From potential fan backlashes and missing out on endorsement opportunities to navigating a saturated market, the path is risky for K-pop stars
insider from a K-pop entertainment agency. “For group members, it becomes even more challenging, as their brands could limit the group’s endorsement options.”
The official added that launching a beauty brand can be particularly difficult for Kpop idols at their peak, with their packed schedules.
Tough market, tough consumers
British actress Millie Bobby Brown faced backlash for a staged skincare routine promoting her teen cosmetics line, Florence by Mills. The incident forced her to delete the video and apologize.
Her case shows that building brand authenticity is crucial for celebrity beauty brands and this is particularly challenging in Korea.
Choi explained that for beauty brands, fans should be able to believe they can emulate their idols’ looks through the brand.
Nevertheless, he pointed out that accomplishing that is becoming more and more challenging, because Korean consumers are well-informed.
“Korean consumers understand that flawless skin and cool looks are often the result of professional treatments, not solely makeup,” Choi said.
Jeon Somi, a K-pop solo artist, recently launched her makeup brand, Glyf, with a highlighter priced at 43,000 won ($30). Even before launch she encountered criticism over its high price and doubts about her actual involvement in its development.
Jeon addressed such authenticity concerns on a popular beauty YouTube channel hosted by LeoJ. In the video, she denied being a mere figurehead and explained the product’s inspiration: the need for a single, versatile highlighter to meet her demanding stage makeup needs.
“To ensure this product addressed a common issue, I even held a meeting with fellow K-pop idols at my home,” she said while elaborating on her research process.
The state of the Korean cosmetics market also presents challenges for aspiring celebrity beauty brands.
According to the Ministry of Food and Drug Safety, the number of small cosmetics manufacturers skyrocketed 78 percent from 2019 to 2022, reaching 28,015.
With each manufacturer potentially creating multiple brands, the actual number of small brands is likely much higher.
There is also a high rate of business closure, with industry insiders estimating that over 3,000 small and medium-sized cosmetics companies shut down in 2022, compared to around 500 in 2021.
“The rise of ODM and OEM (outsourced research and production) services has made entering the Korean cosmetics market incredibly easy,” said a cosmetics startup founder on the condition of anonymity. “However, distribution channels are extremely limited. Securing placement in CJ Olive Young is a major accomplishment, but otherwise, brands face fierce competition with limited chances of survival.”
CJ Olive Young and beauty retailer.
A beauty industry insider who has experience doing business in the US told The Korea Herald that the intense level of competition in Korea means it is not a good anchor market for celebrities.
“For these (celebrity) brands to be successful you need to have an anchor market, meaning for someone like Selena Gomez, the US is her anchor market,” the insider explained. “She has strong proof of her concept and sales track record before expanding globally, which every beauty brand eventually needs to do to scale up.”
Despite these hurdles, Choi believes that a successful Korean celebrity beauty brand akin to Fenty Beauty is still possible, provided that the celebrity entrepreneur is willing to navigate the risks and invest in long-term value creation.
“After all,” he added, “that is the essence of any business venture.”
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