"J-Beauty Catching Up with K-Beauty: Growth at Risk Without Action" [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) specializing in cosmetics, producing products 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 Korean cosmetics exports were blocked, Cosmax produced for local brands in China and witnessed a slowdown in K-beauty’s growth.

He noted, "In the past, Japanese cosmetics stores had separate sections labeled 'K-cosmetics,' but now Korean products have penetrated various categories and become 'one of them.' Now, Korean cosmetics are not chosen because they are special, but simply as a routine option." He added, "Going forward, group purchases online, live commerce, and TikTok Shop are expected to become emerging keywords in the beauty market."

The successful establishment of K-beauty in the Japanese market can be attributed to the influence of Korean culture, such as K-pop and K-dramas. In Japan, where the 'Wa' culture prioritizes group and community stability, it is not easy for foreign brands to enter the distribution market. However, as Japanese consumers exposed to K-content continued to seek out Korean cosmetics, the situation reversed. Uh emphasized, "The reason Korean cosmetics were able to naturally permeate the market ultimately lies in the power of K-content. When consumers keep asking for products, retailers have no choice but to stock them. Ultimately, driving consumer demand is crucial."

He also advised, "In Japan, 'nemawashi,' which refers to 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 K-beauty has taken."

Strict quality control in the Japanese market is another factor to consider. Uh explained, "In Korea, it is common to expect that 1 or 2 out of 10 items might be defective, so companies either replace them or send 110 units for a 100-unit order to account for defects. In Japan, however, failing to deliver exactly 100 units is a problem, and the concept 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 trustworthy." He further stressed, "Given the extremely strict Japanese Pharmaceutical Affairs Law, manufacturers and brands must understand and respond to local culture to prevent distrust of Korean products."

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