Flower-shaped Hand Cream on the Back of the Hand... Breaking into Japan with a Unique Idea

Yoon Kyung, CEO of Angeluca, Targets Japanese Market with Story and Characters
Overcoming Korea-Japan Trade Conflict Crisis Based on Trust with Partners

Yoon Kyung, CEO of Angeluca

"After entering the Japanese market, the deterioration of Korea-Japan relations caused many difficulties in sales. Since we did not change to Japanese packaging and went out with a Korean brand, there was also some rejection." For Yoon Kyung, CEO of Angeluca, the crisis brought by the conflict between the two countries following Japan's export restrictions is still vivid. After officially entering Japan in February last year, the problem arose in July, when it was time to place the ordered cosmetic products in about 12,000 local stores and start full-scale sales. For Angeluca, which needed to appeal to Japanese consumers, the deepening emotional rift between Korea and Japan was a direct blow. However, Angeluca overcame this crisis based on ideas, quality, and trust with partners.

CEO Yoon said, "Although the difficulties increased as Korea-Japan relations worsened, rather than rushing, we trusted our partners and believed that our unique ideas would shine if we waited." She added, "Currently, sales have improved, and we are waiting for the previously exported stock to be sold out for additional exports." Angeluca made a full-scale entry into the Japanese market last year with products such as the 'Hand Flower Perfume Cream,' which was patented using proprietary technology. This cream, which received pre-orders of 200,000 units, contained over 40 types of natural extracts with safety certification. Based on two years of planning and research and development, it was contained in a special patented container that dispensed the cream in the shape of a flower when squeezed. Besides this product, all of Angeluca's product lines were exported to Japan.

In this situation, the sudden crisis caused by the Korea-Japan trade conflict, the most important factor for CEO Yoon in overcoming this crisis was trust. Although the sales of Angeluca products, which had been prepared and exported over a long time, did not meet expectations, she did not pressure the local partners. She said, "Other Japanese companies also showed interest, and two actually contacted us, but we decided to wait based on trust." She added, "I thought it was necessary to wait for each other, not only when sales are good and partners are good but also when struggling." The trust that CEO Yoon valued also created export opportunities for products other than cosmetics. After the outbreak of COVID-19, a Japanese partner requested help for hand sanitizers, and this year, Angeluca exported a large quantity of them.

CEO Yoon devoted a lot of effort to the Japanese market. She said, "There were not many Korean cosmetic products in the Japanese market. Over seven years since founding the company, I traveled to Japan countless times to understand the market, and it took more than a year to send prototypes for testing." What especially captivated Japanese buyers was Angeluca's unique ideas. CEO Yoon explained, "Angeluca's products have characters. For example, the body cream container was made in the shape of ice cream, and this fun element appealed to Japanese consumers who like unique personalities that cannot be found elsewhere." This means they competed not only with product quality but also with the story and character embedded in the products. The idea for Angeluca's product containers has also been patented. She emphasized, "We focus on Angeluca's unique idea containers and designs. To sell these, we must include our own story."

Angeluca exports products not only to Japan but also to China, Russia, Canada, and others. Recently, CEO Yoon explained that there have been inquiries from places like Ukraine as well. Based on this, the company started as a startup in the cosmetics field in 2013 and has grown into a company with over 80% export ratio.

Given the large export ratio, COVID-19 was another crisis following the Korea-Japan trade conflict. However, CEO Yoon is diversifying the business by simultaneously exporting original equipment manufacturing (OEM) products based on orders from overseas buyers. Rather than simple OEM, Angeluca adds its own planning capabilities to enable the marketing of Korea's excellent technology locally. For example, the shampoo recently exported to China contains ingredients developed by Dr. Kim Hee-sik of the Korea Research Institute of Bioscience and Biotechnology. CEO Yoon said, "In markets where distribution channels can be blocked overnight depending on international relations, COVID-19 is expected to be a long-term issue. As a company manager, I always have to seek solutions, and this year, we plan to focus on planning brands requested by partners and co-creating desired products."

This content was produced with the assistance of AI translation services.