POSCO Daewoo promotes Korean cosmetics in Europe

By Park Si-soo

POSCO Daewoo has formed a partnership with Europe’s largest drugstore chain, Boots, a deal expected to help facilitate Korean cosmetics companies’ entry into the European market.

Under the deal, products of two Korean cosmetics firms (Caolion Cosmetics and SKINFOOD) will be on sale at Boots’ 200 outlets in the United Kingdom and through the drugstore’s online shopping mall, Korea’s largest trading company said on Tuesday.

Boots is the largest health and beauty products retailer in the U.K and has nearly 3,000 outlets in 25 countries.

The deal marks the first case of Korean cosmetics brands entering the European market through a promotional event initiated by a British retailer. Boots inked the deal as part of its “K-Beauty” promotion.

Four products from Caolion Cosmetics, including a facial mask sheet, and three from SKINFOOD, including facial black sugar scrub, will benefit from the event.

The products will go on sale in the “Beauty Finds” and “Beauty Emporium” sections of Boots’ major outlets from February and will expand their presence to all the retailer’s outlets in phases.

While POSCO Daewoo has tried to promote Korean cosmetics in Europe through its marketing network there, the firm’s London office has managed issues related to customs clearance, logistics and store operation.

The deal is considered a model form of mutual growth partnership between big and small companies, given that small and medium cosmetics firms were able to make forays into the European market by taking advantage of POSCO Daewoo’s business network and the company can also cash in on it.

“This is a big achievement because the European market that sets the trend of the world’s cosmetics business has recognized Korean cosmetics’ quality and brand value,” said Nam Si-kyung, a POSCO Daewoo executive in charge of the project. “Local buyers have recognized Korean cosmetics’ competence and value, so they are considering making more Korean products available (in Europe). I think POSCO Daewoo will play a bigger role as a strategic partner of Korean cosmetics companies given Europe’s strict regulations on foreign cosmetics products and other issues related to marketing and sales.”

Meanwhile, POSCO Daewoo is in talks with Douglas, another major beauty product retailer in Europe, to pave the way for the retailer to sell Caolion Cosmetics’ products at its outlets. It is also working to find ways to promote Korean cosmetics in regions with big growth potential such as Eastern Europe, Latin America, South Africa and Southeast Asia.