"We will adopt a two-track strategy for the current and future Chinese market," CEO Yoo Geun-jick said in an interview with Yonhap News Agency.
"We plan to expand the local distribution channel to sell our existing products, and also develop a new brand through the joint venture."
Korea's fourth largest cosmetics brand's new joint venture will come in the form of a union with a China-based fashion company, Zhejiang Semir Garment Company, with It’s Skin due to contribute a new line of cosmetics products to the apparel company.
The improved distribution channel will be created by a recently signed deal with a Hong Kong based distributor, New World Development Ltd.
Intense competitiveness
Market research firm described China as a “fierce market” in terms of competition in its newly released report on the country, explaining that although international players have enjoyed command of the beauty sphere in recent years, the tide is about to change.
“Multinational players continued to lead the market in 2015, also profiting from new product launches,” the report explains. “Domestic players, however, are gaining ground, commanding a higher value share among the top 10 companies.”
The rise of domestic beauty brands is a trend It’s Skin’s Yoo is aware of, and the CEO has voiced caution for the future of K-beauty in China, stating that “the cliff is on the horizon”.
The ongoing rise of local players is due to their dominance in smaller cities, according to Euromonitor, which notes that their success “can be largely attributed to their stronger foothold in second- and third-tier cities, aggressive marketing activities and a better price/quality ratio”.
Moving online
It’s Skin has already made savvy moves to keep ahead of the competition within the China market: last year, it sold a minority stake to one of China’s leading online beauty retailers, Jumei.
The Jumei partnership, along with the recent development of its distribution channel and partnership with a fashion brand, positions It’s Skin as a readily available Korean beauty brand for Chinese consumers.