The K-beauty reign just won’t let up. From sheet masks to
the revolutionary BB cushion foundation, Korean beauty products continue to
climb in the international markets.1
Since the introduction of the ubiquitous BB cream, Korean
cosmetics has seen an astounding amount of growth worldwide. Despite doubts
about the strength of beauty products breaking into the international market,
it seems that cosmetics are experiencing their second big wave.
With the convergence of cosmetics and medicine, the enhanced
skincare benefits of beauty products, and KRW 3 billion in exports (44 percent
growth in one year), the cosmetics industry has reached KRW 10 trillion in
annual revenue, ushering in “K-Beauty 2.0”. Korean cosmetics second big wave.
Cosmetics using traditional Korean medicine, or Hanbang (한방), have seen a tremendous amount of growth in the Korean
beauty market. Hanbang cosmetics are specifically engineered with ingredients
from traditional Korean herbal medicines. Hanbang’s holistic approach to skincare is on-trend as consumers seek a more natural take on skincare. One doesn’t
have to look far to see consumers flocking to Hanbang products. Prestigious
Hanbang brands like Sulwahsoo have seen tremendous growth and have given birth
to cult-classic products like First Care Activating Serum. Another
Hanbang-based brand, Whoo, reported record first-quarter revenues in 2016.
The China Factor
Entry to the Chinese market, led by AmorePacific and LG
Household & Health Care, has also been a factor in the growth of K0beauty
abroad. Though they are competitors in Korea, AmorePacific and LG are teaming
up to target the Chinese market. Chinese consumers are known to gravitate
toward foreign brands, due to trust issues with shady ingredients and the high
number of counterfeits. Innovative products such as AmorePacific’s BB cushion
compact, paired with the reasonable price point of most cosmetic items, also
attract Chinese consumers to K-beauty.
Effects of the Korean Wave
The Korean Wave, known as Hallyu, is also a factor in the
massive growth, the hugely popular Korean drama “Descendants of the Sun” was
the smash hit of early 2016. While it was successful in Korea, “Descendants of
the Sun” enjoyed even greater success overseas.
The show’s popularity led to a boom in the beauty industry.
Laneige, owned by AmorePacific, saw a 360 percent hike in sales since last year
due to the show. Millions of fans flocked to the stores to stock up on the
Laneige Two Tone Lip Bar and BB cushion that star Song Hye-Kyo wore on the
series. In Myeong-Dong, the popular tourist shopping destination (You can read
about this street, Here), Chinese tourists snapped up the lipstick in droves,
and soon it was sold out nearly everywhere and had broken Aritaum’s sales
record. Laneige in Singapore also reported double-digit growth after shoppers
flocked to the makeup counters to snag their own Two Tone Lip Bars.
Korean beauty is all about continuous improvement and new
product innovations. Korean makeup companies have shorter product development
cycles, which is why it seems that every week there’s new hit product to the ingredient
that makes consumers go wild. Korean cosmetics have always been known for their
unconventional ingredients like snail mucus, snake and bee venom, and starfish,
to name a few. Now you can add ingredients like horse oil to the list. Smaller companies
like Guerisson 9, producer of the extremely popular horse oil cream and sheet
masks, have hit it big with Chinese tourists. Extracted from horse fat, horse
oil creates an intensely hydrating protective barrier over the skin, which
contributes to its anti-aging claims.
Fun and Whimsical Skin Care for Millennials
Unique design elements are also being pinpointed as
instrumental to K-beauty’s success in the international market. In the United
States, millennials are drawn to fun and whimsical skincare, not the stuffy,
boring products that have long dominated the market. This is just one of the
reasons Korean beauty products appeal to the younger generation and are now
being sold in popular stores like Urban Outfitters and Target in the United
States.
The expansion of Korean beauty products into the U.S. and
European markets, together with considered the birthplace of the cosmetics industry,
is yet another factor in the sector’s rapid growth. On May 23, Tony Moly
launched at Sephora’s main store on the Avenue des Champs-Élysées
in Paris. It is now sold in 825 stores throughout Europe, a first for a Korean
cosmetics brand. Last year, beauty products saw a 64 percent growth in exports
to the United States. Brands like AmorePacific, Belif and The Face Shop are
sold in the United States. Aritaum, the popular Korean chain that sells brands
like Laneige, Mamonde, Hanyul, IOPE, and Sulwahsoo, recently announced plans to
open 70 branches in the U.S. over the next few years, as well as a U.S.-based
e-commerce site.
As for those who doubted K-beauty’s influence and staying power,
they may be eating their words. In just a few years, products like BB cream and
sheet masks have entered the global lexicon. Korean cosmetics are no longer just
fad or trend - they are shaping and revolutionizing the beauty industry in a
major way. Products like BB cushion are the new normal. Sheet masks are no
longer a trend but are embraced as a way of life.
Korean beauty is here to stay, and it shows zero signs of
slowing down.
1- KOREA monthly magazine of tourism & cultural organization, September 2016
Xoxo,
PrincessGilda
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