Korean media recently reported that, against the backdrop of the continuous improvement of South Korea-China relations, the Korean beauty industry is once again viewing China as a key strategic position to drive the "second growth curve." On the eve of the 32nd APEC Leaders' Informal Meeting, Global Times in both Chinese and English editions jointly interviewed important enterprises in the fashion and beauty industries of China and South Korea with the Korean Chosun Ilbo, reviewing the development of the fashion and beauty industries in China and South Korea over the past two decades, and deciphering the future development codes of the Chinese and South Korean markets.
After the interview, the Korean Chosun Ilbo published an article on the 10th titled "South Korean Brands Can Only Enter the Chinese Market by Thorough Localization," reporting that most South Korean companies are currently facing difficulties in the Chinese market due to accelerated technological iteration and intensified competition. The way for South Korean companies to succeed in China lies in "thorough localization" — even to the extent that Chinese consumers can't sense that it's a South Korean company.
Dropout: Cosmetics Giants Can't Keep Up with the "Speed of China"
The recent National Day and Mid-Autumn Festival holidays saw South Korea actively welcoming Chinese tourists. The South Korean government had previously announced a trial policy from September 29 to June 30 next year allowing group tourists from China (three or more people) to enter without a visa. The retail and tourism sectors have high expectations for this and are actively planning related marketing activities.
In the wave of travelers going to South Korea, Li Jinshi, the head of the Korean business development at Tmall International, closely monitored the consumption trends of Chinese consumers in South Korea, tracking their notes and "planting grass" (recommendations) on social platforms, striving to "rescue" Korean high-quality fashion brands that have just grown domestically but have low recognition in China.
Data released by Tmall International recently showed that in the first three quarters of this year, more than 1,700 overseas brands opened their first stores on Tmall International, among which the number of new Korean brands that joined in the second quarter increased by 110% year-on-year, and the third quarter also saw the fastest growth in the number of new Korean brands.
South Korean fashion brands have not always been "top students" in the Chinese market. Taking Korean cosmetics as an example, statistical data show that in 2021, the share of Korean cosmetics exports to China exceeded 50%. From 2022 onwards, the export share of Korean cosmetics to China continued to decline. According to the latest report from the Korea Food and Drug Administration, the share of Korean cosmetics exports to China fell below 20% for the first time in the first half of 2025.
Shi Fenglei, the head of the cosmetics and personal care industry at Tmall International, has experienced the changes in the Korean cosmetics market in China. Before 2017, Korean cosmetics brands mainly entered the Chinese market through overseas purchasing. At that time, cosmetics under brands like Aujua and AmorePacific were extremely popular in the Chinese market. From 2017 to 2022, Korean cosmetics brands began to pay more attention to localized operations in China. During this period, the outbreak of the epidemic, coupled with the rise of Chinese domestic cosmetics brands, caused the growth of Korean cosmetics to slow down. Well-known Korean cosmetics brands such as Innisfree and Etude House generally began to re-adjust their strategies in China.
Why did Korean cosmetics fall behind in the Chinese market? Recently, the Korean Yonhap News Agency reported that after the epidemic and the deployment of the THAAD anti-missile system in South Korea, which led to a boycott from China, demand for Korean cosmetics in the Chinese market fell into a long-term slump. In addition, changes in Chinese consumer trends have also posed new challenges for Korean cosmetics companies.
Why have Chinese brands risen so quickly? Shi Fenglei said that one core element is the "speed of China" — from product development, production, to selling to consumers, it takes up to six months. This is due to China's strong supply chain, the innovation of Chinese companies, and the fast speed of product updates. He gave an example, saying that Chinese companies plan and update products in niche categories very quickly. After a product succeeds this year, they immediately plan the product lines for next year and the year after. Chinese domestic brands, with their deep understanding of local consumer needs and flexible and efficient supply chain response capabilities, have shown strong vitality in the market, becoming powerful "opponents" for foreign brands. In fact, not only are South Korean brands adapting to the new changes in the Chinese market, but Western cosmetic giants are also facing competition with Chinese domestic brands.
According to the "Insight Report on Domestic Cosmetic Consumption Trends" released by Yi'en Data, the market share of domestic cosmetics in 2024 reached 55.2%, an increase of 2.9 percentage points compared to the previous year.
Cosmax, a South Korean company, develops and supplies cosmetics products for more than 4,500 global clients, including L'Oréal Group, Estée Lauder, and Johnson & Johnson. In 2004, Cosmax entered the Chinese market. Li Sang-in, General Manager of Cosmax (China) Cosmetics Co., Ltd., recalled during an interview with reporters from Global Times in both Chinese and English editions and the Korean Chosun Ilbo, that when he entered the Chinese market in 2004, there were Chinese cosmetics brands such as Zheng Mingming, Dabao, Caiyuzhidai, Natural堂, and Puleya. At that time, the Chinese market was mostly dominated by foreign brands, while local brands mainly focused on low-priced offline channels and were active in fourth- and fifth-tier cities. Today, some Chinese brands have faded from the market, some have been acquired by foreign companies, and others remain leading brands in the Chinese cosmetics market.
"We had long predicted that the Chinese cosmetics market would grow rapidly!" Li Sang-in believes that from the early days when international brands dominated, to now, where domestic and international brands compete side by side, China is not only one of the largest cosmetics consumption markets in the world, but also a fast-evolving innovative market centered on online platforms...
Original: https://www.toutiao.com/article/7559769616747971107/
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