Dongsung Bio Pharm criticized by pharmacists as Daiso sells hair dye at lower prices

Dongsung Bio Pharm's Seven Eight Color Cream sold at drugstores, left, and Daiso / Screen capture from Dongsung, Daiso websites

Dongsung Bio Pharm faced criticism after pharmacists discovered that the company's hair dye product was being sold at Daiso for a lower price compared to drugstores. This prompted claims that Dongsung's marketing strategy had adversely impacted drugstores' sales, according to the Korean Pharmaceutical Association, (KPA) Wednesday.

KPA released a statement on Tuesday saying that it demanded Dongsung to stop selling Seven Eight Color Cream at local Daiso stores, known for selling everyday household items at affordable prices. The product was available at Daiso for 5,000 won ($3.60).

According to the KPA, another hair dye product manufactured by Dongsung, which closely resembles the Seven Eight Color Cream, has been available at local drugstores for 7,000 to 8,000 won.

Members of KPA said Dongsung attempted to increase sales by introducing a similar-looking product and distributing it through the popular retail chain since last year. They added that this strategy negatively impacted their business, as more consumers opted to purchase the product from Daiso instead of drugstores.

“Our member pharmacists and many consumers have pointed out that it was at first difficult to notice a difference between the product at drugstores and the one sold at Daiso,” KPA said. “We urged Dongsung to change the design of its product for Daiso so that consumers can notice the difference.”

The two products had almost the same package design but contained different content. The one sold at drugstores contained protective ingredients for hair strands and a comb, while the one available at Daiso did not.

Dongsung agreed with the KPA's concerns and decided to recall the hair dye product from Daiso. They plan to redesign the product before reintroducing it to the market.