US-bound Korean beauty startups maintain optimism amidst tariff challenges, believing that growing demand will surpass hurdles posed by trade taxes
Blazing into the US: South Korea's Cosmetic Startups
South Korean cosmetic startups are burning up the runway in the US, spreading their wings in the largest consumer market with a bold, budget-friendly take on beauty.
With a combination of quality, affordability, and snappy marketing, these brands have found a competitive edge against established luxury giants like L'Oreal and Estée Lauder.
Cashing in on Korean Wave
The rise of K-pop sensations PSY, BTS, and acclaimed movies like 'Parasite' has paved the way, creating a pre-existing interest in South Korea. This interest was further fueled by the introduction of Korean cosmetics to the scene. As An Byung-Jun, CEO of Tirtir, puts it, "The quality was good, but the prices were lower than the existing luxury brands."
A Shot at Stardom in the US
Tirtir, d'Alba, Torriden, Beauty of Joseon, and other brands are in hot talks with major US retailers to line their shelves with Korean beauty essentials. Ulta Beauty will be selling Tirtir's cushion foundation this summer, a move aimed at doubling their US sales this year.
The competition isn't holding back. Retailers like Sephora, Costco, Target, and even Walmart are eyeing partnerships with Korean brands to introduce sales in their physical stores.
Cutting Costs, Boosting Profits
Many of these brands outsource production to contract manufacturers like Cosmax and Kolmar, a strategy that helps keep costs under control, enabling them to offer quality products at competitive prices.
Tariff Troubles
Despite the promising landscape, the US tariffs pose a challenge. But industry executives remain hopeful. They anticipate that strong demand will help offset some of the tariff distress.
California Dreaming
South Korea's dominant beauty retailer Olive Young plans to set up its first US store in Los Angeles this year, capitalizing on the region's strong customer base. Despite the tariffs, these expansion moves aim to sustain momentum after exports to China—the biggest overseas market—fell due to geopolitical tensions and competition.
The Demand for K-Pop Beauty
Yuliet Mendosa, a 25-year-old American, is a prime example of how K-pop and K-beauty go hand in hand. Visiting Seoul, she fell in love with the skincare products that deliver results straight to the point.
The US push by South Korean beauty brands arrives at a juncture of uncertainty due to President Donald Trump’s sweeping tariffs unsettling global trade. However, the enduring popularity of K-Beauty and its value-for-money proposition are expected to weather the storm.
- South Korean beauty brands, such as Tirtir and Beauty of Joseon, are capitalizing on the K-pop phenomenon and the pre-existing interest in South Korea by targeting major US retailers like Ulta Beauty and Sephora.
- The US push by South Korean beauty brands is not only limited to online sales, with Olive Young planning to set up its first US store in Los Angeles, leveraging the region's strong customer base for K-beauty products.
