Missha
I. Introduction
MISSHA has created a history in the cosmetic industry. Through MISSHA’s emergence and the remarkable success in early 2000’s, the low-priced cosmetics niche market created by them became bigger enough to attract many other companies.
However, MISSHA has recently shown rather disappointing business performance.
This paper describes Missha’s business model and other factors for their early success and also seeks possible recommendations for overcoming recent crisis.
II. Cosmetic Industry
1. Cosmetic Market Trend
There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line with that, the characteristics of cosmetics industry should be understood.
Also, the customers’ trend change can be understood by looking at social, demographic factors that influence such as increases in income, working women and health concern and strengthened well-being trend. In addition to that, the cosmetics market has been extended to three relatively new segmentations that are male, senior and junior3.
III. Company Overview
Able C&C Corporation was founded in the year of 2000. In launching the women’s portal site, ‘Beautynet’, they have received outstanding support from customers as well as attention from various mass media. Assured by the success of Beautynet, In 2004, the company has achieved sales of KRW 111.4 billion and has grown at a rapid rate to be ranked top4 in Korean cosmetic markets.
1. Business Area
1) Cosmetics Production
They produce 600 kinds of makeup by OEM.
2) Franchise Business
They run MISSHA directly and by franchise.
3) Women Portal Site
They provide women’s portal Beauty Net (www.BeautyNet.co.kr) services.
4) Foreign Business
They expand their business abroad in 15 countries as of Sep. 07.
2. Business Performance
MISSHA achieved the highest net profit in 2004, but since
MISSHA has created a history in the cosmetic industry. Through MISSHA’s emergence and the remarkable success in early 2000’s, the low-priced cosmetics niche market created by them became bigger enough to attract many other companies.
However, MISSHA has recently shown rather disappointing business performance.
This paper describes Missha’s business model and other factors for their early success and also seeks possible recommendations for overcoming recent crisis.
II. Cosmetic Industry
1. Cosmetic Market Trend
There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line with that, the characteristics of cosmetics industry should be understood.
Also, the customers’ trend change can be understood by looking at social, demographic factors that influence such as increases in income, working women and health concern and strengthened well-being trend. In addition to that, the cosmetics market has been extended to three relatively new segmentations that are male, senior and junior3.
III. Company Overview
Able C&C Corporation was founded in the year of 2000. In launching the women’s portal site, ‘Beautynet’, they have received outstanding support from customers as well as attention from various mass media. Assured by the success of Beautynet, In 2004, the company has achieved sales of KRW 111.4 billion and has grown at a rapid rate to be ranked top4 in Korean cosmetic markets.
1. Business Area
1) Cosmetics Production
They produce 600 kinds of makeup by OEM.
2) Franchise Business
They run MISSHA directly and by franchise.
3) Women Portal Site
They provide women’s portal Beauty Net (www.BeautyNet.co.kr) services.
4) Foreign Business
They expand their business abroad in 15 countries as of Sep. 07.
2. Business Performance
MISSHA achieved the highest net profit in 2004, but since
References: 1. Kim BJ. Research on Business Models [dissertation]. Catholic University, Business School; 2005. 2. MISSHA. Annual Report for YR 2006. ;2007(November 19). 3. Korea Cosmetic Association. Cosmetics Industry Trend. ;2007(Nov. 5). 4. Seo JY. Low-Priced Korean Cosmetics Enjoy Brisk Sales. Korea Times 2005 Feb. 21. 5. Choi YJ. CEO, Young-Pil Seo who started now successful 'MISSHA '. 2005 Feb. 6. Lee SY. MISSHA opened a new era for very-low priced cosmectics. Korea Daily Economics 2004 Mar. 9. 7. LG Economic Institute. How to read customers ' mind. 8. Kim SI. Effective corresponding strategy in price competition. Weekly Economics 2004 Oct. 8(801).