Korean Beauty Is on the Decline, While Domestic Brands Are on the Rise—How Can Chinese Beauty Brands Gain the Upper Hand?

Everyone, I recently came across something strange. South Korea’s First Lady Kim Hye-kyung attended a Korean beauty promotional event in Shanghai. This reminded me of a fact: these days, when you walk through a mall, Korean beauty brands have become almost a rarity. K-Beauty is incredibly popular internationally, and South Korea has become the world’s second-largest exporter of cosmetics as a result. But in China, Korean beauty has fallen on hard times. I remember more than a decade ago, when Korean beauty products, along with Korean dramas, took the country by storm. Back then, sales of imported cosmetics increased ninefold in five years, surpassing those of France. The Chinese market became the single largest growth engine for Korean beauty. But as the “Korean Wave” cooled following South Korea’s deployment of the THAAD missile defense system—coupled with quality issues such as incidents involving excessive total bacterial counts and heavy metal levels—an increasing number of Korean brands closed their stores and ceased operations. Even so, in 2021, Korean beauty exports to China still accounted for over 50% of the total. By 2024, that figure had dropped to less than 20%. Does this mean Chinese consumers no longer like Korean beauty products? The answer isn’t that simple. The Korean Wave has given way to the “Guochao” trend, and K-Beauty has been replaced by C-Beauty. In 2024, domestic brands accounted for 56% of the domestic market, while the share of imported cosmetics continued to shrink, falling by 3.4%. Domestic brands have not only expanded their reach in the domestic market but have also scaled up their overseas operations. From 2020 to 2024, the average annual export growth rate for domestic beauty products reached 18%, while that for Korean beauty products was only 6%. Many high-end domestic beauty brands have even penetrated the European, American, and Korean markets. So how did these domestic beauty brands emerge? Let’s break it down. First, beauty products are one thing; brands are another. Beauty technology is part of the chemical industry—do you really think China can’t produce it? In fact, 80% of the raw materials for Korean skincare products are imported from China. The Korean beauty industry is dominated by small and medium-sized enterprises, most of which turn to major ODM manufacturers like Cosmax and Codemark for private-label production. Therefore, the true strength of Korean beauty lies in leveraging cultural platforms like K-pop to penetrate markets, responding quickly, and fostering market loyalty—it’s particularly adept at converting viral buzz into sales. But now the situation has changed. Chinese cosmetics are technology-driven. Technology drives product innovation, and prices are affordable. Korean cosmetics lack technological barriers, so they need to actively adjust their global strategy and shift more toward European and American markets, where cultural outreach is more effective. China controls 80% of the global supply of recombinant collagen raw materials. Many Korean brands use domestically produced raw materials yet sell them at an import premium. In terms of core technology, they still lag behind China by a generation. Take Furida as an example: with 34 years of deep expertise in biotech R&D, its raw material supply covers 79 countries and regions. Not only Japan and South Korea, but also major brands in Europe and the U.S. source their core raw materials from this industry leader. In recent years, Furui Da has moved beyond merely serving as a stepping stone for others; it has stepped into the arena itself, establishing penetration standards for collagen and emerging as the undisputed leader in the collagen industry. Collagen is an ingredient familiar to everyone; the sudden, dramatic aging of men’s and women’s skin is caused by collagen loss. Leveraging decades of raw material expertise and R&D technology, Furida has partnered with over 300 scientists and 14 provincial-level research platforms to create Kemi, a professional, clinic-grade skincare brand. KeMi’s flagship Collagen Stick has overcome the challenge of traditional collagen’s inability to penetrate the skin, ushering the collagen industry into a new era of transdermal absorption. This transdermal technology is even patented, with a penetration rate 27.5 times higher than that of ordinary collagen products. Many Korean brands are still researching animal-derived collagen, which carries risks of rejection and allergic reactions. In contrast, Kemi uses 100% human-derived collagen, with technology that ranks among the world’s best. Backed by a major raw material manufacturer, the product contains a blend of 7 types of collagen and 5 types of hyaluronic acid—including recombinant Type 3 collagen with a purity of up to 98%—so there’s no need to worry about allergies. It comprehensively addresses the sagging, dryness, and dullness caused by late nights, delivering highly efficient results. It has also passed rigorous inspections by more than a dozen testing agencies, with wrinkle-reducing effects measurable in minutes. The sleek packaging is a testament to our solid expertise. Not only have we overcome core technical challenges, but we’ve also kept production costs extremely low through a complete industrial chain. This is a hallmark of our approach: even high-end brands must prioritize value for money, maintain price competitiveness, and simultaneously enhance quality and functionality—offering consumers an offer they can’t refuse. This has been the consistent strategy for “Made in China” products competing in global markets, leaving South Korea with no room to counter. The waning of the Korean beauty craze reminds us that it’s difficult to maintain a competitive edge by relying solely on marketing forever; only continuous technological innovation is the true key to success in manufacturing. This reflects not only the current state of the C-Beauty industry but also serves as a microcosm of China’s rise.