Six in Ten Consumers Prefer Mid-Range Cosmetics as Convenience Stores Expand Low-Cost Offerings

The trend of ultra-low-cost cosmetics, led by Daiso, is spreading to convenience stores and large supermarkets. As consumers seek to reduce their spending amid prolonged inflation, retailers are reorganizing their beauty sections to feature products priced between 3,000 and 5,000 won.

According to the retail industry on June 21, convenience stores and large supermarkets are expanding their sales of ultra-low-cost cosmetics priced under 5,000 won. With Daiso's beauty category experiencing rapid growth, convenience stores and supermarkets are increasing the number of products and brands to meet the demand for cost-effective beauty items.

Asan Daiso reported that its beauty sales from January to May of this year rose by approximately 30% compared to the same period last year. The success of the 'Zoom by Jung Saem Mool' product line, launched in collaboration with makeup artist Jung Saem Mool in January, has significantly boosted demand for ultra-low-cost cosmetics.

In response, convenience stores are accelerating their focus on the beauty category. CU identified cosmetics as a key growth area last year and has expanded its 'beauty-specialized stores' to over 600 locations nationwide. These specialized stores offer around 80 types of cosmetics, more than 2.5 times the number available in regular stores.

CU is also enhancing its price competitiveness through brand collaborations. On May 28, it introduced nine new lip makeup products from Tony Moly at over 400 beauty-specialized locations. These products maintain the same volume as standard items but are priced at under 9,000 won, about half the cost of similar products. As a result, CU's beauty category sales from January to May this year increased by 31.1% compared to the previous year.

GS25 is also expanding its beauty product lineup by promoting cosmetics priced uniformly at 3,000 won. The store is collaborating with well-known beauty brands such as Son & Park, Musinsa, and Witch's Pouch to strengthen its offerings of small-sized, low-cost cosmetics.

Large supermarkets are also entering the ultra-low-cost beauty market. E-Mart partnered with LG Household & Health Care to launch the second brand 'Glow:Up by Beyond' in April last year, pricing key products under 5,000 won to align with the popular 3,000 to 5,000 won cosmetics from Daiso.

Lotte Mart has introduced a dedicated low-cost beauty section called 'Cost-Effective Beauty Zone,' selling cosmetics at a uniform price of 4,950 won. The number of products has increased from 28 to 44, expanding the proportion of low-cost items to nearly 60% to meet growing demand.

The retail industry's push towards low-cost cosmetics is expected to continue. An increasing number of consumers prefer mid-range brands, and younger shoppers are increasingly prioritizing price as a key factor in their purchasing decisions. A survey conducted by CJ Media in 2022 found that 59% of women aged 14 to 49 identified mid-range brands as their primary cosmetics choice, with 39% citing price as a major consideration when buying cosmetics. Notably, younger respondents placed a greater emphasis on price.