Missha is restructuring its domestic direct store operations and expanding its distribution channels both locally and internationally by focusing on its key products. The company has begun supplying BB cream to pharmacies in Myeongdong and is introducing large sets of essences and ampoules through overseas retail networks. This strategy marks a shift from relying solely on its own stores to leveraging existing distribution networks and local demand.
According to industry sources, Missha recently placed its 'M Perfect Cover BB Cream PRO' in the LINE YOUNG pharmacy in Myeongdong. The company aims to highlight the dual functions of the BB cream for skin care and makeup while targeting post-procedure skincare needs. Missha plans to continue increasing its pharmacy sales locations.
In Myeongdong, the company is also targeting foreign tourists. According to BC Card, spending by foreigners at pharmacies in Seoul surged by 1,176.9% in the first half of this year compared to the same period last year. Missha is offering shades 21, 23, and 25 to cater to the skin tones of foreign customers. The company noted a growing demand for the darker shades 23 and 25, with sales of the latter increasing rapidly since its recent launch.
A beauty industry insider stated, "Domestic base makeup products have primarily focused on shades 21 and 23, but the global spread of K-beauty has broadened color options. Addressing diverse skin tones can enhance competitiveness in the global market."
The pharmacy placement contrasts with Missha's previous strategy of operating its own stores in the same Myeongdong area. The operating company, Able C&C, announced the closure of its direct stores in December last year, ending operations at its Myeongdong megastore and concluding its domestic direct store business. Missha, which has grown into a first-generation brand shop in South Korea, is now focusing on supplying its key products to external retailers.
Able C&C's other brand, A'pieu, is also utilizing external distribution networks. After ending its franchise business in 2023, it expanded its sales channels to include Daiso and Olive Young, recently launching a hair vinegar product for Daiso. Since last year, the company has been restructuring its low-profit domestic direct stores and duty-free channels while concentrating on overseas and digital channels.
Internationally, Missha tailors its key products to fit the sales channels. At Costco in the United States, it supplies large sets of 'Time Revolution The First Essence' and 'Vitamin C Ampoule.' The company is expanding its consumer touchpoints secured through online platforms like Amazon and TikTok Shop into large retail networks. Missha has entered approximately 150 Costco locations in the U.S. and about 60 in Canada, supplying products to around 50,000 stores across 61 countries worldwide.
In Japan, Missha plans to expand its product range based on its established sales network. The brand is already present in about 20,000 drugstores and variety shops, including Welcia. Japan is known for its high customer loyalty once a brand is established. Missha is set to launch a concealer palette developed in collaboration with local makeup artists in November, designed to address Japanese consumers' concerns about skin tone, blemishes, pigmentation, and dark circles.
During this restructuring process, the increase in profits has outpaced revenue growth. In the second quarter of this year, Able C&C reported consolidated revenue of 65.2 billion won, a 5% increase from the same period last year, while operating profit rose by 52.5% to 10.4 billion won. Overseas sales increased by 38%, accounting for 75% of total revenue. The company explained that the expansion of profitable businesses and channels has effectively contributed to the increase in operating profit. A company representative stated, "We will enhance our marketing, product, and R&D competitiveness to accelerate our transition into a global brand."
* This article has been translated by AI.
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