Chinese cosmetics brands are expanding their distribution networks in South Korea, targeting the domestic market. By emphasizing trendy designs and product offerings, they are attracting younger consumers and also increasing their presence in the U.S., a key export market for K-beauty.
According to data from the Korea Customs Service on October 21, imports of Chinese cosmetics, including skincare and color cosmetics, reached approximately $62.45 million from January to September this year, a 24.5% increase from $50.15 million during the same period last year. Every month this year, except for July, has seen imports surpassing the previous year's figures, with September recording the highest monthly total of $8.41 million.
Chinese color cosmetics brands are gaining popularity among the trend-sensitive 10-20 age group in South Korea, expanding their sales channels both online and offline. The C-beauty brand Flower Nose has opened a store on Musinsa Beauty, followed by Into You and AZTK. Flower Nose products are also available at Musinsa's mega store in Seongsu and Shinsegae's Chicor. Musinsa stated, "We selected makeup brands for entry based on domestic customer demand and preferences."
Chinese brands are not solely relying on low prices. Flower Nose, known for its 'princess-style cosmetics,' emphasizes the collectible value of its packaging and collection designs. At a pop-up store operating from October 16 to 25 in Seongsu-dong, products range from around $10 for small items to over $30 for individual products and more than $40 for bundled items.
In global markets like the U.S., where K-beauty has a strong foothold, C-beauty is also ramping up its distribution efforts. Last month, Flower Nose began a limited-time sale of five representative products in 450 Ulta Beauty stores across the U.S. This marks a significant expansion into offline sales just nine months after entering Ulta's online platform in December of last year. Additionally, Chinese cosmetics company Proya plans to launch a line of elasticity and skin barrier management products in 400 Ulta stores and online in November. Ulta Beauty has historically played a crucial role as a key distribution channel for K-beauty brands entering the U.S. market, and now C-beauty is following suit.
However, C-beauty's status in the U.S. cosmetics import market still pales in comparison to K-beauty. According to the U.S. International Trade Commission (USITC), from January to August this year, imports of South Korean cosmetics into the U.S. totaled approximately $1.366 billion, a 17.2% increase from the previous year. In contrast, imports of Chinese cosmetics amounted to about $378.44 million, a mere 0.5% increase.
Industry experts caution that South Korean brands need to prepare for the influx of Chinese cosmetics. While Korean cosmetics have built trust through their focus on ingredients, low-irritation products, and skincare methods, Chinese brands are now supplying major distribution networks with color cosmetics that emphasize design and efficacy. As Chinese brands compete on design and product composition rather than price, Korean color cosmetics companies will need to differentiate themselves by appealing to consumer preferences in addition to pricing and formulations.
Kim Young-joo, a professor in the Department of Cosmetic Science at Eulji University, stated, "The areas of competition between C-beauty and K-beauty will overlap significantly in the future, especially in the color cosmetics market, where competition has already begun. For U.S. buyers, what was once the novelty of K-beauty as a selling point may now lead them to question how K-beauty products compare to those from China and Japan, potentially obscuring the position of Korean brands."
* This article has been translated by AI.
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