Korean Beauty Trends & Industry News: 23-11-22

Japanese and Korean Cosmetics Facing Challenges in the Chinese Market

Recently, Japanese and Korean cosmetic brands have experienced a decline in sales and rankings in the Chinese market. Notably, during China's biggest shopping festival, 'Guanggun Jie,' Japanese cosmetic brands failed to make it into the top 10, and Korean beauty (K-beauty) brands also saw lackluster performance at the 618 Shopping Festival.

The downturn in Japanese cosmetics is attributed to concerns over the Fukushima nuclear plant's water discharge and the rise of patriotic consumption ('Querchao') among China's MZ generation. Sales data from Tmall revealed a decline in Japanese brands, with names like ALLIE, NARIS, and Anessa dropping in rankings or experiencing significant sales drops. Additionally, boycott movements against Japanese cosmetics are believed to have influenced these declines.

On the other hand, K-beauty brands are struggling due to reduced influence of the Korean Wave (Hallyu) following the enactment of China's Hallyu ban and the COVID-19 pandemic, as well as stiff competition in pricing with global and Chinese brands. The Chinese cosmetics market is showing a shift in trends with increasing consumption among younger generations, growth in the sensitive skin cosmetics market, and rising demand for color cosmetics, favoring local Chinese brands.

This shift in the market is weakening the position of Japanese cosmetics in China, leading to an overall decrease in sales. Additionally, negative sentiments in China towards Japan following the Fukushima nuclear incident are reducing demand for Japanese cosmetics, potentially creating new opportunities for K-beauty.

In summary, both Japanese and Korean cosmetics brands must navigate these changing consumer trends and challenges in the Chinese market, necessitating new strategic approaches.

Threepix's Atopic Dermatitis Improvement Peptide Registered in the International Cosmetic Ingredient Dictionary

Threepix has successfully registered its newly developed atopic dermatitis improvement peptide, '3BIGS SKINPEP-1,' in the International Cosmetic Ingredient Dictionary (ICID). This ingredient suppresses cytokines known to be the primary cause of atopic dermatitis, showing significant effects in reducing skin inflammation.

Published by the Personal Care Products Council (PCPC) in the United States, this dictionary serves as an international standard guaranteeing the safety and quality of cosmetic ingredients. Threepix's registration is a significant acknowledgment of the functionality and value of their atopic dermatitis improvement peptide on an international level.

In cell and animal experiments, '3BIGS SKINPEP-1' showed superior effects in reducing skin thickness changes, inflammatory cell infiltration, and clinical evaluation of inflamed areas compared to the conventional first-line treatment, the steroid dexamethasone. Importantly, it did not exhibit side effects like skin atrophy often associated with long-term steroid use, indicating potential benefits for chronic patients.

Threepix plans to leverage this atopic dermatitis improvement peptide in collaborations with domestic and international companies, aiming to enter the cosmetics and specialized care sectors. Additionally, the company is developing candidate substances to address various diseases, including inflammatory bowel diseases.

Court and Government Take Strict Measures Against Sales of Food-Imitating Cosmetics

Recently, a South Korean court and government authorities have taken strict actions against the sale of cosmetics imitating the shape of food. The Gwangju District Court ruled that the suspension of sales of such cosmetics by authorities was justified, aiming to prevent the risk of children and infants mistaking them for food and consuming them.

In a particular case, a cosmetic sales company, Company A, which sold pudding-shaped soaps, challenged the Gwangju Food and Drug Administration's one-month sales suspension order but was rejected. The court found that Company A's products were significantly similar to actual food (pudding) in shape, texture, and scent, posing a risk of ingestion accidents among children.

In Jeju Province, similar food-imitating cosmetics are still being sold. Notably, a famous company in Jeju produced pudding-shaped soaps, which even received Jeju Cosmetic Certification. Such cosmetics, particularly posing confusion risks for infants and children, are drawing attention for their safety hazards.

With the amendment of the Cosmetics Act, manufacturing and selling cosmetics imitating the form, smell, color, size, packaging, or containers of food have been prohibited. Violators face suspension of manufacturing and sales operations, imprisonment, or fines.

An official from the Korea Food and Drug Administration emphasized that if cosmetics likely to be mistaken for food are manufactured or sold, the business may face a one-month suspension. This action is considered an essential step in ensuring consumer safety and reducing the risks associated with food-imitating cosmetics.