Korean Cosmetics Accelerate Entry into Japanese Beauty Market

Japan, the World's 3rd Largest Beauty Market
LG Household & Health Care Acquires Brand Hince
Amorepacific Targets with 'Hera'
Aekyung Industrial Increases Recognition with Luna, etc.

Domestic cosmetics companies are collectively stepping up their efforts to target the Japanese beauty market.

Amorepacific's Hera pop-up store created in the large shopping mall 'Scramble Square' in Shibuya, Tokyo, Japan. [Photo by Amorepacific]

According to Euromonitor on the 28th, Japan's beauty market is valued at $32.953 billion (approximately 42.8553 trillion KRW as of 2021), making it the third largest market in the world. The global cosmetics market size is $529.835 billion (approximately 688.9974 trillion KRW), with the United States ranking first and China second.

So far, the cosmetics industry has gradually shifted its focus to Japan after being affected by THAAD and the COVID-19 impact in China.

LG Household & Health Care recently acquired a 75% stake in VivaWave, which owns the brand Hince, strengthening its portfolio of color cosmetics by acquiring Hince, a brand well recognized in the Japanese cosmetics market. Industry analysts see this as a customized strategy for the Japanese beauty market, where vibrant color cosmetics are popular.

Launched in January 2019, Hince is a color cosmetics brand known for hit products such as ‘Second Skin Foundation’ and ‘True Dimension Radiance Balm,’ and is said to have formed a loyal fan base among the MZ generation. Last year, half of Hince’s sales of 21.8 billion KRW came from overseas, most of which were generated in Japan, indicating a high level of recognition in the local market.

Amorepacific is also focusing on the Japanese market through its color cosmetics brand ‘Hera.’ Last month, it officially entered Atocosme Tokyo and Osaka stores, which operate Japan’s largest beauty information platform and offline multi-brand stores, and this month it is strengthening its brand presence by expanding additional pop-up stores and online channel entries.

Aekyung Industrial is continuing to expand its online and offline channels and conduct marketing tailored to the local market, focusing on brands such as Age 20’s and Luna. For example, Luna expanded its presence from about 650 stores shortly after entering the Japanese offline market in November last year to about 2,300 stores in April this year, and currently about 3,100 stores as of August, gradually increasing its recognition.

According to the Japan Import Cosmetics Association, last year Japan’s import value of Korean cosmetics (including perfumes and shampoos) reached 77.5 billion yen (approximately 71 billion KRW). This is a sixfold increase compared to ten years ago.

Professor Eunhee Lee of Inha University’s Department of Consumer Studies analyzed, “Since Korean celebrities have performed frequently in Japan, they have greatly promoted Korean clothing and cosmetics,” adding, “Especially because Korean celebrities are very beautiful, Japanese locals have become interested in what cosmetics they use, which has led to the overall development and growth of Korea’s beauty industry.”