[Asia Economy Reporter Yujin Cho] As the online market rapidly grows due to the novel coronavirus infection (COVID-19), domestic beauty and fashion companies are actively introducing online-only membership systems or linking them with offline membership systems.
According to the industry on the 15th, Kolon Industries FnC Division (hereinafter Kolon FnC) is confirmed to be planning the introduction of a new exclusive membership system for its online mall 'Kolon Mall.' Kolon Mall recorded sales of 120 billion KRW last year and aims to achieve a growth rate of over 150% this year. A Kolon FnC official explained, "As demand for the online mall increases, we are planning to establish a membership exclusive to Kolon Mall," adding, "As online purchases grow, we plan to expand benefits for regular online customers through the introduction of an exclusive membership system as part of our strategy to strengthen online business."
Amorepacific is also reviewing the establishment of an integrated online and offline membership system linked to its offline brand experience stores called 'Amore Store.' An Amorepacific official said, "We are considering the introduction of an integrated membership linking offline Amore Stores, including Amore Seongsu, and the online mall Amorepacific Mall."
Earlier, LF completed the integration of its separately operated offline membership system and the online mall LF Mall membership system in June. The new integrated membership determines grades by combining online and offline purchase histories, with up to seven grades (S Platinum, Platinum, Gold, Silver, Black, Purple, Red) based on purchase amounts.
As online purchases increased due to COVID-19, the company expanded membership grade classifications and benefits. An LF official explained, "We unified offline and online membership grades to remove barriers between online and offline and to operate an organic customer system," adding, "Through integrated membership operation, we plan to enhance customer benefits that can be enjoyed simultaneously both offline and online."
The industry's rush to introduce such new membership systems is aimed at securing 'regular online customers.' Since member customers contribute significantly more in purchase amounts and frequency compared to general buyers, the establishment of these exclusive membership systems is expected to be a trigger for the expansion of online business.
An industry official said, "Major beauty and fashion companies that previously generated most of their sales through offline channels are responding quickly as the battleground shifts online due to COVID-19," adding, "With contactless shopping becoming routine and the prolonged domestic economic downturn causing the decline of street-level commercial districts, companies are seeking breakthroughs by expanding their online businesses."
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