“ An exclusive interview with one of the most influent cosmetics association in Asia : The KOREA INTERNATIONAL BEAUTY INDUSTRY TRADE ASSOCIATION “
Mr JT YOUN chairman of IBITA, thank you very much for your time and for having accepted our invitation for this interview. It is an honoured and we are sure most of our readers can’t wait to hear what is happening now in Korea. We are very happy to get your insights on the korean industry.
What is the current K-beauty trend?
1. As wearing masks has become more common since Covid-19, there has been a significant change in beauty trends.
2. Mask wearing has a great impact on the overall beauty trend, and the overall sales volume of makeup products is not that big, but lip product sales are decreasing by detail item, while colorless products that are less noticeable even if smeared on the mask are popular in the base product category. The transparent powder product is the representative.
3. Innisfree's No-Sebum Mineral Powder has increased 5 times the number of cases. Meanwhile, fix mist or face powder that prevents makeup from being erased are also drawing attention.
4. Some predict that demand for eye makeup will increase because eyes will be exposed even when wearing a mask. Based on the data held by ISTYLE, eye makeup does not show as much change in demand as expected. It seems to be responding by using existing items but aiming for a subtle glitter effect when moving by adding shimmering products.
5. Due to the increased number of online meetings such as non-face-to-face video conferencing, there is also a tendency to pay attention to 'Telegenic'. Men are also increasingly interested in skin care by purchasing BB cream or using mask packs.
What are the main differences pre and post – pandemic?
1. The Covid-19 Pandemic has made "face-to-face contact" with people, which has been taken for granted, subject to limitation in an instant.
Above all, overseas exhibitions, and export consultations," which are SMEs' favorite overseas marketing means, have been blocked due to Covid-19, given that they can meet overseas buyers in person, with 83% of trade dependence."
Small and medium-sized companies that have sought a way out of the global market will inevitably face increased difficulties.
2. What is noteworthy in this situation is that promising non-face-to-face trend items such as K-beauty and quarantine products are seeing a sharp increase in exports online and offline. This means that "Contactless Export" has become a new export paradigm.
3. The surge in online exports has been supported by the government's policy, but it can be said that it has strengthened support for various non-face-to-face marketing methods such as holding online video counseling sessions, non-face-to-face webinars, overseas online malls, and live commerce promotion.
How is the overall business environment, in particular the cosmetics industry in Korea under the current pandemic situation?
1. We need to pay attention to 'GO VIRAL' on the Internet. By age group, teenage students often make purchases at stores after checking their reputation on the Internet, while office workers in their 20s and 30s often collect information through magazines, Internet, and SNS and make actual purchases through online e-commerce (EC).
Recently, the collection of information using the Internet has been increasing even in the upper 40s and older. In some cases, they check information directly on the Internet or shop online, but more and more beauty information is shared between mothers and daughters.
Based on word-of-mouth confirmed by the generation of digital-friendly children in their 10s and 30s through SNS, they give advice to parents in their 40s and 50s to purchase cosmetics.
2. It is time to expand the scope to high value-added products. In the past, if there were parts where "Cost-effectiveness = Good for the price" products were judged, there has been a perception that they are superior in quality recently, which has been relatively attractive.
In line with these market trends, K-beauty will also need to diversify its product lineup and increase its high value-added product lineup.
How do IBITA support the Korean cosmetics industry locally as well as in overseas markets?
1. Our IBITA is supporting Korean companies in various ways in consideration of the situation in which free immigration has become difficult due to the continuous influence of Covid-19 Pandemic. Korea-IBITA supports companies in parallel with hybrid so that companies can send products to the local market for export consultation with overseas buyers even if they do not go on a business trip.
2. In both online and offline sites, MD specialists in public relations are supporting companies by providing both proxy counseling and real-time video export counseling. We also host exhibitions, webinars, counseling sessions, etc. in a hybrid format. The projects were carried out in the first half of this year and are making great progress.
3. Above all, we IBITA put the safety of everyone first and wisely cooperate with overseas networks to overcome Corona 19.