A Study on the Development of Private Brand in Duty Free Store: Focusing on Cosmetics

Purpose: Domestic duty-free shops are showing many difficulties both inside and outside after the pandemic thus, they need to establish a new survival strategy. Among the many strategies considered, PB development, which has not yet been operated in duty-free shops, is emerging as a strong alternative. Therefore, this study aims to help establish a consumer-oriented strategy for the development of duty-free’s PB. Research design, data, and methodology: Qualitative surveys collected various opinions from 10 informers who have over 10 years working experience in duty free field through in-depth interviews, and quantitative surveys conducted frequency analysis, exploratory factor analysis, and Cronbach’s α coefficient was calculated to verify reliability. In addition, an independent sample t-test was conducted to see if there was a difference in the attributes of duty-free PB products(cosmetics) between 57 workers and 193 consumers. Results: As a result of the interview survey with workers, 71 items were collected through a total of 87 answers, which could be classified into a total of five dimensions: quality, price, reliability, recognition, and convenience of purchase. and as a result of analyzing whether there is a difference between workers and consumers, statistically significant differences in five factors by sub-factors were found. ‘price’ was the highest for workers, followed by ‘quality’, ‘trust’, ‘recognition’, and ‘convenience’ but In the case of consumers, ‘trust’ was the highest, followed by ‘recognition’ ‘price’, ‘quality’, and ‘convenience’. Implications: The implications of this study at the stage of developing PB in duty-free shops are that the difference in importance of PB perceived by workers and consumers is very large. Therefore, duty-free workers need to establish a more consumer-centered PB development strategy.