▶Follow us on SNS to read more articles
<Facebook> https://www.facebook.com/chosunenglish
<X> https://twitter.com/chosunenglish
On the 30th of last month, at the “Tank Shanghai Art Center” in Shanghai, China, the nation’s famous idol Fan Chengcheng and more than 100 social media influencers (wanghongs) were seen holding the “Cheon-gi-dan” from LG Household & Health Care’s “The History of Whoo” (hereinafter referred to as “The Whoo”), capturing commemorative shots and videos. The event marked the unveiling of the renewed “Cheon-gi-dan,” the flagship product of “The Whoo,” after 13 years. The brand logo also underwent a change. While retaining the “后” design that represents “The Whoo,” the brand name was abbreviated from “The History of 后” to “The Whoo,” receiving praise for resonating with customers and creating a stronger connection to the brand.
Holding the “renewal event” in China, rather than Korea, was interpreted as a move to intensify efforts in the Chinese market, which had experienced setbacks due to the THAAD issue and COVID-19. It had also been four years since LG Household & Health Care held a promotional event in China.
Once surpassing French and Japanese cosmetic companies and expanding K-Beauty’s market share in global markets including China, Korean cosmetic companies are now actively venturing into international markets as COVID-19 restrictions ease. Especially, the two major players in the domestic cosmetic industry, Amorepacific and LG Household & Health Care, have drawn attention as they embark on overseas market expansion with distinctive strategies tailored to their strengths.
◇LG Emphasizing “Basic Lines” and Amore Expanding Its Scope Including “Colors”
LG Household & Health Care plans to re-strategize its approach in the Chinese market. To compete with Chinese local brands, it has adjusted its strategy towards online sales for budget brands like The Face Shop. On the other hand, premium brands like The Whoo focus on department store promotions and expanding their loyal customer base through major online shopping malls. To attract Chinese customers, they’ve revamped the “Cheon-gi-dan” product line while incorporating stories that resonate with Chinese preferences. The newly renovated Cheon-gi-dan highlights the application of familiar “hanbang” techniques to cater to Chinese consumers, and emphasizes enhancements in functionality based on data collected from over 17,000 Asian women’s skin. For the younger customer base, the strategy centers around the brand “Su:m37℃.”
Amorepacific is targeting markets beyond China. Amid the COVID-19 pandemic, Amorepacific has withdrawn its offline stores for brands like Etude, Hera, and IOPE in China and shifted its focus to online sales. The company is strategically leveraging products that are favored by Japanese and Middle Eastern consumers, emphasizing color cosmetics and specialized skincare lines. Their medi-beauty brand, “Aestura,” is set to make its global debut in September, starting with Japan. In June, Amorepacific held an event named “Amo Pasifesu” (Amore Festival) in Tokyo’s Harajuku district for two weeks. Within two days, all reservation slots were booked, and over 100,000 customer experience samples were distributed. Amorepacific, recognizing the popularity of Korean cosmetics in Japan, is rapidly entering the Japanese market by introducing the Aestura brand to offline and online stores on Japan’s leading beauty and cosmetics information website, AtCosme.
◇Struggles in the Slow-Recovering Chinese Market
Despite initial hopes for a post-pandemic recovery, the Chinese market is showing sluggish signs of vitality. Amorepacific earned ￦300 billion in the first half of this year in China, while LG Household & Health Care earned ￦377.7 billion (US$1=￦1319). These figures account for only 15 percent and 10.8 percent of their total sales, respectively. The trend of supporting Chinese domestic products, known as “Guochao” (国潮), amid China’s economic downturn, along with the decline of “Daigong” (代工) businesses that import Korean cosmetics to China from duty-free shops, have contributed to this situation.
Consequently, the two major Korean cosmetic companies are now focusing their efforts on the world’s largest cosmetic market, the United States. According to Euromonitor, as of 2021, the global cosmetic market size amounts to $529.835 billion (approximately ￦689 trillion). Among this, the United States takes the lead with $91.8675 billion, followed by China ($82.41965 billion) and Japan ($32.953 billion).
￦7 Billion Earning “Online Messi” Lee Sang-hyeok Aims for Gold Medal
U.S. Next-Generation Nuclear Reactors to be Built with Korean Technology
Film on North Korean Defectors “Beyond Utopia” to Be Screened in 600 U.S. Theaters
