Japanese Brands Mimic Korea: "K-Beauty's High Growth May Stall" [K-Wave 3.0] ⑧

Interview with Jaeseon Uh, Head of Cosmax Japan
K-beauty Becomes Part of Everyday Life in Japan... When Will High Growth Slow?
Clear Limits of Influencer Marketing... Need to Watch Out for Japanese Brands
'Trust' Issues as a Barrier... Understand

Jaeseon Uh, Head of Cosmax Japan Corporation, warned, "If no action is taken for K-beauty by the first half of this year, its growth momentum will decline from the second half onward."

In an interview with The Asia Business Daily conducted last month at the Cosmax Japan office near Nihonbashi Station in Tokyo, Uh stated, "Approaching the Japanese market with the complacent belief that K-beauty is 'doing well' here could be disastrous." He explained that while K-beauty has become a daily consumer product in Japan, there is a need for vigilance, as Japanese cosmetic brands with strong cost-effectiveness could flood the market by emulating K-beauty.

Jaeseon Uh, Head of Cosmax Japan Corporation. Provided by Cosmax

Cosmax Japan is the Japanese subsidiary of Cosmax, an original design manufacturer (ODM) of cosmetics, which produces cosmetics for local brands. As the world's largest cosmetics ODM, Cosmax operates manufacturing plants in Shanghai and Guangzhou in China, New Jersey in the United States, Jakarta in Indonesia, and Bangkok in Thailand. During the COVID-19 pandemic, when exports of Korean cosmetics were blocked, Cosmax produced for local brands in China and witnessed a slowdown in K-beauty’s growth.

He said, "In the past, there used to be separate sections labeled 'K-cosmetics' in Japanese cosmetics stores, but now Korean products have penetrated each category and become 'one of them.' Now, Korean cosmetics are not chosen because they are special, but simply as an everyday option." He added, "Going forward, online group purchases, live commerce, and TikTok Shop are expected to become key trends in the beauty market."

The successful establishment of K-beauty in the Japanese market can be attributed to Korean culture, such as K-pop and K-dramas. Japan’s 'Wa' culture, which prioritizes group and community stability, makes it difficult for foreign brands to enter the distribution market. However, as Japanese consumers exposed to K-content continued to seek out Korean cosmetics, the situation changed. Uh emphasized, "The reason Korean cosmetics were able to naturally permeate the market was ultimately the power of K-content. When consumers keep asking for products, retailers have no choice but to stock them. Ultimately, it is crucial to create consumer demand."

He also noted, "In Japan, 'nemawashi,' meaning behind-the-scenes groundwork, is essential, so building networks with local stakeholders is more important than anything else. K-fashion and K-food should benchmark the path that K-beauty has taken."

Strict quality control in the Japanese market is another important factor to consider. Uh explained, "In Korea, people might expect that 1 or 2 out of 10 items could be defective, so they offer exchanges or ship 110 units for an order of 100 to account for defects. However, in Japan, not matching the exact quantity of 100 is a problem, and the culture of exchanging defective goods does not exist." He pointed out, "Among Japanese distributors, there is talk that while Korean products are abundant, they are not trusted." He further stressed, "Given the extremely strict Japanese Pharmaceutical Affairs Law, manufacturers and brands need to understand and respond to local culture to prevent distrust toward Korean products."

Government-level support is also essential. He said, "For food products, strict regulatory certification in Japan often blocks market entry. If regulatory barriers are eased or tariffs are lowered through agreements between the Korean and Japanese governments, it would greatly help brands enter the market."