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Korean Beauty Trends & Industry News: 24-12-20


Korean Convenience Stores Enter the Affordable Beauty Market

    Korean convenience stores are now competing aggressively in the affordable beauty market, targeting younger consumers in their teens and twenties with skincare products priced around 3,000 KRW (about $2.50). These products emphasize small, travel-friendly sizes, practical use, and budget-friendly pricing, making them particularly appealing to younger shoppers.

GS25 recently launched six affordable beauty products, including the "Scinic Moist Tone-Up Sun Cream," priced at 3,000 KRW for six individually packaged 2mL units. Earlier this year, GS25 introduced 700 KRW sheet masks and 1,000 KRW moisture pads, doubling its skincare offerings from 10 products last year to 20 in 2024.

Similarly, CU launched three affordable skincare products in September, selling 30,000 units in just three months. CU's lineup has expanded to include skin-repairing ampoules and hand creams. Even Seven-Eleven has joined the trend with affordable cleansing foams and soothing pads.

This strategy not only appeals to young shoppers but also challenges other budget-friendly retailers like Daiso, whose beauty sales have surged by over 200% in recent years. With the influence of social media platforms like Instagram and TikTok, affordable beauty products have become viral hits among budget-conscious consumers.


Unfair Practices in Korea's Cosmetic Distribution Market

    The Korean cosmetics industry faces ongoing challenges with unfair practices between manufacturers and their distributors. A government report revealed that 16.6% of distributors experienced coercion, such as mandatory sales quotas or one-sided changes to contracts.

Among all industries surveyed, cosmetics distributors reported the second-lowest satisfaction with their partnerships (66.1%), with common complaints including product pricing decisions and contract negotiations. Additionally, cosmetics brands increasingly sell their products online, competing directly with their own distributors. Online sales by brands rose to 28.1%, while distributors selling online remain minimal at 10.5%.

The Korean Fair Trade Commission plans to monitor and address these practices but highlights that systemic issues, such as enforced sales targets and online competition, need urgent resolution. Improving distributor relations is vital not just for fair trade but for maintaining trust across the cosmetics supply chain.


K-Beauty Brand Achieves Milestone in China's Market

    Korean skincare brand Gungjungbichaek (Royal Secret Formula) has become the first in Korea to secure registration for baby sunscreen products with China’s National Medical Products Administration (NMPA). This registration, covering four of its flagship sun care products, marks a significant achievement for the brand, which has already earned European CPNP certification.

The Chinese regulatory process is known for its rigor, especially for baby products classified as "special cosmetics." To meet NMPA standards, the brand provided scientific evidence for UV protection and passed tests for skin irritation, microbial contamination, and heavy metals.

This success strengthens the brand's foothold in China, where it first launched in 2016, and positions it for further global expansion. Notably, the brand has already dominated the baby sun care category on China’s Tmall, the largest e-commerce platform in the country.
Location: 한국

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