South Korean budget cosmetics brand Missha has opened its first European store in Ingolstadt, Germany
South Korean budget cosmetics brand Missha has opened its first European store in Ingolstadt, Germany. The new venture is part of the company’s plans to reduce domestic operations and focus instead on European markets.
Speaking to The Korea Herald, Kim Hong-tae, a PR official at Able C&C, Missha’s parent company, said: “The budget cosmetics market in Korea is overly competitive, and has hit the ceiling. We are going to open several stores in three European countries including Germany."
The store opened early this month with price points for products including the brand’s popular BB Cream at around €10. Missha currently operates over 13,000 stores including franchises worldwide, though its performance in its domestic market of South Korea has been poor over the last few years.
“It is true that many of the stores have shown less than impressive sales records over the past couple of years. The rent is increasing higher than ever and sales aren’t that good. At this stage we are trying to set a new direction for our businesses,” Kim said.
The move into Germany comes after a rough start to the year for Missha; in January the brand unexpectedly shuttered all of its Hong Kong and Macau stores. It then transpired that it owes 'millions of dollars' in unpaid wages to more than 100 employees, reported Hong Kong's The Standard.