South Korean cosmetics start-ups launch innovative products

South Korean start-ups that directly develop and manufacture cosmetics are opening up new markets through innovative products. According to a report recently released by Yang jihye, researcher of meritz comprehensive financial securities, the market of beauty services such as skin care industry is expanding rapidly. On the contrary, the number of exclusive cosmetics stores is decreasing significantly. Due to the continuous growth of cosmetics purchased through online and mobile phones, conflicts with franchised stores are becoming a hot issue. The efficiency of brand stores in major business circles is decreasing, and the number of stores is decreasing due to the withdrawal of franchised stores and direct stores and structural adjustment. The ability to collect and analyze customer data and the content of their interaction with the brand in an orderly manner has been strengthened, which can provide customers with more suitable products and services and increase sales. New marketing strategy is based on customer data to identify profitable customers, systematically maintain customer relationship and guide customers to buy. There are many start-ups in the cosmetics field, especially cosmetics. According to the analysis, this is because the cosmetics purchase frequency is high, it is easy to connect with services, and it can carry out various market positioning. Major enterprises, such as Amory Pacific, LG life health, Cosmi, Korea Kema, CJ olive networks, it's skin, cooperate directly with start-ups that need technology and investment, and actively develop single products. According to the analysis of researcher Yang jihye, "the survival of start-ups depends on whether they can overcome the period of capital hunger. From the perspective of cosmetics manufacturers, credit risk management is needed." In addition, cosmetics enterprises tend to reduce the cost of physical stores and strengthen online investment. In 2018, the digital advertising fees of domestic cosmetics enterprises in South Korea increased by 53% year on year, especially the influence of international social platforms such as instagram and Facebook. According to the analysis, the main consumer groups of high-end cosmetics are the emerging millennial and Z generation familiar with digital, so digital media activities are becoming more and more important in high-end brand marketing. International cosmetics enterprises have also expanded their investment in digital marketing, and the sales management fees are increasing. Although the sales management fees of Estee Lauder and Shiseido are increasing, the proportion of the sales management fees in the overall sales volume decreases due to the sharp increase in sales volume. Recently, consumers have changed their purposeful buying habits and started to pursue new and more convenient online shopping. The newly emerging subscription economy and services are also aimed at enhancing customer loyalty and bringing new experiences. "