer base.
“The products we are rolling out are exclusively for convenience store shoppers, in small quantities and at low prices. These are not products we carry in our brand stores,” said a spokesperson for LG Household & Health Care. “By creating these special products, we are targeting a new set of consumers who have shown demand for these convenient types of cosmetics.”
By Won Ho-jung (hjwon@heraldcorp.com)