Local Brands Dominate South Korea's Cosmetics Market

In South Korea, imported cosmetics brands accounted for 23 percent of the market in 2013, down from 26 percent in 2009, while local cosmetics brands’ share of the market rose to 57 percent from 47 percent in 2008, according to Kyobo Securities. This trend is driven by continuing economic difficulties faced by consumers who are consequently becoming more price conscious. Sales of cosmetics at retailer Lotte Department Store, which sells mostly imported brands, grew 11 percent in 2011 from 2010; however, sales dropped 2.4 percent in 2013. Sales declines are forcing foreign brands to raise prices, including French brand Dior, which said it plans to increase prices by an average of 1.8 percent.