Dramas, R&D fuel K-cosmetics

An image capture from the drama “My Love from the Stars” shows actress Jun Ji-hyun using cosmetic products, stocks of which have since run in stores. / Courtesy of AmorePacific

By Park Jin-hai

Fanding Zhou, 24, from Beijing, says the first items that her friends asked her to buy on her visit to Korea were cosmetic products, showing off small boxes of low and medium priced local brands “Missha” and “The Faceshop.”

“There is this perception that the quality of Korea moisturizing products exceds that of others, since it has a long dry winter season,” she said.

Zhou was among a band of tourists that walked out of Lotte Duty Free Shop’s ‘star zone,’ walled with pictures of local pop actors, in central Seoul, last week. Their hands were full of shopping bags.

Thanks to the popularity of Korean dramas, fed virtually freely through various on-line websites and mobiles, fans throughout Asia pay almost instant attention to what the actresses use on the screen.

Local cosmetic companies are enjoying the stardust effect. Type in “Korean makeup” and various tutorials on YouTube about “dewy,” “glowing” or “HD” makeup styles like Korean actresses will be listed.

The “Korean makeup style” is something that covers up your skin flaws but wears lightly on your skin. Thus closed up, it has more natural and younger look than heavy makeup.

In the left photo, Singaporean customers try out Laneige’s BB Cushion, Korea’s top cosmetic firm AmorePacific’s best selling beauty product in the Asian region. Right shows YouTube websites that provide various “Korean makeup” tutorials.

The Visit Korea Committee's survey of 3,000 tourists last year found that the beauty products topped their wish lists, with 32 percent saying so. It was followed by fashion items with 23 percent and tickets for performances with 16 percent.

LG Economic Research Institute's recently published report “Hallyu status via Internet search traffic” echoed the view. The study found the export of cosmetics products has been closely related to hallyu. Out of 16 countries with the highest traffics, 11 countries have showed close co-relation with cosmetics export.

Starting with China, cosmetic firms are expanding their outbound reach, establishing research centers and factories to localize their products. That is translated into increased sales in the Asian region.

“Korean makeup products make my skin look good, naturally, as if my own skin is as it is without wearing it,” says Eva Lui, 25, from Hong Kong. “I use Beyond's skin care products and Banila Co.'s blemish balm (BB). Korean cosmetics are really popular in my country. I see many cosmetics retail shops having been newly set up on streets.”

Exports of local cosmetic products grew by 20.9 percent last year, posting $1.29 billion in overseas sales, according to the Korea Pharmaceutical Traders Association. It has remained in the double digit growth rate over the past six years. In 2012 the export reached the $ 1.1 billion exceeding import for the first time.

Foreign media outlets like the New Paper from Singapore detailed the K-dramas’ spillover effects on other industries, saying that the recently ended local romantic-comedy drama “My Love From the Star” has officially taken Asia by storm. The Financial Times in November last year, also ran a story about Korean cosmetic firms’ global success on the back of star power.

If the K-drama jumpstarted the interest in K-beauty products, what keeps it spurring on are the R&D efforts to develop the products that best cater to the local customers’ needs. “We thought that Asian women have biggest concerns over dry skin. Since hot and humid weather and air-conditioning make skin extremely dry,” said Hong Myung-hyun, Laneige marketing manager.

Lanege is a signature brand of the local cosmetics giant AmorePacific. “BB Cushion is our number one hit seller in Asia. Not only do they come in different shades to accommodate various skin colors, it allows repetitive application, considering that the humidity wears off makeup easily,” he added.

Amore established the Asian Beauty Production and Research Center in Shanghai, China in 2004, and studying various skin types of Chinese women living in six different regions. For Laneige’s success, it also carried out researches on 1,200 Asian women over seven years.

In Singapore, with high purchasing power, it promotes high-end skin products, while in the Philippines and Malaysia, that favor makeup products, its focus is that its products’ color stays fresh looking for longer.

Amore’s overseas sales increased by 35 percent last year to 443 billion won, with China accounting for 60 percent of those. Its big domestic rival LG Household and Health Care posted a 56 percent jump to 446 billion won.

Its rival LG Household & Healthcare is also making rapid inroads partnered with local firms. Its low-priced brand The Face Shop has 1,500 outlets in 26 countries, in partnership with China’s Fo Shan, Hong Kong’s Color Mix and Japan’s Aeon.

Able C&C, known for its low-cost Missha brand, generated 20 percent of its sales last year in overseas markets. Its snail cream, containing snail extract, and BB cream have been highly popular in the region.