Don't put all your eggs in one basket.
Don't put all your eggs in one basket.
  • By The K Beauty Science
  • Accepted 2021.05.01 03:35
  • Comments 0
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The expression of the domestic cosmetics industry is bright after the first quarter. I don't know how long it's been since I've seen such a lively figure. Considering the analysis from various channels such as related industries and stock markets, it is predicted that many of the major cosmetic companies in the first quarter performed well in terms of appearance and profitability. In particular, K-beauty flagship companies such as AmorePacific, LG Household & Health Care, Kolmar Korea, and Cosmax are almost certain to improve their performance. Some stock markets even put forward that it may have recovered to pre-COVID-19. The improvement in the performance of major companies has a great implication for the entire domestic cosmetics industry, which is trapped in a dark and long tunnel due to the unprecedented ambush of COVID-19. The situation in the material industry, which is essential for making finished products, is similar. According to survey of several major material companies in the first quarter, it is understood that sales were good in both January and March, except in February, when there were many holidays such as Lunar New Year. I'm curious at this point. Who is the real source of hope for K-beauty, which has fallen into recession due to the corona pandemic? As you can guess, it's China. Overcoming corona crisis relatively faster than other countries, China’s consumption fever is increasing and cosmetics are the main items that lead the consumption craze.

According to Chinese statistics, Its cosmetics retail sales rose 41% in January and February this year from the same period last year. It is not difficult to guess that the strong performance of K-Beauty mentioned above is directly related to increased consumption in China.

We must break away from the absolute dependence of China.

It is one of the voices of self-reflection that occurred in the K-beauty industry during the THAAD crisis and the COVID-19 crisis. It was because K-beauty firms had to pay severely for putting all my capabilities into China. However, looking at the recent movements of companies, they are focusing their resources on China again. It is clear that China is the surest and fastest target to save K-Beauty from crisis. However, it also means that if you turn it upside down, you can fall into a deep quagmire at any time. Moreover, given the recent escalating military and economic conflicts between the U.S. and China, Korea could face a "second THAAD" crisis at any time. The reason why the industry has been able to smile recently is probably that the expectation that it will work rather than that it has worked well. Every company has their own but limited energy. Instead of pouring it into an oasis that can disappear at any time, I think they should share it into small but non-drying pools. To prevent expectations of "It will be fine" turning to a sense of loss, I would like you to recall the proverb, “Do not put all your eggs in one basket,” that has been circulated like a bible in the stock market.

May, 2021 Sincerely Yours

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