April 27, 2024
Retail & Consumer
Korean cosmetics face double whammy in China
[THE INVESTOR] Korean cosmetics are increasingly facing difficulties in China with crashing prices due to heightened competition and tightened regulations, market watchers said on Feb. 2.
The average price of South Korean cosmetics has fallen by over 40 percent last year, according to Yonhap News Agency.
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This has been attributed to the bilateral free trade agreement and strengthened regulations, even as competition has intensified. Along with this, the volume of South Korean cosmetics imported into China has also suffered.
According to the industry data based on the customs inspection at Tianjin, the volume of South Korean cosmetics imported last year fell 46 percent on-year to 2,200 tons, on par with that of 2013. The beauty products were worth US$23 million, 69 percent lower than the previous year.
Last month, South Korea’s beauty giant Amorepacific Group lowered the retail price of over 320 products in China by up to 30 percent, from its better-priced makeup range Etude House to premium line Sulwhasoo.
Despite lower import and consumption taxes, the saturated cosmetics market also is a strong factor. Although South Korean imports doubled in 2015, international brands are aggressively tackling the market while Chinese products are improving fast, sources said.
They noted that the reinforcement of government regulations and brewing discontent over THAAD deployment remain possible obstacles for South Korean beauty companies.
By Hwang You-mee (glamazon@heraldcorp.com)
