Budget cosmetic brands lure customers with big sales

By Kwon Mee-yoo

Stores of cosmetics brands Missha, Etude House, The Face Shop, Holika Holika and The Saem were crowded with frugal customers who came to shop during a weekend sale. The brands offered discounts of up to 30 percent to attract customers in the sluggish economy.

“Where can I find the purple bottle?” Park, a customer who came to buy Missha’s Night Repair Science Activator Ampoule, nicknamed “the purple bottle,” Saturday evening had to go home empty-handed since the item had sold out. “I couldn’t find the product by myself, so I asked the clerk to help me. But she said it was sold out at the shop and other nearby branches of Missha,” she said.

The Night Repair Science Activator Ampoule (42,000 won) is an obvious copy of Estee Lauder’s 150,000 won Advanced Night Repair. Advertisements comparing the two serums immediately excited curiosity about Missha’s product and sales picked up. With a 30-percent discount, the night serum was priced at around 29,000 won and sold like hot cakes Saturday.

“I heard about the purple bottle and it was worth buying especially with the 30-percent discount. I guess I’ll try next month since the brand offers a regular sale on the 10th of every month,” Park said.

The company launched Missha Day, offering a 20-percent discount for all customers on the 10th of every month in 2008 and it has seen a continual rise in sales. The firm expanded the promotion to discounts of 30 percent from Friday to Sunday this month, celebrating sales of 330 billion won last year. It is also famous for its big sale held every July and December, offering discounts up to 50 percent for most products.

The Face Shop, owned by LG Household & Health Care, held its first Members' Day event from Thursday to Sunday. It offered discounts between 20 and 30 percent to give more membership benefits.

As customers flocked to snap up the cosmetics on sale, lines formed at counters.

The low-priced cosmetics market is on a rise in Korea, reaching 2 trillion won last year, more than two-fold from 2007. Missha, the largest among them, marked 330 billion won in sales for 2011, a 35.7 percent jump from the previous year.

However, such monthly discount promotions make customers wait for the sale instead of buying goods at full price.

"Unless I need the cosmetics urgently, I usually wait for the sale. It is regular event and I feel foolish if I buy items without the discount," Park said.

Missha said that the periodical sale affects its brand awareness and profit in a positive way.

"We began with low-priced cosmetics at 3,300 won, but now we have a wide range of products over 40,000 won and had to change the image of the brand. Missha Day gives more opportunities to customers through lower prices," a Missha spokeswoman said.