![[From the Scene] Kurly joins magnificence retail struggle as new development driver](https://i1.wp.com/res.heraldm.com/content/image/2024/10/14/20241014050506_0.jpg?w=860&resize=860,0&ssl=1 "[From the Scene] Kurly joins magnificence retail struggle as new development driver")
Kurly, the South Korean e-commerce firm, is ramping up efforts to develop its magnificence platform Magnificence Kurly as a key pillar of its enterprise alongside its flagship in a single day grocery supply service.
As a part of this initiative, Kurly hosted the Magnificence Kurly Festa 2024, which ran from Thursday to Sunday and drew over 20,000 guests. The occasion featured over 90 magnificence manufacturers, together with luxurious names like Lancome and Sisley, alongside mid-range manufacturers. Attendees loved promotions, raffles, product giveaways and stay demonstrations by magnificence consultants.
Magnificence Kurly, launched in 2022, was born out of insights into Kurly’s core clients — skilled ladies of their 30s to 50s with excessive buying energy. The corporate seen these clients had been buying premium private care merchandise, comparable to high-end shampoos and soaps, by Market Kurly, which prompted the corporate to develop into the wonder retail enterprise.
Since its launch, Magnificence Kurly has achieved over 500 billion received ($370 million) in cumulative gross sales and processed greater than 11 million orders by the primary half of 2024. Now contributing about 10 p.c to Kurly’s general gross sales, the platform noticed 30 p.c year-on-year development within the first six months of this 12 months.
“Magnificence Kurly is now not only a sub-business — it’s evolving right into a flagship enterprise alongside Market Kurly,” a Kurly official stated. “Moreover, Kurly’s direct buy mannequin ensures product authenticity, assuaging issues over counterfeit items usually related to luxurious cosmetics.”
Regardless of the platform’s development, customer suggestions on the occasion was blended.
“I take advantage of Market Kurly for groceries as a result of it’s handy, however I desire shops for luxurious cosmetics the place I can strive the merchandise in individual. With out perks like samples or reductions, I’m hesitant to purchase luxurious gadgets on-line,” stated Kim Sung-hye, a 39-year-old workplace employee.
However, Lee Hae-ri, a college scholar in her early 20s, stated, “I usually order cosmetics on-line as a result of I do know what I want, and the costs are higher. However I discovered the choice of coloration cosmetics at Magnificence Kurly considerably missing.”
Kurly explains that Magnificence Kurly goals to duplicate the premium procuring expertise of shops on-line. The corporate plans to supply pattern merchandise with each buy and is increasing partnerships with further magnificence manufacturers to diversify its choices. It additionally gives reductions by bank card partnerships to offer extra aggressive pricing.
Based in 2015, Kurly expanded quickly however struggled with years of deficits because of the excessive prices of sustaining its chilly chain system for contemporary meals deliveries. The corporate started preparations to record on the nation’s major bourse in 2022, however later postponed it, citing weakened investor sentiment stemming from the worldwide financial downturn.
Extra lately, Kurly worn out practically 2.3 trillion received in amassed deficits utilizing surplus capital it has secured by exterior investments, in response to business sources. This transfer comes as Kurly’s money move improves after turning worthwhile in December. “A lot of the deficit was an accounting misperception, which led to misunderstandings in regards to the firm’s monetary stability,” the corporate defined.
Market consultants famous that clearing deficits earlier than an preliminary public providing is frequent apply, although uncertainty stays about Kurly’s long-term development potential.
“It’s typical for firms to scrub up their financials earlier than going public, as seen with Coupang,” stated an official from a neighborhood securities firm on the situation of anonymity.
“Nonetheless, the truth that Kurly posted a deficit of over 2 trillion received raises issues about whether or not it could actually exhibit secure and sustainable development sooner or later.”
Concerning its IPO plans, Kurly acknowledged that it plans to go public when the timing permits it to totally notice the corporate’s market worth.
