South Korean cosmetics are regarded to be globally competitive, with growth buoyed by the popularity of the Korean Wave and the growing reputation of K-beauty. Beauty market in Korea is getting bigger and the health supplement market is also showing a steady growth. But some advises that now it is time to seek a fresh marketing strategy rather than relying on the K-wave since the global beauty market is changing fast and unexpectedly.
Then what is the competitiveness of the beauty and health market in Korea? Grace Choi, CEO of ‘Grace & Honest’, which manufactures health supplements and has become a booming influencer marketing brand with its own B2C strategy using Instagram Live, said that it is its leading trend rather than its high quality. K-beauty defines global trends in beauty. Unlike Europe, any small company in Korea can make his own cosmetic brand and promote the sales through diverse distribution channels as OEM(Original Equipment Development)and ODM(Original Design Manufacturing) market grew. They can even create brand value which is more tailored for various consumers who are very sensitive to new trends.
The new trend that Korea set and K-wave have a great synergy, especially in China and Southeast market. Furthermore, Koreans are considered as demanding consumers, so Korean market has become the test market for global companies. Not only reputable brands but also newly created brands are in the process of introducing new products that are targeted to Korean consumers.
Choi also expected that the beauty and health market in 2020 may no longer be led by large companies. The prevalent thought in Korea that ‘You should eat something good in order to be beautiful.’ will make Korean companies introduce health supplements for beauty. Major companies will jump on board and SMEs(Small and Medium sized Enterprises) will also make inroads into it because OEM and ODM production tends to perpetuate itself in health supplement market. The market seems already saturated. In order to survive and find a breakthrough in the export market, it should act fast, whether it is a large company or a small business.
But SMEs face having trouble obtaining capital or information while preparing to go abroad. They struggle to gain a foothold in overseas markets with its relatively weak base, therefore they face great difficulty convincing the market and consumers.
Choi pointed out one thing that Korean companies planning to expand overseas market should have as its own originality. There is a limit to taking someone’s things and copying them. The brand’s own story is more important than money or item. Choi also said that if the company don’t think about research & development and sales together, it cannot become competitive. Only when products are manufactured and sold at the same time can market conditions and changes be quickly captured, and feedback from actual consumers can be seen. Unlike when the company was marketing in Korea, the global market does not bring immediate results. You can’t survive if you don’t have your own originality and viewpoint.
Kayla Hong
Asia Journal
(Los Angeles Times Advertising Supplement)
