Fashion and Cosmetics Industries in South Korea Face Challenges in ESG Management
In South Korea, more than half of the publicly listed fashion companies and 40% of the cosmetics firms have shown weak performance in Environmental, Social, and Governance (ESG) evaluations. According to Korea's ESG Standards Authority, 11 out of 19 fashion companies received a low C or D rating, indicating a vulnerability in ESG management. In contrast, food companies performed relatively well, with 13 receiving a high A rating.Notably, companies like BYC, Vivian, Shinsung Tongsang, Ssangbangwool, Hyungji Elite, and Cowell Fashion continued to receive the lowest D rating. In the cosmetics sector, Korean Cosmetics, Korean Cosmetics Manufacturing, and Jayjun Cosmetic were rated D, while Able C&C, It's Hanbul, and Tony Moly received C ratings. However, six companies, including Amorepacific, Aekyung Industry, and LG Household & Health Care, achieved an A rating, demonstrating superior ESG management.
Companies like F&F Holdings, Shinsegae International, and Hansae have also received A ratings, with F&F Holdings and Hansae improving by two levels from the previous year. These improvements were attributed to initiatives such as the introduction of eco-friendly shopping bags, recycling of unsold clothing, and the formation of ESG working groups.
This outcome suggests that the fashion and cosmetics industries in South Korea need to pay more attention to ESG management. By improving management strategies and actively engaging in ESG activities, these industries can expect better future evaluations.
The global dermocosmetics market is projected to grow annually by 8.9%, reaching approximately 172 trillion KRW by 2030. The Korean market has also doubled since 2017, surpassing 1 trillion KRW. The range of products includes anti-wrinkle, sun protection, and whitening cosmetics, as well as those for hair loss and acne improvement.
Dongkuk Pharmaceutical has been leading the market with its Centellian24 brand and Madeca Cream, selling over 48 million units. Donghwa Pharmaceutical with its Fusidine brand, and Donga Pharmaceutical with its Parteon brand, are also making significant strides in the beauty market. Yuhan Corporation introduced its vegan sun care brand Dinsee, contributing to the market's diversity.
Industry insiders note that pharmaceutical products focusing on sensitive skin care are gaining consumer attention. This shift indicates a move in the beauty industry from focusing solely on aesthetics to incorporating skin health. The entry of pharmaceutical companies into the beauty market is establishing dermocosmetics as a significant new category.
Glint has become particularly popular on Qoo10, a Japanese online mall, ranking first in highlighter sales. Its success is further bolstered by recommendations from Japanese influencers, positioning it as a sought-after K-beauty item. Frescian, with its Egglike Cushion, has entered the Japanese online market, appealing to consumers interested in clean beauty. LG Household & Health Care is also accelerating its plans to enter offline stores in Japan.
This success is attributed to LG Household & Health Care's proactive marketing strategies and efforts to enhance brand recognition and product competitiveness in Japan. The company is planning to expand its distribution channels, both online and offline, expecting further growth, particularly in leveraging the high popularity of the indie K-beauty brand 'Hince' among Japanese youth.
Pharmaceutical Companies Lead Beauty Innovation with Entry into Dermocosmetics Market
South Korean pharmaceutical companies are entering the dermocosmetics market, leveraging their medical expertise and credibility to drive change in the cosmetics industry. Dermocosmetics, a blend of cosmetics and dermatology, use medically beneficial ingredients within the bounds of cosmetic regulations. Internationally, these are often referred to as 'pharmacy cosmetics'.The global dermocosmetics market is projected to grow annually by 8.9%, reaching approximately 172 trillion KRW by 2030. The Korean market has also doubled since 2017, surpassing 1 trillion KRW. The range of products includes anti-wrinkle, sun protection, and whitening cosmetics, as well as those for hair loss and acne improvement.
Dongkuk Pharmaceutical has been leading the market with its Centellian24 brand and Madeca Cream, selling over 48 million units. Donghwa Pharmaceutical with its Fusidine brand, and Donga Pharmaceutical with its Parteon brand, are also making significant strides in the beauty market. Yuhan Corporation introduced its vegan sun care brand Dinsee, contributing to the market's diversity.
Industry insiders note that pharmaceutical products focusing on sensitive skin care are gaining consumer attention. This shift indicates a move in the beauty industry from focusing solely on aesthetics to incorporating skin health. The entry of pharmaceutical companies into the beauty market is establishing dermocosmetics as a significant new category.
LG Household & Health Care Makes Waves in Japan's Beauty Market with K-Beauty Products
LG Household & Health Care is successfully penetrating the Japanese beauty market with its color cosmetics brands, notably after acquiring 'Hince' and launching 'VDL', 'Glint by VDIVOV', and 'Frescian'. These brands have gained attention in Japan, especially with promotional activities during the K-pop award ceremony, MAMA Awards, and strategic placement of brand videos and distribution of pamphlets and cosmetic samples in key locations.Glint has become particularly popular on Qoo10, a Japanese online mall, ranking first in highlighter sales. Its success is further bolstered by recommendations from Japanese influencers, positioning it as a sought-after K-beauty item. Frescian, with its Egglike Cushion, has entered the Japanese online market, appealing to consumers interested in clean beauty. LG Household & Health Care is also accelerating its plans to enter offline stores in Japan.
This success is attributed to LG Household & Health Care's proactive marketing strategies and efforts to enhance brand recognition and product competitiveness in Japan. The company is planning to expand its distribution channels, both online and offline, expecting further growth, particularly in leveraging the high popularity of the indie K-beauty brand 'Hince' among Japanese youth.
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