[CMN Reporters: Lee Jeong-a, Shim Jae-young, Shin Dae-wook, Park Il-woo] On the 4th, our journal hosted the '2022 Cosmetic Industry Outlook Conference'. 

It was broadcasted via live streaming from Lala Station located in Gangnam, due to the ongoing situation with COVID-19.

The theme remained centered around the impact of COVID-19. 

Following last year's theme '#With Corona: Surviving in the Era of Corona,' this year's theme was titled 'Beyond Corona: Exploring New Paths for Coexistence.

' The conference featured discussions on five key topics: Marketing, Distribution, Product, Global, and Eco-friendly Packaging.

Insight Mining Team Leader Shin Su-jeong from Vibe Company (formerly Next Company) took charge of the first session on Marketing. 

She delved into the trends of the cosmetics industry analyzed through big data. 

Shin highlighted the keywords that the cosmetics industry should focus on next year, including the essence of cosmetics, brand identity, relevance to life, and contemporaneity of messaging.

In the Distribution session, Lala Station CEO Seo Gyeong-hwan led a discussion on the booming trend of cosmetics live commerce. 

Emphasizing the importance of communication with consumers, CEO Seo, who is also known as a show host, stressed the significance of interaction in live commerce.

The Product session featured a presentation by Hong Ul, the CEO of Onew, who proposed product categories to watch for in 2022 through beauty trends. 

He expressed high expectations for products such as evolving hair dyes and the expandability of multi-sticks.

Following that, Sharon Kwang, the Director of Mintel Asia Beauty Analysis, delivered a presentation on the fourth session, focusing on global keywords. 

She discussed how the beauty industry can grow in the new era of trust. 

Particularly in a time where face-to-face interactions in the beauty business have become challenging, she advised on how to secure customer trust and grow brands.

Lastly, Lee Min-seong, CEO of ReVation, examined the changes and future of eco-friendly packaging in the new normal era. 

It was an informative session on the importance of sustainable packaging, the new standards for packaging post-COVID, global trends in beauty industry packaging development, and more.

[Session 1 - Marketing]

Trends in the cosmetics industry analyzed through big data 

Shin Su-jeong, Insight Mining Team Leader, Vibe Company 

The way we analyze is by looking at trends. 

We observe how much customers talk about certain words on social media and whether the amount is increasing or decreasing to discover trends.

Unfortunately, 'cosmetics' is a declining keyword. 

It has been steadily declining since 2018. 

Cosmetics weren't words that customers found particularly appealing in their daily lives.

In 2018, cosmetics were almost similar to today, but there is a keyword that is over four times more than cosmetics now. It's 'YouTube.' It has dramatically grown.

 What's the difference between them? It's content. 

Cosmetics noticeably lack content that customers find worth talking about in their daily lives.

Comparing cosmetics to YouTube may seem like comparing apples and oranges, but in the area similar to cosmetics, such as perfumes, mentions on social media are increasing. 

Perfume is mentioned as one of the ways to express one's taste, along with fashion and food.

Veganism is also on the rise. 

Formerly focused on dietary culture, veganism has expanded to the realm of what one applies. 

Customers are mentioning it more in their daily lives.

The cosmetics industry needs to align with changes in customers' lifestyles. 

Today's main message emphasizes the essence of cosmetics, brand identity, relevance to life, and contemporaneity of messaging. 

These are the keywords that the cosmetics industry should focus on next year.

Instead of luxury, image, and allure, customers now value health, reassurance, safety, and trust more. 

They want to know if the cosmetics are healthy for their skin, if they can trust them, if they're safe. 

Cosmetics are becoming closer to the realm of essence.

After COVID, there has been an increase in sentimentality, which translates to 'reducing.

' COVID prompted people to reevaluate their consumption habits, leading to changes in consumption. 

What did people reduce in cosmetics? 

With the use of masks, there has been a noticeable decrease in the importance of blush and lip products. 

Color categories have decreased, while basic skincare has increased.

C-deok (color cosmetics enthusiasts) has also changed. 

While C-deok used to be about having the same color tones, focusing on basic skincare products has increased. 

Especially if one thinks a product suits their skin, they tend to stick with it for a long time. 

Once they find a basic product they like, they don't change it often. It's become easier to create brand loyalty. 

Successful basic products like 'Seedmule' have honest ingredients and communication methods.

Secondly, having a brand's unique identity has become important.

Luxury is going down, while keywords like taste and sentiment are rising. 

It's important for brands to have a unique signature that customers can recognize at a glance. 

Every brand needs a signature. 

There are unique signatures for each brand, such as color schemes, patterns, and materials. 

There are no just pretty color schemes. They're specific. 

The color scheme is a part of the brand's identity and DNA. 

'Romand' has done well. It has quickly gained ground as a brand with a clear identity.

Instead of being swayed by titles like department stores and flagship brands, see if a brand has its own differentiating factor, like 'endgame.' 

Look for brands that show dedication in every detail, and beyond products, examine the stance and attitude of the brand.

Thirdly, it's about relevance to customers' daily lives. 

Products should be placed in customers' daily lives. 

'Routine' has been highlighted since COVID. With remote work, personal time management has become important. Products should be part of one's routine, from waking up to going to bed. It can be broken down infinitely depending on the customer's situation.

If routine is on a daily basis, rituals have risen with a long-term breath alongside routines. 

Young customers want to see themselves as valuable. Brands that do rituals well are 'non-fiction.'

Fourthly, it's about contemporary sentiment. 

The contemporary sentiment has changed. 

'Beautiful' has decreased, while 'cool' and 'hip' have increased. 

There's no such thing as universal beauty. 

It's pretty to look at but unrelated to oneself. 

Coolness is something one can create, something one can achieve. 

The desire to show one's desired self has changed. Instead of sticking to existing beauty standards, it's evolving and overturning them.

There's joy in collecting pretty trash, transitioning to conscious consumers. 

Environmental values are emphasized. 

There's an increasing number of consumers feeling guilty. 

It's guilt over environmental, animal, and global solidarity. 

Terms like values and alternatives are emerging. 

Instead of differentiating through specs, brands need to differentiate through values.

Consumption, spending has shifted to being participatory. 

Consumers want to participate in meaningful consumption. 

Not fitting into this zeitgeist can lead to boycotts. 

Conversely, it can lead to rewards. Consumer culture is growing around conscious consumers.  

Conscious consumers increasingly want to exert 'positive influence' in consumption overall.

Today, I've mentioned these four points.

I hope you use them as four questions when planning next year's business. Is the product true to its essence? 

Does it effectively convey 

Chapter 2 - Distribution

Explosive Sales in Cosmetics Live Commerce  

 Seo Gyeong-hwan, CEO of Lara Station

The most important thing in live commerce is communication with consumers.

The choice belongs to consumers. To sell products well, you need to understand consumer needs properly. 

In addition, you need to accurately understand the flow of distribution so that you can sell a lot of products through appropriate positioning.

In the Guanggun area of China, they sell 1 trillion won worth of products through live commerce in a day. 

The best-selling product among them is cosmetics. 

Currently, the live commerce market in China amounts to 170 trillion won, and the cosmetics industry occupies an important position. 

Experts expected the domestic market size to reach 4 trillion won by 2025, but just Naver Shopping Live alone amounts to 3 trillion won. 

The overall distribution market is heading towards live commerce.

Live commerce is a space for communication. 

It's not just about selling products and ending it; it's crucial to continue communicating with consumers through live chat. 

The trend of shopping changing from TV home shopping to mobile home shopping and then to live commerce is also not unrelated to this 'communication'.

Currently, there are various live commerce platforms in Korea, such as Naver, Kakao, Baemin, AfreecaTV, Grip, Source Live, 11th Street, and Coupang. 

Naver Shopping Live overwhelmingly dominates with a share of 70%, and it has the lowest entry barrier, making it suitable for beginners. 

It is known that Naver Shopping Live's beauty sales alone exceeded 50 billion won in October.

The biggest advantage of live commerce is that there is no intermediary margin. 

As a result, consumers can purchase products at a cheaper price, and sellers can make more profit. 

Furthermore, one of the significant advantages of live commerce is that by securing and analyzing sales data, you can conduct sniper targeting tailored to consumer buying patterns.

Why should you do live commerce? If you have enough money, you can sell through major home shopping channels. Anyone can conduct it anytime, anywhere at minimal cost, which is its greatest advantage.

Whether you're at home or at a coffee shop, as long as you, the seller, have minimal equipment, it's possible. 

Even if you rent a studio, it doesn't cost much. 

Using a smartphone for filming and purchasing other equipment such as a tripod, lighting, and microphone costs only tens of thousands of won. 

You can achieve effects comparable to home shopping at minimal cost.

Currently, many influencers are flocking to live commerce. 

The size of the live commerce beauty market has grown eightfold compared to the previous year. 

The live commerce market is still in its infancy. It is estimated to be around 5% in terms of activation as a distribution channel. If you're going to start, it's advisable to do it quickly.

How should you prepare for live commerce? There are two things you must do before broadcasting. 

First, for pre-promotion, it is recommended to use paid viral marketing through Facebook or Instagram. 

Additionally, you need to set up detailed product pages in advance. Product pages are outlets for conveying detailed information to consumers that cannot be conveyed by words alone.

Live commerce typically proceeds as follows based on a one-hour broadcasting standard: Event and benefit announcement → Brief display of all products → Detailed explanation and communication → Questions and answers → Re-explanation of popular products → Purchase assurance statement and reading of chat messages from buyers.

It's important to mention events and benefits first. Statistically, sales surge sharply at this time. 

When explaining the product, it's good to elaborate on two main advantages briefly and then add detailed explanations while communicating with consumers. 

During broadcasting, it's not uncommon for the products the seller wants to sell and the products preferred by consumers to differ. 

In that case, you need to change the sales strategy by immediately re-explaining the popular products.

After giving consumers enough understanding of the product and decision-making time, statistically, sales surge again by inducing purchases through purchase assurance statements and similar messages at the end of the broadcast, approximately 5 minutes after the start of the event explanation and 5 minutes before the end of the broadcast.

Sellers cannot fully understand consumers. 

It is most important to understand their needs through communication with consumers. 

By analyzing the target audience and the time when maximum sales occur for the products you want to sell, it's not an impossible mission to achieve top sales during broadcasting.

Chapter 3 - Product

Viewing Beauty Trends through the Expansion of New Category Products 

Hong Wool-onu, CEO of Onew

As the COVID-19 pandemic prolongs, the 'untact' trend, minimizing face-to-face contact between people, has become one of the elements of lifestyle habits. 

In particular, beauty products that are frequently used with hands have been releasing stick-type items that incorporate applicators such as puffs or brushes inside the product or allow easy use without getting hands dirty.

Along with this, consumers' attention has been focused on evolving hair dyes. Recently, due to COVID-19, there is a trend of preferring self-dyeing over visiting hair salons, and the interest in self-dyeing is increasing not only among the elderly but also among the younger generation. 

This has led to the trend of aging color care, which preserves the existing color while adding new colors, gaining popularity. 

Especially, shampoo that turns gray and white hair into brown after using for more than 4 weeks is gaining huge popularity this year.

Stick-type cosmetics, which began to attract attention in the mid-2010s, have formed a new trend this year as various types of cosmetics come out in stick forms. 

Stick-type cosmetics are popular in Korea and the United States, but they are not well known in the Asian market, so they are expected to have high market expandability.

They captured the taste of the masses with the simplicity favored by the MZ generation and simple designs, and they are in line with the trend of emphasizing cleanliness and hygiene these days, so it is expected that various stick-type cosmetics will continue to be popular in the future.

In addition, it is noteworthy that the boundaries between product categories are gradually disappearing. 

Since COVID-19, the role of sun care has expanded, and the boundaries between tone-up and sunscreen are disappearing. 

With just one tone-up, you can also enjoy sun protection effects, making it convenient and economical. Cleansing toners are another example of disappearing boundaries.

Although cushions have been in the market for a long time, they still dominate the base makeup market despite being more convenient and allowing touch-ups anytime, anywhere compared to BB creams from previous generations, despite their high prices. 

It will be possible to develop more advanced cushions by maximizing the advantages of cushions and incorporating various functions preferred by consumers.

The 'Wrinkle Bounce Multi-Balm Stick' is a product that turns oil into stick form. However, it can also be made into a capsule form or have a swirl feel on the stick. 

Although Gahi is aggressively marketing, it is believed that other small and medium-sized enterprises can create stick products that surpass Gahi.

Another product that has received attention as a new category is the "Moda Moda Pro Change Black Shampoo." 

A few years ago, anti-hair loss shampoos were popular, but this year, a new category called "scalp care" has emerged due to Moda Moda. 

It is expected that products tailored to various needs, such as making scalp care into a mascara form, will be developed.

In addition, pads are already 

Chapter 4 - Global

How the Beauty Industry is Growing in the Era of New Trust

Sharon Kwek, Mintel Asia Beauty Analysis General Manager and Associate Director

The emphasis on trust is not something new as of yesterday or today. 

Mintel previously discussed the concept of "beauty with a brain" in a 2019 report. 

This concept refers to consumer skepticism towards product promotion based not on scientifically proven content or actual user experience.

Now, two years later, the importance of trust is being emphasized once again, albeit with a different approach. Consumers are becoming more discerning than ever as they gather information through platforms like social media. 

At this point, brands are redefining who the experts are and how everyone can become an expert in the brand, thus highlighting the trend of individuals becoming experts in their own right.

Where do consumers find trust in brands? Influential voices of trust can be found on global platforms such as Instagram, Facebook, Snapchat, TikTok, and e-commerce platforms like Amazon Live.

In the Asia-Pacific region, platforms that combine live streaming with social media are actively operating, going beyond just social media. These platforms include WeChat, Kakao, Taiwan's 17Live, and Singapore's Be.Live.

Interestingly, there's a rise in live streaming platforms targeting independent niche markets.  

Singapore's Qaibo is a prominent example of such a streaming service.

The adoption of these live streaming platforms has accelerated in the post-COVID era. According to Mintel's Global Consumer Insights survey, four out of ten Chinese consumers responded that they regularly watch live streaming content. The growth of live streaming services has been driven by the lockdowns during the COVID era, leading to increased viewership and sales. 

The number of companies introducing live streaming for the first time through Taobao Live Products has increased by 700%. 

Global social commerce is forecasted to reach around $585 billion by the end of 2021.

Trust, from a product perspective, is supported by knowledge transmission, confidence, and non-negotiable elements. From a corporate perspective, empathy, clear expression, action, honesty, and consistency are the keywords. 

This has created opportunities for businesses to adopt the Direct to Consumer (DTC) business model. 

This model, especially in the Asia-Pacific region, has seen rapid growth during the pandemic period, focusing on direct engagement with consumer lifestyles.

DTC brands have gained attention by combining various elements. 

They have focused on digitalization and personalization, combining routines and personalized services for successful outcomes.

Touchland, a brand that gained attention with hand sanitizers, clearly defined its purpose and garnered attention through its "Touch Lives" social initiative, providing hand hygiene solutions to communities facing challenges.

Additionally, they strive to create cleaner and healthier public school environments.

Glossier is a case study of success based on community engagement. 

They actively utilize social media and community input for developing new products. 

Through community engagement, they make consumers feel like stakeholders in the brand, fostering a sense of ownership.

The Chinese brand Perfect Diary, launched in 2017, has built trust in a unique way through online spaces. 

The brand established a WeChat community and appointed a virtual community manager named Xiaowanzi. Xiaowanzi interacted with followers daily, acting like a real person. This increased consumer participation and empathy, leading to high sales.

Beauty Pie utilized customer data from brand subscribers to develop products and curate services based on consumer behavior.  

They invested heavily in data teams and technology to build a customized e-commerce platform.

In conclusion, the beauty industry has entered a new era of trust post-COVID-19. 

In this new era of trust, where should the future growth drivers of the beauty industry be sought? 

First and foremost, brands need to change their voice. The brand's voice must have a clear purpose. 

Having a clearer purpose than before will allow consumers to connect with and feel intimacy with the brand.

Secondly, the shift in industry narratives can be identified. 

While innovation can be maintained at the product level, brands need to transition from product innovation to industry-wide narratives. 

This will help brands establish trust from a long-term perspective through differentiated brand actions.

Lastly, there is an expansion of personalization. While a common term in the beauty industry, it needs to be thought of more comprehensively. 

It should not only involve solutions provided by the brand but also extend to experiences.

Now, I'd like to conclude with one sentence and one question. 

Through trust, brands can gain long-term customer value and loyalty in an era of disruptive change. 

Has your brand made a strong impression on consumers, and has it achieved differentiation?

Chapter 5 - Eco-Friendly Packaging

Changes and Future of Eco-Friendly Packaging in the New Normal Era 

Lee Min-seong, Representative of REVATION 

The COVID-19 pandemic has had a significant impact on the environment due to increased use of masks and disposable items. 

With the added concerns of climate change, such as fine dust and abnormal temperatures, we are facing a new crisis known as the "pandemic.

" As such, plastic has emerged as a central issue in environmental problems, affecting not only environmental pollution but also adverse effects on human health through absorption into the body. 

This is why eco-friendly packaging has gained attention as an essential element in the consumer goods industry.

The harmfulness of plastics is evaluated as an urgent issue to be addressed, not only in terms of environmental pollution but also in terms of adverse effects on human health through absorption into the body.

Cosmetic containers are a prime example of items that are difficult to recycle. 

In fact, a citizen's group (Cosmetic Attack Citizen Action) protested earlier this year, urging for improvements in cosmetic container materials, pointing out that over 90% of cosmetic containers are difficult to recycle.

The difficulty of recycling cosmetic containers is largely due to the fact that most of them are made of composite materials, making them difficult to clean in daily life and difficult to sort at recycling facilities.

In response to this situation, the cosmetics industry has voluntarily initiated plastic initiatives and announced policies to gradually reduce plastic usage by 2030. These initiatives include removing products that are difficult to recycle, reducing the use of petroleum-based plastics by 30%, promoting refills, and promoting container recycling. 

It is welcomed that both large cosmetics companies and small and medium-sized enterprises in Korea recognize the importance of eco-friendly packaging.

The New Normal era, spurred by the COVID-19 pandemic, highlights key themes such as the increasing trend of value-based consumption among consumers and the adoption and implementation of eco-friendly policies like the Green New Deal by various governments worldwide, despite the enduring variable of the pandemic.

In light of this, eco-friendly packaging is poised to act as an essential element for the growth of businesses. 

Traditionally, packaging has remained within the realm of mere wrapping concepts, often serving as a complement to product branding concepts or design. 

However, with heightened eco-awareness among consumers, it has become a crucial element in marketing strategies and a core aspect of corporate social responsibility.

Even global cosmetics companies are recognizing the necessity of utilizing eco-friendly packaging. 

L'Oréal, for instance, aims to encourage 100% refill of plastic containers by 2025 and produce containers that are recyclable or compostable. 

Unilever also plans to secure a minimum of 25% recycled plastic content by 2025 and reduce plastic usage by one-third by 2030. 

Procter & Gamble targets to transition 100% of its packaging to recyclable or reusable materials by 2030, while LVMH plans to eliminate the use of non-recyclable plastics by 2026.

Many argue that eco-friendly packaging might not be closely associated with luxury or makeup sectors. 

However, even luxury and makeup brands are actively adopting eco-friendly packaging. 

Chanel, for example, utilizes Sulapac, a biodegradable material, for its perfume packaging, and has gained attention for its No.5 perfume, which is made from recycled glass and pulp mold. Danish makeup brand Kjaer Weis presents a vision of sustainability through innovative packaging, including refill systems and pulp mold applications.

In the domestic market, Toun28 is notable for reducing plastic case usage from over 60% to 4% by introducing paper pouches and implementing zero-waste packaging using solidification and pulp molding.

In summary, the packaging keywords in the beauty industry include the use of recyclable materials, development of plastic alternatives, adoption of biodegradable materials, activation of refill systems, and changes in product formulation. 

There is a paradigm shift towards sustainable design considering the reduction of plastic usage and other sustainability aspects.

Next year's trend in eco-friendly packaging development primarily emphasizes the activation of research into plastic alternatives. 

Forecasts suggest a reduction in plastic packaging scale through the utilization of paper and plastic substitute materials, such as L'Oréal's paper bottle, Primera's paper tube, and Innisfree's paper mold.

Recycling/upcycling (resource reuse) is also a significant aspect. 

With the expansion of chemical companies' development of PCR materials, such as SK Chemical's EcoTREANA Inner Bottle, and the activation of campaigns like bottle collection, recycling efforts are expected to intensify.

Refill structures and single-material systems are also noticeable changes. 

Examples include Yves Saint Laurent's serum refill, Hera's Age Away serum refill, and Yanwoo's single-material pump without springs.

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