By Kim Hyun-cheol
Staff Reporter
The pan-Chinese market, including China, Hong Kong and Taiwan, has been one of the biggest targets for the Korean wave, dubbed ``hallyu.'' Now the trend is driving momentum for exporting something other than pop music, movies and television shows ― cosmetics.
Of last year's beauty product exports, $304.1 million in total, more than half went to those regions, the Korea Cosmetic Association (KCA) announced Tuesday.
Sales to the three states in 2007 stood at a combined $157.5 million, or 51.8 percent of the total, outnumbering those to all other markets worldwide. China purchased $97 million worth of cosmetic products from Korea, taking up 31.9 percent of their exports, with the United States, Hong Kong and Taiwan trailing with $33 million, $31.1 million and $29.4 million, respectively.
The share of this market stayed at 34.8 percent until 2003, but surged to 50 percent in the following year and has been maintained at that level ever since.
China is emerging as a huge potent cosmetics market. It is now maintaining annual sales revenue of over 50 billion yuan ($7.3 billion), ranking second in Asia trailing Japan and eighth in the world. The market is predicted to hit 80 billion yuan this year, and grow to 140 billion yuan by 2010, according to the Korea Institute of Industrial Economics & Trade.
The business also has a huge advantage in the dynamic Chinese market. While the country is strictly controlling most industries within its territory, cosmetics is one of a few fields open to more engagement by foreign-based players.
Currently, major foreign brands or their joint-venture brands are dominant in the Chinese market, especially the high-end one.
Hallyu is obviously a major drive for the rising popularity of Korean products, the KCA said.
``Exports to Chinese markets grew along with Hallyu's spread to the regions," a KCA official said. "Success of Korean cultural contents also influenced cosmetic sales, as more customers became interested in the beauty-care favorites of Korean celebrities."
The data, however, also showed incongruity is continuing in Korea's overall cosmetic trade. Imports last year stood at $751.8 million, more than double overall exports.
Just as in exports, import demand concentrated on several major producers. Products from top three countries ― France, the United States and Japan ― took up 65.7 percent of the total imports.
Four local makers made it to the world's biggest 100 companies in the business. Amore Pacific led Korean companies at 20th, with LG Household & Care, Koreana Cosmetics and Missha following in 31st, 80th and 94th places, respectively.