Through these meetings with local industry players, the Korean trade authorities hope to improve the brand awareness these Korean cosmetics SMEs in the US market and help them adapt to the trends of the local market, such as the popularity in natural and organic beauty.
“In order to effectively utilise the changing market conditions in the US, the Ministry of Commerce, Industry and Commerce and KOTRA are making efforts to advance the mainstream distribution network,” said KOTRA in a press statement.
Networking for success
KOTRA announced on Tuesday that it has arranged meetings between 20 Korean cosmetics SMEs and 60 major buyers in the US cosmetics industry in New York. These meetings will be held in alliance with IPSY, the largest online beauty distributor in the US.
It has also arranged for 15 companies to a three-day General Market Development Center (GMDC) conference in Orlando, Florida, where they will have consultations with with 56 large distribution networks, including Kroger, an American retail chain.
Last year, as only eight companies participated in the GMDC conference, KOTRA shares that it signed a Memorandum of Understanding (MOU) with the GMDC conference to increase the number of participants for this year’s event.
A member of the association, which participated in the event last year revealed that participating in the GMDC conference led them to a deal with US drugstore chain CVS. “Participating companies can look forward to building networks with the US mainstream distribution chain at GMDC conferences.”
"The possibility of Korean beauty products entering the US market is very large and we will expand opportunities to consult with Korean companies with GMDC members," said Chairman of GMDC Patrick Spear.
A slice of the pie
The US is the world's largest cosmetics market, valued at $86 billion last year. KOTRA stated the market share of South Korean beauty products in 2017 increased 28% from the previous year.
"As interest in Korean cosmetics continues to grow in the US beauty market, the prospects for market expansion are rising as well," said Kim Doo-young, Director of KOTRA's Innovation and Growth Division.
