Mass Beauty and Personal Care in South Korea

PROSPECTS

Road shop brands start to show slower growth

Mass beauty and personal care increased its power within beauty and personal care during the review period, as road shop brands pulled up consumer demand in general. Road shop brands not only led growth, but also enhanced consumers’ recognition of the quality of mass beauty and personal care products.

Retailers actively introduce new and exclusive brands

Retailers are trying to introduce brands that are only available through their own channels. Drugstores/ parapharmacies are most noticeable, exclusively retailing international brands such as Wet n Wild, No 7, Soap & Glory and Woodbury.

Barriers to market entry are low, due to ODMs

Several renowned ODMs (Original Design Manufacturers) are located in South Korea, and have been actively operating since the 1990s. This infrastructure makes it possible to lower the barrier to market entry, because through ODMs even individuals can easily order beauty and personal care products to launch their own brands.

COMPETITIVE LANDSCAPE

Road shop brands have the potential for expansion

Road shop brands continue to account for a large share of sales within mass beauty and personal care. However, as mass brands retailed through drugstores/parapharmacies and internet retailing are growing rapidly, road shop brands are seeking ways to diversify the position of their brands in order to expand further.

International brands and dermocosmetics set to increase with retail support

Domestic brands witnessed remarkable growth during the review period through road shop brands, leaving international brands to focus on drugstores/parapharmacies. International brands built close relationships with drugstores over the years, increasing their influence in mass beauty and personal care.

Even convenience stores have joined the competition

It is not just beauty retailers that are launching their own brands to attract consumers. In January 2018, convenience store chain GS25 launched the private label colour cosmetics brand Lovey Buddy.

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