Chanel's Absence from Lotte Allows Competitors to Thrive

channel is the most famouse make-up brand , all of us like thier lipsticks , foundations and other cosmetices

Since Chanel shut its cosmetic business in seven branches of the Lotte Department Store, Korea's largest department store chain, on Jan. 30, competitors' sales have been soaring.

In the case of its main branch in Sogong-dong, Seoul, the French cosmetic brand has been replaced by Amore Pacific and Kevin Aucoin, a U.S. brand specializing in color makeup. Since their opening on Feb. 13, the two brands' combined sales topped W1.3 billion (US$1=W1,384) for only a month -- three times the sales of Chanel at the same site. Competitors near the former Chanel site also benefited, with Lancome posting 46 percent growth and Dior 21 percent growth, contributing to a two percent rise in the total sales of the cosmetic section at the branch.

Experts say the sales growth is attributable to diversification in the cosmetic industry. "Four or five foreign cosmetic brands wielded absolute power in the industry a few years ago. But now, diverse brands are emerging in the market. It means consumers have a wider range of choice," an industry insider said.