[C-Shock, K-Industry on the Brink | Cosmetics] China Takes a 'Big Step' to No. 5 Globally, Closes in on K-Beauty

Color Cosmetics Exports Nearly 2.9 Times Korea's
Skincare Also Enters U.S. Retail Networks
Imports into Korea Also Up 26.6%

"C-beauty is just as important to us as K-beauty."

Kecia Steelman, CEO of Ulta Beauty, the largest beauty retailer in the United States, made the remarks during a conference call on the company's second-quarter fiscal 2026 results on August 27 (local time). Asked how the company would maintain its competitiveness as more retailers began selling K-beauty products, she unexpectedly brought up Chinese cosmetics. Citing Chinese skincare brand Proya, she emphasized the importance of C-beauty.

Proya will begin selling its products next month at 400 Ulta Beauty stores in the United States and through the retailer's online store. It will be the first time a Chinese premium skincare brand has joined Ulta Beauty's online and brick-and-mortar retail networks simultaneously. C-beauty, which had drawn attention for its ornate packaging and color cosmetics, is now seeking to expand its presence in the U.S. market with skincare products that emphasize benefits such as improving skin elasticity and supporting the skin barrier.

Chinese cosmetics companies are expanding beyond their domestic market and gaining ground globally. As more brands enter global retail networks, China has also climbed the export rankings. With competition extending into skincare, a stronghold of Korean cosmetics, K-beauty is now facing Chinese brands both on overseas store shelves and in its home market.

People enter the Flower Knows pop-up store in Seongsu-dong, Seoul. Courtesy of Flower Knows' social media.

World's Fifth-Largest Cosmetics Exporter; Color Cosmetics Exports Nearly Triple South Korea's

According to the Korea International Trade Association, China's cosmetics exports totaled KRW 8.1372 trillion from January through July, up 24.3% from KRW 6.5448 trillion in the same period a year earlier. China climbed from seventh in the annual global export rankings last year to fifth in the first seven months of this year. Italy and Spain, which ranked above China last year, exported KRW 7.7333 trillion and KRW 7.6181 trillion, respectively, during the same period this year.

South Korea ranked second, with exports of KRW 11.0246 trillion, behind France at KRW 19.8204 trillion. China's exports were equivalent to 73.8% of South Korea's. The gap narrowed from 63.6% on an annual basis last year. The figures include not only cosmetics but also perfumes, hair products, and skin-cleansing products such as body wash. Narrowing the scope to cosmetics (HS 3304), which includes skincare and color cosmetics, China's exports totaled KRW 4.1311 trillion, ranking fourth globally. France led with KRW 9.9637 trillion, followed by South Korea at KRW 9.0574 trillion and the United States at KRW 4.3985 trillion.

China has already overtaken South Korea in color cosmetics. From January through July this year, China's exports of four product categories—lip and eye makeup, powders, and nail products—totaled KRW 1.8743 trillion, about 2.9 times South Korea's KRW 644.7 billion. China exported KRW 727.4 billion in lip makeup, 1.7 times South Korea's KRW 416.3 billion, and KRW 547.7 billion in eye makeup, 3.5 times South Korea's KRW 155.3 billion. The two countries also differed in their growth rates. China's exports increased 17% to 33% year over year across all four categories. By contrast, South Korea's exports of lip makeup and nail products fell 15% and 15.6%, respectively.

Building Brand Awareness Online Before Expanding Into Overseas Brick-and-Mortar Stores

Chinese brands are building awareness online before entering brick-and-mortar stores overseas. Their strategy is to attract consumers not only with low prices but also with distinctive designs and product assortments.

Color cosmetics brand Flower Knows has stood out with packaging and decorations reminiscent of fairytale props. Last month, it began a limited-time sale of five signature products at 450 Ulta Beauty stores in the United States. The move came nine months after the brand joined Ulta Beauty's online store in December 2025.

Florasis is targeting the Japanese and European markets with products that incorporate traditional Chinese patterns and craftsmanship. After establishing a sales base on e-commerce platforms such as Amazon, Shopee, and Lazada, it is expanding its distribution channels to high-end retail outlets. JudyDoll also entered brick-and-mortar stores after reaching overseas consumers through Shopee and TikTok Shop. In December 2025, it began selling its products at about 12,000 FamilyMart stores in Japan. Perfect Diary has used Southeast Asia as a foothold for overseas expansion. In 2020, it established sales channels in Vietnam, Singapore, Malaysia, and the Philippines through Shopee.

Expanding Into the South Korean Market, With Imports Up 26.6%

Chinese cosmetics companies' expansion overseas is underpinned by their domestic market. They are leveraging the customer base and product development experience they have built at home in their overseas businesses. According to China's National Bureau of Statistics, retail sales of cosmetics from January through July this year totaled 272.3 billion yuan (about KRW 54.1849 trillion), up 6.3% from the same period a year earlier. This was well above the 1.2% increase in total retail sales of consumer goods over the same period. Retail sales of cosmetics in July also rose 6.8% to 28.5 billion yuan (about KRW 5.6715 trillion), outpacing the 0.6% increase in overall retail sales.

South Korean manufacturers with production bases in China also recorded higher sales. Cosmax China's revenue in the first half of this year rose 32.2% year over year to KRW 254.8 billion. Cosmax Guangzhou's revenue also increased 22.7% to KRW 77.3 billion.

Chinese brands are also expanding their sales networks in South Korea. According to the Korea Customs Service, South Korea's imports of Chinese cosmetics totaled KRW 154.1 billion from January through September this year, up 26.6% from KRW 121.7 billion in the same period last year.

Flower Knows, which entered the South Korean market directly in October 2025, launched an official website and ran three pop-up stores over the following year. It has also joined Musinsa Beauty, Chicor, and KakaoTalk Gift. Musinsa Beauty also sells other Chinese brands, including AZTK and INTO YOU.

South Korean cosmetics companies have built trust in skincare by emphasizing ingredients and products formulated to be gentle on the skin. Chinese brands, having drawn attention with the design of their color cosmetics, are now supplying major retail networks with skincare products that highlight their efficacy. Whether Chinese companies, which have accelerated product development and launches, can also earn consumer trust in their brands is likely to determine the competition ahead.

A cosmetics industry official said, "China's supply chains and speed in developing and launching products have reached a level that cannot be ignored, but Chinese brands still need to catch up with global leaders in brand power and trust in their core research and development (R&D) capabilities. The key will be how quickly they can turn that into consumer trust."

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