Chanel cosmetics pulled out of Incheon Int'l Airport

Chanel cosmetics products on display at a Seoul duty free shop / Korea Times file

By Park Si-soo

French luxury brand Chanel’s cosmetics products have disappeared from Incheon International Airport’s duty free section as their popularity continues to wane.

The section's three operators ― Lotte, Hotel Shilla and Samik ― recently decided to stop selling Chanel products from this month, citing their high cost and low profitability, according to inside sources.

The French company last month asked the operators to reserve at least 100 square meters for display, but they refused, an industry insider said.

“It made an offer we couldn’t accept. Displaying Chanel products is helpful in many ways. Above all, it helps boost the section’s image and reputation among travelers.

“Nevertheless, the offer this time was unacceptable.”

Another insider cited declining sales, including Chanel products, as the primary reason for Chanel’s demise. He said the decline was largely because of the rapid rise of low- and mid-priced quality cosmetics.

“The reason is simple ― people prefer reasonably priced products to top-priced Chanel,” he said.

“In the past, people purchased Chanel cosmetics despite high prices because they believed Chanel was much better than others in terms of quality. But this is no longer the case.

“The quality of low- and mid-priced products has improved to the level where people can find little difference between them in terms of quality.”

Experts said gone are the days when luxury cosmetics brands were able to appeal to customers with their product quality.

The experts said the luxury brands needed to introduce creative ways to satisfy customers or face a growing challenge from lower-priced rivals.