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Korean Beauty Trends & Industry News: 24-08-14


Cosmetics Stocks Plunge as Earnings Disappoint and Institutional Selling Intensifies

    Recently, Korea's cosmetics stocks have seen a significant decline in the market. These stocks, which led the market earlier this year, have plummeted following disappointing earnings reports, leading to a broader loss of investor confidence. Key players like Cosmax and Englewood Lab have seen their stock prices drop sharply due to underwhelming financial results combined with a wave of sell-offs.

Cosmax reported a 1.5% increase in operating profit for Q2 compared to the previous year, but this fell short of market expectations, leading to a downward revision of target prices by analysts. Englewood Lab, which initially surged thanks to growth in the sunscreen market, also saw its stock fall sharply after disappointing Q2 results. Even Kolmar Korea, despite posting record earnings, saw its stock price decline due to profit-taking.

Overall, the market sentiment towards cosmetics stocks has deteriorated significantly. This is attributed not only to profit-taking but also to growing concerns about the future, particularly with both foreign and institutional investors selling off shares. Some experts, however, view the current situation as an oversell, suggesting it might be a buying opportunity. Investors are advised to closely monitor the earnings and market conditions to make informed decisions.


Cosmax Becomes First Korean ODM to Break $1 Billion in Sales for H1

    Cosmax, a leading player in the global cosmetics Original Design Manufacturing (ODM) industry, has made history by becoming the first to surpass 1 trillion KRW (approximately $1 billion) in sales during the first half of the year. Cosmax’s H1 sales grew by 22.2% year-over-year, reaching 1.078 trillion KRW, with operating profit up by 53.9% at 92.2 billion KRW. The company also recorded its highest-ever quarterly sales in Q2 at 551.5 billion KRW.

This remarkable growth is attributed to the expanding exports of Korean indie beauty brands, especially to the U.S. and Japan, as well as robust performance in Southeast Asian markets like Indonesia and Thailand. While the Korean branch saw a 25.1% increase in sales, the Chinese branch struggled due to economic slowdown and reduced consumer spending, resulting in a 4.1% decline in sales.

Despite a slight decline in sales at its U.S. subsidiary, Cosmax plans to bolster its presence with new client acquisitions and cost-saving measures in the second half of the year. The company aims to continue its growth alongside its partners by further globalizing K-beauty indie brands and launching innovative products.


MUSINSA Revamps Online Store and Launches Major Beauty Campaign with K-pop Star Karina

    MUSINSA, a major player in Korea's online fashion retail space, has unveiled a fully revamped online store with enhanced user interface (UI) and user experience (UX). The overhaul introduces a multi-store format across six categories, including beauty, sneakers, and kids, allowing users to navigate seamlessly between categories. Additionally, personalized brand recommendations and an advanced ranking system have been implemented to elevate the shopping experience.

In conjunction with the store redesign, MUSINSA has named Karina from the K-pop group aespa as the ambassador for its beauty division. This partnership kicks off with a large-scale offline campaign, “MUSINSA Beauty Festa,” set to take place in Seoul’s trendy Seongsu district. The event will feature pop-up stores from 41 brands, as well as collaborations with local shops, offering a unique beauty festival experience.

MUSINSA’s new initiatives reflect its rapid growth, with beauty product purchases on the platform up 78% in the first half of the year. The company plans to continue expanding its influence in the beauty sector, offering customers both online and offline experiences that align with the latest trends in K-beauty.
Location: 한국

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