[Report] New Wave of K-Beauty... Myeongdong Road Shops Exit, Seongsu 'New Road Shops' Lead the Way

[Financial News]  

 

 
 
"Over 4000 people visited last weekend. This is considered quiet."
On the 13th, at the 'Pink Office' of Rom&nd, a leading brand driving the K-beauty craze located in Seongsu-dong, Seongdong-gu, Seoul, foreign tourists were lined up. Pink Office is Rom&nd's flagship store.
Here, not only locals but also tourists from China, Japan, and Western and Middle Eastern countries were easily noticeable. A store representative said, "Foreigners account for 60-70% of all visitors," adding, "Recently, many Middle Eastern customers are also visiting."
In contrast, Myeongdong in Jung-gu, Seoul, once a symbol of the first-generation beauty road shops, had a distinctly different atmosphere. On Myeongdong Street, single-brand shops like Missha, Innisfree, The Saem, and Etude were operating. Store employees were energetically holding promotional signs for '10+10 mask packs' to attract customers, but the scene was quiet.
The two Olive Young Myeongdong stores, bustling with foreign tourists, stood in stark contrast.
■ Evolution of 'Beauty Road Shops'.. Department Store Industry Joins
Recently, beauty road shops have evolved into 'new road shops' focusing on multi-brand and experience. As the cosmetics distribution channel rapidly shifted online from the late 2010s, SNS-based marketing emerged as a key strategy.
Major K-beauty brands opening flagship stores one after another in Seongsu-dong, Seoul, is a trend in line with this change.
Brands like Bbia, Banila Co, Amuse, and Tirtir are focusing on emphasizing their identity through 1-2 brand experience stores rather than aggressively expanding the number of stores as in the past. Unlike first-generation road shops that opened numerous single-brand stores in major commercial districts, recent stores are evolving into showroom functions and exhibition spaces aimed at SNS proliferation.
Especially, Shinsegae Department Store is joining the 'new road shop' lineup led by CJ Olive Young. Recently, they revamped the Shikore Gangnam Station branch to present it in the form of a road shop.
On the afternoon of the 11th, at the Shikore store in front of Gangnam Station, Gangnam-gu, Seoul, a makeup artist was demonstrating products to customers. The Shikore Gangnam Station branch, where domestic and international premium perfume brands were displayed side by side, was decorated with a new concept that seemed to mix the atmosphere of a department store's first floor and a road shop.
Located in a prime location near Gangnam Station, the store filled over 60% of its space with K-beauty brands. Unlike existing stores located in department stores or complex malls like Starfield, the Shikore Gangnam Station branch is the first road shop format store introduced by Shinsegae.
A Shinsegae Department Store representative said, "We plan to expand road shop openings to meet the demand for new road shops."
■ "Revival Tailored to the Digital Era"
Beauty road shops enjoyed their heyday until the early to mid-2010s, but began to decline around 2017 as online shopping demand surged.
Skinfood, which failed to respond online, is cited as a representative case of the first-generation road shop's downfall.
The number of Skinfood stores, which increased to 590 in 2016, gradually decreased, leaving only about 10 currently.
An industry insider said, "At that time, many brands focused solely on opening stores relying on offline channels, but failed to respond appropriately to changing consumer behavior, losing competitiveness."
In contrast, 'new road shops' are re-establishing their offline presence centered around multi-brand edit shops like CJ Olive Young and flagship stores of individual brands like Rom&nd and Amuse.
The beauty industry analyzes this trend not as a simple return to the past, but as an evolved revival tailored to the digital era.
Professor Kim Joo-deok of the Beauty Industry Department at Sungshin Women's University said, "The recent spread of flagship stores is not about opening many stores as before, but has a strategic purpose of effectively conveying the brand's philosophy and concept to export buyers or consumers to build trust," adding, "K-beauty brands with a strong online base are rather using offline spaces as showrooms, continuing the trend of proving brand competitiveness."

clean@fnnews.com Lee Jeong-hwa Kim Hyun-ji Reporter