Korean Pharma, biotech cos enhance marketing, distribution for cosmeceutical biz

South Korean pharmaceutical and biotech firms are actively recruiting cosmetics marketing and distribution experts to beef up their struggling cosmeceutical business on expectations that the global market would burgeon.

A number of Korean pharmaceutical and biotech firms have jumped into the cosmeceutical business, which includes skincare and cosmetics products that contain biologically active compounds considered to have pharmaceutical benefits on skins. But most of them have not been able to impress the market after only a few of them make 10 billion won ($8 million) or more in sales from cosmeceutical business despite large investments, according to industry sources on Sunday.

Their disappointing performance in cosmeceutical sector largely owes to their lack of expertise in cosmetics marketing and distribution, which is key business success factors in the market sensitive to fast-moving trends. Korean pharma and biotech companies have failed to make inroads into regular retail outlets like hypermarkets and department stores beyond clinics, observed an industry expert.

Amid fierce competition against regular cosmetics brands armed with vast experience in marketing and sales, pharma and biotech firms are seeking to enhance their marketing and distribution capabilities for cosmeceutical business.

[Source: Dongkook Pharmaceutical]

Demand for cosmeceutical products is rising rapidly as consumers have become more conscious about medically effective ingredients against worsening pollution and aging. According to the Korea Health Industry Development Institute, the global cosmeceutical market is estimated to reach $70 billion by 2025. The Korean market is projected to grow to 1 trillion won in a few years.

An official from Chong Kun Dang Pharmaceutical said the company is focusing on the indie, or independently owned, brand market upon indentifying meaningful growth in demand from Gen Z consumers.

Dongkook Pharmaceutical has achieved cumulative sales of 530 million won sales with a single product, Madeca Cream, as of April. It was launched in 2015.

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