K-Beauty is no longer just about competitive pricing or clean formulations; it's evolving into 'active beauty' and making a powerful statement in the global market. With Dongkook Pharmaceutical's Centellian24's 'Madeca Cream' surpassing 100 million units in cumulative sales and Manyo Factory declaring its shift to active beauty, K-Beauty's growth is accelerating through diverse strategies.
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Viral Sensation: Centellian24's Madeca Cream Sells Over 100 Million Units
The flagship product of Dongkook Pharmaceutical's (동국제약) derma-cosmetic brand Centellian24 (센텔리안24), 'Madeca Cream' (마데카 크림), has surpassed 100 million units in cumulative sales as of July this year. This achievement comes approximately 10 years after its launch in April 2015. According to Mirae Economy, it's a premium total anti-aging cream that incorporates Dongkook Pharmaceutical's 50 years of accumulated dermatological science and its unique Centella Asiatica research technology, TECAnology™. Notably, 'Madeca Cream Time Reverse' earned praise from global beauty media outlet Coveteur as 'a product that restores radiance to the skin,' solidifying its viral popularity. Its key ingredient, Centella Asiatica (병풀 추출물), is well-known for its skin-soothing and regenerating benefits, establishing the cream as an essential product for managing skin sensitive to cold weather. (Kagit.kr)
https://www.mirae-biz.com/news/articleView.html?idxno=111882, https://kagit.kr/en/posts/centellian24-k-beauty-win마데카 크림 누적 판매량 1억개
Beyond Clean Beauty to Active Beauty: Manyo Factory's Innovative Strategy
Manyo Factory (마녀공장), once synonymous with clean beauty, is now evolving into a global skincare brand by transitioning to 'active beauty' since the appointment of CEO Song Jihye (송지혜). In an interview with Pax Economy TV, CEO Song Jihye stated, "We redefined the brand to respond to the K-Beauty market's shift towards efficacy-focused solutions for specific skin concerns like dark spots, melasma, and wrinkles, rather than traditional clean beauty." Manyo Factory has maintained its #1 position in the cleansing category at Olive Young (올리브영, Korea's largest beauty chain) for five consecutive years, and recently expanded its sales network to major European distribution channels like Boots in the UK, following its entry into Ulta Beauty in the US.
"In the past, our overseas business had a high proportion of B2B (wholesale), but recently, brands growing on global e-commerce platforms like Amazon and Qoo10 are leading the market. Therefore, we are reorganizing our structure and capabilities to directly secure global B2C capabilities."
— Song Jihye (송지혜), CEO of Manyo Factory, during an interview with Pax Economy TV
Manyo Factory is securing profitability by integrating logistics centers and improving its cost structure through marketing efficiency analysis, thereby laying the groundwork for global expansion. Particularly in the Japanese market, after gaining recognition through product placement (PPL) in the drama 'Crash Landing on You,' products like Galactomy Niacin Essence and Glutathione Serum continue to be loved, built on trust in their ingredients and efficacy. Furthermore, through a brand renewal, the company unified its global brand name to 'Manyo,' focusing on optimizing search traffic in the e-commerce environment.
Conquering the Global Ultra-Low Price Market: From Daiso to Primark
In Korea, Daiso (다이소), a popular discount retailer, is spearheading growth in the ultra-low-price beauty market, offering products under 5,000 won. According to Seoul Economy, Daiso's beauty category sales increased by 85% year-on-year in 2023, followed by 144% in 2024, and 70% last year, while also recording a 30% growth rate year-on-year from January to August this year. As popular products like VT Cosmetics' 'Reedle Shot' (리들샷) caused sell-outs, Daiso expanded its partnerships with beauty brands. E-Mart (이마트), another major retailer, also launched 'Solucian by Holika Holika' (솔루시안 바이 홀리카홀리카), a 5-item ultra-low-price skincare line in collaboration with Enprani's Holika Holika (홀리카홀리카). E-Mart now offers over 120 products from 28 brands, with its skincare sales increasing by 26.6% year-on-year from January to August this year.
Overseas, the spread of ultra-low-price K-Beauty is also prominent. Primark, a UK low-cost fashion retailer, sells K-Beauty products priced between £0.75 and £5 (approximately 1,400-9,000 won). Earlier this month, Primark partnered with K-Beauty specialist distributor Pure Seoul to introduce a 'K-Beauty Mini Mart.' Five Below, a US low-cost retailer, also operates a dedicated K-Beauty section, currently selling around 80 products.
"K-Beauty, with its increased recognition in the global market, has combined with the price competitiveness of low-cost retailers. K-Beauty's presence is growing, from department stores like Galeries Lafayette in France to Sephora and Ulta Beauty in the US, and now even low-cost distribution channels."
— A beauty industry official, in an interview with Seoul Economy
Innovation and Challenges: K-Beauty's Sustainable Growth Strategy
Centellian24's viral success, Manyo Factory's transition to active beauty, and the strategic push into the ultra-low-price market all demonstrate that K-Beauty is establishing itself as a sustainable industry, far beyond a fleeting trend. In an interview with Pax Economy TV, Manyo Factory CEO Song Jihye (송지혜) emphasized, "K-Beauty is not a temporary trend but a long-term flow," adding that "its tightly woven ecosystem and established success formulas in each segment lead to rapid innovation." The Korean government also plans to announce a multi-ministry strategy this year to cultivate K-Beauty as a global top industry, aiming to build a 'full-cycle support system' from R&D to distribution. (Kagit.kr)
However, K-Beauty's growth isn't without its challenges. According to Personal Care Insights, the increasing global demand, coupled with the proliferation of counterfeit products and unauthorized distributors, poses a serious threat to brand trust and consumer safety. In fact, Korean authorities recently apprehended an intermediary who imported 109,840 counterfeit K-Beauty products from China and sold them on Coupang (쿠팡, a major South Korean e-commerce platform). Addressing these challenges and strengthening global competitiveness are crucial tasks for K-Beauty's sustainable growth.
Through innovative product development, strategic brand positioning, and diversified market penetration, K-Beauty is captivating consumers worldwide. With government support, and by overcoming pressing challenges such as counterfeit issues and strengthening localization strategies, all eyes are on K-Beauty to see if it will emerge as the new standard in the global beauty market.
