Shinsegae's beauty gambit: Chicor rivals Olive Young in tourist hubs
A new flagship store is set to open in Seoul's bustling Gangnam district -- not just a relocation, but a complete reimagining following the closure of its previous Gangnam branch.
Chicor aims to make a striking impression by stocking more than half of its 5,000 products from Korean brands.
This marks a significant pivot from its previous strategy, which favored foreign imports by a margin of 70 percent, a shift as much cultural as it is commercial.
The Gangnam flagship, for its part, aims to offer a multisensory experience, inviting shoppers to sample textures and experiment with color in immersive, hands-on spaces.
Exclusive brand partnerships, sourced through Shinsegae International's global network, will help set the retailer apart, the company explained.
As one industry insider noted, the rising popularity of K-beauty has likely prompted the company to move away from its traditional focus on luxury foreign beauty products.
Launched in 2016 as a curated showcase of everything from niche imports to cult-favorite middle-market brands, Chicor once bloomed into 30 locations until the pandemic clipped its wings.
Chicor's resurgence was set in motion following Chair Chung Yoo-kyung's promotion late last year, which catalyzed a broader realignment across Shinsegae's beauty operations. Formerly housed within Shinsegae's broader sales division, Chicor now reports directly to CEO Park Joo-hyung.
Park, speaking at the company's shareholder meeting in March, called for the creation of a 'new standard' in K-beauty retail, even as he acknowledged the road so far had been rocky.
According to Park, who noted that Chicor's operating losses had been halved from the previous year, the key lies in rebalancing the product mix. 'Chicor was long anchored by luxury offerings,' he said. 'But we've worked to broaden the portfolio and place K-beauty at the forefront.'
In a consequential turn, the move sets Shinsegae on a collision course with CJ Group's Olive Young, the undisputed leader in Korean beauty retail.
Today, Chicor's footprint has contracted to 19 stores, with annual sales hovering around 100 billion won ($73 million), a figure dwarfed by Olive Young's sprawling 1,370 locations and 4.8 trillion won in revenue last year.
And yet, Shinsegae's distinct approach to curation may well ruffle Olive Young's feathers, particularly as it sets its sights on tourist-heavy districts like Myeongdong and Hongdae to entice foreign shoppers with exclusive brand offerings and pop-up theatrics.
At its Hongdae location, for instance, increasing the proportion of K-beauty brands such as Melixir and Nonfiction, from 40 to over 60 percent last October led to a marked uptick in international sales, with monthly revenue surging more than 90 percent year-on-year.
'We plan to continue expanding Chicor's footprint in areas with high tourist traffic, with K-beauty leading the charge,' a company official said.
Shinsegae is said to be exploring additional store openings in areas like Myeongdong and Dongdaemun, ahead of the upcoming launch of its new flagship in Gangnam.
Alongside efforts to refine its beauty platform, Shinsegae is charting a deeper structural push into the industry.
According to industry sources, Shinsegae is reportedly weighing a financial investment in a private equity fund managed by Ascent Equity Partners, which last month signed a 285 billion won deal to acquire a 40 percent stake in local cosmetics manufacturer C&C International.
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