Interview with Park Jaebin, CEO of Beauty Selection
Approximately 30 Billion KRW in Sales Last Year with Operating Profit Margin Nearing 30%
'Well-Made Products' Focused Distribution on Influencer Commerce Channels
"The cumulative number of customers who have made purchases is 500,000, the average product price is in the 100,000 KRW range, which is relatively high, but the repurchase rate is 80%, the return rate is 0.2%, and the purchase conversion rate for new customers is about 15%." Park Jaebin, CEO of Beauty Selection, spoke with confidence about the company's performance. These figures are considered exceptional in the fiercely competitive commerce industry.
Beauty Selection has another remarkable achievement. Last year, it recorded sales of approximately 30 billion KRW with an operating profit margin approaching 30%. This stands out considering that it is rare for commerce companies, and startups in general, to turn a profit. Even large platforms struggle to escape losses in the commerce sector, so how did this startup manage to be profitable? We listened to CEO Park's story.
CEO Park said, "Simply put, it's about making good products and selling them well," adding, "We use raw materials that rank in the top 5%, and for sales, we utilize differentiated influencer commerce." Beauty Selection independently develops and sells seven brands and over 50 products in the beauty and health functional food sectors. In April this year, they acquired a fashion company, increasing their brands to eight. These are distributed intensively through influencer commerce channels.
Focusing on 'quality' to make good products, as CEO Park mentioned, is simple but not something just anyone can do. Investing in quality raises costs, and selling prices inevitably become higher. Even if the price is somewhat high, it is essential to convey to consumers that the product is good. It is difficult to sufficiently explain products through social media (SNS) marketing, where decisions are made in seconds. Beauty Selection chose 'influencers' as their method. CEO Park explained, "People around influencers are curious about what they eat and wear. Even during a two-hour live broadcast, if the influencer talks about the product for an hour and a half, viewers remain interested and proceed to purchase." Because the products focus on quality, customer satisfaction is high, leading to a high repurchase rate. Influencers are the ideal channel for selling products invested in 'quality.'
About 30 influencers collaborate with Beauty Selection. Most operate based on Instagram and specialize in using and comparing products. However, there can be negative perceptions in the market about sales using influencers. This is because many cases involved one-off, advertising-focused marketing relying on the influencer's personal fame without sufficient product quality or customer service.
There is also a derogatory view that calls influencers who introduce products "pal-i people" (literally "arm people," meaning salespeople). CEO Park believes that cases where customers trusted influencers but encountered product issues have fueled these negative perceptions. He said, "Ultimately, the most fundamental thing is the product. If a good product is purchased reasonably, satisfaction is high," adding, "Having influencers exclude false advertising and only explain fact-based content also leads to a good consumer experience." Beauty Selection goes further by establishing a virtuous cycle where consumers provide feedback to influencers, which in turn helps improve the products continuously.
CEO Park's experience is reflected in Beauty Selection's business model. While in charge of overseas market development at Hyperconnect, he began considering ways to improve entrenched practices in the consumer goods market. Consumer behavior was shifting toward seeking brands with good product quality rather than just low prices, moving toward 'personalization' that fits individual lifestyles. Seeing that influencer commerce channels could better meet market demands than traditional large channels, he founded Beauty Selection in February 2020. His prediction was correct. Beauty Selection's sales have been increasing by an average of 130%, consistently achieving an operating profit margin in the mid-20% range. This year, sales are expected to grow to between 70 billion and 80 billion KRW.
Beauty Selection's next goal is the overseas market. Targeting global influencer commerce, they are currently pioneering opportunities in East Asia through collaborations with influencers in Thailand. The beauty brand "Biodence" is already listed on Amazon in North America. CEO Park emphasized, "Ultimately, North America and East Asia will be our top priority targets," adding, "We are steadily securing brands focused on product quality and envision a future where Beauty Selection's products are recognized worldwide."
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