K-beauty and fashion are causing a stir around the world. Korean cosmetics have surpassed France, the traditional powerhouse in cosmetics, to become the top exporter in the United States and Japan, solidifying their position in the global market. The fashion sector is also experiencing continuous growth. ChosunBiz has conducted a relay interview with successful beauty and fashion brands recognized overseas, focusing on their unique product philosophies. [Editor's note]
The goal is to become the 'L'Oréal of Korea.'
Eleven Corporation is a comprehensive beauty company that leads the '100 billion won twin brand' based solely on sales from CJ Olive Young. It has developed various brands, including the skincare brand 'Panel,' which has surpassed 10 billion won in sales, the body and hair care brand 'Growers,' the fragrance brand 'Adict,' and the oral care brand 'Ladence.'
On the 27th of last month, ChosunBiz met with CEO Baek Chang-jun of Eleven Corporation at the company's headquarters in Myeongdong, Seoul. He noted, 'To enter the early market, I set a strategy to target niche markets rather than the red ocean everyone else is in,' stating that he focused intensively on markets like hair, body, fragrance, and oral care that would face relatively less competition.
Baek graduated from a university in New Zealand. Studying business administration, he ventured into the beauty industry, which allows for entrepreneurship with relatively small capital upon returning home. At that time, the popularity of Korean cosmetics from China benefited large companies like Amorepacific Corporation and LG H&H. His belief that the Korean beauty industry would grow as the Korean Wave continued fueled his interest in the cosmetics industry.
The first brand is the fragrance brand 'Adict,' launched in 2019. It garnered attention for being the first in Korea to introduce 'ethanol-free' perfume, excluding denatured alcohol (ethanol). Baek emphasized, 'Having suffered from severe asthma and atopic dermatitis, I wanted to create products for sensitive skin,' stating, 'I develop all products with the mindset that I will use them, without compromising on cost.' Since then, he has established Eleven Corporation as a comprehensive beauty company by expanding its portfolio to include basic care Panel, oral care Ladence, body and hair care Growers, and color cosmetics brand Lumir.
Baek emphasized that 'creating a brand' is both the beginning and end of a business. He explained that a single successful product makes it difficult for a brand to maintain popularity over time because the image and trust established by the brand create the sustainability needed for corporations to generate profits. He stated, 'Each brand has its unique identity and narrative. The fact that each brand is achieving over 10 billion won in performance is a result of product quality and accumulated consumer trust.'
Baek noted that Eleven Corporation is considered a company with a 'solid foundation' in the industry because it makes all decisions in-house, from product development to design and marketing. The number of employees is about 130. It has also hired local staff in Hong Kong, Taiwan, and Japan for localization. The company thoroughly analyzes market data and employs a strategy to launch products that have advanced from those that were previously popular.
Baek stated, 'The skincare brand Panel started with the question, 'Why are there no high-performance products for sensitive cosmetics?' Growers began with the curiosity, 'Why is there only shampoo bought by my mom from the grocery store in the bathroom?' He added, 'When others ask why our brand succeeded, I want to establish a successful formula that explains 'how'.'
His current goal is to grow Panel, Growers, and Lumir into brands with annual sales of 100 billion won each within three years. To achieve this, he plans to further boost sales through market expansion in the United States and Japan this year. He is in discussions to enter Ulta Beauty, known as 'the Olive Young of America,' and in Japan, he is expanding both online and offline store placements focusing on Lumir's color products. Eleven Corporation is currently operating in 20 countries worldwide, with annual sales reaching 7 billion won in Taiwan. The company is systematically establishing overseas subsidiaries and knocking on doors in various countries.
Baek emphasized that many K-beauty brands grow to a certain scale by distributing overseas through vendors and then sell out, saying, 'However, we have built our brand from the start by establishing overseas subsidiaries and directly transacting with local distributors. We must meticulously implement localization strategies to firmly establish ourselves abroad.'
Baek is also planning an initial public offering (IPO) by 2027. He stated, 'The ultimate goal is to grow into a global comprehensive beauty corporation like L'Oréal,' adding that he will strive to establish a brand that is competitive in the global market, rather than just a fleeting phenomenon in the K-beauty trend.