Online and H & B stores lead the growth of domestic cosmetics industry

Recently, it is predicted that compared with duty-free stores, the growth rate of online channels in the cosmetics industry in South Korea in 2020 will be further improved. Shin suyeon, a researcher at Xinrong securities, said in a recent report that due to the basic pressure of duty-free stores, as a cosmetics sales channel, online channels are receiving continuous attention. In 2020, the domestic cosmetics market in South Korea will grow by 12.7%, mainly through the Internet. Duty free shop, H & B shop, etc. The competitiveness of stores has been strengthened in the competition of various channels. In the process of market segmentation, although there are some enterprises pursuing efficiency, but in the physical stores, consumers still prefer H & B channels, so it is expected to grow at about 10%.

According to the report, if there are no external variables such as the restrictions of the Chinese government on purchasing on behalf of others or the policy of supporting duty-free stores in China, the channel sales of duty-free stores in South Korea will continue to grow slowly, and the sales proportion of cosmetics in duty-free stores will also increase. In the aspect of cosmetics consumption, due to the development of online content such as online red, application programs, etc., the situation of online cosmetics purchase will increase. In the past, brands believed that the Internet was the channel for clearing the stock. Recently, with the increasing importance of Internet marketing, beauty brands are carrying out various strategies. Although no stores have been set up in particular, the proportion of new and cutting-edge brands in online sales is also increasing, but traditional brand enterprises based on physical stores are also expanding the previous low proportion of online sales, so the growth of network channels in the future is very clear.

Researcher nbspshin suyeon said in the report that the main consumers of duty-free stores are Chinese agents, so Korean enterprises also need to manage the price of high-priced goods according to consumers' preferences. If the proportion of Chinese group tourists recovers, the benefits of duty-free stores and scenic spot stores will be greater. He also said that because of the characteristics of cosmetics, the experience of physical stores is very important, so we should develop a combination of online and offline sales programs. Compared with the blind expansion of physical stores, now it is time to improve the efficiency of physical stores and implement the effective strategy of opening and closing stores. On the contrary, in China, consumer favorite cosmetics brands will grow selectively.

Since 2016, South Korea has become the largest import target country of Chinese cosmetics, but in August 2019, Japan surpassed South Korea to become the largest import target country of China. According to the analysis, this is because the polarization of China's cosmetics consumption is more and more obvious, while the Korean brand is in the low price. According to the trend of South Korea's cosmetics export to China, by 2019, the export volume of skin care products and cosmetics has increased by double digits compared with the same period of last year. Although the growth slowed down compared with the past, it remained stable. In particular, relatively small-scale non urban retail sales are growing at a higher rate than that of cities. He believes that there is still growth potential in the third to fifth tier cities, but it is necessary to think about effective ways to enter the market.