Will Gyeonggi Province be the Headquarters of K-Beauty?

Korean cosmetics industry has been growing its reputation with popular K-pop music and K-dramas. Gyeonggi province locates major cosmetics firms and looks forward to act as a control tower of domestic cosmetics industry.

ⓒKintexsw

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Tackling the COVID-19 crisis with its first case appearing on January 20, South Korea has shown strong determination in responding quickly and decisively against the virus. Among efforts to contain the virus, most people nowadays are wearing masks. Although, for most Koreans, wearing masks was already a norm not just for fashion but also to protect themselves and help protect others. At the same time, masks conceal the nose and mouth as fewer people are putting on makeup. Thus, sales of basic cosmetics, such as skincare products, instead of makeup, have skyrocketed.

The tendency of wearing masks made people wear less makeup.

The rise of K-beauty

As COVID-19 is now a global pandemic, it poses major challenges worldwide that impact all businesses ranging from cosmetics manufacturers and retailers to service providers and the like. Beauty professionals are among the many being affected by the pandemic. Korea, ranked 6^th in the world’s cosmetics market, has to cope with the challenges today and the lack of a control tower in the domestic cosmetics industry.

With the growing K-pop craze, Korean cosmetics and makeup have been also receiving enormous attention. K-beauty has earned a reputation as it rose from 17^th in global exports in 2009 to 4^th place in 2018 (USD 6.3 billion or KRW 7.6 trillion in exports)(according to South Korean Ministry of Trade, Industry and Energy). By 2019, the domestic cosmetics market had reached a value of KRW 14.4 trillion with more than 10, 000 cosmetic brands in existence.

Skincare products are selling like hotcakes

Based on this trend, the Korean government has pledged to intensively support the K-beauty cosmetics industry with the aim of helping Korea become one of the world’s top three cosmetic exporters by 2022 and realizing a record-breaking KRW 9 trillion in exports per year. Headed by the Ministry of Health and Welfare via the Korea Health Industry Promotion Agency, the Korean government conducted a feasibility analysis and a study on the present status of K-beauty cluster infrastructure.  The purpose was to incorporate basic data in determining the direction of cluster policy so that the government could provide the support needed for the development of the cosmetics industry. Moreover, it sought to determine the success factors, challenges, and required improvements for each development cluster (cosmetics) in Korea. In this way, the absence of a control tower in the local cosmetics industry will be addressed. This will be materialized through technology development as well as intensive partnerships and collaboration between companies, research institutes, and other organizations.

One of the many efforts to promote the K-beauty industry is the government’s initiative to increase the presence of K-beauty PR centers frequented by foreigners including those in Myeongdong and Gangnam of Seoul. To this end, a large-scale public relations campaign will be undertaken at the national level to attract overseas buyers. Additionally, a K-beauty cluster will also be established for cosmetics production, research and development, professional training in areas such as beauty services, and consultancies for SMEs.

The strong candidate 

Gyeonggi Province is one of the major candidates under consideration as a location for the K-beauty cluster. It is well positioned since Gyeonggi is home to the largest number of domestic cosmetics companies. The head office of the South Korean cosmetics brand Amore Pacific is in Yongin City, Gyeonggi-do; the research institute of Yuhan-Korea, which develops innovative new drugs and is also a pharmaceutical market leader, is likewise located in Yongin City; and Cosmax, a leading cosmetics manufacturer, has set up a production base in Hwaseong City. Additionally, Kolmar Korea, Carezen, Leader Cosmetics, COSON, Estra, C & F, Hwasung Cosmetics, and Shinsegae Intercourse Korea are also based in Gyeonggi-do, to name just a few of Korea’s many leading cosmetic companies.  Moreover, Gyeonggi-do has proven its reputation through its ‘Beauty Industry Promotion Project’ that encompassed seven beauty fairs worth KRW 3.4 billion and generated a total of KRW 66.7 billion in export contracts. 

COSMAX, AMORE PACIFIC, KOLMAR KOREA are the world leading cosmetic manufacturer and brand which has factories and research center in Gyeonggi Province

As K-beauty products continue to gain popularity among consumers around the globe, K-beauty manufacturers are offering more and more through promising beauty trends and innovations. Gyeonggi Province, as the de facto heart and potentially the official headquarters of K-beauty, continues to support and contribute to the growth of this dynamic industry.