Shin Hwa-sook, CEO: "Manufacturers to Build Cooperative Relationships with Government, Provide Comprehensive Support"
"Amazon Global Selling will provide comprehensive support to help K-Beauty increase its recognition in the global market."
At the Amazon Global Selling Korea 'Project K-Beauty Go Big' media briefing held at the Centerfield Building in Gangnam-gu, Ulsan, Shin Hwa-sook, CEO of Amazon Global Selling Korea, is speaking. [Photo by Minji Lee]
On the 21st, Shin Hwa-sook, CEO of Amazon Global Selling Korea, said at the Amazon Global Selling Korea 'Project K-Beauty Go Big' media briefing held at the Centerfield Building in Gangnam-gu, Seoul, "K-Beauty companies showed an astonishing growth rate of over 75% on Amazon compared to the previous year."
The briefing was held to introduce 'Project K-Beauty Go Big' ahead of the 'Beauty Seller Conference' scheduled for the 27th.
On this day, Amazon Global Selling announced that through 'Project K-Beauty Go Big,' it will support the global export of domestic cosmetics companies. Project K-Beauty Go Big plans to establish a continuous collaboration system with manufacturers, government agencies, cosmetics companies, and external service providers (SPNs) to support domestic cosmetics companies. Simply put, it aims to help more domestic cosmetics companies sell their products on Amazon.
Amazon Global Selling supports companies worldwide to enter Amazon and grow into global brands. Since 2017, Amazon Global Selling Korea has been supporting Korean companies in categories such as beauty and grocery to expand into 22 countries. Amazon Global Selling Korea has held conferences for domestic sellers every year, and this year, for the first time, it is holding a separate Beauty Seller Conference focusing solely on the beauty category.
Amazon's focus on Korean beauty companies is because K-Beauty is receiving global attention. While K-Beauty was previously concentrated in the Chinese market, it is now gaining attention in the U.S., Japan, and European markets. This year, K-Beauty sales on Amazon in the U.S. have more than doubled compared to the same period last year, and it has established itself as one of the top three cosmetics in the U.S., following France and Canada. The market share is around 20%.
Accordingly, the sales of sellers on Amazon have also increased significantly, with the sales per seller tripling compared to 2022. CEO Shin explained, "An annual sales figure of around $100,000 is considered popular, and the number of K-Beauty sellers who recorded $100,000 doubled compared to 2022," adding, "Small and medium cosmetics companies such as COSRX, Anua, TIRTIR, and Joseon Beauty are gaining attention."
For the project, Amazon places the highest importance on relationships with manufacturers. They believe that the success of K-Beauty brands is supported by the high competitiveness of domestic manufacturers. The plan is to connect sellers who want to expand overseas with manufacturers who have strong ties and help them grow in the global market.
CEO Shin said, "After many meetings with Korean manufacturers, we confirmed that they have the capability to provide all manufacturing services from planning to branding, compliance, and packaging in a one-stop manner," adding, "Cooperation with manufacturers is crucial to support K-Beauty sellers." To build a strong cooperative relationship, Amazon has also established an SPN domain (site) for manufacturers. SPNs refer to external service providers supporting Amazon Global Selling services.
Cooperation with government agencies and the Korea Cosmetic Association will also be strengthened. CEO Shin said, "We are developing ways for sellers to receive support regarding taxes, logistics, and compliance," adding, "In collaboration with the Ministry of SMEs and Startups and others, we will create a structure that enables the operation of seller incubator programs and provides education and practical benefits for long-term growth."
Kim Il-ho, Global Growth Director of the Small and Medium Business Corporation, who attended the briefing, also explained, "Since 2014, the Small and Medium Business Corporation has been supporting small businesses' entry into Amazon, with about 380 small beauty companies among them," adding, "We will support small beauty companies to grow in the cross-border e-commerce market by providing logistics cost discounts and fulfillment service support."
Meanwhile, at the 'Beauty Seller Conference' held on the 27th at COEX in Gangnam-gu, Seoul, the growth secrets and future strategies of K-Beauty products will be shared. Manufacturers such as Kolmar Korea and 'Joseon Beauty,' known as the No. 1 sunscreen on Amazon, will attend.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
