“ forcing Amorepacific to diversify into other markets. The company has since scaled back its Chinese presence, withdrawing both its Hera and Etude House brands from the market. Amorepacific’s Chinese subsidiary reported a 42 per cent on-year decrease in sales to 75 billion won (US$52.5 million) in the third quarter of this year, resulting in an operating loss of 30 billion won (US$21 million). Despite these challenges in the Chinese market, the company’s strategic pivot to other regions has started showing promising results, marking a significant turning point in its global expansion strategy. Reaping the benefits The strategic move proved successful, with US sales surging 65 per cent to 121.8 billion won (US$85.3 million) – surpassing China as the top export destination for the first time. The company’s revenues in the Americas doubled during the third quarter, driven by robust growth of major brands and the addition of Cosrx. Group CEO Seunghwan Kim announced plans to accelerate global rebalancing by focusing on key markets: the US, Japan, Europe, India, and the Middle East. For advanced markets like the US, Japan, and Europe, Kim emphasised expanding brand and customer reach through strengthened partnerships with major retailers such as Sephora. This strategic shift towards diversification in global markets is not unique to Amorepacific, as other Korean beauty companies are also making similar moves to expand their international presence and reduce dependence on the Chinese market. CJ Olive Young Corp, the distribution unit of South Korean food-to-cosmetics conglomerate CJ Group, has established a business entity in Japan to supply its cosmetics products through local distribution channels, responding to growing demand for its skincare and beauty products among Japanese consumers. The company announced earlier this year that it views Japan and the US as strategically important markets for global expansion, driven by increasing interest in K-beauty products. Like Amorepacific, it had previously ventured into China, establishing a business entity and opening 10 outlets in 2018, but later withdrew due to accumulated losses. Meanwhile, PureSeoul, the viral K-Beauty sensation, has launched its first-ever store in Northern England at Manchester Arndale. Spanning 1662 square feet, the brand has secured a 10-year lease, demonstrating its long-term commitment to bringing Korean skincare and beauty innovations to the region. Returning star Similar to its impact on fashion, the rise of Korean entertainment has become a powerful driver of K-Beauty products’ popularity in the American market. This cultural wave has elevated Korean beauty standards and skincare routines from niche interests to mainstream trends in the US. In the first four months of 2024, South Korea dominated the US imported cosmetics market, with exports of US$477.1 million representing 20.1 percent of the market share, according to the US International Trade Commission (USITC). “We are now in the second wave of K-Beauty. It is defined by its speed, savvy, and significant cultural impact. This time, K-Beauty isn’t just a trend – it’s part of a larger cultural phenomenon that includes the global rise of K-Pop, K-Drama, and K-Food,” Sarah Chung Park, founder and CEO of Landing International, said in her report dubbed ‘The second wave of K-Beauty’.  According to Park, social media platforms like Instagram, YouTube, and TikTok have played a crucial role in K-Beauty’s Golden Age return. Searches with the hashtag #kbeautymakeup rose 85 per cent year-over-year on TikTok, driving significant sales across multiple platforms. South Korea’s cosmetic exports reached a record US$9.3 billion through November this year, according to the country’s drug safety agency. This January-November export figure surpassed the previous annual record of US$9.2 billion set in 2021, the Ministry of Food and Drug Safety reported. The South Korean government plans to double SME cosmetics exports from US$5.3 billion in 2023 to US$10 billion by 2027, while aiming to increase the number of exporting SMEs from 8,360 to 10,000 during this period. Further reading: What luxury brands should know about the rise of South Korean affluent customers