Digitalization hits South Korea’s beauty ecosystem due to COVID-19 pandemic, research reveals

05 Jul 2022 --- The COVID-19 pandemic has taken a heavy toll on the beauty sector in South Korea, according to a literature review, showing that the online market has grown increasingly active. Traditional face-to-face shopping is diminishing and sales decreased as a result of the decline in consumer sentiment.

The researchers analyzed 100 to 150 references and 24 research papers. The literature review can be used to predict new developments in the K-beauty and K-cosmetics market and The Republic of Korea, a pioneer in the beauty sector, will discuss the viability of the beauty ecosystem and its growth trajectory.

Makeup: K-Beauty
The potential for transformation and growth of K-Beauty was influenced by the Korean Wave and the expansion and development of the content sector. The K-Beauty industry’s global influence has grown significantly, along with the need for color cosmetics and basic cosmetics that require cutting-edge technology.

The research revealed a growing tendency to choose services by consulting social networking services reviews.The research adds that the popularity of K-drama and K-pop has led to a significant rise in global interest in Korean beauty and fashion in which K-makeup, hair, skincare and nail care are popular on YouTube.

Due to the digitization of distribution channels and live commerce of internet broadcasting, the cosmetics market is anticipated to keep growing.

Therefore, the research team anticipates that the K-makeup market will expand as it becomes more widely known and used.

Analyzing impact on haircare
Increasing social anxiety issues brought on by new coronavirus infections have negatively impacted the financial performance of the hair and beauty sector because, in this sector, customers interact with employees in person.

People are hesitant to enter enclosed rooms or buildings that serve many purposes, such as hair salons. Due to the proximity of hair salons to one another as multi-use spaces, people visit them less frequently out of concern for COVID-19 infection.

The number of individuals condensed into a small area decreased due to consumer fear. This prevented interaction with lots of people and they discovered that they preferred going to a one-person salon over a franchise that many people frequent.

A platform called Cacao hair shop, which enables users to choose their preferred beauty salons and time, has recently emerged to rejuvenate the franchise hair salon. With the widespread use of PCs and cellphones today, the Cacao hair salon can be considered a good illustration of how to establish an offline flow of consumers online methodically.

Skincare and face mask wear
It was determined that prolonged mask use creates an environment within the mask with high temperatures and humidity, which causes a relative rise in sebum, waste products and keratin development. This may result in problems since the growth of bacteria is optimal within these circumstances.

A Cacao hair shop platform enables consumers to choose the preferred beauty salon and time online.The friction of the mask and its components irritate the skin and this irritation might lead to contact dermatitis and acne. Domestic customers’ skin sensitivity has thus increased, creating an increase in demand for basic cosmetics.

Additionally, there was a rise in the percentage of hand creams and cleaning cosmetics.

The research further revealed a growing tendency to choose services by consulting social networking services (SNS) reviews and evaluations of skin care experiences. After COVID-19, the cosmetics sector will continue using SNS as a marketing strategy.

Nail health services
Due to limited in-person nail services, the South Korean nail beauty industry is using various marketing activities – such as video content using YouTube and photo-oriented characteristics of Instagram, to promote and sell nail strategy products.

The research reveals that trust and affinity for SNS content improve offline retailers’ interest and promote active information flow between self-nails and home beauty.

Additionally, direct visits to nail salons or purchasing products naturally spark interest. A market is emerging where nail care services, product quality, usage techniques, places of purchase and satisfaction ratings are shared through SNS media.

By Nicole Kerr

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