Amid prolonged high prices and consumption downturn, South Korean retail channels are accelerating their 'value beauty' competition targeting the MZ generation (Millennials and Gen Z). As demand for mid-to-low-priced cosmetics with reasonable pricing and trendy product features rapidly increases, retailers are actively expanding their private brands (PB) and exclusive products. According to industry sources on March 30, GS Shop has relaunched its own beauty brand 'VU' (뷰) after a renewal. Originally launched in 2021, the brand 'VU' had accumulated 7 billion won in orders and 160,000 customers. For the renewal after about four years, GS Shop operated a 'VU Customer Supporters' program for five months. It surveyed about 500 customers on skin concerns and product preferences, conducted new product tests, and actively incorporated their feedback into new product development. Notably, amid high inflation, the company focused on expanding demand for practical cosmetics that maintain ingredients and functions while lowering price burdens, composing the new lineup with reasonably priced basic skincare products. The new products include: VU Pearl Glow Tone-Up Sun Cream, VU Yuja Melatonizing Serum, and VU Hyal Spa Moisture Cream. Shin Myeong-seop, MD of GS Shop's Beauty Development Team, said, "We carried out this 'VU' renewal to offer customers the cosmetics they use most often in daily life at reasonable prices. We will strengthen GS Shop's exclusive product competitiveness by expanding our private brand into the beauty category." CU has partnered with leading domestic beauty brand Tony Moly to expand value color cosmetics targeting the 1020 generation (Gen Z and younger). Last year, CU expanded its beauty-specialized stores to about 600 nationwide and introduced various beauty products as part of its new growth category.
As demand for practical beauty products satisfying both price and function steadily increased, CU's cosmetics category sales grew 20.9% year-on-year last year. This year, small-volume differentiated products like VT Color Riddle Shot Lip Tattoo and AOU Mini Tint Lip Balm drove color cosmetics sales up 189.9% year-on-year. Starting March 28, CU launched nine new Tony Moly lip makeup products at about 400 beauty-specialized stores, with plans to expand to all nationwide stores from next month. The new lineup includes various types such as lip tints, lip oil glosses, and blur cheek products. Compared to general color cosmetics, these products maintain the same volume but are priced at about half the level, reducing purchase burden for student customers. CU also launched a mini version of Merimong's Super Thin Pen Eyeliner. Choi Min-ji, MD of BGF Retail's Beauty TFT, emphasized, "As convenience stores become contact points for beauty brands with the Gen Z and younger generation, fast product launches and differentiated product operations are becoming important competitive points. CU will continue expanding beauty-specialized convenience stores and actively develop trendy differentiated beauty products." The popularity of Daiso beauty, considered a value icon, is also significant. Daiso's cosmetics category sales grew about 70% year-on-year last year. As of January, the number of beauty brands and products stocked increased to about 160 and 1,700 items, respectively.
E-Mart sells cosmetics under 5,000 won through its low-price edit shop 'Wow Shop' similar to Daiso. Lotte Mart also joined the ultra-low-price beauty competition, introducing a 'Value Beauty Zone' in June last year selling cosmetics at a flat price of 4,950 won, and has since expanded related items to 44 types. While premium cosmetics consumption was dominant in the past, more consumers are now seeking practical products that lower price burdens while maintaining quality and ingredient competitiveness. In particular, value cosmetics are spreading rapidly through social media (SNS) and short-form content, driving active inflow from the 1020 generation. Retailers are focusing on strengthening PB and exclusive product competitiveness beyond simple sales, as differentiated products can enhance customer loyalty and secure price competitiveness. An industry insider said, "Recently, preference is growing for 'value-for-money' products that offer good quality relative to price, rather than simply cheap products. Especially the MZ generation tends to meticulously compare SNS reviews, ingredients, and design, making trendy yet reasonably priced product competitiveness increasingly important."
Source: Read the original report | Published: May 30, 2026