Study finds China takes shine to South Korean cosmetics
According to Thomson Reuters, Korean beauty brands have little stake in the global markets but in Asia they are household names due to the influence of groomed celebrity ambassadors.
"We're taking aim at P&G's Olay and L'Oreal Paris in China's mass market segment with our entry-level brands," Lee Chang-kyoo, head of Amorepacific's corporate strategy team told the Agency.
China has been one of the most lucrative emerging markets in the cosmetics industry, and according to recent figures from event organisers of PCHi, the market for personal care and home care grew at an annual compound growth rate of over 12 per cent between 2011 – 2014.
Korean cosmetics firms are cashing in on this opportunity by targeting the mid-to-low end of the China market by rapidly opening stores and launching numerous new products each year.
Brands are clued up on investing in this area
Cosmetics manufacturer Cosmax is one SK brand to have made efforts to boost its presence in the Chinese markets earlier this year with the opening of its third factory in the country.
The new facility in the southern Chinese city of Guangzhou will increase its output capacity in the country amid rising demand over the next three years and is estimated to have seen its sales reach 62 billion won (US$58 million) in China last year, up 51.5 per cent on-year from 40.9 billion won.
Meanwhile, as aforementioned, AmorePacific has been consistently focusing on expanding its business in the AP region in an effort to confirm its stance as a key player in the ‘Korean beauty’ trend.
Since 2008, the brand says it has been focused on developing ‘industry first’ products such as the multifunctional stamp-type sunscreen and cushion-type cosmetics that received rising preference due to their ability to simplify the daily makeup routine and allow quick and easy touch-ups throughout the day.
This time last year the skin care giant reported it had sold more than 14 million cushion-type products globally and revealed that the domestic markets have been growing rapidly since 2006 at an average rate of 10.4 per cent.
And to date, the company has filed 24 patent applications and has been granted seven in South Korea, and plans to file another 27 applications overseas.
