(Offstage) Amazon courting Korean cosmetics retailers with solid sales

US e-commerce giant Amazon is increasingly turning to Korean cosmetics makers to join its sprawling online platform, where demand for K-beauty products is soaring worldwide.

Amazon Global Selling Korea held its Amazon K-Beauty conference on Thursday at a Seoul hotel, the first dedicated exclusively to Korean beauty products.

The event, co-hosted by Kolmar Korea, a leading Korean manufacturer of original designs for global beauty brands, was attended by around 800 participants in person or around 1,500 people who joined via video link.

“This event, co-hosted by Kolmar and Amazon, is significant as the first collaboration between Amazon and Kolmar to actively promote the globalization of K-beauty,” said Yoon Sang-hyun, vice president of Kolmar Korea Holdings, in his opening remarks. “This goes beyond mere business partnerships and contributes to the innovation and value of K-beauty around the world.”

Shin Han-nah, head of Amazon Global Selling Korea, emphasized the company’s commitment to supporting local beauty companies in expanding their global presence through the K-Beauty Go Big project.

“When talking to small and medium-sized beauty companies, we found that many of them are often unsure which products will sell well in overseas markets,” Shin said. “Amazon will not only help them, but will also actively respond to changes in the beauty market, contributing to the globalization of K-beauty.”

Jim Yang, Director of Amazon Global Selling Asia, echoed this sentiment: “The Korean cosmetics industry is vertically integrated, from R&D to product manufacturing. Joining Amazon will make this process even easier by gaining more customer feedback.

In recent years, Korean cosmetic products have demonstrated a strong position on foreign markets. According to the Korea Customs Service, the value of cosmetics exports from January to May this year reached $4.04 billion, up 21 percent from the same period last year. In 2023 alone, Korean cosmetics exports amounted to over $8.48 billion, almost seven times more than in 2013.

This phenomenon was also visible on Amazon.

Last year, total sales for Korean beauty retailers grew by more than 75 percent on the Amazon Global Store. The U.S. store in particular saw stronger growth, largely due to the popularity of Korean moisturizers, serums, and sunscreens.

Representatives of domestic cosmetics companies mostly responded positively to cooperation with Amazon.

“We currently run a local marketing team in the U.S., but I think it’s attractive to focus solely on joining Amazon or continue working with both the local marketing team and Amazon at the same time,” said an official who runs her own cosmetics company, speaking on condition of anonymity.

Another official working at a company selling products on Amazon called for protections for smaller sellers against common unfair business practices such as cheaper counterfeits and resale.

“The biggest problem we’ve found is the prevalence of counterfeits copying the identity of small brands. The big brands have a lot of people at Amazon helping them, but the smaller companies feel a bit neglected,” said the official, who also asked not to be named.

“In addition, resellers on Amazon often buy cheaper domestic products and sell them at lower prices than the original products of the exiting company. I believe Amazon also needs to address this issue.”

Meanwhile, video content marketing, primarily aimed at social media, has been identified as the most recommended way to increase sales on Amazon.

The conference also included guidelines for obtaining approvals to sell products, international shipping cost strategies, and an introduction to the process of joining Amazon.

By Hwang Joo-young ([email protected])