LG Household launches new luxury brand
The new brand, dubbed CNP Rx, has launched in Seoul and will be rolled out across further locations in the upcoming months, according to the company.
The company aims to differentiate clearly between its masstige CNP offering and the new, luxury CNP Rx addition through only selling the new arrival to the portfolio at department stores and via top-end retail channels.
The company states that the brand will offer a specialized skin examining service, called ‘Rx-ray’, and will market under the slogan of ‘Real Experience’.
Luxury as a category enjoyed high growth in 2015, according to Euromonitor International’s most recent report on luxury goods in Korea, with the category now heading towards maturity while still growing healthily.
“Consumers seek brands that can represent them better, lead the trend and have unique characteristics. Preference for a brand is not limited to one that is famous,” notes the market research firm, suggesting there is still room for new brands like CNP’s to successfully enter the category.
“Consumers, especially in the younger age group, are starting to look for luxury brands that are not so common in order to represent themselves with character,” the firm’s analysts explain.
Looking ahead, according to Euromonitor, the opportunities will continue to be found among female shoppers, who make up the mainstay of luxury sales.
“Female consumers have always been the core consumer base in luxury goods. As the female workforce is increasing, the purchasing power of female consumers will become even more significant.”
The launch follows the recent quarterly results announcement from LG Household, which outlined that its luxury brands were enjoying a robust performance.
"Luxury cosmetics sales increased 39% yoy from strong growth of major brands,” the company confirmed in a statement.
It particularly singled out its luxury brand Whoo, which grew 47% year on year: it is proving a brand with remarkable growth potential, with sales having doubled year-on-year since its launch in 2013.