"Bought Cheaper Than Duty-Free with Just a Few Clicks"... Kim Go-eun Also Loves 'Aluxe' [Luxury World]

Coupang's Beauty Platform 'Allux' User Review
Lower Prices Than Duty-Free Shops, Satisfying Premium Packaging
Cosmetic Samples Included With Dawn Delivery, Just Like Department Stores
Luxury Beauty in the Spotlight... Department Store Sales Grow Over 10%

'The first floor of the department store' has entered the smartphone. From the first screen of the application, large images of products quickly followed. It felt like watching brand billboards right in the middle of the first floor of a department store.

Actor Kim Go-eun participating in the Allux advertising campaign (left), packaging box engraved with Allux logo (right). Courtesy of Coupang, Photo by Minji Lee

On the 5th, after work, I opened Coupang's beauty-exclusive platform (Allux·R LUX). The scent that captivated my nose throughout the department meeting still lingered. It was the French niche perfume brand 'Ex Nihilo.' Visiting the department store felt more bothersome. Above all, the rocket delivery that allows you to use the product from the next morning if purchased in the evening led me to a 'small luxury for myself.'

Allux, launched by Coupang last year, gathers luxury brands in one space and operates a separate application (app). It is a renewed version of Coupang's former 'Rocket Luxury.' They selected actress Kim Go-eun, ambassador of the global luxury brand 'Chanel,' and are conducting aggressive marketing.

The app's structure accurately reflects consumers' purchasing patterns. Online luxury cosmetics platforms have a higher proportion of goal-oriented consumers who come with a specific product in mind rather than discovery-oriented consumers looking for preferences. Therefore, instead of showing many products on one screen, the focus is on neatly organizing products by item and brand. During the Rocket Luxury era, products were grouped as one category within the Coupang app, and product placement was the same as general products, which lacked the satisfaction of consuming luxury products.

A beauty industry insider said, "High-end beauty brands sell products by checking if the online platform matches their style, and the biggest feature is that they created a separate app focused on luxury." They added, "From the brand's perspective, it is also positive that they can secure a sales channel with many users."

Currently, Allux hosts a total of 33 global luxury beauty brands. These include Est?e Lauder, MAC, Lanc?me, SK-II, La Bourgette, and perfume brands such as Jo Malone, Ex Nihilo, Memo, and Dolce & Gabbana. Among them, 'Ex Nihilo,' considered France's top niche perfume, can only be purchased online through the domestic general distributor Shinsaegae International (SI Village) and Allux.

The 'Spiky Muse Eau de Parfum,' released this year, is also available. Notably, each perfume brand sells 'discovery products (2ml small-sized perfumes)' that help customers find the scent that suits them. Since it is difficult to sample scents online, this encourages customers to experience various fragrances and find the one that fits them before purchasing.

A packaging box engraved with the Alux logo. The box on the left appeared to be made of a sturdy, high-quality material suitable for gifts. Photo by Minji Lee.

The most satisfying aspects of the Allux service were 'price' and 'packaging.' Allux minimizes costs incurred in the middle process through direct contracts with luxury brand headquarters or domestic general distributors. Because of this, consumers can purchase genuine products at prices lower than offline. Additionally, a 10% cash-back benefit is applied, making the actual benefit to consumers even greater.

For example, the niche perfume brand 'Memo's' 'Inle Eau de Parfum (30ml)' is sold at 180,000 KRW, 20,000 KRW cheaper than the official price of 200,000 KRW. Considering the cash-back benefit, it can be purchased for about 162,000 KRW. This is much cheaper than the duty-free price of 196,560 KRW. Memo is a French niche perfume brand known for its high price among domestically sold perfumes. It is characterized by using scents from travel destinations, cultural backgrounds, and natural ingredients.

The product enclosed inside the black box. The card states that it is a genuine product purchased from the Korean corporate brand headquarters. Photo by Minji Lee.

The Allux-exclusive 'Signature Package' was also luxurious. The product is placed inside a black box, sealed with a band, and delivered. Even if you do not select gift wrapping, the signature package is applied uniformly, giving the feeling of receiving a gift. The box is quite sturdy and reusable. Using rocket delivery logistics, shipping is fast. You can receive the product the next morning after ordering. Samples that department stores provide are also included in the box, so the advantages usually only available offline can be fully enjoyed online. It is also suitable for gift purchases.

The downside was that sold-out products were noticeable in many places. Although I added items to the cart in the morning to purchase, they were unavailable in the afternoon. Since it is the initial operation stage, it seems they are still figuring out the appropriate inventory levels. Coupang plans to accelerate brand onboarding and focus on business expansion. From the 10th, the French niche perfume brand 'Maison Margiela' will newly join. An Allux representative said, "We will continue to expand cooperation with global luxury brands and provide differentiated services."

Meanwhile, the luxury beauty market is growing rapidly every year. According to Lotte Department Store, the sales growth rate of perfume brands in their stores last year approached 15%. Even narrowing down from early this year to February, the sales growth rate reached about 10%. Despite not conducting early-year promotions due to the national mourning period following the Muan Airport disaster, double-digit growth was recorded compared to the previous year. Skincare and color makeup brands also showed growth rates of 5% each, continuing their growth compared to the previous year.