Korean Beauty Trends & Industry News: 24-01-22

Online Seminar on Modernization of Cosmetic Regulation Act (MoCRA) in the U.S., Hosted by MFDS on 31st

The Ministry of Food and Drug Safety (MFDS) of South Korea is hosting an online seminar on January 31st, focusing on the United States' recently strengthened Modernization of Cosmetic Regulation Act (MoCRA). An official from the U.S. Food and Drug Administration (FDA) will provide detailed guidance on the updated cosmetic licensing and regulatory requirements.

Under MoCRA, companies intending to distribute and sell cosmetics in the U.S. must adhere to various stipulations, including manufacturing and quality control standards, proof of safety, reporting serious adverse events, facility registration, product listing submission, and labeling requirements. This seminar aims to enhance the regulatory response capabilities of Korean cosmetic companies in light of the increasing significance of the U.S. market, especially as the Chinese market shows signs of slowing growth. The event, crucial for K-Beauty companies looking to enter the U.S. market, will feature Linda Katz, Director of the Office of Cosmetics and Colors at the FDA, as a speaker. Korean simultaneous interpretation will be provided, and the seminar is free to attend upon pre-registration at the 'Global Regulatory Harmonization Support Center' website.

GS Shop Experiences Increase in Beauty and Travel Product Sales for Lunar New Year

GS Shop, in anticipation of the Lunar New Year, has launched a special event titled 'The Great Lunar New Year'. This event focuses on beauty and travel products, aligning with the post-COVID-19 shift in consumer spending patterns, and moving away from traditional holiday items like cookware. Compared to pre-pandemic levels in 2019, GS Shop's TV home shopping and mobile platforms reported a 14% and 23% increase in beauty product sales, respectively. Notably, sales of brands like Hera, Clio cushions, and Eloel sun cushions surged by 448%, reflecting the demand of consumers preparing for travel and outings. Consequently, GS Shop is ramping up sales of overseas travel packages and beauty products, including 'Easyclear', 'Medicube', and 'Age20's' cosmetics.

The Lunar New Year period, traditionally a time for family gatherings, has seen a shift towards more rest-focused consumption, resulting in a decrease in sales of conventional holiday products like general cookware sets. However, premium brand products have seen an increase in sales. Reflecting these trends, GS Shop is featuring premium kitchen items like French brand 'Staub' cast iron pots and 'Tupperware' airtight containers, along with discount promotions. GS Shop is also planning to focus on gift demands from January 29th to February 4th, offering a range of products from immune boosters to premium gifts. Choi Jang-hoon, head of GS Shop's product strategy team, emphasizes efforts to meet diverse consumer needs following the pandemic-induced changes in holiday customs.

Need for Response to Changes in China's Consumer Market Amid Decline in Cosmetic Exports

According to a recent report by the Korea Trade-Investment Promotion Agency (KOTRA), titled 'Changes in China's Consumer Market and Online Distribution Network,' Korean companies need to pay attention to changes in the Chinese consumer market as exports of Korean cosmetics to China show signs of slowing down. Despite an overall 7.2% increase in China's consumer market size last year, reaching 47 trillion 1495 billion yuan (about 8700 trillion won), the cosmetics sector only grew by 5.1%, not meeting the average level.

The report highlights the necessity for marketing strategies targeting new consumer groups in China, such as the elderly (silver generation), single households, and the Z generation (born between 1997 and 2006). These groups are familiar with online consumption and pursue practicality and personal fulfillment in their spending habits. Notably, the silver generation is actively engaged in online shopping, the Z generation values practical and self-rewarding consumption, single households show growing demand for pet products, and the new middle class seeks emotional value rather than just high-priced items. KOTRA identifies promising consumer markets in China, including designer fashion, innovative household goods, outdoor sports equipment, and pet products. Hong Chang-pyo, head of KOTRA's China region, emphasizes that Korean companies need to prepare and strategize meticulously in response to these emerging promising areas in China's changing consumer market.

Marine Biological Extracts Registered in the International Cosmetic Ingredient Dictionary (ICID)

The National Marine Biodiversity Institute of Korea has successfully registered extracts from marine plants Rosa rugosa (beach rose), Calystegia soldanella (sea bindweed), and the brown algae Sargassum thunbergii in the International Cosmetic Ingredient Dictionary (ICID). This achievement follows the previous year's registration of extracts from the red algae Gloiopeltis furcata.

Rosa rugosa and Calystegia soldanella, which thrive along Korea's coasts and in sandy dunes in the southern regions, and Sargassum thunbergii, growing along the entire Korean coastline and in various countries in East Asia, have been found to possess significant cosmetic benefits. Research by the institute's material development laboratory revealed that Rosa rugosa extract inhibits collagenase and elastase activity, aiding in wrinkle improvement; Calystegia soldanella offers anti-inflammatory properties; and Sargassum thunbergii has skin whitening effects.

Choi Wan-hyun, the director of the National Marine Biodiversity Institute, emphasized the continuous effort to explore and research marine life-derived materials for their use in the cosmetics industry and broader marine bio-industry. This registration is expected to showcase the diverse applications of marine biological resources and provide new ingredients for the domestic cosmetics industry.