[Report] "118% Annual Growth" ... Amazon's K-Beauty Love Call Scene 'Insaninhae'

Amazon Hosts Conference for Beauty Sellers
Over 1,000 Attendees from Beauty, Fashion, and IB Industries
Consultation Booths for Logistics, Consulting, and Manufacturing Also Available

On the 27th, at the InterContinental COEX in Gangnam-gu, Seoul, a queue formed early in the morning for entry to the 'Amazon K-Beauty Conference.' Within about 30 minutes of the event's start, approximately 1,000 seats were filled with attendees.

The Amazon K-Beauty Conference is an event hosted by the global retail company Amazon, targeting Korean cosmetics sellers. Amazon Global Selling Korea has held conferences annually for those wishing to sell products on Amazon or existing sellers, but this year, for the first time, a separate event was organized exclusively for the domestic cosmetics (K-Beauty) sector. According to Amazon, this event was held to encourage domestic sellers to enter overseas markets as Korean cosmetics gain popularity in the global market.

On the 27th, attendees are waiting to enter the 'Amazon K-Beauty Conference' at InterContinental COEX in Gangnam-gu, Seoul.
[Photo by Minji Lee]

According to consulting firm Bain & Company, K-Beauty sales on Amazon have grown at an average annual rate of about 118% from 2019 through last year. Seo Hyo-joo, head of the consumer goods distribution division at Bain & Company, explained, "Domestic indie brands are experiencing high growth on Amazon," adding, "There are K-Beauty sales platforms like Stylenanda, Olive Young, and StyleKorea, but all operate via direct overseas shipping, so their market scale differs significantly from Amazon's."

Hundreds of sellers involved in cosmetics-related businesses attended the event. Notably, investment banking (IB) representatives also attended to understand trends in the domestic beauty industry. One asset management official said, "We are currently investing in domestic cosmetics companies," adding, "I came early in the morning to see how big K-Beauty has become and to identify companies to invest in going forward."

Kim Yeon-jeong, CEO of Grit It, who launched a cosmetics brand last week, said, "Interest in K-Beauty is very high in the U.S. market, so we are considering entering simultaneously with the Korean market," adding, "Amazon handles logistics directly, so American consumers are highly satisfied with the delivery service, which makes us consider listing on Amazon."

Shin Hwa-sook, CEO of Amazon Global Selling Korea, is explaining Project K-Beauty Go Big.
[Photo by Minji Lee]

Amazon, which hosted the event, focused on introducing 'Project K-Beauty Go Big,' a program supporting the overseas expansion of domestic small and medium-sized cosmetics companies. Shin Hwa-sook, CEO of Amazon Global Selling Korea, emphasized, "When meeting with small and medium cosmetics companies, many worry about which products to take overseas," adding, "We will not only provide support but also respond promptly to market changes to lead the globalization of K-Beauty."

Jim Yang, Vice President of Amazon Global Selling APAC, stated, "Korea's beauty industry is vertically integrated from research and development to product manufacturing and development, allowing rapid product innovation based on customer feedback," emphasizing, "Listing on Amazon enables receiving more customer feedback, which will help run the business successfully."

One highlight at the event was Kolmar Korea. Kolmar Korea co-hosted the event with Amazon. Known as the manufacturer of 'Joseon Beauty,' the number one sunscreen on Amazon in the U.S., Kolmar Korea has about 900 domestic and international clients. Last year, the number of newly contracted cosmetics brands reached 253, a 50% increase compared to the previous year.

Sellers are receiving consultations at booths set up outside the event hall.
[Photo by Minji Lee]

At the booth set up at the event, Kolmar Korea held consultations with about 40 sellers related to skincare, makeup, sun care, and cosmetics packaging. A Kolmar Korea representative said, "Many sellers believe they need to have large sales volumes to entrust their products to Kolmar Korea," adding, "Through consultations, we guided sellers to feel comfortable approaching us, and they can also visit the Technology Promotion Institute to experience products firsthand."

Yoon Sang-hyun, Vice Chairman of the Kolmar Group, said in his welcoming remarks, "This event co-hosted by Kolmar and Amazon will contribute not only to a simple business partnership but also to spreading the innovation and value of K-Beauty worldwide," adding, "We will help new star brands of K-Beauty to be born." He continued, "This event will be a meaningful opportunity to explore new chances for K-Beauty's global expansion and share concrete execution strategies," emphasizing, "It is significant as the first collaboration where Amazon and Kolmar officially join hands for the globalization of K-Beauty."

Kolmar Korea plans to strengthen its cooperative relationship with Amazon to support the global expansion of K-Beauty in the future.

Yoon Sang-hyun, Vice Chairman of Korea Kolmar, is delivering a welcome speech.
Photo by Minji Lee