"Good Performance in the US... Attention Needed for Silicon투 and AmorePacific"

An analysis has emerged highlighting the need to pay attention to Silicon Two and Amorepacific, which are showing favorable performance in the United States.

On the 13th, Myungjoo Kim, a researcher at Korea Investment & Securities, stated in a report, "Considering the structural growth of the Western skincare industry centered on the United States and the emergence of new markets (Middle East), it is clear that the popularity of Korean cosmetics globally is not a short-term trend but a big cycle. In particular, it is necessary to continuously focus on companies performing well in the U.S., with Silicon Two and Amorepacific being representative examples."

He also analyzed, "As of the 12th, the stock prices of cosmetics companies analyzed by Korea Investment & Securities, including those companies, are very favorable. Based on the cosmetics export data (June 1?10) announced on the 11th, the proportion of the U.S. (21.5%) among countries to which Korea exports cosmetics has surpassed that of China (20.3%) for the first time."

Above all, he viewed the fact that the U.S. has become the number one country for Korean cosmetics exports as very impressive.

Currently, Korean cosmetics enjoy high popularity online in the U.S., including on Amazon. Researcher Kim estimated that "Silicon Two currently has about 70% of its total customers as online clients," and explained, "Considering the cost-effectiveness competitiveness of Korean cosmetics, it is judged that expansion beyond online to offline distribution channels in the U.S. is also possible."

Amorepacific is already selling Laneige at Sephora in the U.S., and Manyeogongjang plans to launch cleansing oil at Costco in July.

Researcher Kim noted, "As of 2023, the online share of the U.S. retail market is 17.3% (Korea 35.8%), and since the U.S. is still centered on offline distribution, expansion into offline distribution channels alone will greatly expand the TAM (Total Addressable Market) for Korean cosmetics companies."