THE WHAT? South Korea’s entertainment and cosmetics industries are seeking new markets after a raft of regulatory barriers, nationalist headwinds and rising competition from local brands are hampering sales in China, according to a report published by the Financial Times.
THE DETAILS Chinese authorities have branded the typical Korean male look as ‘effeminate’ and the rival C-beauty movement is growing in popularity and credibility.
Many brands are changing tack, pulling mass and masstige lines from China and exploring new markets. AmorePacific, for example, has pulled the plug on its Innisfree label in China and is turning to other markets such as North America and Europe.
THE WHY? Chan Lee, Managing Partner at Petra Capital Management, told the Financial Times, “Those who make the strategic shift can make another leap forward while others will fall behind.”