ASEAN's Largest Distributor Paxson Opens Outpost to Target Young Consumers
Korean Cosmetics and Fashion Brands Join in Large Numbers
[Asia Economy Kuala Lumpur Correspondent Hong Seong-ah] As people in their 20s and 30s have emerged as the main consumer group in Malaysia, a new concept store prominently featuring Korean products has attracted attention. The strategy aims to expand the range of brands available to customers seeking diverse shopping experiences.
On the 25th, according to industry sources and local media in Malaysia, the retail company Paxson recently opened a new concept store called 'Outpost,' adopting a differentiated strategy by prominently showcasing Korean products. Operated by Lion Group, Paxson is considered the largest local retail company, running over 120 stores not only in Malaysia but also in ASEAN countries such as Vietnam and Indonesia, as well as in China. Recently, the company signed a licensing agreement with E-Land for fashion brands and also attracted Korean brands to the cosmetics concept store Playup Advanced.
Outpost, introduced by Paxson, is a concept store targeting customers from their late teens to early 30s. It focuses on Millennials (born early 1980s to early 2000s) and Generation Z (born mid-1990s to early 2000s). Outpost is located in Genting Highlands, a representative mall. While Genting Highlands houses high-end international brands as well as mid-range brands like Uniqlo, there had been no shopping space catering specifically to young customers represented by Generation Z.
Outpost includes Korean fashion brands such as SPAO, Shoopen, and MISSO, as well as Korean cosmetics brands like The Saem, It’s Skin, and Mamonde, along with street casual brands like TNTCO. Additionally, separate Korean and Japanese cosmetics zones have been newly established to quickly introduce trending products. This approach moves away from the traditional large-scale department store model to operate a shopping space tailored to young customers' preferences.
Through Outpost, Paxson plans to attract customers by offering a variety of popular brand products favored by young consumers. They also operate a caf? popular for Instagram photo shoots and decorate the store with bright-colored interiors, positioning it as a comprehensive space where customers can experience Hallyu and the latest trends all in one place.
Starting with Genting Highlands, Outpost plans to open additional stores in Pavilion Shopping Centre, Malaysia’s premier luxury shopping mall. Oh Hyo-dong, Head of New Business Development at Lion Group, explained, "We selected brands favored by young customers from those housed in department stores and introduced new brands popular among the younger generation." He added, "As the purchasing power of young consumers grows, interest in products trending in Korea and Japan is also increasing. We plan to continuously discover products preferred by young customers to provide a differentiated shopping experience."
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