The global wave of D2C is an opportunity for new brands and customized cosmetics

Recently, ROK has suggested that with the global upsurge of D2C (Direct to customer), it may become an opportunity for new brands and personalized customized cosmetics, and the Millennium Generation and Z Generation leading the market show individualism and take the present as the future. As a result, the market is expected to continue to expand in the future.

Lee Seonghan, General Manager of Global Sales of Amazon, ROK, said at the Cross-border E-Commerce Conference of the ROK recently hosted by the Korean Chamber of Commerce and Industry that "in the era of Internet trade, with the rising trend of D2C, new brands and customized products are being favored." According to ACCENTURE, a global management consulting firm, the global cross-border e-commerce market will reach 994 billion US dollars in 2020, with a growth rate of 20.3%, and will grow annually. According to the statistics of Korea Trade Association, the export volume of cross-border e-commerce in Korea increased from 1.26 trillion won to 3.57 trillion won in the four years from 2015 to 2018, with an average annual growth of 42%.

He also introduced that Amazon's global sales support global enterprises to sell outstanding products to Amazon customers through the D2C feature platform. It is reported that in 2018, Amazon's resident distributors accounted for 58% of the total sales volume, with an average annual growth rate of 52%. 80% of enterprises sold new products or launched brands through Amazon.

53% of Amazon customers said it was more convenient to buy new brands on Amazon platform than on other platforms.

Lee Seonghan said that "customer-centered direct customer transactions, efficient and transparent information exchange, value-added service applications are becoming a trend, and Amazon's global sales will provide the best platform services for enterprises to succeed in global e-commerce."

Boston Consulting Group Jang Jinseok made a keynote speech on "Opening Global Market Opportunities through Cross-border E-Commerce". According to his analysis, with the intensification of trade protectionism between countries, cross-border shopping is growing continuously, and the Millennium and Z generations are leading the development of this market.

He believes that the economic, retail and cultural differences of consumers in different countries, together with the individualism of Millennium and Z generations and the current-centered tendency, are driving the accelerated growth of the market.

He points out that this view is based on the fact that 38% of the Millennium generation has experience of buying cosmetics, clothing and daily necessities across borders, far higher than Generation X (13%) and the baby boomer generation (7%).