While Korea is hurting from a long drop in exports, one industry is booming in shipments and posts double-digit growth. This draws the attention of policymakers seeking for a new way to grow its export.
Cosmetics sales for overseas increased to 73% this year throughout July as compared with a 4.9% decline for all industries. Beauty products surpassed Korea's so-called 13 flagship items including cars, chemicals and steel, most of which have a significant drop in sales.
While the value of cosmetics exports is quite small at $1.4 billion which is 0.4% of total outbound shipments, it is considered as one of the seven "promising industries" that can generate over $10 billion worth of overseas sales within five to ten years.
This is in accordance to the report this month by the Export-Import Bank of Korea. It is believed that the boom in the cosmetics industry is due to the popularity of K-pop stars and their use of beauty products, said the bank.
Asian countries such as China and Taiwan are the target of the shipments. The market for global cosmetics shall continue to grow per capita spending boosts and as the consumer base stretches to men and the elderly, according to Kexim.
As Hallyu or Korean Wave rises, K-beauty products and trends have also traveled overseas. Korean brands sold almost $371 million of cosmetics in China swelling to 251% compared to last year, according to the Korea International Trade Association gathered data from January to July.
Korea grabs a market share of 22% outperforming Japan and the U.S., which were last year's second and third place holders. The country now ranks second in China for the imported cosmetics.
Cosmetics sales from Korea's biggest beauty products maker, Amore Pacific, have towered in recent years on the back of a vigorous marketing and a wide range of beauty products fashioned to Chinese consumers.
The company gains substantial benefits from hiring several Hallyu stars as brand models, said the Amore Pacific spokeswoman, adding that sales are expected to continue growing for the foreseeable future.
The said company has research center as well as a factory that manufactures mostly skincare products in Shanghai. Last year, Amore Pacific had generated sales of 467 billion won in China.
Join the Conversation