Foreign visitors check cosmetic products at Olive Young Hongdae Town in Seoul in this April photo. Olive Young curates and sells indie cosmetic brands by Korean small and medium-size enterprises. Courtesy of Olive Young
Cosmetic firms in Korea have begun running their manufacturing plants at full capacity as they expect global demand for their beauty products to skyrocket with Black Friday and Singles' Day in the next month, according to industry officials, Tuesday.
The consumption trend, fueled by special shopping days on Nov. 29 in the United States and Nov. 11 in China, coincides with the growing global popularity of Korean beauty products this year. Industry players, ranging from large corporations to small and medium-sized enterprises (SMEs), are anticipating a surge in sales during these key dates, which historically generate significant collective sales. They hope to leverage this momentum to expand their presence in global markets.
Original design manufacturer (ODM) Cosmax is currently running its factories in Korea at maximum capacity due to a surge in orders from its client firms for cushion-cosmetic products starting September.
Since September, Cosmax has received nearly 500 new products through ODM orders. With November featuring two major shopping events for international consumers, this month is particularly strategic for cosmetic developers to launch their new products, according to industry officials.
Cosmax has responded rapidly to Korean cosmetic products' global popularity this year by launching a new division dedicated to suncare products and developing three times as many new items in this category compared to last year. The company released 50 percent more new base and eye makeup products in September than last year.
Cosmecca, another Korean ODM cosmetic company, has also received heaping production orders from its client companies in the U.S. A Cosmecca official said that it saw its second-quarter sales jump by 41.9 percent year-on-year, expecting to see further sales growth in November due to Black Friday.
Anticipating a surge in ODM orders from its overseas clients, Kolmar Korea has increased its manufacturing output significantly. Its plants in Korea and abroad are currently “running at full capacity” after seeing soaring demand earlier this year for Korean indie brands that became global hits, according to an official.
Cosmax's manufacturing plant in Pyeongtaek, Gyeonggi Province / Courtesy of Cosmax
“The volume of ODM orders from new clients this year is surpassing that of the previous year,” the official said.
Cosmax and Kolmar, the largest ODM companies in Korea, particularly expect to see their sales rebound in China in November as its beauty market, unlike other global markets, shrank earlier this year. In the second quarter, Cosmax's sales in China decreased by 4 percent year-on-year, while Kolmar's sales fell by 6.6 percent.
Companies with emerging cosmetic brands overseas have also begun launching promotional events to maximize sales in November.
After promoting its key brands Medicube and Aprilskin at a beauty expo in China and a pop-up store in Hong Kong earlier this year, cosmetic company APR is also betting big on the upcoming Singles' Day.
Gowoonsesang, led by its Dr.G brand, also plans to showcase its products on online platform Amazon in anticipation of Black Friday. A Gowoonsesang official said the company, currently exporting to 13 countries, aims to sell 10 beauty brands across 100 countries by 2030.
“Global shopping events will add wings to Korean beauty brands' overseas sales,” an industry official said.
In the first three quarters of this year, exports by Korean beauty companies registered $7.4 billion, a record for the period. This includes $3.3 billion in exports of indie brands by SMEs during the first half of the year, a 30.8 percent jump from the previous year.