South Korea’s retail giant Emart Inc. has entered the ultra-low-cost beauty market, challenging Daiso’s dominance in a sector that has rapidly gained traction amid high inflation and rising demand for affordable skincare.

According to sources on Monday, Emart launched a new skincare line, Glow:up by Beyond, in partnership with LG Household & Health Care Ltd.

The line offers eight products—ranging from toner and serum to facial patches and cleansing foam—for just 4,950 won ($3.48) each.

This marks the first time Emart has released a co-branded product with a well-known beauty label, diverging from its previous strategy of selling in-house brands like No Brand.

The move is a direct response to the growing trend among young consumers to prioritize value over brand prestige.

With smart spending becoming the norm, beauty retailers and major distributors are increasingly forming alliances to capture cost-conscious buyers.

To reduce costs and keep prices low, Emart simplified packaging and used an AI-generated model instead of a celebrity spokesperson for marketing.

This strategy reflects a broader trend in which channel boundaries are blurring, and affordable beauty is reshaping the retail ecosystem.

Daiso, which has pioneered this space, launched its own beauty line in 2021 in collaboration with small domestic and international brands, offering products priced between 1,000 and 5,000 won.

The retailer’s lineup has since exploded to more than 60 brands and 500 products—double the count from the end of 2023.

Flagship launches such as VT’s Riddle Shot in 2023 and Son & Park’s Multi Color Balm last year became instant hits, helping Daiso emerge as a major offline beauty player and a rising competitor to Olive Young.

In 2024, Daiso’s beauty sales surged nearly 144 percent, propelling the company to a record-high annual revenue of 3.97 trillion won ($2.79 billion) and an operating profit of 371.1 billion won. Its fashion and beauty categories are considered among its most profitable segments.

The success of ultra-low-cost cosmetics is fueled by shifting consumer preferences.

Amid prolonged economic pressure, young shoppers are increasingly choosing products based on ingredients and manufacturers—often relying on the credibility of OEM and ODM producers like Kolmar Korea and Cosmax—rather than brand names.

Beauty brands are quickly adapting.

Amorepacific introduced a Daiso-exclusive line called Mimo by Mamonde, while LG Household & Health Care is expanding its reach through collaborations with retailers like Emart and convenience store chains.

These sub-lines aim to preserve the identity and trust of established brands while appealing to budget-conscious buyers.

For beauty brands, partnerships with large-scale distributors offer nationwide exposure and cost-effective marketing.

By leveraging mass production and ODM strategies, they can reduce unit costs and adopt high-volume sales models to secure profits in this new ultra-value beauty landscape.

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