South Korean cosmetics start-ups launch innovative products

In a report released recently by Yang jihye, researcher of nbspmeritz 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, the conflict with franchised stores is becoming a hot issue. The efficiency of brand stores in the main business circle is decreasing, and the number of stores is decreasing due to the withdrawal of franchised stores and direct stores and the structural adjustment. The ability to collect and analyze customer data and the content they interact with the brand in an orderly manner has been strengthened, which can provide customers with more suitable products and services and increase sales. Based on customer data, the new marketing strategy can identify profitable customers, systematically maintain customer relationships and guide customers to buy.

According to the analysis, this is because of the high purchase frequency of cosmetics, easy connection with services, and various market positioning. Large enterprises, such as Amory Pacific, LG life health, cosme, Korea Kema, CJ olive networks, it's skin, cooperate directly with start-ups that need technology and investment, and actively develop products. Researcher nbspyang jihye analyzed that "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 are increasingly inclined 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 instagram, Facebook and other international social platforms is growing. According to the analysis, the main consumer groups of high-end cosmetics are the emerging digital millennials and Z generations, 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 fee is increasing. Although the sales management fee of Estee Lauder and Shiseido has increased, the proportion of sales management fee in the overall sales volume has decreased due to the sharp increase of sales volume. Recently, consumers have changed their habit of purposeful purchase and started to pursue new and more convenient online purchase. The newly emerging subscription economy and services are also aimed at enhancing customer loyalty and bringing new experiences. "