Friday, March 31, 2023
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Home » Korean Cosmetics Firms Seeking Localization in Europe, North America

Korean Cosmetics Firms Seeking Localization in Europe, North America

by Angel Woods
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Korean cosmetics companies have started localization work in Europe and North America, the home of cosmetics. So far, Korean cosmetics companies have sought to penetrate the Asian cosmetics market. But now, they are beginning to target the global cosmetics market. Analysts say Korean cosmetics companies will be able to increase their earnings if they lower their dependence on the Chinese market.

Shinsegae International’s luxury beauty brand “Poiret” supported the production of Season 3 of the Netflix series “Emily in Paris” as a product placement (PPL) sponsor. Released on Dec. 21, the drama is about an American woman working in Paris. The show is currently ranked first in the Netflix TV show category worldwide. This is the first time that a K-beauty brand has been listed as an official sponsor of a famous show outside of Asia.

Poiret is an independent cosmetics brand launched by Shinsegae International in March last year. The French fashion brand “Paul Poiret,” which was acquired by Shisegae International, was reborn as a beauty brand. Currently, the new brand has a total of four stores in Korea, and plans to open a store in a department store in Paris next year.

Shinsegae International aims to develop Poiret into a global luxury brand. To this end, most of the Poiret products are produced overseas, such as Italy and Switzerland. Global companies such as Intercos are also in charge of manufacturing them.

Korean cosmetics companies are focusing on Europe and North America due to their high growth rate. According to the Korea Customs Service, the amount of Korean cosmetics exported to China between January and November 2022 was US$2.9 billion, down 24 percent from the same period last year, while exports to the United States (US$643 million) and France (US$48 million) inflated by 7 percent and 6 percent, respectively, during the same period. China still accounts for a large share of Korea’s cosmetics exports, but industry insiders predict that China’s proportion will gradually decrease due to Chinese cosmetics companies’ sales growth in China.

Amorepacific has also placed a big bet on e-commerce market penetration in North America. The Korean cosmetics giant has focused on promoting its brand, and now it is aiming to make profits by selling its products through online stores such as Amazon. As a result, as of the third quarter of this year, Amorepacific’s sales in North America and Europe grew by 97 percent and 60 percent, respectively, compared to the same period of 2021.

LG Household & Health Care knocked on the door of the basic beauty care market in North America by taking over business rights to “Physiogel.” It plans to enter the color cosmetics business next year. To this end, it acquired the local cosmetics brand “The Crème Shop” in April. In particular, it started selling household items such as detergents at the Avon Official Mall, its North American subsidiary, and is solidifying its position as a lifestyle brand beyond beauty care.

Source : Business Korea

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