While Asia Pacific continues to be the core market in beauty and personal care in 2018, K-Beauty is expanding its territory outside Asia Pacific. Not only beauty giants such as AmorePacific and LG Household & Health Care are commanding in the market, but many small and minor brands are also entering global competition with unique positioning. There has been all success stories about K-Beauty but for it to further prosper in global region, its limitations and weaknesses need to be reviewed.
Beauty and personal care in South Korea has reached maturity and forecast growth is not as appealing as in previous years. In this sense, K-Beauty needs to expand global coverage for future potential. Current K-Beauty stance is focused on the domestic market and some parts of Asia. The high concentration in Asian countries may lead to skewed product development and also leave brands vulnerable to external factors as political dispute.
Potential as well as limitation lies in K-Beauty’s spread globally. J-Beauty is picking up sales and C-Beauty is rising significantly. K-Beauty needs to grow out of selling the concept of Korean-style beauty routines. In order to grow further, K-Beauty manufacturers need to establish stronger brand power before K-Beauty’s fame fades.
Brands need to look out for several factors when entering a new market.Focusing on the right retail channel by growing out of internet retailing is necessary for future growth. Using the right ingredients and marketing activities is also critical. Expansion in multiple categories exampled by baby and child-specific products and hair care is also needed for global penetration.
Different consumer behaviours and beauty routines are evident in each region.Preference in terms of product features differs due to many factors including consumers’ lifestyles, environments and regional trends. In order to reach out to each region for expansion, brands need to take account of different desired benefits in specific region to gain a unique selling point.
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