Skip to main content

Korean Beauty Trends & Industry News: 23-10-30

Diverging Fortunes in China: AmorePacific Smiles, LG H&H Frowns

South Korea's cosmetic giants, AmorePacific (Amore) and LG Household & Health Care (LG H&H), have had contrasting fortunes in the Chinese market. China's economic downturn and consumer retrenchment have significantly impacted both companies.

AmorePacific has mitigated the impact by diversifying its market reach, seeing growth in Japan and North America. Notably, their brands Innisfree and Laneige have performed exceptionally well in North America. According to the financial analytics firm FnGuide, Amore's Q3 operating profit is projected to increase by 62% YoY, reaching around $43 million.

On the other hand, LG H&H chose to double down on the Chinese market, but their performance has sharply declined. Their Q3 operating profit decreased by 32.4% YoY to around $109 million, and their revenue decreased by 6.6%. Particularly, their cosmetic business recorded a 15.1% decrease in sales and an 88.2% decrease in operating profit.

Analysts believe that growth in regions outside China is becoming more critical. Jo So-Jeong, a research analyst at Kiwoom Securities, pointed out, "Although the recovery of cosmetic demand in China is slow, demand in non-Chinese markets remains strong."

The different strategies of the two companies and the uncertainties in the Chinese market will continue to be a focal point.


Petrochemical and Cosmetics Industries Target Future Markets with Eco-Friendly Strategies

South Korea's petrochemical industry is preparing for the future by focusing on eco-friendly businesses. Specifically, they are strengthening collaboration with the cosmetics industry to expand eco-friendly plastic packaging and biofuel ventures. This is seen as an essential strategy for carbon reduction and environmental protection.

In light of the European Union (EU) and France's plastic use restrictions and the planned mandatory use of 'bio jet fuel' in Europe by 2025, petrochemical companies are bolstering their collaborations. For example, LG Chem and SK Chemicals have entered into agreements with AmorePacific and Estée Lauder for developing eco-friendly packages and recyclable materials. Lotte Chemical has also signed a business agreement with Yeonwoo, Kolmar Holdings, and PumTech Korea for eco-friendly cosmetic packaging.

Moreover, there's a notable momentum in the biofuel sector. SK Trading acquired Daekyung OT to secure bio diesel and bio jet fuel resources. The Hyosung Group has commercialized the world's first bio-spandex. Given the expected introduction of carbon taxes and plastic taxes globally, these initiatives are considered very important.

McKinsey projects that by 2050, the recycled plastic market could be worth around $510 billion. Industry insiders are optimistic, saying that the collaboration between the petrochemical and cosmetics industries is not only environmentally positive but also brightens the future market outlook.


Korean Cosmetics Conquer Japanese Market: Strategies and Outlook

Korean cosmetics are rapidly growing in the Japanese market. Specifically, BanoBagi Cosmetic's 'PDRN Repair Real Balm' is gaining immense popularity on Rakuten, Japan's largest e-commerce site. The product utilizes salmon PDRN and roe extracts, excelling in skin whitening and wrinkle reduction. It also performed well in South Korea, winning the '2023 Allure Best of Beauty Award'.

Japan is the world's third-largest beauty market, and following China, Korean cosmetic companies are targeting Japan. Last year, imports of Korean cosmetics into Japan amounted to around $602 million, a six-fold increase over the past decade. Both large and medium-sized companies are expanding through online and offline channels. Giants like AmorePacific and LG H&H are targeting the Japanese MZ generation with a premium strategy.

The growth is partly attributed to the promotional effects of Korean celebrities. Industry insiders project that Korean cosmetics will continue to grow in Japan and that a premium strategy will be needed. Thus, Korean cosmetics are gradually increasing their influence in the Japanese market as well.
Location: 대한민국

Comments

Post a Comment

Popular posts from this blog

The 14th K-Beauty Expo in Korea is coming soon

Upcoming 14th K-Beauty Expo in Korea: An Overview The 14th K-Beauty Expo Korea is set to take place at KINTEX Exhibition Center from October 6th to 8th, 2022. This three-day event offers a comprehensive look at the present and future of the Korean beauty industry. Upcoming 14th K-Beauty Expo in Korea: How Big Is the Event? This year's K-Beauty Expo will feature 320 companies from roughly 20 countries. With multiple brands represented by each company, we expect to see over 400 booths—more than double last year's size. Around 100 international buyers will also be invited via KOTRA's global trade halls for an on-site export fair. Upcoming 14th K-Beauty Expo in Korea: What's On Offer? Special halls will be dedicated to various themes: hair care, clean beauty, and smart beauty. For the first time in three years, the expo will also host in-person export consultations. This is significant because the pandemic had previously caused a decline in such opportunities for beauty com...
Post a Comment
Read more

Types of pimples

Different types of Pimples(Acne) Pimple, aka Acne, appears out of nowhere and disturbs our skin even if we do provide special attention to our skin. Many people suffer and get stressed because of this pimple. To overcome this, some may use various cosmetics, some may receive dermatological treatment, and furthermore, some may apply drugs containing steroids. Your attitude to dealing with pimples is very reasonable and understandable. When I have a terrible pimple on my face in the mirror, I would first find out how to get rid of it right away and what to apply to my face. There are so many different kinds of pimples. What most people do get confused about is that they think all the different types of pimples grow from the very start having the kind.  In fact, that's wrong. Types of pimples are distinguished and are classified by their stage of growing. In this post, let's first look at the difference between the types of pimples we're fighting against, and how they're d...
Post a Comment
Read more

Misleading Claims in Microneedle Skincare Products: 82 Cases Identified

     Recently, microneedle skincare products have gained significant popularity, but Korea’s Ministry of Food and Drug Safety (MFDS) has uncovered that over 80% of these products being sold online are making false or exaggerated claims. After reviewing 100 online posts, the MFDS found that 82 of them violated Korea’s cosmetics regulations, leading to requests for the posts to be blocked by the Korea Communications Standards Commission. The misleading advertisements primarily claimed that microneedles could penetrate deep into the skin layers or promised immediate pore reduction, both of which are not scientifically validated for general cosmetic products. Microneedles are a medical technology designed to deliver substances into the deeper layers of the skin, typically used in drugs and medical devices. However, in the cosmetics industry, these products generally do not have the same capabilities. Some companies falsely advertised their products as having effects similar t...
Post a Comment
Read more