Core Insights - The Korean cosmetics industry is experiencing a global resurgence, with exports reaching $8.52 billion (approximately 604.07 billion RMB) in the first three quarters of 2025, marking a 15.4% year-on-year increase and setting a historical record for the same period [1][17] - The focus of this resurgence is shifting away from China, as the proportion of Korean cosmetics exports to China fell below 20% for the first time in the first half of 2025 [1][10] - Major players like Amorepacific and LG Household & Health Care are diversifying their markets, targeting growth in North America, Japan, and Europe [10][15] Group 1: Amorepacific Performance - Amorepacific's sales in Q3 2025 reached 10.169 trillion KRW (approximately 48.81 billion RMB), a 4.1% increase year-on-year, with operating profit soaring by 41% to 919 billion KRW (approximately 4.41 billion RMB) [4][6] - The company reported a total sales figure of 30.894 trillion KRW (approximately 148.29 billion RMB) for the first three quarters of 2025, reflecting a 10.6% year-on-year growth [6] - The cosmetics segment contributed significantly, with sales of 27.555 trillion KRW (approximately 132.27 billion RMB), up 10.15% year-on-year, accounting for 89.2% of total revenue [6] Group 2: LG Household & Health Care Performance - LG Household & Health Care reported a sales decline of 6.1% in the first three quarters of 2025, totaling 48.83 trillion KRW (approximately 234.38 billion RMB), with operating profit down 41.4% [7][9] - In Q3 2025, the company achieved sales of 15.8 trillion KRW (approximately 75.84 billion RMB), a decrease of 7.8% year-on-year, with the beauty segment experiencing a significant drop of 26.5% [9][10] - The company attributed its struggles to a major restructuring of traditional channels, which severely impacted duty-free retail [9] Group 3: Market Diversification - Korean cosmetics companies are increasingly focusing on overseas markets, with Amorepacific's overseas sales in Q3 2025 reaching 440.8 billion KRW (approximately 21.16 billion RMB), accounting for 43.4% of total sales [10][12] - LG Household & Health Care's overseas sales grew by 6.6% to 493 billion KRW (approximately 23.66 billion RMB), representing 31% of total sales [12] - The shift away from reliance on the Chinese market is evident, with Amorepacific's sales to China dropping to 10.4% and LG's to 9% in Q3 2025 [10][12] Group 4: Strategic Initiatives - Companies are pursuing global diversification strategies, including acquisitions of local brands and partnerships with major e-commerce platforms like Amazon and Shopee [14][15] - Amorepacific is prioritizing markets in the U.S., Japan, and Europe while adjusting its strategy in China to focus on high-quality growth [15][19] - LG Household & Health Care is also restructuring its global business, emphasizing the Americas and targeting younger consumers with new products [15][19]

Group 1 - The core viewpoint is that while the Korean beauty (K-beauty) market in China is experiencing a downturn, the industry is shifting its focus towards global markets, particularly North America and Japan, where new entrants are gaining market share [1][9] - Established K-beauty companies like LG Household & Health and Amorepacific have seen significant declines in revenue, with LG's earnings halving, while new players like APR are experiencing substantial growth [1][3] - The rise of social media has enabled new K-beauty brands to capture market share from traditional giants, leading to a competitive landscape where established companies face challenges from emerging firms [1][8] Group 2 - Igongigong, a K-beauty startup, has announced plans for an initial public offering (IPO) and aims to complete it by the end of next year, having achieved significant sales growth [2][3] - The company, founded in 2019, focuses on distributing and marketing K-beauty brands in North America, with sales expected to reach 100 billion KRW (approximately 5.17 million RMB) this year, a 2.5-fold increase from last year [5][3] - APR has seen its stock price soar by 200% this year, surpassing the market capitalization of established players LG Household & Health and Amorepacific, becoming the top K-beauty company by market value [5][7] Group 3 - The North American market has become a key growth area for K-beauty, with companies like LG Household & Health and APR reporting significant revenue increases in this region [9][11] - The success of K-beauty brands in North America is attributed to effective marketing strategies, including social media engagement and a focus on ingredient-driven products that resonate with local consumer preferences [14][15] - Brands like KAHI and Medicube have leveraged social media platforms like TikTok to enhance their visibility and sales, with KAHI's multi-functional balm achieving over 5 million units sold globally [22][30] Group 4 - The rise of new K-beauty brands is reshaping the competitive landscape, moving from a monopoly of established players to a more diverse and innovative market [8][35] - These new entrants are characterized by younger leadership, which allows them to connect better with the core consumer demographic and adapt quickly to market trends [7][8] - The combination of ingredient-focused products, social media marketing, and strategic use of platforms like Amazon has proven to be a successful formula for K-beauty brands in overseas markets [30][34]