K-beauty-related reports from South America, on the opposite side of the globe, are attracting attention.
Last year's export performance was $7.015 million, down 23.0% from $9.108 million in 2021, but the average annual growth rate for the five years from 2018 was 27%, Korean cosmetics blowing in Chile, K-beauty here. This is the report of the KOTRA Santiago Trade Center that they are targeting consumers with a separate brand called 'Beauty-K'.
According to statistics from the Korea International Trade Association (KITA), Chile is a country that forms the third largest Korean cosmetics market among Latin American countries, and skin care accounts for 95%.
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Currently, about 40 distributors in Chile are selling Korean cosmetics. In addition, the report said that large pharmacies and cosmetics distributors are also introducing K-beauty products on a large scale.
Building a brand through OEM in Korea... “Product excellence has already been confirmed”
KOTRA Santiago Trade Center conducted an interview with Karina Nuñez of Medcell, a Chilean cosmetics importer and distributor, to provide local information to Korean companies seeking to export cosmetics to Chile.
Medcell is a subsidiary of Empresas SB, a large Chilean pharmacy and cosmetics group. Carina Núñez was in charge of procurement of Korean cosmetics through an OEM method and the establishment of Beauty-K, her own K-beauty skin care line.
Beauty-K, which is operated by Medcell, is sold by another subsidiary, △ Salcobrand, a large drugstore chain, and △ Preunic, a cosmetics chain.
Carina Núñez said, “Medcell is a subsidiary of Empresas SB in the health and beauty field, and either builds its own brand or represents an imported brand.” explained.
Along with this, “The excellence of Korean beauty products is already known all over the world. Medcell decided to cooperate with Korea to introduce high-quality brands and products that consumers can approach at a reasonable price. Medcell's K-beauty lineup is made up of products that apply the formula. Currently, the aloe vera mask is sold at a price range of 5,000 won (3,490 pesos) and the cream is 27,000 won (17,999 pesos).”
Hope to foster 'Beauty-K' as Chile's top brand
Carina Núñez emphasized Medsel's Beauty-K, "Unlike other products on the market, Beauty-K skin care products are differentiated in three points: △ texture △ natural ingredients △ application technology" and emphasized, " In order to provide the best experience, educated professionals are placed in 440 'Salco Brand' stores nationwide to guide consumers on how to use and how to care for their skin. We have placed product testers in major stores so that customers can test and buy the products themselves.”
Through the Salcobrand website, a detailed page where product specifications can be checked is operated, and Instagram and Facebook pages are also operated.
He said, “I hope that Beauty-K will become the ‘No. 1 Korean brand in Chile’” and “To this end, we will inform local consumers that Beauty-K is a brand and product produced 100% in Korea, and work with Korean partners to develop new products and develop new products.” We will continue to innovate,” he said.
“I prefer a reasonable price range… The certification process is difficult.”
KOTRA Santiago Trade Center pointed out, “Four to five years ago, K-beauty in Chile was a niche market targeting some young female consumers who liked Korean dramas and music.” The consumer base is expanding, and K-beauty products can be easily found at local department stores, cosmetics stores, and pharmacies (drug stores).”
Along with this, an official from the Korea Trade Center said, “We are discovering suitable Korean cosmetics companies for major buyers in the related industry, including Medcell.” ”, he also suggested.
The category that local buyers are interested in is △ skin care △ body care △ all beauty products including nail care (preferably cosmetics-related certified products), he added.
If you send company introduction materials and product introduction materials in English to Xaviera Arata Senior Specialist ( firstname.lastname@example.org ) at the Trade Center in Santiago, matching will be carried out.
The Santiago Trade Center said, “The Chilean cosmetics market tends to require reasonable prices and strict certification procedures. We hope that Korean cosmetics companies will expand their entry into the Latin American market with the Chilean market as a stepping stone through collaboration with the local distribution network.” <Organization and Cosmorning editorial office>