Korean Beauty Trends & Industry News: 24-11-12

K-Beauty Surge Pushes COSMAX and Kolmar Korea to Record Q3 Earnings

    Driven by the booming popularity of K-Beauty, South Korea's cosmetic ODM (Original Design Manufacturing) companies, including industry giants COSMAX and Kolmar Korea, have reported record-breaking earnings for the third quarter of this year.

COSMAX saw a 15.6% increase in consolidated revenue, reaching 529.8 billion KRW, and a 30.4% increase in operating profit, totaling 43.4 billion KRW. By Q3, their cumulative revenue hit a historic high of 1.6 trillion KRW. The growth was spurred by the rise of indie beauty brands and increased exports to markets like the U.S. and Japan, which helped COSMAX Korea post double-digit growth.

While the company’s performance was mixed across its global branches—with a 7.5% revenue decline in China due to sluggish economic conditions and an 11.8% drop in the U.S.—their efforts in localization and new client projects have paved the way for growth. In Southeast Asia, the company achieved outstanding growth, with Indonesian and Thai branches reporting revenue increases of 37.9% and 69.8%, respectively.

Kolmar Korea also achieved a 21.3% revenue increase, reaching 626.5 billion KRW, and a 75.7% jump in operating profit. The company’s collaboration with indie brands and export expansion efforts have bolstered sales across markets like Latin America and the Middle East.

Industry experts project K-Beauty’s popularity to continue, with expectations of steady growth for both COSMAX and Kolmar Korea as ODM leaders in the global cosmetics market, driven by expanding indie brands and rising exports to Southeast Asia and beyond.

Hwahae Expands Global Reach with English Website Launch

    Korean beauty platform Hwahae has officially launched an English version of its website, aiming to cater to the rising global demand for K-Beauty products and insights. In response to surging North American interest, Hwahae has translated key features—including product rankings, ingredient information, review topics, and the "Hwahae Awards"—to offer international consumers direct access to K-Beauty's hottest trends.

This year, K-Beauty exports to North America reached a record high, with Hwahae’s website and app traffic from overseas more than doubling compared to last year. Hwahae has thus implemented language models to translate over 8.8 million user reviews, ensuring global users can access reliable product feedback. Plans to add Japanese-language support are set for next year.

Additionally, Hwahae is expanding its marketing through partnerships with overseas influencers and brands and exploring new sales channels. According to CEO Kyung-Il Kim, the launch aims to establish Hwahae as a go-to source for K-Beauty information worldwide. “Our goal is to become the 'Netflix of K-Beauty,' where international consumers can easily discover top Korean brands and products.”

The platform’s recent foray into e-commerce with the “Hwahae Shipping” direct purchase service has also bolstered its market presence, resulting in record-high annual revenue of 51.6 billion KRW. The English-language website is expected to further support indie brands in gaining international recognition and establishing K-Beauty's global reputation.

KOTRA Drives K-Products Expansion in China’s Singles’ Day Shopping Frenzy

    In time for China’s biggest shopping event, Singles’ Day on November 11, South Korea’s Ministry of Trade, Industry, and Energy, alongside KOTRA, launched a Korean Products Expo in Chengdu. Partnering with Japanese retail chain Ito-Yokado, the week-long event—held from November 4 to 11—featured 69 Korean brands in cosmetics, food, and home goods, aiming to increase Korean consumer goods’ presence in central and western China.

With a population of over 22 million, Chengdu ranks among China’s top five consumer markets. Digital innovation and the influx of younger consumers have fueled the growth of consumer and service industries in the city. Additionally, the return of South Korea’s beloved giant panda, Fubao, to Chengdu sparked renewed interest in Korean products.

The expo introduced an “O2O” (online-to-offline) experience, combining physical demonstrations and Douyin (China’s TikTok) promotions, allowing attendees to try products in-store and purchase online. Korean wellness products, including scented soaps, cosmetics, and nutritional snacks, were especially popular among young consumers.

“Southwest China is highly receptive to Korean products, offering strong opportunities for market entry,” noted Hwang Jae-Won, KOTRA’s Head of China Operations. He added that KOTRA plans to enhance collaboration in manufacturing, distribution, and licensing of Korean products to support their expansion in China.