K-beauty and fashion are making waves worldwide. Korean cosmetics have surpassed the traditionally strong French cosmetics to become the top exporter in the United States and Japan, establishing a central position in the global market. The fashion sector is also experiencing continuous growth. CHOSUNBIZ conducted relay interviews on the success stories and differentiated product philosophies of beauty and fashion brands recognized overseas. [Editor's note]
The new main players in the rapidly growing K-beauty industry worldwide, particularly in the United States and Japan, are small to medium indie brands. They have captured the hearts of people around the world with marketing techniques and branding capabilities utilizing social media, such as TikTok. Exceptional quality and reasonable prices based on the powerful manufacturing capabilities of Korean Original Design Manufacturers (ODM) competing for global sales are a given.
Lee Byung-hoon, CEO of Picton, stated this during a meeting at the company's headquarters in Mapo District, Seoul, on Dec. 24. He currently leads the indie brand 'Tokobo.' Tokobo is available in major domestic channels, including Olive Young and Beautycurl, and has gained popularity globally, especially in South America. It is a vegan brand that excludes animal testing.
Tokobo is Lee's second brand. He began his career at Samsung Electronics' mobile division. Based on the product strategy planning he developed during that time, he entered the beauty industry in 2015. The first product, the brand 'Huxley,' centered around cactus ingredients, has continued to grow and was listed on the KONEX in 2021.
Afterward, he stepped down from the position of Huxley CEO to prepare for a new beginning. Having succeeded in targeting the domestic market, he strategized to aim for the global market this time. If the target age group for the previous brand was in their 30s, it has now shifted to their 20s. The brand name Tokobo was also chosen based on the idea that it is an easily pronounceable and rhythmic word for people around the world.
Tokobo's growth is rapidly advancing. Within nine months of its launch, it entered Olive Young, which is the 'debut stage' for domestic indie brands, and has successfully ventured into the global market. Currently, certain products from Tokobo are recording the highest sales in local H&B store channels in South American countries like Mexico and Chile. The annual sales, which were 1.4 billion won in the first year, skyrocketed to 11.7 billion won in 2023 and are expected to approach 30 billion won in 2024. Approximately 80% of sales come from overseas. This year's sales target is about 55 billion won.
As K-beauty gained popularity, competition has also intensified. Over 6,000 new brands emerged just last year. The differentiated value and survival secret of Tokobo lie in creating 'unique products that others do not make.'
By targeting niche markets, corresponding demand has arisen. The first product that expanded brand recognition is the sunscreen stick. The strategy of entering the less popular sunscreen stick market compared to sunscreen and presenting differentiated products worked.
Another key product is the colored lip balm. Industry evaluations indicate that Tokobo led the new trend of colored lip balms in a market previously dominated by regular lip balms, such as Nivea. Changing the eye cream formula, which prevents eye wrinkles, to a gel type also turned conventional wisdom on its head by appealing to the 20s demographic.
Lee said, "The sustainability of Tokobo comes from continuous innovation and a unique approach," adding, "The next product will be a sun primer (sunscreen). It will add sunblock capabilities in the primer stage. It is not yet a mainstream product. It opens up new possibilities again."
According to Lee, Tokobo employed a diversification strategy in overseas expansion. Drawing from past experiences in China, he determined that reliance on a single country is risky. While they have entered mainstream channels like Amazon and eBay, they also continuously promote the brand by distributing a substantial amount of samples to global influencers through social media, such as Instagram. They also approached local channels in each country.
Lee stated, "Unlike other brands, overseas sales mostly come from South American countries due to this strategy," emphasizing the "successful equation for rapidly expanding awareness among the MZ generation both domestically and internationally." He added, "This year, we aim to have over 2,000 offline store entrances in Japan."
Lee views K-beauty as a business with significant potential for long-term growth. He believes that while K-indie brands compete globally, they should fundamentally collaborate to enhance the competitiveness of the industry.
Lee noted, "K-beauty is an industry with great growth potential based on the strength of Korean culture and product quality and price competitiveness. K-beauty brands should ultimately raise their competitiveness together within the letter K. To sustain this craze, they must compete while also collaborating."