L’Oréal, Struck by K-Wave

More than a decade after “Gangnam Style” went viral, South Korea continues to capture global attention through its cultural exports. Today, with songs like “Apt” and global hits like Squid Game and Parasite, K-pop and Korean entertainment have become powerful soft power tools. These cultural phenomena influence not just music and cinema, but also shape global perception of Korean food, fashion, wellness and lifestyle.

Young consumers around the world are widely engaged with K-culture. They imitate every detail of their favourite idols’ lives, from their outfits and routines to the skincare products they use. This aspirational behaviour has created fertile ground for Korean beauty brands to grow internationally.

Social media redefines the beauty norms

Historically, cultural and aesthetic differences between Asian and Western consumers have long shaped divergent product preferences. For example, while Western beauty emphasizes sun-kissed skin, Asian standards prize porcelain-like brightness, and minimal pores and fine lines.

However, social media has started to unify the beauty trends across regions. K-beauty brands have leveraged TikTok, Instagram and other platforms with precision-using KOLs, idol endorsements and storytelling around tradition and ingredients to create aspirational appeal. The global rise of girl groups like Blackpink has further driven Western interest in the flawless, glowing skin associated with Korean beauty standards.

More importantly, these platforms have not just marketed products but exported an entire skincare philosophy. Daily routines that involve sheet masks, toners, essences and layering rituals are becoming more common in Western households. Cushion foundations and glow-focused formulations have gained wide acceptance.

Historically, access to K-beauty was limited outside Asia. Cross-border shopping involved high shipping costs, import restrictions and inconvenient return processes. This created an opportunity for specialized retail models. Independent chains began opening Korean cosmetics stores in the US, initially focusing on sheet masks and gradually expanding into makeup and skincare in response to growing demand.

Soon, brands like Tirtir, d'Alba, Torriden, Beauty of Joseon, Laneige and Cosrx gained visibility on social media and saw a surge in consumer interest across North America. This momentum prompted major US retailers such as Amazon, Sephora and Ulta to start offering K-beauty products. Costco and Target are also in discussions with Korean brands to introduce K-beauty in their physical store networks.

Data from South Korea’s Ministry of Trade, Industry and Energy shows that Korean cosmetics exports reached a historic high of $10.2bn in 2024, up by 20.6% yoy. From January to October 2024, the US imported $1.41bn worth of Korean beauty products, accounting for 22.2% of total cosmetics imports.

After establishing a strong foothold in the US, K-beauty is now accelerating its expansion into Europe, especially in France, L’Oréal’s domestic market.

Korean cosmetics stores and online direct to consumer platforms are now visible in major European cities. LVMH’s Sephora, a beauty product retailer, continues to grow its portfolio of K-beauty brands across the board. In 2024, Parisian department stores such as Galeries Lafayette and Printemps opened permanent K-beauty sections. Monoprix, one of France’s most recognized supermarket chains, began selling K-beauty products last spring and is actively promoting Korean skincare routines.

European consumers are deeply focused on ingredients and product transparency. In the current environment of softer consumer sentiment and rising price sensitivity, K-beauty’s value proposition stands out. The combination of natural formulation, visible efficacy and competitive pricing is resonating with a wide audience. After its success in the US, Europe is expected to become the next major growth driver for K-beauty.

Unlike high-end skincare and fragrance brands, which benefit from high barriers to entry built through years of R&D and marketing investments, the mass market is facing much fiercer competition from the Korean and Chinese players. L’Oréal’s Consumer Products Division (its mass market portfolio) still accounts for 37% of the group’s total revenue. The company must react faster to defend its share in this increasingly crowded space.

This year, Estée Lauder is taking steps to streamline its brand portfolio by discontinuing unprofitable lower end labels. Last week, media reports indicated that Coty is exploring a separation of its luxury and mass market divisions, following several consecutive years of underperformance in its mass market segment. In this context, L’Oréal is now facing a strategic question. In a more competitive and margin-sensitive environment, how will the group adapt and optimize its mass market operations? Will its historical strategy of acquiring emerging brands, such as the Korean makeup brand 3CE, remain an effective solution?

L'Oréal cannot afford to let its mass market business slip one inch. It may not be glorious but helps absorb costs. It now looks like a mistake to have over-concentrated management efforts on high-end products. The issue is that recovering lost market share in the mass market does not come cheap in terms of product redesign (above all if it has to be greener) and marketing efforts. Any pay-back will be far down the line. Investors may not be pleased for longer and will most likely suggest concentrating on the high end. Again that would be the wrong advice. L’Oréal needs to be afraid and adapt promptly.