Shinsegae’ Yunjac brand hopes to attract overseas consumers with retail expansion

By Amanda Lim

- Last updated on GMT

Shinsegae’ Yunjac brand hopes to attract overseas consumers with retail expansion
Korea’s Shinsegae International plans to launch an independent outlet in February at the Shinsegae Duty Free outlet in Myeongdong in bid to attract overseas consumers.

Yunjac, an Asian herb-based skin care brand, launched in October last year by Shinsegae International’s cosmetics and fashion unit.

Overwhelming response

Yunjac launched a month-long of pop-up stores last May. According to Shinsegae International, the products were sold out earlier than expected and the brand managed to achieve almost triple of its sales target.

“Based on the achievements at the department store, we will promote the brand to overseas customers and secure sales at our duty-free shop,”​ said the company.

The company said that Yunjac is aimed at Chinese millennial consumers who favour luxury Korean beauty products.

"We are getting good response from demanding department store customers,” ​said Jeong-ho Cha, CEO of Shinsegae International.

It hopes to interest in brand and create new demand with the product’s high-functioning herbal ingredients, non-greasy textures, and sophisticated brand design.

To further increase the interest of Yunjac in foreign consumers, the brand has launched four exclusive travel sets.

The brand’s star set consists of a concentrate, toner, essence and cream. Other travel exclusives include a Motherhood Special care set and a Babyhood care set.

Past successes and future potential

Shinsegae International operates three stores in Seoul and Busan: Shinsegae Department Store headquarters, Gangnam store, and Centum City store, where Yunjac is currently available.

The company also owns premium beauty brand VIDI VICI, which it acquired in 2012. The brand plans to open a VIDI VICI flagship in China this year.

Last year, VIDI VICI exceeded 100bn won ($89 million) in sales.

The company believes VIDI VICI’s success is due to its sales its Chinese consumers.

“The reason why VIDI VICI achieved such remarkable results in the short term is that it captivates Chinese customers. After analysing the Chinese market and developing products and selecting a brand model, the popularity in China began to skyrocket with successive hits,” ​said the company.

It added: “As VIDI VICI has achieved sales of 100 billion won in the difficult environment both inside and outside the country, the future growth potential is high. We will make an effort to contribute to heightening the beauty of K beauty in the global market.”

The company plans to gradually increase the number of Yunjac stores locally and abroad with an aim to achieve brand sales of 100bn won ($89 million) by 2020.

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