[Marketing Secret] The Secret Behind the 5-Fold Sales Increase of the 50-Year-Old Italian Hair Brand That Struggled in Korea

Interview with Kim Seongsuk, CEO of Dermacos
Haircare Brand 'Olioseta' Distributed Domestically
Marketing Success Leads to Word of Mouth
"Tried It on Rough Hair and Was Amazed"

"One of the strengths of Olio Seta products is their complex and unique fragrance, which is not simple. In the future, we want 'Olio Seta' to be recognized in the Korean market as a haircare brand that is expensive but worth the value."

Kim Seongsuk, CEO of Dermacos, introduced the brand 'Olio Seta' in an interview with Asia Economy. Olio Seta, a relatively unfamiliar name in the Korean market, is a historic brand that started in Italy in 1967. It is also a global brand that has focused solely on hair cosmetics for over 50 years. In Korea, Kim Seongsuk, CEO of Dermacos, distributes Olio Seta products.

Kim Seongsuk, CEO of Dermacos.
[Photo by Dermacos]

CEO Kim has gained experience working in export-related companies for over ten years. The reason for introducing Olio Seta products to Korea was her personal experience using them. While working in hair-related fields, Kim had the opportunity to try Olio Seta products at an overseas exhibition through her husband. Her child’s hair, which used to tangle easily due to frequent bleaching, was easily combed after applying the cream.

After personally experiencing the product quality, she decided to introduce the brand to Korea. Kim said, "I couldn’t really feel the difference when using other products, but Olio Seta products were definitely superior, so I decided to start the business." Since then, in 2018, she has built and continues to operate a direct-to-consumer (D2C) shopping mall using the e-commerce platform Cafe24.

The brand name Olio Seta comes from the Italian word 'olio,' meaning oil. Olio Seta has long included ingredients such as argan oil and linseed oil (flaxseed oil), which are now commonly found in domestic hair products. The know-how derived from its long tradition is Olio Seta’s differentiating factor. Kim emphasized, "The founder of Olio Seta is an expert in fragrance, having worked as a perfumer for a famous brand."

All products are directly imported from Italy and sold. Although the prices are somewhat higher than other brands on the market, the brand has gained word-of-mouth popularity among women in their 30s and 40s who are interested in haircare. Especially popular products include oil treatments that gently nourish the hair and hair creams that protect hair from direct and indirect heat caused by curling irons, sunlight, and more.

Kim Seongsuk, CEO of Dermacos, is introducing the Olioseeta product.
[Photo by Dermacos]

Olio Seta received a good response overseas, but it was an unfamiliar brand in the Korean market. Therefore, CEO Kim prioritized increasing domestic awareness. In the early stages of the domestic launch, she mainly conducted influencer and group purchase marketing but felt limitations. Influencers who gained some recognition wanted to launch their own brands, and group purchase events centered around marketplaces had excessive commission rates.

Accordingly, Olio Seta set a goal to become self-reliant through marketing and began collaborating with the Cafe24 Marketing Center from April last year. Within just 3 to 4 months after the collaboration, monthly sales surged nearly fivefold. The Marketing Center consultants recommended indirect advertising through Facebook pages, short-form videos, live broadcasts, and other video content ads, which proved very effective. Until then, the D2C shopping mall sales, which had accounted for almost no sales proportion, recently increased to 90%, improving the profit structure.

This experience made them realize the importance of marketing. CEO Kim said, "At the beginning of the business, I had no knowledge about marketing, but I learned that marketing is very important for business." She added, "I communicate with Marketing Center consultants and have installed many apps that handle data from the Cafe24 Store to study various indicators."

Based on marketing achievements, Olio Seta plans to accelerate the expansion of its domestic business. She explained, "We plan to relocate our headquarters in April and rapidly expand the business by recruiting various personnel."