K-beauty is moving in earnest into U.S. offline channels this year. Beyond Amazon and TikTok, it is widening its touchpoints with major local distribution channels such as Ulta Beauty and Sephora, accelerating the "second wave." In the short term, it succeeded in quickly delivering results through short-form content and online, but critics note that to survive steadily, brands need philosophy and long-term strategy.
Jeong Sae-ra, CEO of Landing International, met with ChosunBiz on the 11th and said, "Still, 80% of U.S. consumers don't know K-beauty. Conversely, that means the door of opportunity is that much open," and added, "Rather than relying on short-term monetizing formulas, we need brand philosophy and localization strategies that can go the distance."
Landing International is a global distribution company that CEO Jeong established in the United States in 2014. It supports K-beauty brands' overseas expansion, maintaining partnerships for nearly 10 years with Ulta Beauty, a leading local beauty select shop, along with some 25 distribution channels including Target, Costco, Walmart, and ASOS.
After launching a "K-beauty zone" at Ulta Beauty in 2016, it has distributed around 200 brands to date, starting with Cosrx in 2017, and holds exclusive rights to the "K-beauty prestige zone" within Ulta Beauty stores. Next year, it plans to participate as a local partner in the opening of CJ Olive Young's first U.S. store.
Referring to K-beauty's "second wave," Jeong explained, "The first wave was a trend in which brands led by sheet masks and soothing skin care grew through the pandemic when social media was scarce. Now, indie brands focused on suncare and color cosmetics are building experience by connecting directly with consumers through TikTok and Amazon, creating a second trend."
Jeong continued, "K-beauty is assessed by global retailers as 'ahead in technology.' But because it is still unfamiliar to offline consumers, rather than simply drawing attention with many new product launches, it needs marketing with clear targets and stronger brand power," emphasizing, "In particular, understanding U.S. culture and consumer traits is essential. Brands should respond to local events like Thanksgiving and Independence Day, and localization efforts must reflect diverse needs, such as the skin types of Hispanic consumers." The following is a Q&A.
―What led you to found Landing International?
"Having long done consulting in the United States, I saw many cases where Korean brands struggled because they didn't understand the local market. I decided a platform was needed that could transparently link ordering, inventory, and pricing flows beyond simply introducing brands, which led me to start the company."
―What is the platform's greatest strength?
"We built a structure that lets brands grasp ordering, inventory, and even consumer prices in real time. The differentiation is that rather than merely exporting products, brands can directly see what responses are happening in local stores."
―How aware are U.S. consumers of K-beauty?
"Most general consumers still don't know K-beauty. Think of it as 2 out of 10 know it and 8 do not. As only the interested few are aware, I believe what's needed is ultimately a 'strategy to expand the pie itself' rather than competition among brands."
―What is the biggest practical challenge K-beauty faces in the U.S. market?
"Inventory management is the biggest issue. If volume is too high you take a loss, and if it's short you lose sales, so balance is always necessary. The Korean-style 'rapid new product launch' strategy doesn't match the pace of U.S. offline distribution and needs adjustment."
―Where are Korean brands lacking in terms of localization?
"In the United States, consumer needs differ by race and culture. Brands need to respond to the skin types of Black and Hispanic consumers and to cultural issues, but Korean brands are still weak in those areas. They also need to show responses to local events like Thanksgiving and Independence Day, but such attempts are lacking."
―You emphasized K-beauty's 'second wave.' What has changed?
"During the first wave, social media was scarce, and there were many difficulties due to limited global experience. Now, many brands have experience connecting directly with consumers through TikTok and Amazon. The key now is to expand space while competing in the same stores as global legacy brands."
―If you had to pick a success story?
"Certain products like Cosrx's acne patches sell more steadily in the United States than in Korea. Items at lower price points, such as patches, are hard to place in stores as-is, so we created dedicated packaging and made them a success. Sales grew faster than expected, to the point that inventory was short."
―Conversely, are there cases that failed or struggled?
"Brands that entered right before COVID-19 struggled with timing. We learned that without securing local awareness, no matter how strong the product is, it is not easy to gain a foothold."
―How are you responding to tariff risks?
"We anticipated the possibility of tariff hikes since last year and prepared. We have already priced in up to 10%, and for additional burdens, we are resolving them through a structure in which brands and retailers consult together. In the short term there is expense pressure, but in the long term we determined it is important to protect both price competitiveness and brand trust."