The trend change of cosmetics retail channel in 2019 attracted attention

In recent years, the trend of cosmetics retail channel has changed. The industry analysis believes that we should quickly develop strategies to deal with consumer trends. According to the analysis report on the cosmetics industry in 2019 issued recently by the Korea Health Industry Promotion Institute, the popular trends of the cosmetics industry in 2019 include the full implementation of customized cosmetics, the trend change of cosmetics retail channels, the continuous growth of OEM · ODM enterprises, the era of moral consumption of global moral value, and the expansion of halal cosmetics market, etc. With the simultaneous emergence of multiple retail channels, the retail environment and consumption mode have changed. In the early 2000s, the number of "one brand shop" stores that entered the peak period of cosmetics retail in South Korea has decreased dramatically recently. It is considered to be the biggest factor that the market of H & B stores is encroached by the largest competitor. &H & B stores led by large enterprises such as aliflo, lalavla, chicor and lohb's are growing continuously, and similar physical stores are diversifying.

At present, the total number of shops in the three H & B stores is 1512. After 1356 stores in 2017 and 1490 stores in 2018, the number keeps increasing for three consecutive years. The online retail market is also changing. There are more and more cosmetics brands that can be purchased online, which is one of the main reasons for the decline of the store development momentum. Especially in South Korea, SNS is regarded as the core tool of cosmetics business. It is not just product publicity, but from the development stage to sales, SNS is the center of operation, which has a positive effect on the actual sales and customer inflow rate. Recently, Sephora, a global cosmetics store, has been listed in South Korea. It is expected that the competition between H & B stores will be more fierce. In this regard, the cosmetics industry analysis believes that, while exploring the diversification of retail channels, we should quickly develop strategies to deal with consumer trends. Recently, due to the deterioration of external conditions such as the uncertainty of the global trade environment, the cosmetics industry is also in a state of stagnation.

In this case, domestic cosmetics OEM and ODM enterprises perform better. The analysis results of the operating performance of 34 domestic listed companies in 2018 show that the overall sales volume is 13.2 trillion won, an increase of 8.4% year-on-year, but the operating profit is reduced by 4.8% year-on-year, and the profitability is decreased. On the contrary, the sales volume of Korean KOMA and Kosme, which represent OEM · ODM enterprises in China, was 89.1 billion won and 679.4 billion won respectively, up 30.8% and 28.6% year-on-year, driving the growth of the overall cosmetics industry. In particular, KOMA, South Korea, LG life health and amore Pacific are among the top 100 manufacturers in terms of sales. According to relevant persons of Korea Health Care Industry Promotion Institute, the sales channels of cosmetics have become diversified, and it is easier for small and medium-sized cosmetics enterprises to enter the market, but most of them do not have their own production facilities, so they entrust domestic OEM · ODM enterprises to produce cosmetics. With the change of retail channels and diversification of brands in cosmetics industry, it is expected that the necessity of entrusting manufacturers will gradually increase.