Strategies and Pros and Cons of Expanding as a Global Beauty Brand

If you are planning to launch a beauty brand in Korea or are already running one, pay close attention. Now is the time to start thinking about overseas markets as well. In this article, we’ll look at trends in the global beauty brand market, the advantages of expanding abroad, how to become a global beauty brand, and essential marketing tips for global beauty brands.

Why Beauty Brands Need to Enter the Global Market

First, let’s take a look at why so many beauty brands are expanding beyond Korea into the global market, and the reasons and background behind that move. What advantages and challenges arise when a brand actually crosses borders? And what is the current state of the global beauty market?

1. The Domestic Beauty Market Is Already Saturated

To begin with, the domestic beauty market is already saturated, so intense competition is unavoidable. In Korea’s case, during the period of rapid economic growth in the 1970s, the beauty industry, like many other industries, began to grow significantly and has now become a major market, ranking among the world’s top 10 in per-capita spending. In particular, in recent years, Hallyu—especially Korean pop music and dramas known as K-pop and K-drama—has become hugely popular overseas, and interest in the fashion and makeup of Korean celebrities seen through that content has naturally increased as well. As a result, the terms K-beauty and K-cosmetics were coined, and demand for Korean cosmetics has grown sharply not only in Korea but also abroad.

This may be good news from a national economic perspective, but for sellers trying to launch and sell a beauty brand independently, the situation can be quite different. On the surface, Korea may seem to have a wide variety of beauty brands, but in reality, most are derivative brands launched by a small number of major domestic conglomerates such as LG H&H and Amorepacific. Competing in the same market with companies that can invest enormous capital into marketing is never easy.

2. What Does the Global Beauty Market Look Like?

As demand for cosmetics continues to rise and the domestic market becomes harder to dominate, many beauty brands have begun expanding overseas. Many studies predict that cross-border trade will continue to increase in the future. In today’s global beauty market, D2C, or Direct-to-Consumer sales, has become especially popular, leading to a rise in small brands that gain attention primarily through social media. These brands are leveraging their small scale to build more personal, direct relationships with consumers, even involving them directly in product development and marketing, bringing change to a beauty market that has long been dominated by large corporations. Cross-border e-commerce systems have helped make this shift technically possible, enabling anyone willing to put in a little effort to expand a product’s target market from one country to the entire world.

Looking at recent trends, even though global cosmetic demand declined due to mandatory mask wearing during COVID, Korean cosmetic exports reached record highs. While demand for color cosmetics fell because of masks, demand for skincare products rose as more people experienced skin concerns. In this way, the global beauty market is ironically experiencing stagnation and growth at the same time, and the key point is that overseas consumers looking for Korean cosmetics have continued to increase despite the pandemic.

3. Advantages and Disadvantages of a Global Beauty Brand?

The biggest advantage of a global beauty brand is undoubtedly that its customer base becomes vastly larger than in the domestic market. The same brand can design and produce the same cosmetics, but the range of customers buying them changes. However, not every beauty brand succeeds in the global market. Entering a new market requires that much effort. Expanding globally means meeting customers you have never encountered before. You need to communicate with customers who have different cultures, different standards, and different ways of doing things. You must understand them accurately and properly. Many things require attention.

How to Become a Global Beauty Brand

So, what does it take to succeed as a global beauty brand? What exactly should you consider, prepare, and put into action? Here are five essential topics to consider in order to become a global beauty brand.

1. Set Clear Short- and Long-Term Goals as a Beauty Brand

The more unfamiliar the challenge, the more important it is to set clear goals. Keep your long-term goal in mind and achieve your short-term goals one by one. For example, if your long-term goal is to reach annual sales of X won within five years, a short-term goal could be increasing your social media followers by 500 by the end of next month. For smaller brands, word of mouth matters more than simply placing products on shelves. Rather than relying on traditional marketing methods, you need many people to form a good image of your product and brand and talk about it as much as possible. Try to get consumers involved directly with the brand in a variety of ways. Then set these as specific short-term goals so you can stay on course and move toward your long-term objective without losing direction.

The reason long-term goals matter when expanding a brand into the global market is that achieving the results you expect may take longer than you think. There may be many obstacles, but that is a natural part of the process. Look far ahead so you can respond flexibly.

2. Understand the Culture and Interests of the Target Country

Just as important as your goals is your target market. Which country are you considering? What cultural sphere does it belong to, and what kind of tastes and culture do consumers there have? A precise understanding of these things is necessary.

For example, China, the world’s second-largest cosmetics market and the world’s largest skincare market, belongs to the Asia-Pacific cultural sphere. One of the most popular product categories in the Asia-Pacific cosmetics market is skin-whitening products. Meanwhile, in the North American cosmetics market, which is by far the largest, the leading trend is “eco-friendly.” Eco-friendly, organic, and other certified products are extremely popular.

You should also strategically understand the consumer culture of the target region in relation to purchases. For instance, French consumers prefer to try cosmetics in person before buying, while Germans tend to be wary of unfamiliar brands that rely too heavily on internet marketing.

The term “global beauty brand” means satisfying consumers in many different countries, each with its own culture. Even if one well-developed product performs well on various skin types, strategic diversification is essential in product marketing and actual sales processes.

3. Start by Selecting One Country and Testing It

As mentioned, it is impossible to perfectly satisfy consumer preferences that differ by culture and country all at once. Therefore, launching and selling all products in all countries at the same time is by no means practical. Instead, start by testing the waters with a few products launched in one country first. A conservative approach minimizes risk. Based on the results of the trial, plan your next test, study more, and make improvements. Remember that “global” is a word that refers to many countries at once. You expand one step at a time. Testing will definitely provide useful lessons. If the results are successful, the brand will be able to establish itself in that market with confidence.

4. Build Trust by Forming Relationships with the Local Market

Community marketing is one of the most frequently used methods when Millennials choose products to consume. As mentioned earlier, exposure through social media is an effective marketing strategy. However, for an unfamiliar brand from an unfamiliar country, this may not be easy. In that case, a good approach is to meet and build relationships with strong local brands in that region. If you can partner with a brand that is trusted in the local market, you will be able to gain the trust of many local consumers more easily. This is not limited to beauty brands alone. For example, hotels, spas, and massage centers can be perfect partners for a beauty brand to work with. Become part of the community through partnerships. Build relationships and approach people in a friendly way.

5. Domestic or Overseas? Optimize Production and Manufacturing

One of the most practical issues to consider when selling products overseas is production and manufacturing. If a consumer abroad buys your product, that means the product must cross a border. This process can incur higher costs than expected. That is why it is important to plan the most efficient method in advance.

Products can be manufactured domestically or overseas. If they are manufactured in Korea, you will need to consider international shipping issues. In that case, you must carefully check the customs and international transport regulations that differ by country. For example, Algeria prohibits the import of all dental products, and importing used clothing is illegal in Bulgaria. In such cases, it is best to check the official customs website of the relevant country. There you can confirm which restricted items—items that may be cleared for entry if certain standards are met—and prohibited items—items that cannot cross the border under any circumstances—are listed. In the same context, you should also clearly understand taxes, fees, and customs-duty regulations that vary by country.

Meanwhile, if you decide to manufacture products overseas, there are several things to consider. One factor that may lead you to choose overseas manufacturing is lower production costs. However, because direct management and supervision are more difficult, quality issues may arise. Therefore, you need to devise an effective operational system. In addition, if the manufacturing facility, the brand headquarters, and the consumers are all located in different countries, you may need to pay even more attention to packaging to ensure safe delivery. In short, you should consider all these possibilities and choose the most optimized production method.

The Importance of Packaging for Beauty Brands Entering the Global Market

Proper product packaging is essential to prevent risks such as additional costs. Especially in overseas markets, where consumers are still less familiar with the brand and product, packaging must be handled even more carefully to promote the product effectively. However, choosing the right packaging may be more complicated than it seems.

1. Choose the Right Package Type for Cosmetics

Source: Dieline

The first step will be choosing the right primary packaging container for the product. There are glass bottles, plastic jars, pumps, sprays, tubes, droppers, compacts, and more. However, you do not necessarily need to follow the ‘standard’ based on the product. New attempts can add a fresh appeal to a product. After selecting the packaging method that is essential for unitizing the product, it is time to consider the secondary packaging that will further protect the product and improve the completeness of the finished product. The most common and convenient option is a box. But boxes also come in many different types, each with its own differences. Learn more

2. Consider Color and Design Differences by Culture

Don’t forget: to survive in the global market, you must understand cultural differences. This is especially important in packaging. A lack of understanding of the target country’s culture can lead to major misunderstandings about the product and brand. Even the same color can be perceived differently depending on the culture. For example, red represents passion in Western cultures, prosperity in China, and mourning in South Africa. There is no need to be overly trapped by stereotypes, but identifying and reflecting the popular colors and design trends in a given country will be very helpful.

3. Packaging Becomes Even More Important for International Shipping

As noted above, international shipping requires even safer packaging. In particular, if the product being sold is cosmetics, you must be extremely careful to ensure that it crosses borders safely and reaches the consumer’s home without breaking or deteriorating. Safe packaging means the right package size so the product does not move during transit, appropriate cushioning materials used when needed, and strong materials and sealing methods.

4. Packaging That Differentiates the Brand and Is Accessible in the Global Market

A truly savvy seller will realize that blindly following existing trends in a target country is not the only correct answer. We always need a strategy that both follows trends and sets us apart. In that sense, the exotic feel of an overseas brand itself may become a competitive advantage. However, it must be expressed effectively. That is where custom packaging comes in, allowing flexible approaches based on the customer base and product characteristics. The difference between mass-ordered packaging made as cheaply as possible and custom-made packaging with attention to refined design is immediately visible. Through custom packaging, achieve both universality and differentiation at the same time.

Learn more about custom packaging production

Packaging Production for Beauty Brands Preparing to Enter the Global Market at Packative

While reading this article, did your head end up feeling even more complicated? Does it seem like there are too many items to decide, compare, and evaluate one by one? At Packative, you can try custom packaging production in the simplest way possible with expert advice. Experience packaging designs tailored to the trends of the global beauty market right now.

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