Samil PwC: "Distribution Platforms Determine K-Beauty Competitiveness"

Report Analyzes Shifts in Distribution Structure

An analysis suggests that the driving force behind the growth of the K-beauty industry is shifting from individual brands to distribution platforms.

On August 25, Samil PwC announced the publication of a report titled “The Evolution of K-beauty Platforms: From Channels to Ecosystems,” which covers these findings.

The report explains that K-beauty distribution platforms are evolving from mere sales channels into comprehensive ecosystems encompassing brand discovery and development, data-driven marketing, logistics, and global distribution. Domestically, platforms such as Olive Young, Musinsa Beauty, Beautycurlly, and Naver Plus Store are expanding consumer contact points and supporting brand growth. Export platforms like Silicontwo are strengthening their role as connectors between domestic brands and global consumers.

Accordingly, the mode of brand growth has shifted; whereas large-scale advertising and securing distribution networks were key in the past, the current primary approach is to validate consumer response through platforms, accumulate data, and then expand into new markets. Indie brands, in particular, are growing based on platforms and social networking services (SNS).

The dynamics of competition among platforms are also changing. Competition has broadened from offline to on·offline formats, and from attracting brands to acquiring customers through data-driven strategies. Core elements that will determine future competitiveness include omnichannel operations integrating on·offline, data-based curation capabilities, global distribution and logistics networks, and competency in building ecosystems that connect brands and consumers.

However, the report points out that as dependence on platforms increases, there may be constraints in terms of fees, policy changes, and access to customer data.

Kim Youngsoon, K-beauty sector partner at Samil PwC, stated, “As K-beauty’s global growth continues, platforms no longer remain simple sales channels—they are evolving into core infrastructure that validates brand growth potential and enables overseas expansion. Both domestic platforms and brands need strategies to enhance their data utilization competencies, secure global distribution channels, and, at the same time, manage dependency on specific channels.”

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