Introduction

Cosmeceuticals, which comprise a growing portion of the skincare market, are made from a wide range of substances, the primary types of which are covered in more detail later in this research paper. It is critical that doctors recognise these agents and comprehend their advantages, restrictions and potential drawbacks given the increased interest that patients are showing in these medications and the compelling claims made by the producers (Martin, 2011).

The landscape of skincare has transformed into a dynamic voyage, where brands navigate intricate consumer journeys like seasoned captains. Amidst this competitive sea, COSRX, a South Korean brand, has emerged as a rising star, carving its own niche by defying traditional currents and charting an innovative course. This research paper, akin to a meticulous expedition log, embarks on a deep dive into the effectiveness of COSRX’s global marketing strategy, unravelling the secrets behind its remarkable success.

Driven by two critical objectives, COSRX rewrites the script of conventional marketing. Firstly, it boldly steers against the tide of online expansion, instead forging strategic partnerships with local health and beauty stores. This audacious move leverages the established expertise and customer base of these brick-and-mortar havens, allowing COSRX to cast a wider net and cultivate brand loyalty in a landscape increasingly dominated by digital waves. Secondly, COSRX prioritises customer satisfaction, transforming itself into a beacon of open communication and engagement. Utilising a data-driven, customer-centric approach, it dives deep into the digital ocean, actively soliciting feedback on platforms like social media and Amazon reviews. This treasure trove of insights fuels the development of products and marketing campaigns tailored to specific needs and preferences, ensuring COSRX remains anchored in the ever-evolving desires of its customers.

By meticulously charting these key areas, this research aspires to illuminate the path to effective marketing in the ever-shifting sands of the skincare industry. COSRX’s innovative approach serves as a compass, offering valuable insights for brands seeking to navigate the complex customer journey and emerge triumphant in the global skincare market.

Objectives

This research aims to achieve two primary objectives:

1. Analyse COSRX’s global marketing strategies.
2. Examining and correlating these marketing strategies with the brand’s success.

Methodology

The methodology employed in this research utilised a robust approach to analysing COSRX’s global marketing strategy through secondary data sources. To ensure a comprehensive understanding, data was gathered from a variety of channels, each offering unique insights into different aspects of the brand’s success.

Firstly, sales data from partnered local health and beauty stores, spanning diverse geographical regions, was obtained. This data provided a quantitative foundation for assessing the effectiveness of COSRX’s partnership strategy. By comparing sales growth in partnered stores against non-partnered stores in similar locations, the research aimed to quantify the impact of these collaborations on revenue and brand reach.

Secondly, online review platforms, including Amazon reviews, were mined for customer sentiment analysis. This facilitated the gauging of consumer opinions and experiences with COSRX products and marketing practices. Sentiment analysis tools were employed to extract key themes and emotional tones from reviews, uncovering areas of customer satisfaction and potential areas for improvement.

Next, social media platforms were utilised to track brand mentions and engagement metrics. Data on website traffic, user interactions, and content-specific engagement provided valuable insights into the effectiveness of COSRX’s digital strategy. By analysing how different types of content resonated with audiences, the research aimed to identify optimal content formats and engagement strategies for future campaigns.

Finally, industry reports and market research data were consulted to provide a contextual framework for COSRX’s performance within the broader skincare market. This helped in benchmarking the brand’s success against competitors and identifying emerging trends that could influence its future marketing strategies.

Through this multi-faceted approach, the research aimed to paint a holistic picture of COSRX’s global marketing strategy and its effectiveness in achieving its objectives. By analysing and correlating data from diverse sources, the research sought to draw meaningful conclusions and provide actionable managerial implications for the brand and other industry players aiming to replicate its success in the competitive skincare market.

This expanded methodology section provides a more detailed description of the data sources and analysis techniques used in the research, contributing to a better understanding of the research’s foundation and validity.

The scope of the study includes various resources of secondary data that helped in gaining valuable insights for the research study. This data was analysed and correlated with objectives stated and meaningful conclusions as well as managerial implications were drawn from it.

Literature Review

The global skincare landscape is undergoing a metamorphosis, propelled by a confluence of factors: rising consumer awareness, increasing disposable income and the quest for personalised beauty solutions. Navigating this dynamic market requires brands to understand the nuanced ‘skincare journey’ across diverse cultures and implement effective global marketing strategies. This research delves into key themes and recent research exploring this multifaceted topic.

Skincare is an essential part of personal care and beauty routines across the world. People in different cultures have developed unique skincare practices and techniques, often influenced by their environment, traditions and resources available to them (Chandra et al., 2022; Choi et al., 2022). For example, in Asian cultures, such as Japan and Korea, the focus is on achieving a clear and radiant complexion through a multi-step skincare routine that includes cleansing, toning, moisturising and using various treatments, such as sheet masks and serums (Dev et al., 2022). In African cultures, natural ingredients like shea butter and oils derived from plants are commonly used to moisturise and nourish the skin (Alander, 2004) . In India, Ayurvedic principles are applied to skincare, with a focus on balancing the body and using herbal ingredients like turmeric and sandalwood to treat and protect the skin. Consumers are increasingly seeking bespoke skincare regimens that cater to their unique skin concerns and cultural preferences. Studies by Markiewicz and Iduwo (2018) highlight the demand for products tailored to individual skin types, ethnicities and lifestyles, transcending the ‘one-size-fits-all’ approach. The perception of skincare expands beyond topical applications, embracing a holistic approach (Zhang et al., 2020). Research suggest consumers are incorporating diet, exercise, and mental well-being into their skincare routines, blurring the lines between internal and external care (Bates et al., 2022). Social media and online platforms wield immense power in shaping consumer behaviour. (Belanche, 2021) Reviews, influencer recommendations and educational content significantly influence purchasing decisions, as noted in studies by Kang et al. (2021). Ethical and environmentally conscious practices are gaining traction. Consumers are increasingly opting for cruelty-free, natural and eco-friendly brands, as reported in studies by Varma and Ray (2023). Considering marketing tactics, adapting marketing strategies to diverse cultural contexts and regulations is crucial for success. Research by Biemans (2023) underscores the importance of understanding local beauty standards, communication styles and distribution channels to avoid cultural faux pas and ensure market alignment. Integrating online and offline touchpoints creates a seamless and engaging experience for consumers. Studies by Chaffey et al. (2020) and Lemon and Verhoef (2016) highlight the effectiveness of leveraging social media, e-commerce platforms and physical stores simultaneously, tailoring content and offerings to each channel. Utilising customer data and market research allows for targeted marketing campaigns and product development strategies (Gorle & Pankhuri, 2021).  Studies showcase the benefits of data analytics in understanding consumer preferences and behaviour across different regions, enabling customisation and relevance. Collaborating with relevant micro-influencers and brand advocates builds trust and credibility with diverse audiences. Research by Belanche et al. (2021) emphasise the impact of authentic partnerships in driving brand awareness, engagement and trust across cultural boundaries. Moving towards future prospects, AI-powered skin analysis tools and personalised product recommendations are poised to further shape the skincare journey, as discussed in studies by Movahedi (2023). However, ethical considerations and potential biases within artificial intelligence (AI) algorithms require careful attention. Augmented reality (AR)technology can enable virtual try-on experiences and enhance marketing campaigns, as explored in studies by Dieck et al. (2023) and Romano et al. (2020). However, ensuring accessibility and cultural sensitivity in AR applications is crucial to avoid alienating certain demographics. The direct-to-consumer (DTC)model offers opportunities for brands to build direct relationships with consumers and gain valuable data insights, as highlighted in studies by Harrison & Hair (2017) and Nieto (2022). However, navigating logistics and regulations across diverse markets presents challenges that require careful planning and execution.

Analysis and Dissertation

As consumers gain awareness of their skincare options, more brands are producing skincare products tailored to particular lifestyles. Consumers prioritise high-quality, reasonably priced skincare products that are tailored to their skin type and offer specific tasks and advantages, according to Statista. Customers are looking for skincare products that cater to their specific needs, therefore, there is still room in the market for up-and-coming brands that prioritise customisation. Recent years have seen a surge in interest in the beauty business for K-Beauty brands, which are well-known for their distinctive innovations, attention to particular skincare needs and abundance of advantages that are now known and loved by customers worldwide (Na et al., 2021).

Jeon Sanghoon founded COSRX in 2013. After just a year, their products were making waves in the global skincare scene, with users citing noticeable improvements. The brand was a welcome change of pace for many. Natural skincare has changed as a result of its straightforward packaging, fuss-free compositions and reasonable pricing points. ‘We have been selecting skincare products for the global market, including Korea, for more than 10 years, taking into account the unique demands and trends of our customers. Because we all had sensitive skin and could not use any of the products on the market at the time, we decided to select skincare items that would work for our skin type. This allowed us to enter the sector’, a brand spokesman stated.

COSRX chose to leverage individual experience by offering easily accessible skincare solutions that address common issues, as opposed to following the norm. A spokesman stated, ‘We wanted our customers to know that they were not alone and we still hope that when they use our products, they will be able to regain the confidence they deserve’. With an emphasis on Korean skincare, COSRX developed a list of basic active substances based on collective data, technology and ingredient composition. Before entering neighbouring nations, the brand began selling its goods in Korea.

COSRX distinguished itself from other skincare companies in the market by concentrating on two areas: their clientele and analytics. ‘As a brand, we investigate people’s lifestyles to discover answers to the problems we have, and by doing so, we are able to offer our clients products that are satisfactory and easy to use’. We consistently assert that ‘the solution lies with our clients’, an agent stated. The brand has taken an easy-to-understand approach to data collection. We examine a wide range of data. This may be as straightforward as a remark made on our Instagram feed, comments from other social media platforms or remarks gathered via a software engine we built specifically for review research.

The sole goal of COSRX is to become the top hypoallergenic skincare line for those with delicate skin. The brand thinks that listening to what customers want is important and that philosophy should have a strong will. The spokesman stated, ‘We base our decision-making on the reasons our customers chose COSRX, which we learn from their real-time feedback’. Acne Pimple Master, Aloe Soothing Suncream, Low pH Good Morning Gel Cleanser, Snail Cream and Snail Essence are among COSRX’s best-selling products.

One Acne Pimple Master Patch is sold every 25 seconds, according to the firm. They are composed of hydrocolloid patches, which preserve skin hydration to stop new breakouts while preventing damage to injured or problematic regions from getting worse. Aloe Arborescens Leaf Extract is used in the formulation of the Aloe Soothing Suncream. It is simple to apply sun protection at any time of day because of its lightweight texture, moisturising feel and lack of white cast. In the United Kingdom alone, one sun cream is sold every 30 seconds.

The Low pH Good Morning Gel Cleanser, which has sold over 8 million units globally, gently cleanses skin without depleting it of its natural oils. The brand claims that users will noticeably display a firmer and brighter-looking complexion right away because it was designed with all skin types in mind. The brand’s products have garnered over 100,000 five-star ratings together, with Snail Cream and Snail Essence standing as the top sellers on Amazon within the United States. The Snail Essence contains 96.3% snail secretion filtrate, which helps to maintain skin’s moisture and brightness throughout the day. The Snail Cream is a thick gel-like cream that feels light and comfortable on the skin and absorbs quickly.

With the use of technologies that evaluate client testimonials and evaluations from social media and other sales channels, COSRX can promote its goods. An official stated, ‘Data collection is used to develop strategies to improve communication and guarantee that the voices of our customers are represented in our marketing campaigns’. The company describes a ‘cyclical conversational tool’ as their approach to social networking. Instead, of telling customers what they need, it listens to their wants and then develops a solution to meet those needs. It continues to share instructional content on its social media channels after its debut.

The brand uses content production to combat the perception that skincare might be overly complicated. People frequently struggle to figure out which ingredient to use and how to apply a solution for their skin troubles. For the sake of our customers, we aim to minimise trial and error rather than just launching items. We encourage them to contact us with any questions or concerns they may have, and in return, we will produce content to help them better navigate their skincare issues, according to a spokesperson.

In an effort to reach a younger audience, COSRX has implemented an influencer marketing approach designed to foster relationships, raise brand recognition and introduce the company to new customers. Influencer marketing is an effective strategy. The proliferation of reviews on social media platforms made by consumers and micro-influencers is responsible for our business’s success. Additionally, we have used affiliate marketing. It can be used to track conversion when combined with influencers, according to a spokesman.

A recent innovation from the brand is the Vitamin C 23 Serum. Its specialised consumer research centre discovered that although people utilise vitamin C in the hopes of improving their skin, there are certain concerns regarding irritation and stinging, which it has addressed. Numerous clients with delicate skin have been forced to discontinue their use of vitamin C. We have been using words like ‘stinging’ and ‘irritating’ for a while, which is why we created a concentrated vitamin C serum that causes the least amount of discomfort while maximising effectiveness.

COSRX has been a leader in solution-based skincare for more than a decade. Solution-based skincare eliminates extraneous ingredients and concentrates on the important ingredients, making the formulation process simpler and targeting specific skin conditions. Both new and established firms have a chance to meet consumers’ skin care needs without sacrificing skin health as the market for hyper-specific skincare continues to grow. ‘We believe the skincare solution market will continue to grow and surpass its current size’. Individuality is a huge trend that we are witnessing and it seems to be impacting company strategies, a spokesman stated. Customers want goods that are tailored to their personal needs, and COSRX’s mission is to curate items that address certain issues and improve the regimens that customers already follow (as depicted in Figure 1).

Figure 1. Key Elements Responsible for COSRX’s Success.

 

In Southeast Asia, COSRX is currently highly recognised. After recently becoming well-known in the United States, they have had success in a number of the region’s countries in just the past two years.

High Praise and Numerous Prizes in the US

The three items that won were Triple C Lightning Liquid (under $30 category), Acne Pimple Master Patch (under $10 category), and BHA Blackhead Power Liquid (blackhead category). With a total of five products, COSRX has won this competition three years in a row since 2017.

COSRX was also chosen as a Global Brand Success Story by Amazon in the United States in 2018. At the moment, they are selling their products through online and physical retailers in the United States, such as Riley Rose, Urban Outfitters and every Ulta Beauty shop. They have made arrangements for their products to be offered in every Forever 21 store as of May of this year. South Korean skincare company COSRX is quickly rising to prominence as one that has successfully expanded in the United States (BeautyTech.Jp., n.d.).

Additionally, COSRX has been growing its market share in Southeast Asia in recent years. They finished expanding their distribution network in February of this year, covering every Watsons pharmacy location in the Philippines, Indonesia and Singapore.

According to a COSRX representative cited in the South Korean newspaper Kukmin Ilbo,

We were able to achieve a surprising level of growth within two years of expanding to the region as a result of meeting the needs of customers in Southeast Asian countries, of whom many deal with skin issues relating to the high-temperature and humidity the region is known for.

They added that their objective moving ahead is to expand on the sales success they have already experienced in the four major countries of the region and ultimately establish themselves as a well-known brand throughout Asia and eventually the entire world.

The Secret Behind COSRX’s Growth

Sanghoon Jeon is the owner of the business, which was established in December 2013. An approximate estimate of its sales volume is 36.5 billion won, or $33.2 million USD. Other than this, the public is not given much information about the company, much less its history. Conversely, COSRX is considered a trailblazer in South Korea because it is a small-to-medium-sized business that has established distribution networks in overseas markets. Their effectiveness in doing so is mostly due to three elements.

The first is the change in how consumers choose what to buy. The conventional approach to entering overseas markets has traditionally been to establish a foothold in local department shops. However, COSRX has been able to drastically lower the hurdles to entry by focussing on revitalising the local H&B (Health and Beauty) stores and beauty boutiques. Additionally, customer word-of-mouth and social media reviews have become highly significant in the market. This has increased the opportunities for small-to-medium-sized enterprises that produce high-quality goods to be integrated into local distribution networks. (as depicted in Figure 1).

The method by which COSRX creates its goods serves as the second defense. Customer satisfaction is the company’s top priority. The owner of the company, Jeon, told South Korean media covering cosmetics, ‘We plan to sell products that give consumers a high level of satisfaction, including in terms of price, rather than focussing on marketing materials’.

A big part of Amazon’s praise for COSRX is its open lines of communication with customers. When releasing new products, they also utilise Amazon’s Early Reviewer Program, which entails collecting customer feedback early on, evaluating them and changing products in response to identified user demands.

Its digital approach is the final justification. For example, COSRX fully utilised the Amazon platform as a global media influencer and not only as an online store when they moved into North America. They turned the Amazon sales page into appropriate reading material by structuring it like their own official website and providing thorough product descriptions, usage instructions, pricing and review excerpts. Additionally, they used influencer marketing, social media and video content to be in constant contact with customers, which greatly aided in raising COSRX’s level of recognition.

Having a small-to-medium-sized business and being well-known online has helped it establish a presence in Southeast Asia. The introduction of COSRX into the Philippines is one such instance. Watsons is the H&B store with the biggest market share there at the moment, and COSRX is the only South Korean brand that has been successful in gaining in-store shelf space and driving up sales in those stores.

Small-to medium-sized South Korean skincare products are increasingly making their way into the Southeast Asian market. The total cosmetics market size of the six major Southeast Asian nations is estimated by Euromonitor to be US$19.1 billion (as of 2017), or 4.2% of the worldwide market. They also forecast an average annual growth rate of 8.8% for this Southeast Asian industry by 2022.

Conclusion

In summary, COSRX is a pioneer in solution-based skincare and is well-positioned for future expansion.

COSRX has become a well-known skincare brand by emphasising these important elements:

• Customer-centric approach: Giving input and needs from customers top priority during the creation and promotion of new products.
• Products that are solution-based: They provide efficient formulas with key components that address particular skin issues.
• Open communication and transparency: Using data to understand customer preferences and having open conversations with them.
• Strategic distribution: collaborating with appropriate retailers and making good use of internet channels.
• Concentrate on Southeast Asian market: appreciating the region’s potential and customising goods to meet local needs and weather conditions.

 

With its solid base and dedication to innovation, COSRX is ideally positioned to seize more expansion in the worldwide skincare sector, especially in Southeast Asia. Customers looking for specialised solutions are drawn to the brand’s commitment to providing high-quality, reasonably priced products that cater to particular demands. With the growing need for hyper-specific skincare products, COSRX is expected to maintain its position as a pioneer in providing affordable and efficient solutions for all skin types.

Managerial Implication

Managerial implications based on the COSRX case study:

Customer focus:

• Prioritise understanding customer needs and preferences: Conduct regular market research, gather customer feedback and actively engage with customers on social media.
• Develop products that address specific customer pain points: Focus on offering solutions to common skin concerns and personalise product offerings based on different skin types and needs.
• Be transparent and communicative: Share product information openly, address customer concerns promptly and utilise feedback to improve products and marketing strategies.

 

Product development:

• Focus on essential ingredients and avoid unnecessary additives: Streamline formulations to ensure effectiveness and affordability.
• Conduct thorough testing and research: Ensure product safety and efficacy before launch.
• Continuously innovate and adapt: Keep up with industry trends and develop new products to meet evolving customer needs.

Marketing and distribution:

• Leverage online platforms effectively: Utilise social media, influencer marketing and e-commerce channels to reach target audiences and build brand awareness.
• Partner with relevant retailers: Target distributors that align with your brand image and reach your desired customer base.
• Utilise data-driven insights: Analyse customer data to inform marketing campaigns and optimise distribution strategies.

Global expansion:

• Conduct market research to identify opportunities: Understand the specific needs and preferences of consumers in new markets.
• Adapt products and marketing strategies to local contexts: Consider cultural nuances and regulations when entering new markets.
• Build partnerships with local distributors and influencers: Leverage local expertise to gain market access and credibility.

 

Additional implications:

• Embrace a small-and-agile business model: Adapt quickly to changing market trends and customer demands.
• Invest in building a strong brand identity: Create a brand image that resonates with your target audience and differentiates you from competitors.
• Focus on long-term sustainability: Implement ethical and environmentally conscious practices throughout your business operations.

 

Following these management recommendations can help skincare firms replicate COSRX’s success and prosper in the cutthroat worldwide market. Always keep in mind that the secret is to comprehend your clients, provide practical solutions and develop a powerful brand that speaks to their requirements.

Declaration of Conflicting Interest

The authors declared no potential conflicts of interest concerning the research, authorship and/or publication of this article.

Funding

The authors received no financial support for the research, authorship and/or publication of this article.

ORCID iD

Heta Chhabhaiya  https://orcid.org/0009-0008-1432-1573