Domestic traditional cosmetics companies that led the K-beauty wave are creating new growth axes through overseas operations. Strategies to expand sales channels into North America, Europe, and Japan in response to slowing growth in the Chinese market are leading to improved performance.
LG Household & Health Care began seeing results from its Q2 strategy to restructure overseas operations. Driven by expansion of its North American business, North American sales for the first time surpassed those in China. LG Household & Health Care explained that "the growth axis is diversifying from China to global key markets."
Consolidated revenue for the second quarter reached 1.6574 trillion won, with operating profit at 102.8 billion won, representing increases of 3.3% and 87.5%, respectively, compared to the same period last year. Overseas sales in particular rose 12.6% to 584.5 billion won. Of this, North American sales increased 47.3% to 205.8 billion won. Chinese sales fell 5% to 176 billion won. Major brands including Dr. Groot, You Smile, Dominus, VDL, and Hince grew across both online and offline channels. Notably, following its October entry into Costco stores in North America last year, Dr. Groot is set to enter Sephora stores nationwide in the United States this month.
Amorepacific Group also continued its growth overseas. Consolidated revenue for the second quarter reached 1.2543 trillion won, with operating profit at 122.8 billion won, marking increases of 14.6% and 53.3%, respectively, compared to the same period last year. Focusing on its core subsidiary Amorepacific, overseas sales increased by 28%, while operating profit surged 99%.
Diversification of countries overseas proved particularly effective. Both online and offline channels grew across key markets including the Americas, Europe, Middle East, and Africa (EMEA), and Japan. In the Americas, Esthe's "Atobarrier365 Cream" achieved strong results through Amazon and Sephora channels, driving triple-digit sales growth. Additionally, Cosrx and Innisfree saw revenue growth, while new brands such as Iope, Hanul, and Illiyoon also delivered positive results.
In EMEA, Cosrx sunscreen ranked first on Amazon in Germany and the UK, while Esthe, Laneige, and Innisfree strengthened their marketing efforts. In Japan, Laneige, Esthe, and Cosrx led growth. Sales increased in ASEAN, India, and Australia markets, whereas sales in Chinese-speaking regions declined due to channel efficiency improvements, according to the company.
Aekyung Industry is also working to diversify its overseas markets. Aekyung Industry recorded consolidated revenue of 194.2 billion won for the second quarter, a 13.3% increase from the same period last year and its highest quarterly revenue on record. Overseas sales accounted for 42% of total revenue, up 7 percentage points, driving overall performance.
Within overseas operations, cosmetics are restructuring their presence in China while expanding business into Japan, the United States, Russia, and Central Asia. Leveraging flagship brands Luna and Age to Twenty-two, the company expanded its online and offline distribution networks. In personal care for scalp and body management under household products, Aekyung Industry has begun aggressive market penetration efforts in the United States and Europe.
in LIVING
