L2’s Digital IQ Index: Beauty | Korea found that online-only retailers such as 11st, Gmarket, and Interpak carried 20x the average number of product listings per brand than their multichannel counterparts like Lotte.com, el-Lotte and Galleria Mall, even though the brick and mortar retailers are more likely to be official distributors. 11st leads in this gray market, carrying products from all Korea Beauty brands in the study with 36, 817 SKUs. Gmarket follows closely in brands represented, but pales in SKU quantity.
The study finds that mass and local brands are subject to steeper discounts. For example el-Lotte, which carries 81% of brands ,discounts local brands by 30% on average and global brands by 5%. Similarly, mass brands are discounted by 16% on average and prestige brands by 7% on the site.
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