The insight: Demand for Korean beauty products is soaring, helping buoy industry sales even as growth slows.
Why it matters: K-beauty products hit the sweet spot between quality and affordability, appealing to the growing ranks of value-conscious beauty shoppers. A nimble manufacturing network allows brands to get new products to shoppers in as little as three months, keeping fresh choices in front of consumers.
Unlike most beauty brands, K-beauty companies were quick to embrace the potential of Amazon and TikTok Shop.
Specialty retailers vie for share: K-beauty’s explosive growth has made it a focus category for Sephora and Ulta Beauty, both of which are racing to sign exclusive deals to prevent the other from dominating the market.
Our take: The Hallyu wave shows no signs of ebbing. Korea’s rising cultural influence is being felt on everything from films to music to food, with global spending on Korean cultural exports expected to nearly double by 2030.
Tapping into K-beauty—and demand for all things Korean—could help specialty retailers buck a broader sales slowdown and keep Amazon and TikTok Shop from stealing more beauty share.
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