For the Korean cosmetics companies seeking to grow beyond the domestic market, it is natural to turn to emerging overseas markets with exciting growth potential.
Korea’s top cosmetics firms succeed in enhancing their presence in China and other new markets by pursuing successful positioning strategies with quality products and competitive pricing and responding in a timely manner to the changing overseas cosmetics market.
For instance, Amore Pacific and LG Household and Health Care have made successful advances into China and Vietnam, respectively. And they have been gearing for more aggressive expansion there.
Amore Pacific enjoys a solid standing in the Chinese market, with 2,010 Mamonde brand shops and 277 locations in department stores. Vietnam has been the great success of LG Household and Health Care, which has seen its Ohui and Whoo brands to be in growing demand.
Currently, LG Health has a 15% market share in Vietnam’s cosmetics market and a 70% share in the highend cosmetics sector. LG Health’s Vietnam exports are also on the rise from $15 million in 2006 to $22 million in 2010.
Korea Customs Service reported in its latest data that cosmetics exports soared 38.7% to $236.17 million in the first half of 2011 from $170.33 million a year ago. Other growth markets are Central and South America, as well as the Middle East – which have seen 170% and 30% increases in exports, respectively, in the first half of 2011 compared to 2010.
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