Retail News CRM

Tag: Korea

  • Samsung to freeze salaries in South Korea

    Samsung to freeze salaries in South Korea

    Samsung Electronics will freeze wages in 2015 for employees in South Korea for the first time in six years, after the world’s biggest smartphone maker saw profits fall in the face of rising competition.

    The cost-cutting move is the latest by Samsung Electronics, which in January reported its first annual profit decline since 2011, as it lost market share to Apple Inc’s new iPhones and cheaper Chinese rivals like Xiaomi Inc.

    The wage freeze also comes as the electronics giant is widely expected to unveil its next Galaxy S smartphone at a March 1 event, hoping to revive sales growth momentum.

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  • Record slump in Korea retail sales

    Record slump in Korea retail sales

    Korea’s department stores suffered their worst sales drop in history in January.

    According to preliminary government data, sales fell 9.7 per cent year-on-year, the worst figure since record taking commenced in 2005.

    January marked the fifth consecutive monthly year-on-year fall.

    Discount stores fared the worst, posting a massive 20.7 per cent, according to the finance ministry. Remarkably, that’s not a record in itself – in February 2014, they fell 23.1 per cent.

    Korea retail sales data is collated by the government based on reported sales from the three department store conglomerates – Hyundai Department Store, Lotte Shopping and Shinsegae. They run discount formats and full scale department store chains.

    The ministry attributed January’s weak sales in part to the change in the timing of the Lunar New Year holidays, which fell in late January last year but in the middle of February this year.

  • Korean marketplace to launch in Malaysia

    Korean marketplace to launch in Malaysia

    Korea’s largest online marketplace 11street says it will launch in Malaysia in April.

    The company will invest more than RM35 million (US$10 million) to drive seller participation and aims to have 11,000 sellers on board by launch date. The site will be at

    www.11street.my

    11street’s Malaysia CEO Hoseok Kim says the company wants the new site to become Malaysia’s largest online marketplace.

    Established in Korea in 2008, 11street now has online marketplaces in Turkey and Indonesia as well as in its home market and boasted a combined network of 22 million sellers, serving 40 million consumers. Shoppers spend $6 billion annually on its sites.

    “The online shopping paradise 11street in Malaysia is the company’s commitment to deliver local consumers a trustable and convenient e-commerce platform where they can shop for a variety of products across a broad range of categories available at anytime, anywhere,” said Kim.

    “To deliver greater satisfaction and a more rewarding online shopping experience, it will be the first online marketplace in Malaysia that promotes not only physical products but also deal offerings such as e-vouchers under a single platform.”

    Kim said the company’s $10 million investment would aim to encourage Malaysian sellers – including bricks and mortar businesses – to join 11street.

    “We wish to foster continued eCommerce growth and elevate the maturity of the industry by empowering more local offline businesses particularly SMBs to break-through the traditional business model and explore the numerous eCommerce opportunities in the online space.”

    Kim said that unlike other existing eCommerce websites, 11street has a hybrid eCommerce model whereby its ecosystem can support all types of sellers, including individual sellers, e-entrepreneurs, SMBs, retailers and service providers.

    “Bolstered with expertise and know-hows gained through its worldwide ventures, 11street can empower the online sellers as well as traditional brick and mortar businesses to maximise sales and succeed in eCommerce – which in turn will accelerate Malaysia’s online shopping market growth.

    “11street is equipped with unique and sophisticated online merchandising tools to support the complete online business set-up. Our ‘Seller Zone’ will be the first eCommerce education centre and support facility in Malaysia to advocate eCommerce sellers, where seminars and workshops will be given on a regular basis.

    “Seller Zone is among the most significant investments that 11street has put in to grow the Malaysia’s eCommerce sector,” said Kim.

    “In response to the mobility trends, we will also offer an integrated mobile interface and application upon 11 street’s official launch to support sellers in better managing their stocks, product marketing programs, payment settlements; and offer the analytics capability to help them retain customers with improved online shopping experience.”

    As part of an early bird promotion to attract sellers prior to April, 11street will offer free stores, 50 per cent discount on transaction fees, complimentary use of Seller Zone facilities, promotion credits and product listing coupons. sellers who register before April 2015.
    eC
    “11street’s merchandising approach has a proven track record given that its worldwide ventures have grown remarkably well over the past few years. Against such backdrop, similar approach will be adopted to help Malaysian online sellers to excel in today’s increasingly competitive market.”

    11streeet in Malaysia will be hosted by Celcom Planet, established in November 2014 as a joint venture between Celcom Axiata Berhad and SK Planet – a leading Korean eCommerce open marketplace provider, which is also a wholly-owned subsidiary of mobile operator- SK Telecom.

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  • Korean d-store sales slide

    Korean d-store sales slide

    South Korea’s department store industry is still struggling to arrest falling sales as consumers tighten spending and turn to online.

    New figures released by the trade ministry Tuesday show sales at top department and discount stores in December fell at a sharper rate than initially expected – by 0.9 per cent compared with the earlier projected 0.3 per cent.

    That makes the fourth successive month that combined sales from stores managed by Hyundai Department Store, Lotte Shopping and Shinsegae Co have declined.

    However, the new data still reflects a significant improvement from the 6.5 per cent drop in November.

    The ministry blamed the slump on falling in-store clothing purchases due to consumers preferring to shop online. Rising sales of food and beverages cushioned the effect of apparel’s fall.

    Discount store sales fell 3.8 per cent in December year-on-year, compared to 4.7 per cent in November.

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  • AmorePacific sold one Cushion product every 1.2 seconds in 2014, driving Asia Cushion frenzy

    AmorePacific sold one Cushion product every 1.2 seconds in 2014, driving Asia Cushion frenzy

    Craze for Cushion, which started in Korea, is now drawing worldwide attention and revolutionising the makeup routine for women around the world.
    Amore Pacific Group said on Tuesday that the global sales of Cushion products under its brands are expected to exceed 50 million units on a cumulative basis during January 2015. With the total sales of Cushion products increasing 105 percent year on year (YoY) to 26 million units, an AmorePacific Group’s Cushion was sold every 1.2 seconds in 2014. In particular, the sales of the Cushion products outside of Korea surged a whopping approximately 140 percent YoY and led a remarkable growth in the global market. The three largest markets outside of Korea comprised Mainland China, Taiwan and Hong Kong, where Cushion products have become an essential for every makeup bag.

    According to 2013 survey conducted by the Korea Tourism Organisation, more than 50 percent of the foreign visitors to Korea have purchased Korean cosmetics products, indicating that the influence of K-Beauty (Korean beauty) is ever-growing. Among the Korean cosmetics products, Cushion, which has changed the way Korean women wear makeup, is now creating a global beauty trend beyond its popularity in Korea.
    Another study conducted by the global research firm TNS Korea that interviewed 800 Korean female consumers found that 75 percent of Korean women have used or are currently using Cushion products. The respondents chose the portability and the convenience of creating the natural-looking flawless skin as their reasons for choosing Cushion.

    Moreover, the survey showed that Cushion was in fact has changed the makeup habits of Korean women by reducing the steps and time needed in creating the skin-looks they prefer. 75 percent said that since using Cushion their makeup routine was shortened, and 76 percent replied that they were now easily reapplying makeup and sunscreen with Cushions. 55 percent of women responded that their sole base makeup product was Cushion. The survey showed more than 8 out of 10 most-favoured Cushion brands were from the category creator AmorePacific Group, including IOPE and LANEIGE.

    Cushion refers to a makeup compact built with a specially-designed urethane foam that safely contains and preserves makeup liquid comprised of foundation, sunscreen and skincare formula. Already popular as the “must-have” item in Korea for easy, flawless skin makeup, Cushion has more recently gained keen attentions in the global cosmetics market.

    Amore Pacific Group began its research and development for Cushion in January 2007 and introduced the “IOPE AIR CUSHION” in March 2008. The sales of IOPE AIR CUSHION totalled 3.8 billion KRW in the first year launched and surpassed 200 billion KRW in 2014, which made it one of the best-selling items in the Korean cosmetics market.

    And with the industry-leading technology, AmorePacific has launched numerous Cushion products with different functional benefits through its brands, such as the LANEIGE BB Cushion, Sulwhasoo Evenfair Perfecting Cushion, Innisfree Mineral Melting BB Cushion and ETUDE HOUSE Precious Mineral Any Cushion.

    The LANEIGE BB Cushion series in particular was re-tailored for each global market to meet local skin conditions. As a result of localised marketing strategy, about 1.17 million units of LANEIGE BB Cushion were sold in China in 2014. As of January 2015, AmorePacific Group offers a total of 19 Cushion products from its 13 brands in more than ten countries in the Asian and North American regions, leading the “globalisation” of the Korean-born Cushion.
    “Cushion, created from AmorePacific Group’s innovative technology, is a revolutionary product that is changing the makeup routines of women across the world and is going to be at the centre of global beauty trend in 2015,” said Suh Kyung-Bae, Chairman & CEO of AMOREPACIFIC Group. “AMOREPACIFIC Group will continue to pioneer and lead the global Cushion market with the company’s unparalleled technology and superior products.” he added.

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