Why Startups Are Choosing Korean Cosmetic Manufacturing
And how your cosmetic startup can take advantage.
Quality is the most important thing when it comes to cosmetics. Well, that and budget.
It’s not often that the two go together though. You can have quality, but you can’t have it cheap. You can find a cosmetics formula that fits your budget, but it may not meet your quality expectations.
But, there is one solution that most cosmetic startups have known about for years. Here’s what your startup brand needs to know when it comes to utilizing one of cosmetics’ most open secrets.
Korean Cosmetics At A Glance
In 2019, the USA imported $624 million worth of Korean cosmetics. By 2027, the Korean cosmetics market is expected to be worth $13.9 billion. It’s no surprise either. For those who are always looking for cosmetics, Korean skincare and beauty products line the shelves. The reason is simple: Compared to other premium cosmetic brands, Korean cosmetics not only have a better price but are also just as effective.
Korean cosmetics first appeared, surprisingly, not by way of cosmetics but for their 10-step beauty routine method. This meticulous attention to detail cast a spotlight on South Korea’s beauty industry as a whole. As the market began to dig deeper, the benefits became more clear.
While bright and lively packaging may grab people’s attention, it takes more to get them to stay. That’s precisely how Korea’s beauty market leaped ahead of the already-established competition. While the cosmetics market may prioritize things like natural ingredients today, it was South Korea that had always been behind the use of natural ingredients. As a result, the western market is playing a game of catch-up as South Korea continues to innovate. For a cosmetic startup looking to offer something bold and new, you’ll need access to South Korea’s cosmetics development.
The Modern Cosmetics Shopper
As a cosmetics shopper, you’ll know that the average consumer isn’t just looking at prices. They also value other factors such as quality and ingredients. We are now in an age where it is easy to be an informed shopper. This is in no small part due to smartphones, and this can either help or hurt your brand.
Instagram, influencers, blogs, it’s all there. If you find a product at the store, you are no longer just looking at the product. You are now searching for all the information you need to know before you make a purchase. You’re looking at reviews. You’re looking at results. You’re looking at anything that will help you make an informed decision. That’s exactly what you’re future market base will be doing with your product. You’ll need to make your cosmetics look good under the microscope.
How Korean Manufacturing Can Help You
The market is changing and your cosmetics brand needs to be ahead of the curb. Millennials and Generation Z are beginning to dominate the market, and their tastes are much different than previous generations.
For the new generation, it’s all about South Korea. Whenever BTS releases a new song, it's on the Billboard Top 100. Bong Joon-Ho’s Parasite won the best picture award at the Oscars. South Korea is a cultural powerhouse that’s been growing in the west ever since Gangnam Style first hit YouTube.
And your cosmetics line can take advantage of the reasons behind South Korea’s success.
South Korea is known for pumping out quality audience-pleasing products at a fast rate whether be their animation studios, such as The Simpsons, or their music industry, BTS and BlackPink. Korean cosmetic manufacturers are no different.
On average, Korean cosmetic companies spend about six months developing and launching a new product. It’s not like people are buying the same product with a different name either. Every time, South Korean cosmetic companies need to produce something new. Something bold. Something that innovates.
With cosmetics being such big business in South Korea, it’s a constant battle-royale. While this causes fierce competition for cosmetic manufacturers in South Korea, the consumer is the clear winner here. That and small startups looking to use the latest trends as soon as they appear.
Instead of competing against South Korea’s growing advantage, you can work alongside South Korean manufacturers. That is, if you know the right people.
How To Gain Access To Korean Cosmetics Manufacturers
If there are a lot of benefits, it must be expensive. Usually, this idea is correct. Except in South Korea, there's plenty of room for a cosmetics brand to start using Korea’s efficient services. However, there is one hurdle you need to pass in order to get access to this market.
South Korea is a country based on connections. You need to know the right people who know the right people. You can perhaps research some Korean cosmetic manufacturers yourself, but then there is the language barrier and also the price they may charge to someone they don’t know. How you can skip negotiating and get started on working on your cosmetic brand using Korean cosmetics?
The answer: ODM.
Companies that provide ODM services help startups with manufacturing their formula. Let’s say you want to make a facial cleansing product. Like most people, you don’t have access to a factory or a cosmetics manufacturer. That’s where ODM companies come in.
They work with research and development to help produce your product at a price you can agree on while also ensuring quality. The truth of startup cosmetics isn’t someone in a garage mixing buckets of extracts together to make different formulas. Behind most startup cosmetic brands, you are sure to find a reliable ODM.
And ODM companies need to be reliable.
If ODM companies make their money by you using their facilities, they want to make sure you continue using their facilities. By creating a product you love, you are sure to come back as you start selling more and more. But not all ODM companies offer the same services.
The Best Partner For You
Remember, there are more advantages to Korean cosmetics besides the cosmetics themselves. There are marketing tactics, packaging, and branding that all come together to make a great-selling product. You are going to want to take advantage of that.
While all ODMs can help manufacture cosmetic products, some offer other services. A good ODM creates your quality product on time, every time. But, a great ODM acts as your business partner to help you through all stages of the startup process and get your cosmetics in the hands of your audience.
CJW Cosmetic helps out with more than just cosmetic research and development and manufacturing. We also provide branding, design, and other packaging services. If you’re looking to grow and expand your current business, you can also take advantage of CJW Cosmetic marketing services where you are provided with a consultant to work with.
If you’re looking to get information and begin your cosmetics journey, just send a quick email and ask the questions you need to have answered. A consultant will respond to you shortly and help you on the path towards your cosmetics success.