GS25 first introduced “KRW3,000 (USD2.20) cosmetics” in its stores in December last year.
Its latest portfolio expansion is in collaboration with local colour cosmetics brand SON&PARK. Branded under Hatty (a portmanteau of handy and beauty), the range is exclusive to GS25.
The company seeks to enhance the convenience of purchasing cosmetics by leveraging its distribution network of approximately 18,000 stores across the country.
“There is an emerging ‘dupe culture’ where consumers are looking for cost-effective products with quality comparable to high-end brands. Hatty is aimed at meeting the skyrocketing demand for so-called cheaper versions of beauty products from well-known brands,” said GS25.
The products that have been released are Glowy Lip & Cheek (five colours) and Natural Shade Eyebrow (two shades), all of which are priced at KRW3,000.
Glowy Lip & Cheek is a dual-function product that can be used for both lips and cheeks, and comes in a tube container for easy application.
Natural Shade Eyebrow includes a built-in brush, with its soft texture and natural colour being particularly beginner-friendly. Its high adhesion ensures that it does not clump even when applied multiple times.
“Hatty is a new colour cosmetics brand that combines trendy sensibility, expert know-how, and accessibility of convenience store distribution. We will strengthen our beauty category by launching more products with the standards of established cosmetics brands at reasonable prices.”
In recent years, GS25 has expanded its beauty and personal care offerings from basic products such as cleansing foam and sunscreen to collaborative products with popular brands like Madeca21, Derma B, Ma:nyo Factory, and Real Barrier.
This is said to have contributed to the “steady rise” in year-on-year sales growth rate of the company’s cosmetics category — increases by 22.4% in 2022, 37.9% in 2023, and 45.6% in 2024.
Players to watch
South Korea’s 7-Eleven, operated by Lotte Group, announced on May 25 that it will be ramping up its selection of small-capacity, cost-effective basic cosmetics.
Earlier in the month, it launched a 50ml mineral sunscreen, and subsequently rolled out two types of Medipeel disposable stick-type sunscreen and a pore lifting shot serum, with prices ranging from KRW3,000 to KRW4,900 (USD3.50).
On May 28, it introduced four exclusive products in partnership with K-beauty brand bewants, which is owned by HK inno.N, a pharmaceutical company and subsidiary of Kolmar Korea.
The products are namely PDRN peel-off mask pack, glutathione micro-stimulation serum, cica collagen lifting cream, and cica collagen calming pad.
According to 7-Eleven, these products are more convenient and portable as they are packaged in small disposable pouches.
The company plans to bolster its position as a lifestyle platform by increasing its competitiveness in the cosmetics category, which it said is increasingly a source of revenue for the convenience store industry.
“Convenience stores offer better accessibility compared to other distribution channels, so we expect the demand for basic cosmetics with a high frequency of use to increase in the mid- to long-term. We plan to continue releasing differentiated products at reasonable prices in line with this,” said Kwon Ju-hee, Merchandising Director of 7-Eleven’s Seven Collect Team.
The Seven Collect Team focuses on developing and launching 7-Eleven’s own branded products, particularly in fashion and beauty, to expand beyond traditional convenience store items.
In addition, Korean convenience store chain CU, owned and operated by BGF Retail, also unveiled a makeup range in January. Specifically, the lip tints and lip glosses come in pouches for convenience and are similarly priced at KRW3,000.
This comes after its collaboration with local beauty brand Angel Looka to launch three products (serum, water glow pack, moisturising cream) last Septemb
