Korean Indie Brands Lead K-Beauty Exports
Ha Jisu
Representative, WITHONNEWS
Global interest in hallyu, the Korean Wave, is intensifying interest in Korean beauty products and makeup techniques, especially among members of the “MZ generation” (millennials and Gen Z). Influenced by social media, consumers around the world are paying special attention to Korean cosmetics and beauty practices used by K-pop idols. Popular YouTube videos include introductions and reviews of Korean-style makeup, videos copying the makeup style of Jang Won-young from girl group IVE, and women from around the world participating in Korean-style makeup challenges. Such videos emphasize the “clean and natural” characteristics of Korean makeup, the "dewy skin” trend, and the high quality of many Korean cosmetics. A notable example is Russian YouTuber Dasha Taran’s video comparing US and Korean makeup trends, which has earned 1.26 million views. The popularity of similar videos is contributing to the explosive increase of worldwide interest in Korean beauty products.
Thanks to streaming platforms and the current fourth wave of hallyu, Korean cosmetics are dominating the Japanese market, with almost all cosmetics stores in Japan displaying Korean beauty products. According to the Korea International Trade Association (KITA), Korea became the number one exporter of cosmetics to Japan in 2022, even surpassing the cosmetics powerhouse France. Japan imported JPY 77.5 billion (approx. USD 521 million) in Korean cosmetics that year, compared to JPY 76.4 billion (approx. USD 513 million) from France. Most outstanding are the numerous small and medium-sized Korean brands recognized for their high quality and reasonable prices. Such brands are often referred to as プチプラ or “petit price.”
Previously regarded as a barren market, the success of Korean beauty products in the US is also quite impressive, with key players being small and medium-sized brands there too. Exports of Korean cosmetics to the US rose to KRW 132.9 billion (approx. USD 100 million) last year, or 46.4 percent more than the previous year, according to KITA. The surge was made possible through the wide introduction of products to Americans via TikTok, Instagram, and other social media channels. One sunblock provider in particular emerged as a prime example of small business success as its product containing rice extracts recorded top sales on Amazon after a TikToker with 910,000 followers provided their review.
These Korean indie brands are sold at lower prices than famous ones, but appeal greatly to global consumers due to their high-quality ingredients and effectiveness. China’s demand for Korean cosmetics is experiencing a decline, but this lack in Chinese orders has been overcome through the diversification of export markets. Despite the decrease of exports to China last year, small and medium-sized cosmetics companies registered unprecedented volumes of exports as their sales increased by 12.9 percent in Japan, 47.2 percent in the US, and 28.6 percent in Viet Nam. The companies that became first and second bestsellers on Amazon, thanks to their sunblock and serum respectively, did so because of their use of good ingredients. By manufacturing products with beans and other vegan ingredients, they are leading the K-beauty craze, promoting “natural cosmetics from Korea” to the global market.
Taking advantage of the worldwide demand for Korean cosmetics, beauty products from indie brands are experiencing steadily growing sales in spite of the general decrease in business this year. Stressing cost effectiveness backed by excellent quality and reasonable price, they are in hot demand in global markets and make effective use of a wide variety of sales channels, from offline stores to e-commerce sites. Particularly encouraging is their growing presence in Japanese and US markets. This is a direct result of successful marketing strategies targeting the global MZ generation: “good quality for reasonable prices,” keeping up with changing trends, and collaborating with beauty influencers on social media.
As of 2022, a total of 10,119 Korean companies were registered with the Korean Ministry of Food and Drug Safety as responsible distributors of cosmetics, and hundreds of new brands are debuting every day. Under the given circumstances, simply falling under the umbrella of “K-beauty” is no longer enough to differentiate cosmetics manufacturers from other global brands. Many Korean indie brands and their beauty products have secured competitiveness by having their functional effects certified. However, it is necessary to manage them in accordance with international standards as the certification process is fairly complicated in each country. Amid a worldwide economic slowdown, Korean indie brands boasting cost effectiveness are expected to prosper further, but a marketing strategy using hallyu is necessary to boost their global confidence and recognition. Last but not least, a number of plans and policies are needed to overcome budget products’ profitability issues by strengthening price competitiveness and enhancing their brand value.
Please note: This article has been authored by an expert outside the Korea Foundation. The views expressed here may not reflect the KF’s official position.
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