An analysis suggests that K-beauty brands recently acquired by global beauty giants such as Estée Lauder, Unilever, and L'Oréal, which were acquired with investments totaling trillions of won, are, contrary to expectations, receiving below-par performance reports.
The industry believes that integration into global conglomerates no longer guarantees K-beauty's success. While brand growth was previously possible simply by leveraging global distribution networks, the market environment has now shifted to a consumer pattern where beauty products are discovered via social media platforms like TikTok and Instagram and purchased through online malls.
The complex procedures of global conglomerates are pointed out as potentially hindering the rapid new product launches and marketing response speeds that are strengths of K-beauty indie brands. This phenomenon suggests that it is crucial for K-beauty brands to maintain an independent identity and agile market responsiveness, going beyond mere global distribution networks.