K-beauty brands are increasingly advancing beyond the online platform Amazon in the United States to offline distribution networks. They are expanding their contact with American consumers by continuously entering local major retail channels such as Costco, Ulta, and Target.
According to the industry on the 26th, K-indie beauty brands such as MA:NYO, Anua, Chosun Beauty, and Skin Angel have entered major U.S. retail channels like Costco, Target, and Ulta. This move broadens their distribution, which had previously focused on online platforms like Amazon, thereby expanding their consumer base.
These brands originally grew based on online platforms such as Amazon. They sparked a K-skin care craze among the American MZ generation (those born between 1980 and 2000) through social network service (SNS) marketing, including TikTok. As a result, K-beauty ranked first for the first time ever in the U.S., the world's largest cosmetics import market, surpassing France last year. According to trade statistics from the Korea International Trade Association, the import amount of Korean cosmetics in the U.S. from January to October last year was $1.406 billion (about 2.6 trillion won), the highest among countries worldwide.
As K-beauty awareness increases, indie brands are actively utilizing large U.S. distribution networks to expand their market share. Previously, only a few brands had entered beauty specialty stores like Sephora, but recently they are expanding their sales channels to major retail outlets such as Costco and Target.
For example, Anua officially began its offline expansion by entering Ulta, referred to as the 'American version of Olive Young,' this month. Other brands like CosRX and Klairs are also available at Ulta. Since entering the U.S. market in 2022, Anua has become one of the brands that exploded in growth, driven by the popularity of products using mugwort. Last year, it recorded online sales of 420 billion won in North America.
Another offline channel that the industry views as important is large supermarkets like Costco. Costco is one of the U.S. distribution networks with strong consumer accessibility, boasting over 700 locations in North America. Additionally, as it operates a membership system focused on bulk purchases, brands entering Costco can secure price competitiveness while expecting large sales volumes.
Using entry into Costco as a springboard, it is also possible to expand into other large retail channels such as Walmart, Target, and Walgreens. Currently, brands such as Skin1004, Toriden, Chosun Beauty, Mixsoon, Huxley, MA:NYO, and Dalba are present in Costco. Following its entry into Costco, MA:NYO recently entered Target as well. It is selling products to local consumers from this month in approximately 1,788 stores (about 90% of all Target locations) based on Pure Cleansing Oil.
A beauty industry official noted, 'The entry of K-beauty into the U.S. offline market signifies its recognition of popularity. In essence, it marks the beginning of Season 2 of U.S. expansion.' They further stated, 'Entering major distribution networks like Target and Costco is evidence that K-beauty is no longer confined to niche markets and has been widely accepted by mainstream consumers.'