'Rebounding K-Beauty'... Busy Welcoming the Return of Yukeo

Amore·LG Household & Health Care Strive to Recover H2 Performance
Welcome Resumption of Group Tours in China... Collaboration with Travel Agencies
New Product Promotion, Various Promotions, and Benefits Prepared

Domestic cosmetics companies are putting great effort into preparing various promotions and benefits to attract 8 million Yukeo (Chinese tourists). With the Chinese government recently officially resuming the issuance of group travel visas to Korea, the cosmetics industry, which had suffered severe performance declines, is increasingly hopeful for recovery. The return of Yukeo, who are major spenders, could bring warmth back to the previously contracted cosmetics market.

According to the cosmetics industry on the 19th, Amorepacific and LG Household & Health Care, the two major pillars of 'K-Beauty' that were heavily impacted by COVID-19 and the 'Hanhanryeong' (Korean Wave ban), are hastening preparations to welcome guests following the resumption of group tours for Yukeo.

Amorepacific is developing products and promotions linked to Chinese group tourists in cooperation with major distributors and travel agencies.

LG Household & Health Care plans to focus on promoting new products from luxury brands such as Whoo, Su:m37, and O Hui, and is discussing additional benefits based on distribution channels and purchase amounts. They also intend to prepare customized packages for individual and group travelers. Additionally, Chinese-language brochures and sales staff proficient in Chinese will be deployed in advance.

Aekyung Industrial will also expand the range of items operated in duty-free shops.

The cosmetics industry is putting such effort into welcoming Yukeo because of their purchasing power. According to the industry, the expenses Yukeo spend on trips to Korea are known to be more than twice those spent by other tourists from the US, Japan, Southeast Asia, and others. According to Korea Tourism Data Lab, before COVID-19 in 2019, the average expenditure per Chinese tourist was $1,632 (approximately 2.15 million KRW), more than double that of Japanese tourists ($759). Before COVID-19, they mainly toured major commercial areas such as Myeongdong and Hongdae by tourist bus, visiting downtown duty-free shops and cosmetics stores, where they would buy up Korean cosmetics.

After COVID-19 blocked overseas travel routes and profitability worsened, the cosmetics industry cannot help but warmly welcome the sudden allowance of Korean travel for Yukeo, who are major spenders, after more than six years. They are especially placing high hopes on the upcoming major Chinese holidays, the Mid-Autumn Festival (September 29) and National Day (October 1) holidays.

This optimism was also reflected in the stock market, with LG Household & Health Care’s stock price soaring 13.31% and Amorepacific’s rising 7.65% the day after China announced the resumption of group tours.

Professor Seo Yong-gu of the Department of Business Administration at Sookmyung Women’s University said, “Since Chinese tourists have strong purchasing power, although it may be difficult to reach pre-COVID levels, there is hope that some degree of purchasing power can be restored. However, since the industry has also been striving to diversify overseas markets to places like the US, it is necessary to steadily maintain that strategy as well.”

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