Chinese warm wind drives the value of Korean cosmetics enterprises to rise

With the increase of tour groups and exports, China's demand for imported cosmetics has also had a positive impact recently. Some analysts say that since the beginning of 2020, with the "warm wind" blowing in China, the value of South Korea, with China's growth as the core, is rising rapidly. In a recent report, son hyoju, a researcher at Hanhua investment securities, said: China, the main growth driver of cosmetics in South Korea, has been stagnant since the Saad news incident, but has recently begun to moderate.  

China's 5000 reward groups tourists enter the country, a travel agency on the Korean tourism products, chairman Xi Jinping's first visit to Korea schedule plan exposure, and so on, the warm wind is getting stronger and stronger.   although the tour group's merchandise has gone off the shelves again, Xi Jinping's visit to Korea has not yet been determined. But it is learnt that in order to match the schedule of President Xi Jinping's visit to Korea, the Hallyu star performance in 3~4 in China is in preparation. Since September this year, South Korea's cosmetics exports have shown double-digit growth, showing a recovery trend. In particular, the year-on-year growth in December was more than 30%. Since July this year, China's export volume to the core market has recovered to double digits, and the recent growth rate has expanded to 40% to 50%. According to some analysis, although there is little correlation between the export volume of cosmetics in South Korea and the performance of individual enterprises, it shows the demand for "made in Korea" products, so the recent rising data is positive. However, based on China's import data, South Korea's cosmetics performance is not outstanding.

As Japan and France are still leading the way, recent rising data show that China's demand for imported cosmetics is mainly concentrated in major countries compared with the increase in demand. Researcher nbspson hyoju predicted that: considering the rapid growth of China's imported cosmetics after Sade, but the situation that South Korea's cosmetics are neglected, the recent increase of South Korea's cosmetics export to China and the expansion of China's imported cosmetics demand may have a positive impact on the production of South Korea's cosmetics industry. Sales of Chinese tourists and duty-free stores in South Korea also remained strong. In particular, the sales growth rate of duty-free stores in South Korea is higher than that of Chinese tourists visiting South Korea, and the per capita sales are also increasing, which is also a positive factor. The number of Chinese tourists is expected to continue to grow due to the Spring Festival holiday in January.

It is said that after the last Sade time, South Korea did not make the list of China's top tourist destinations in Spring Festival, but this year's Spring Festival has risen to the third place, which greatly eased the atmosphere of restrictions on Korean tourists. In particular, unlike Chinese tourists' concentrated demand for overseas high-end cosmetics, duty-free enterprises are committed to overseas cosmetics sales. Recently, with the continuous demand for global high-end cosmetics, the performance of Korean cosmetics enterprises changes according to whether cosmetics and duty-free enterprises are in business or not. To some extent, when Korean brands expand their marketing, Chinese demand will rise and sales will rise rapidly. Therefore, according to the company's will, it is possible for the performance of duty-free stores to grow. Researcher Sun said: the recovery of Korea China relations has a positive impact on the cosmetics industry in South Korea, but compared with all brands in the past, the performance of brand enterprises mainly in demand in China will increase. It is expected that in 2020, with the continuation of overseas heating, the positive view will continue.