South Korea eyes expansion

South Korea’s economy may be slowing but innovation in NPD is making local brands an attractive proposition for international markets, as David Kilburn reports

South Korea’s export led economy grew at its lowest rate for three years in 2012, a mere 2%. Hopefully this will increase to 2.5% in 2013 but the economic slowdowns in key export markets are also dampeners for Korea.

Despite this, the cosmetics market – though slowing – still shows healthy growth. On average the market grew 10.4% annually from 2006 to 2011. In 2012 it was worth approximately South Korean won KRW9.6 trillion at retail, 7% up on 2011.

“In 2013 the market is expected to reach KRW10 trillion, 6% more than last year,” says Dr Susan Park, Chief Customer Relations Officer for AmorePacific.

New ingredients, new technologies, new partnerships and marketing innovation are all helping growth, even as consumers cut back on household spending.

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