{"id":45355,"date":"2019-11-18T08:15:53","date_gmt":"2019-11-18T00:15:53","guid":{"rendered":"https:\/\/daxueconsulting.com\/?p=45355"},"modified":"2023-02-21T22:02:12","modified_gmt":"2023-02-21T14:02:12","slug":"j-beauty-and-k-beauty","status":"publish","type":"post","link":"https:\/\/daxueconsulting.com\/j-beauty-and-k-beauty\/","title":{"rendered":"J-beauty and K-beauty in China: Key players in Chinese cosmetics market"},"content":{"rendered":"\n

In the Chinese cosmetic\u2019s market<\/a>, there is strong influence from the neighboring countries Korea and Japan. Known as K-beauty and J-beauty, East Asian fashion from Korean and Japan has successfully penetrated China\u2019s beauty industry, which is the second largest beauty industry in the world. According to Euromonitor, China\u2019s beauty industry<\/a> it is expected to be worth US$62 billion<\/a> by 2020. While several large western brands like Dior, Chanel and Estee Lauder maintain an oligopoly market in China, Korean brands like Innisfree and Whoo, and Japanese brands are still gaining market share. According to L2 Digital IQ Index Rankings<\/a>, Japanese brand SK 2 is ranked 6th, and Korean brands like Innisfree and Laneige ranked within the top 7. In 2017, among $2.6 million exported Japanese beauty products, Hong Kong and China accounted for nearly $1.5 billion<\/a>, according to the Ministry of Finance. At the same time, South Korean cosmetics exports to China reached US$151 million <\/a>in January in 2018.<\/p>\n\n\n\n

Consumer perceptions of J-beauty and K-beauty\nin China<\/h2>\n\n\n\n
\"k-beauty<\/figure>\n\n\n\n

[Source: WeChat \u201cThe WeChat index of Korean cosmetics and Japanese cosmetics in China. K-beauty is only slightly more searched than J-beauty in China\u201d]<\/p>\n\n\n\n

K-beauty entered the\nChinese market early with the influence of K-dramas and K-pop, part of Hallyu\nin China (Hallyu refers to the Korean wave, or the explosive popularity of K-pop\nin China). However, J-beauty became more popular in recent years, gradually\noutscoring the market share of K-beauty in China. <\/p>\n\n\n\n

Why is J-beauty currently out-competing K-beauty in China?<\/h3>\n\n\n\n

Over the past five years,\nSouth Korean beauty\nand cosmetics exports<\/a> to China had an average growth of 66 percent.\nHowever, in 2018, k-beauty exports to China only increased by 20 percent<\/a>.\nWhy the sharp drop in K-beauty in China? <\/p>\n\n\n\n

Recent current events\nhave affected China-Korea economic relations and ultimately the k-beauty market\nin China. As tourism to Korea is one of the drivers of the China\u2019s k-beauty\nmarket, the popularity of K-beauty in China is subject to changes tourism to\nKorea. Korean brands were first hurt by the MERS outbreak in Korea in 2015,\nwhich resulted in sudden decline of Chinese tourists to Korea. This could have\nbeen a short term incident, as MERS was rather quickly put out by nationwide\nefforts in Korea.<\/p>\n\n\n\n

However, something else<\/a>\ncame between China and Korea. THAAD, or Terminal High\nAltitude Area Defense, which is an American\nanti-ballistic missile defense system. The governments of South Korea and US\nagreed to deploy THAAD in Korea to defend the country from North Korea\u2019s\nmissiles.<\/p>\n\n\n\n

Chinese government demanded that THAAD\nshould not be installed in Korea, as it would spy on China. From 2016, when THAAD deployment in Korea was decided, to 2017 when THAAD was actually installed, Korean companies that were\ndoing business with China had to scale down their Chinese operation quite dramatically.\nThe damage to Korean firms\u2019 business related to China from THAAD (and MERS) has\nnot been fully recovered yet.<\/p>\n\n\n\n

Also, Japanese brands\nare usually associated with \u201chigh quality\u201d \u201chigh-tech\u201d. Chinese consumers care\nabout having youthful skin, and\nbelieve Japanese products<\/a> are more effective.  Last year, Japanese cosmetics conglomerate Shiseido<\/a>\u2019s sales in China made up 17.4 per cent<\/a> of its overall sales, an\nincrease from 14.4 per cent the year before. Besides that, Chinese consumers\u2019\nneeds and tastes are also getting diversified with China\u2019s growing economy and thriving\nC-beauty industry<\/a><\/p>\n\n\n\n

\"J-beauty<\/figure>\n\n\n\n

[Source: Tmall \u2018Colored contact lenses are a common product of J-beauty in China\u2019]<\/p>\n\n\n\n

College students and young women are the main\ngroup of Chinese consumers for Japanese and Korean cosmetics in China<\/p>\n\n\n\n

\u201cYoung women aged 18\nto 29 are the main target consumers for the growing interest in Korean products\nin countries in East Asia like China and Singapore\u201d, says Yvonne Lum<\/a>, VP of consumer insights at Nielsen\nHong Kong. Compared to big western brands like Dior and Chanel, the J-beauty\nand K-beauty market in China have a larger following among college students and\nyoung women who have lower purchase power and are relatively more influenced by\nsocial media campaigns and Korean and Japanese culture. <\/p>\n\n\n\n

Relatively speaking,\nthe K-beauty and J-beauty markets have more budget-friendly and accessible\nbrands with delicate and adorable product designs for Chinese customers. For\nexample, one of the most famous Korean brands in China, Etude House<\/a>,\nwhich is a brand under AmorePacific, has a fun and playful vibe that is\ntargeted at young trendy women. Their lipsticks usually have youthful and\nfashionable designs and the price of those lipsticks are set between 4 dollars\nand 10 dollars. Since entering the Chinese\nbeauty market<\/a> in 2013, Etude House has penetrated in 25 cities with 58\nshops with offline stores. Thus, you can easily buy products in a mall even in\na tier-2 or 3 city.  Considering there is\nno competitors from western brands with affordable price and easy accessibility\nwhich are available in China, K-beauty and J-beauty brands are popular among\nyoung women in China.<\/p>\n\n\n\n

Drivers of the Japanese and Korean cosmetics markets in China<\/h2>\n\n\n\n
\"K-beauty<\/figure>\n\n\n\n

[Source: Unsplash \u2018The common beauty standards of pale skin and an innocent look in K-beauty and J-beauty in China\u2019]<\/p>\n\n\n\n

The East Asia region has similar beauty standards<\/h4>\n\n\n\n

As Japan, Korea and China are located in the same region and share similar cultures and beauty standards, K-beauty and J-beauty products attract Chinese consumers in terms of the function and product positioning. In general, East Asian beauty standards prefers a \u201ccute\u201d image. Specifically, the conformity and collectivism in East Asian beauty standards defines white and flawless skin, a thin body shape, and double eyelids, as beautiful figure. Compared to western makeups which focus more on naturalism and individualism, Korean and Japanese products better satisfy the needs of Chinese consumers.<\/p>\n\n\n\n

More accessible, Multiple online & offline purchase channels<\/h4>\n\n\n\n
\"k-beauty<\/figure>\n\n\n\n

       [Source:\nTmall \u201cInnisfree\u2019s online official shop\u201d]<\/p>\n\n\n\n

J-beauty and K-beauty products are easily\naccessible in China. First, people can easily purchase those brands through\nonline and offline platforms. For example, Tmall<\/a>, a sub platform from Alibaba, launched a Korean pavilion<\/a> to provide a one stop shop\nfor genuine Korean products and related information in 2015. Besides that,\nTmall launched 1000<\/a> international brand stores this year\nincluding Korean brands like Innisfree and Japanese brands like cosme. Besides\nthat, surrogate shoppers (daigou in Chinese) is also popular in China for\npurchasing Japanese and Korean products. They buy up stocks overseas and sell\nthem through social media or e commerce sites in China. <\/p>\n\n\n\n

Travelling to Japan and Korean is also an option for some Chinese consumers. Chinese consumers do a lot of shopping during travelling in duty-free shops at airports and drug stores and Ginza in Japan. Similarly, tourists who visit Korea also enjoy shopping there a lot in cities like Seoul and Jeju. The popularity of Korea as a travel destination \u2014 particularly among the growing Chinese middle-class \u2014 has also helped brands like Innisfree and It\u2019s Skin, says Julien Lapka<\/a>, managing director of brand consultancy Flamingo Shanghai.<\/p>\n\n\n\n

The penetration of Korean and Japanese culture among Chinese<\/h4>\n\n\n\n

The Korean culture export in China is\nclosely related with the trend of K-beauty cosmetics popularity. Specifically,\nK-pop culture, k-dramas\nand TV<\/a> shows incite people\u2019s interest in K-beauty in China.<\/p>\n\n\n\n

Co-authors:<\/strong> Jiayi Shen<\/a> from daxue consulting and Hyokon Zhiang<\/a> from Innomove<\/a><\/p>\n\n\n\n

\n\n\n\n\n\n

Let China Paradigm have a positive impact on your business!<\/strong><\/h4>\n\n\n\n

Listen to China Paradigm on iTunes<\/a><\/p>\n\n\n\n

\"China<\/figure>\n\n\n","protected":false},"excerpt":{"rendered":"

In the Chinese cosmetic\u2019s market, there is strong influence from the neighboring countries Korea and Japan. Known as K-beauty and J-beauty, East Asian fashion from Korean and Japan has successfully penetrated China\u2019s beauty industry, which is the second largest beauty industry in the world. According to Euromonitor, China\u2019s beauty industry it is expected to be […]<\/p>\n","protected":false},"author":32,"featured_media":45467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"episode_type":"","audio_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","footnotes":""},"categories":[76,731,349,78,11],"tags":[634,765,11636,11635,11634,357],"daxue_industry":[],"class_list":["post-45355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brands-in-china","category-cosmetique-market-in-china","category-export-import-business-in-china","category-foreign-countries-influence-in-china","category-market-research-china","tag-beauty","tag-cosmetics","tag-foreign-influence","tag-jbeauty","tag-kbeauty","tag-market-analysis"],"acf":[],"yoast_head":"\nJ-beauty and K-beauty in China<\/title>\n<meta name=\"description\" content=\"China\u2019s beauty industry it is expected to be worth US$62 billion by 2020. 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