Why has K-Beauty, Once Popular in the West, Been Abandoned by Chinese Consumers?

Over the past decade, Korean beauty brands have experienced a rollercoaster-like journey in the Chinese market.

Once popular but now falling out of favor in China, these brands have turned to the Western market for new opportunities.

With the growing influence of K-pop culture, Korean makeup aesthetics, and skincare philosophies, K-beauty has made a strong comeback in the West, regaining its former glory.

The Western market has now become a "new frontier" for Korean beauty brands, and many of them have become popular on platforms like TikTok.

In the past two years, the popularity of K-beauty has soared.

Between January and September 2023, two Korean brands ranked among the top ten skincare brands in the United States by earned media value (EMV).

One of them, Glow Recipe, topped the list with an astonishing $82 million in EMV.

But why are Korean brands thriving in the West while being abandoned by Chinese consumers? 

What strategies are these brands using to create a buzz in the Western market?

Around 2012, with the widespread popularity of Korean dramas and K-pop music in China, Korean beauty brands started to gain tremendous traction.

For instance, in 2013, after the drama The Heirs became a hit, the brand Innisfree, endorsed by the male lead Lee Min-ho, quickly gained popularity.

In 2014, when My Love from the Star aired, the IOPE cushion foundation used by Cheon Song-Yi became a bestseller.

In 2016, after the release of Descendants of the Sun, the Laneige two-tone lipstick used by Song Hye-kyo also became a hot product.

Statistics show that in 2015, the import value of Korean cosmetics to China reached 4.989 billion RMB, a year-on-year increase of 1623.88%.

During that year, Korea surpassed both the U.S. and Japan to become the second-largest cosmetics exporter to China (with France ranking first).

During this period, Korean beauty brands rapidly expanded their presence in China.

Innisfree began its rapid expansion in 2014, opening 100 stores per year, peaking at more than 800 stores across the country.

However, this golden age didn't last long.

As the influence of K-pop culture in China began to wane, the cultural appeal of Korean beauty brands diminished, and Chinese consumers' enthusiasm for K-beauty gradually faded.

Several Korean beauty brands started to close stores or even withdrew from the Chinese market entirely.

For instance, in 2021, Etude House closed all its stores in China.

Innisfree’s store count dropped from over 800 at its peak to just around 140, representing an 80% decline.

HERA closed its offline stores, stopped operating its WeChat store.

3CE closed its Chinese website and its first flagship store in Beijing.

The decline of Korean beauty brands in China is also reflected in the financial reports of Amorepacific Group.

In 2016, its revenue reached 6.697 trillion Korean won (approximately 40.4 billion RMB), but by 2020, this figure had dropped to just 28.579 billion RMB—a decrease of over 10 billion RMB compared to its peak.

The mid-tier brands have largely closed down or exited the Chinese market, leaving only the high-end lines struggling to maintain their presence.

Several factors contributed to the collapse of Korean beauty brands in China. 

One significant turning point was the 2016 THAAD incident, which led to a sharp decline in the influence of Korean pop culture in China.

This, in turn, caused many Chinese consumers to lose interest in Korean brands.

Additionally, some Korean beauty brands faced product quality issues, such as reports of heavy metal contamination, which further damaged their reputation.

Moreover, many consumers felt that the effectiveness of Korean beauty products was underwhelming. 

Korean skincare brands often focus on marketing concepts such as botanical extracts, but their investments in raw materials and professional research are relatively low.

Meanwhile, local Chinese beauty brands have risen rapidly, leveraging their deep understanding of the local market and strong marketing capabilities to gradually erode the market share of Korean brands.

In the makeup segment, domestic brands like Perfect Diary, Florasis, and Judydoll have quickly gained traction. Their eye-catching packaging, affordable prices, and high engagement on social media have made them popular choices, rapidly capturing market share.

More importantly, these emerging local brands combine traditional cultural elements with modern aesthetics, creating beauty products that are both internationally trendy and distinctly local.

In the skincare segment, Chinese brands such as Proya and Winona have broken through with high-quality ingredients and exceptional value for money, making it difficult even for some niche Western brands to compete, let alone Korean brands that are not strong in this category.

Despite the downturn in China, Korean beauty brands have managed to carve out a niche in the Western market. 

According to data from the United States International Trade Commission (ITC) and the U.S. Department of Commerce, as of July 2023, Korea ranked first among the U.S. cosmetic importers, with a market share of 20.1%.

Have you heard of these brands? COSRX, Peach & Lily, Glow Recipe, Saturday Skin, Then I Met You, and Beauty of Joseon—yes, these are the Korean beauty brands currently trending in the North American market.

Many of the aforementioned brands have gained traction through TikTok. 

In spring 2023, searches for the term "Korean glass skin" on TikTok increased by 134% compared to the previous year. The hashtag #kbeauty has garnered 9.5 billion views on TikTok.

COSRX's Snail Mucin Essence alone has over 40 million views on TikTok, helping the product sell over 20 million bottles to date.

Korean skincare products are known for their focus on hydration and soothing ingredients, which contrasts sharply with the more aggressive formulations often seen in Western brands.

American skincare experts point out that in the Western market, "strong" products are popular because local consumers tend to look for solutions after skin issues arise, seeking high-concentration actives for quick results.

In contrast, Korean beauty promotes prevention and advocates gentle, non-irritating skincare, offering Western consumers a sense of novelty and safety.

With a focus on barrier repair and overall skin health, Korean skincare has attracted a broad base of consumers in the West.

Today, pop culture has become one of Korea’s biggest exports. With the global success of BTS, BLACKPINK, Parasite, and Squid Game, Korean beauty has entered the mainstream spotlight.

K-pop idols have become ambassadors for luxury fashion and beauty brands in the West. Korean beauty brands are leveraging this trend, using their popularity to reach a wider audience.

For example, Amorepacific’s brand Sulwhasoo chose Rosé, a member of the popular K-pop group BLACKPINK, as its brand ambassador.