Korean Beauty Trends & Industry News: 23-11-27

Myeong-dong Commercial Area Revitalizes, New Cosmetic Road Shops Flourishing

Myeong-dong, once known as the 'cosmetics Mecca' of Seoul, South Korea, is witnessing a resurgence in business activity. After a period of decline due to the COVID-19 pandemic, the area is buzzing again, thanks to an increase in foot traffic. Notably, affordable cosmetics brands are rapidly opening new stores in the area.

Tony Moly, a popular cosmetics brand, has opened several new stores in Myeong-dong, anticipating a 31% increase in sales in the second half of the year compared to the first half. Their success is partly due to products like the snail line and 'fun' items that appeal to foreign tourists.

Another brand, Missha (from A'PIEU), has renovated its Myeong-dong Megastore, seeing a sales increase of about 40% in average daily sales and 30% in sales to foreign customers after the renovation. Missha plans to open additional stores in Myeong-dong by January next year.

Nature Republic has also refurbished its Myeong-dong World store, targeting female tourists in their 20s to 40s. AmorePacific's Etude House has joined the competition by adding new stores in the Myeong-dong area.

According to the Korea Tourism Organization, the number of foreign tourists visiting Korea in September increased by 225.2% compared to the same period last year, reaching about 1,098,000. This influx has significantly contributed to the revival of the Myeong-dong commercial area, with a noticeable decrease in vacancy rates.

The Myeong-dong area is regaining its pre-COVID vibrancy, with cosmetics stores reopening and continuing their sales growth, driven by increasing foot traffic from tourists.

Cosmetic Exports Surge, Leading Korea's Health Industry in the Third Quarter

In the third quarter of 2023, Korea's health industry exports decreased by 9.1% year-on-year to $5.18 billion. However, the cosmetics sector stood out with a 9.7% increase, reaching $2.17 billion. This growth is primarily attributed to the rising global demand for basic skincare and color cosmetics products.

Skincare products accounted for 75.9% of total cosmetics exports. Although exports to China declined, significant increases were seen in the United States, Hong Kong, and Russia. Color cosmetics also saw substantial growth in Japan and the U.S. markets. Body cleansing products also experienced strong growth in China and the U.S.

In contrast, pharmaceutical exports dropped by 19.7% to $1.66 billion, mainly due to decreased exports of biopharmaceuticals and vaccines. The medical device sector also saw a decrease of 18.6% in its exports, totaling $1.35 billion.

Han Dong-woo, head of the Health Industry Innovation Planning Division at the Korea Health Industry Development Institute, stated that the decrease in health industry exports has been gradually narrowing compared to the first half of the year. He expects a recovery in exports in the fourth quarter, driven by the pharmaceutical and cosmetics sectors. This outlook reflects the continuous growth and global popularity of Korean cosmetics.

K-Beauty Charm Unfolds in Central London, Cosmetic Pop-up Store Successfully Launched

Celebrating the 140th anniversary of Korea-UK diplomatic relations, a 'K-Beauty Pop-up Store' was successfully launched in central London. Hosted by the Korea Trade-Investment Promotion Agency (KOTRA), the store was situated next to the renowned Fortnum & Mason department store near Buckingham Palace, reflecting the heightened interest in K-Beauty within the UK.

The pop-up store focused particularly on Korean cosmetics, showcasing a variety of products amid rising demand for K-Beauty items in the UK, fueled by the popularity of K-Pop and K-Dramas. The store featured an array of Korean cosmetics, especially skincare and color cosmetics, which attracted significant interest.

The store provided British locals a chance to experience the excellence of Korean cosmetics firsthand. It included trendy offerings like a K-Nail Art experience booth, popular among Korea's MZ generation, which played a significant role in introducing Korean beauty trends to the UK.

KOTRA anticipates about $120,000 in sales from this event, with a portion of the proceeds planned to be donated to local food banks and child welfare organizations.

Participating in the event were over 60 Korean cosmetics companies with limited export experience. These companies achieved notable success, including securing product exports to local online retailers. According to Jeon Woo-hyung, head of KOTRA's London Trade Center, the event significantly contributed to raising awareness of Korean cosmetics in the UK. He expects the expansion of Korean cosmetics companies in the UK market, riding on the wave of the Korean Wave, or Hallyu. The pop-up store is being hailed as a successful case of promoting Korean cosmetics' excellence in the UK and establishing a foothold for Korean companies in the global market.