By Kim Hyun-cheol
Staff Reporter
Shallow pockets do little to dampen the need to buy cosmetics for a 33-year-old publisher named Park. She says that she has no intention of going easy on her purchases, as are her friends.
``Economically, it's a tough time for everyone. But most women would rather spend less on dresses rather than cosmetics,'' said Park. ``As for cosmetics, women don't change their spending patterns easily.''
Thanks to Park and women of the same mind, domestic cosmetic firms are predicting significant growth next year, making it one of the few industries to beat the economic hard times.
Amore Pacific, the nation's leading maker, expects 6 percent growth to reach 7 trillion won.
Analysts support this robust growth projection.
``The market will gain over 5 percent next year, and will maintain that growth level for a while,'' said Kim Na-yeon, an analyst of KB Investment Securities.
This relatively optimistic outlook has historical grounds. During the onset of the financial crisis in 1998, the nation's economy contracted 6.9 percent with private spending down 13.4 percent but the cosmetics industry escaped virtually unscathed with a 0.2 percent contraction.
Other analysts say that there still exists more room for growth, citing larger-scale sales networks through department stores, discount stores and franchise shops are replacing traditional door-to-door sales. This year, cosmetics sales rose 21.2 percent in department stores and 11.9 percent at retailers.
At the same time, cosmetic firms are seeing strong exports boosting their bottom lines, and are planning to launch more brand shops in emerging Asian countries and the Middle East.