Hankyung.com's introduces: Cost effective K-beauty products, SMEs whose exports jumped 125% in two years

Over 150 domestic beauty brands have exported their products to 40 countries

"We are delivering K-beauty to the United States, Southeast Asia, South Africa, and so on."

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Mar 09, 2022, 08:00 ET

SEOUL, South Korea, March 9, 2022 /PRNewswire/ -- Following announcement covered by Hankyung.com, Certain Korean companies actively export Korean cosmetics to global K-beauty market. Founded in 2013, Goshen Korea is a small and medium-sized company with a capital of 100 million won and 17 employees. It exports 150 cosmetic brands to 40 countries and promotes Korean cosmetics around the world.

Currently, Goshen Korea is mainly distributing Korean cosmetics to Overseas store, specializing in cosmetics and health and beauty (H&B) store.

Goshen Korea's exports through both channels are experiencing steady annual growth. Exports amounted to $9,731,973 (about 11.5 billion won) in 2017, and increased to $16,095,337 (about 19.05 billion won) in 2018 and $21,986,652 (about 26,98 billion won) in 2019. In recognition of these achievements, they were awarded the $5M Export Tower in 2017, the $10M Export Tower in 2018, and the $20M Export Tower in 2019.

Last year, the total export amount fell slightly to about 16 million dollars (about 18.99 billion won) after the novel coronavirus infection (COVID-19). However, the export value is expected to exceed 20 million dollars (about 23.74 billion won) this year. Mr. Song said, "We've signed contracts with Several countries' leading marts and home shopping channels this year. We also plan to diversify our distribution channels next year by launching new products."

Goshen Korea's performance is significant because the company's growth potential rises in tandem with the K-beauty market's growth in global.

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Goshen's cosmetics are displayed at its Korea headquarters in Yangcheon-gu, Seoul. (Photo by Reporter Mi-kyung Lee)

Goshen Korea gives special consideration to country's climate and culture when exporting K-beauty products. CEO Kyung-hwa Son said, "Some countries have a long period of dry weather and people don't physically scrub off their dead skin. Therefore, we export products specialized for exfoliation, scrub, and moisturizing. We also export hair products that take into consideration the water quality and mineral concentration."

Launching their products in accordance with the characteristics of each distribution channel also helped to achieve good results. Which owns main customers in their teens and twenties has products with a unique design that catches the attention of their young customers while offering excellent cost-effectiveness (price-performance) at a low price. Its leading brands are A'pieu, Dewytree, Quret, and Peripera. However, in other case, they mainly import products with a clear brand identity at a slightly higher price.

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(Photo by Goshen Korea)

Goshen Korea was also selected as a Hi Seoul Certified Company in 2021 by the Seoul Metropolitan Government. Hi Seoul Certification is granted by the Seoul Metropolitan Government to SMEs with global competitiveness. When Seoul-based SMEs are selected as Hi Seoul Certified Companies, they are awarded a designation letter in the Seoul Special Mayor's name. Also, Hi Seoul certified companies receive support for global expansion, Business-to-Business services, and corporate networks through the Seoul Business Agency (SBA), a support organization for small and medium-sized enterprises in Seoul. Goshen Korea received support for EAC certification and logistical costs to send cosmetic samples overseas.

Goshen Korea plans to expand the market more actively by increasing the number of export destinations in the future. CEO Son said, "We plan to launch K-beauty products in Malaysia and Thailand by introducing Korean cosmetics through major distribution channels in each country. Our mission is to promote K-beauty to foreign countries by discovering Korean SMEs' products that have been selected as excellent products in the Hi Seoul Awards."

SOURCE Hankyung.com