Overseas sales of Korean cosmetic companies thread surged over 30 percent on average annually over the past three years, allowing the country to post its first cosmetic trade surplus last year.
Korea’s cosmetic exports amounted to nearly $1.07 billion in 2012, surpassing imports of $978 million, according to the Korea Pharmaceutical Traders Association.
“Cosmetics used to be perceived as an industry relying mostly on domestic demand in the past, but now many companies’ overseas sales take up two-digit shares of their total revenue thanks to improved product competitiveness and higher awareness of Korean pop culture,” said an industry official.
Sales assistants talk with customers at a cosmetic shop. (Yonhap News)
Major cosmetic companies’ overseas sales gained as they increased exports and sales of their overseas arms by acquiring foreign firms.
Overseas sales of LG Household and Health Care shot up 156 percent in just two years from 90.8 billion won in 2010 to 232.3 billion won last year as it acquired a Japanese firm named Ginza Stefany Cosmetics.
Korea’s entire cosmetic sales surged 36 percent in the same period.
LG H&H’s exports climbed 36 percent in a year from 138.4 billion won in 2011 to 184.5 billion won last year.
The company’s overseas revenue also showed a higher operating profit-to-sales ratio of 16 percent compared to that of domestic sales (11 percent).
The nation’s largest cosmetic giant Amore Pacific saw its overseas revenue jump 66 percent from two years earlier to 442.8 billion won in 2012 when its entire sales rose only 38 percent in the same period.
Exports of Cosmax, an original design manufacturer of cosmetics, rose from 22.6 billion won to 29.2 billion won in the two years when sales of its Chinese arm named Cosmax China hiked from 25.2 billion won to 58.6 billion won.
Able C&C, which runs Missha brand shops, also saw its exports soar 64 percent to 28.3 billion won in the same period.
By Kim So-hyun (
sophie@heraldcorp.com)
