Gelato Lab Achieves 10 Billion KRW Sales with 'Self-Nail' Captivating Japanese Women

[Exporting SMEs on the Rise] Achievements in Japan Within One Year
Focused Development of Designs Appealing Locally…Quality Improvement R&D Investment
Increased Trust Using Various Online and Offline Channels Like Instagram

Gelato Lab's Pop-up Store in Shibuya, Japan

[Asia Economy Reporter Kim Bo-kyung] There is a company that achieved annual sales of 10 billion KRW in the Japanese market last year despite the COVID-19 situation. The company is Gelato Lab, a self-nail care business that manufactures and sells nail stickers allowing anyone to easily decorate their nails at home. This remarkable achievement was made just a year and a half after entering the Japanese market.

On the 16th, Hee-jong Park, CEO of Gelato Lab, stated, "We thoroughly analyzed the Japanese nail market from multiple angles," adding, "We built various competitive advantage strategies for local entry, which enabled us to achieve good results in a short period."

Gelato Lab started in April 2016 as an in-house venture of TMON and launched the nail sticker brand ‘Gelato Factory’ as well as the nail application (app) ‘Gelato.’ The Gelato app provided a service connecting users with nail salons for their desired nail art. CEO Park said, "We read the nail design trends preferred by customers and used them to plan and produce nail sticker products."

Starting with annual sales of 500 million KRW in 2017, the company steadily grew to 12.7 billion KRW in 2018, 17.4 billion KRW in 2019, and 18.2 billion KRW last year. Gelato Lab officially entered the Japanese market in June 2019, recording sales of 3.4 billion KRW that year and 10 billion KRW last year, nearly tripling its sales in a short time.

Gelato Lab overcame the crisis by promoting the idea that even when spending time alone at home due to COVID-19, people could refresh their mood. Targeting consumers spending more time at home, they ran a ‘Time at Home’ campaign. By holding various events on their Instagram account to encourage customer participation and marketing through influencers introducing their products, some popular items sold out due to high demand.

CEO Park shared several keys to their success in the Japanese market. First is thorough market analysis and localization strategy. Park said, "The Japanese nail market was worth 232.1 billion yen as of 2019 and has shown a steady growth rate of about 1% annually since 2015," adding, "We compiled relevant data to devise strategies and responded proactively to consumer reactions."

Gelato Lab focused on developing products with designs that appeal locally. Reflecting the culture of flower viewing in spring, they released ‘Spring Flower Nails,’ and for office workers who might feel burdened by flashy designs, they launched ‘Office Nails’ suitable for the workplace.

They also enhanced brand trust by utilizing both online and offline distribution channels. They provided free sponsorships to self-nail influencers on Instagram and collected reviews to increase follower counts. They entered Japan’s famous variety store Loft to boost brand awareness through offline sales. They also listed their products on online shopping malls such as Amazon and Rakuten to promote the brand and attract customers to their own mall. CEO Park said, "We will continue to increase the proportion of direct sales through our own mall to reduce distribution fees and secure price competitiveness."

Gelato Lab actively utilized government support programs to expand in the Japanese market. Last year, they applied for the Small and Medium Business Corporation’s shopping mall development project, receiving a subsidy of 70 million KRW, and were later selected for additional incentives, receiving another 35 million KRW.

This year, they are expanding research and development (R&D) investments to improve productivity and quality, and are reinforcing their technology research center and product planning personnel. CEO Park stated, "Our biggest goal this year is to grow Gelato Lab into a killer brand leading trends not only in the self-nail market but also in the home beauty market."