Struggling Cosmetic Shops

[Anchor Lead]

Cosmetic road shops, which used to be at the forefront of the Korean culture boom, are struggling these days due to the plunging numbers of foreign tourists visiting Korea. Store owners also blame their head office's management styles. Take a look

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More than 100 TONY MOLY stores nationwide were closed for one day. This was done to show the stores' difficult business situation and to urge coexistence with their head offices. Sohn Hyun-sun has been running her cosmetics road shop for nearly six years. Last year, sales at her store plummeted almost 60 percent on-year. Fewer customers visit brick-and-mortar shops these days, because they can buy the same products cheaper online.

[Soundbite] Sohn Hyun-sun(Owner of road shop) : "We can't place orders for many items because they are out of stock at the head office. They are on sale on the official Web site of our brand."

Despite the stores' desperate efforts to attract customers by offering large discounts, a significant share of marketing costs has to be shouldered by the store owners.

[Soundbite] Sung Nak-eum(Owner of road shop) : "Stores have to shoulder two-thirds of the costs, while the head office only covers one-third. Larger discounts result in lower profits for us."

One of the factors behind the cosmetics road shops' woes is the sharp decrease in the number of Japanese and Chinese tourists to the nation. Some say the road shop sector lacks strategies to prepare for the future aside from targeting Chinese visitors. The rapidly changing business environment in the retail sector has pushed cosmetics road shops to the edge. Store owners of five different brands plan to set up a council to confront their head offices in a bid to survive in the market.