[Edaily KYUNG GYEYOUNG Reporter] "Duera," Kurly’s private-label (PB) cosmetics brand that debuted on the 2nd, was developed based on an analysis of 3 million customer reviews gathered during the product planning process. The goal is to create products that address the inconveniences and problems consumers face, rather than simply offering lower-priced items. A Kurly representative explained, “When there are no products on the market that meet Kurly’s unique price and quality standards, we develop them ourselves as private label items,” adding, “Contrary to the general perception of private label products (as low-cost items), we focused on enhancing quality to ensure the products are truly marketable.”

As private-label (PB) products—directly planned and manufactured by e-commerce platforms—continue to evolve, they are shaking up the retail landscape. Moving beyond simply imitating manufacturer-branded (NB) products or lowering prices, these platforms are now expanding toward planning products based on customer data and developing them into unique, differentiated offerings exclusive to their platforms. With consumers becoming increasingly price-sensitive due to high inflation and the manufacturing and distribution ecosystem undergoing changes, private-label products are establishing themselves as a key factor determining the competitiveness of e-commerce platforms, going beyond being merely “good value” items.

Data-Driven Private Brands as a New Growth Engine

According to industry sources on the 27th, each platform is cultivating

private brands

based on its own customer data

as a

new

growth engine

.

A prime example is “Musinsa Standard,” the fashion private label operated by Musinsa. Musinsa Standard recorded sales of 470 billion won last year. As Musinsa also expands its beauty private label, the share of private label sales in total revenue is on an upward trend: 26.2% in 2023 → 27.2% in 2024 → 30.8% in 2025 → 32.4% in the first half of this year. Building on its domestic success, the company is accelerating its expansion into overseas markets such as Japan, China, and Southeast Asia.

Musinsa Standard incorporates customer behavior—such as purchases and product reviews—into the composition of subsequent SKUs and the planning of new products. This approach is also applied to Musinsa’s beauty private label brands, including “Musinsa Standard Beauty” and “Odd Type.” A Musinsa representative stated, “Since these are products available exclusively on Musinsa, they prevent customers from leaving for other platforms and give them a reason to return to Musinsa,” adding, “This also drives cross-selling to other products.”

Olive Young is developing its beauty private label brands with an eye toward expanding into overseas markets. “Biohil Bo,” a brand centered on the concept of “slow aging,” already generates more than half of its sales overseas. Brands such as “Wake Make” and “Colorgram” (color cosmetics) are also accelerating their expansion into overseas markets. An Olive Young representative explained, “As a retailer, we have access to information on global trends and country-specific regulations, and we’ve also gathered a significant amount of relevant data through foreign customers visiting our domestic stores.”

Seo Yong-gu, a professor in the Department of Business Administration at Sookmyung Women’s University, analyzed, “Platform companies can predict which products will sell well based on customer data,” adding, “Customer data is directly translating into dominance in the distribution market.”

Products Under 5,000 Won on the Rise… Large Supermarkets’ ‘Price Competitiveness’

One reason retailers are cultivating private label (PB) brands as a new growth engine is the ability to directly set prices and margins. This is also why PB brands took root early on in grocery shopping channels—such as large supermarkets—where there are many price-sensitive consumers.

Lotte Mart has increased the proportion of products priced under 5,000 won to 46% among its “Yorihada” (food) and “Oneuljoheun” (non-food) private label lines. Sales of these products from January through August of this year rose 46% compared to the same period last year.

E-MART Co., Ltd.(139480) Following its value-for-money private label “Nobland International Inc.,” the company launched “5K Price” last August—a private label consisting exclusively of products priced at 5,000 won or less. Last month, marking the one-year anniversary of its launch, sales for this line increased by 83% compared to the same month last year. The industry estimates that private label sales account for more than 10% of total sales at major domestic supermarkets.

An official from a major supermarket chain stated, “Since retailers can manage the entire process—from planning to purchasing and margin setting—for private-label products, they can consistently maintain prices that are 20–30% lower than those of national brands.” The official added, “As private-label products become more competitive in price while offering higher quality and greater variety, they are gradually replacing national brands.”

The convenience store industry is also trending toward strengthening its competitiveness by promoting value-for-money private-label products. Representative private-label brands by convenience store chain include △CU’s “Deukteom,” △GS25’s “Real Price,” and △7-Eleven’s “7-Select.” The share of private-label products in total sales was around 30% last year, with CU at 29.5%, GS Holdings at 30.0%, and 7-Eleven at 29%.

Building Private Label Competitiveness Through “Mutual Growth”

Retailers’ private labels are opening up new sales channels for small and medium-sized manufacturers. Coupang, which operates brands such as “Gomgom” (food), “Tamsha” and “Comet” (household goods), and “Home Planet” (home appliances), expanded its network of partner SMEs from 380 in 2021 to 640 last year. According to Coupang, sales for its partner manufacturers grew by 20% year-over-year last year. Coupang explains that this growth resulted from a division of labor structure established by CPLB—Coupang’s private label subsidiary—which handles marketing, logistics, and customer service, while partner companies focus on product development and production.

Coupang also held its first offline private-label pop-up event, “Coupang Only Festa,” at Anderson C in Seongsu-dong, Seoul, from the 17th to the 20th. The event provided a platform for private-label products and small-to-medium-sized manufacturers—which had previously been confined to the app’s search bar—to move into the offline space and engage directly with customers. This demonstrates that Coupang views its private label as a core asset of its platform, rather than merely a revenue-generating product, and is building an ecosystem for mutual growth with its partners.

Lee Eun-hee, Professor Emerita of Consumer Studies at Inha University, stated, “High-quality private-label products can serve as a differentiating factor that attracts and locks in customers for each retailer, and it is also positive for small and medium-sized manufacturers collaborating with retailers as it helps them secure order volume.” She added, “It is important for retailers to collaborate with manufacturers from a perspective of mutual growth.”