South Korean Cosmetics and Beauty Products Doubled their Exports to China
Exports of South Korean cosmetics and beauty products to China has doubled in 2015 to a record high if $1.088 billion based on the latest figures coming from the Korea International Trade Association. The results showed the total cosmetics exports were worth $2.75 billion or a 53 percent increase that meant 39.5 percent of the products went to China. South Korea’s Annual exports of this type of brand enjoyed double digit growth since 2010 and in 2014 it increased to 95 percent year on year and 100.6 percent for 2015.
Current export leader is Innisfree, a brand produced by South Korean cosmetics group AmorePacific which has expanded the number of its stores to a hundred in China since it opened in 2012. AmorePacific say that the company is planning to become Asia’s top cosmetics producers that have global sales of 70 billion yuan by 2020. China is already their largest market and the nation is forecasted to contribute 28 percent of the company’s global sales then. The south Korean brands are more visible among younger Chinese shoppers especially those who focus on medium to low end products.
South Korean cosmetic brands often have a stronger desire to export compared to their counterparts from Japan. Since South Korea adopted an innovative marketing vehicle such as micro movies and application interactions with consumers in order to attract younger shoppers. Furthermore increased use of cross border e-commerce sites allowed more access to international brands.
According to Mintel’s Overseas Online Shopping report that will be released soon is expected to show nearly half of the beauty and personal care products sold in China from June to November 2015 came from South Korea, making it the popular source country followed by 29 percent from Japan and 27 percent from France. China’s free trade agreement with South Korea took effect last December, but had little effect on the beauty products sector with only shampoo and skincare products seeing significant reductions in the import tariffs for 20 to 35 percent.
South Korean brands offer a wider range of newer and more topical products, while European and US brands remain the most popular in skin care, with 21 percent say their favorite brand are French labels, but are mostly manufactured locally followed by those coming from the US with 13 percent than South Korea 2.3 percent.