K-beauty companies are gaining tremendous popularity in the Japanese market, surpassing beauty powerhouse France. Leveraging cost-effectiveness and product quality, these companies are showcasing their presence across both online and offline markets, offering a range of products from basic skincare to makeup.
According to the Cosmetic Importers Association of Japan on Dec. 12, the market share of South Korean cosmetics in the Japanese imported cosmetics market stood at 23.4 percent last year, securing the top position. It surpassed France with 23.0 percent. In the first half of this year, the market share further increased to 25.6 percent, widening the gap with France, which recorded 22.6 percent.
The brands making significant strides in Japan are mostly small and medium-sized enterprises. With a growing interest in K-beauty among the younger generation in Japan, there is a notable trend of preferring cost-effective products from small and medium-sized beauty brands.
Representative small brands include TIRTIR, known for its best-selling product “Mask Fit Red Cushion,” Laka Cosmetics operating the makeup brand “Laka,” and Manyo Factory, which made its debut on the KOSDAQ in June.
According to the Ministry of Food and Drug Safety, the size of the Japanese cosmetics market ranks third in the global market, following the United States and China. South Korean cosmetic companies have been experiencing an annual growth rate of over 27 percent in their exports to Japan.
The rapid progress of small companies is prompting large enterprises to bolster their strategies for the Japanese market. According to LG Household & Health Care, it recorded a remarkable sales growth rate of 300 percent in just about six months after it launched cosmetics products on “Qoo10.” Amorepacific’s business in Japan achieved over 30 percent year-on-year sales growth in both the second and third quarters of this year.