Thinking about Sourcing Korean cosmetics? 8 things to you must know.
Updated: Feb 9
The Korean cosmetics industry is one of the largest in the world. Korea is known to produce the best personal care and beauty products all over the world. The Korean beauty industry is known as K-beauty, and this industry is currently on the rise. If you take a look at the global cosmetics industry, then the Korean Cosmetics industry ranks 8th in the world.
In recent years, South Korea's manufacturing industry has gained a lot of popularity, and it has made to the list of top 5 superpower manufacturing countries in the world. Korea is known to provide well-designed products with great after-service support. Korea is now one of the leading manufacturers of the world, and the credit goes to many different companies whose products are manufactured in Korea and are sold all over the world. You can easily find thousands of Korean cosmetic suppliers to fulfil your demand regardless of your industry.
Although Korea is famous for the production of electronics and electrical devices like mobile phones, tablets, laptops, computers, gadgets, etc. one thing that is main reason behind the popularity of Korean manufacturing is the cosmetics, the Korean cosmetics industry is one of the largest in the world. Korea is known to produce the best personal care and beauty products all over the world. The Korean beauty industry is known as K-beauty, and this industry is currently on the rise. If you take a look at the global cosmetics industry, then the Korean Cosmetics industry ranks 8th in the world.
Korean cosmetics are popular all over the world, and it supplies cosmetics to many countries in the world. USA, Japan, Switzerland, France, India, Germany, Spain, and many other European countries import a high volume of cosmetics from Korea every year.
Many buyers in these countries are running small and medium-sized businesses where they import cosmetics from Korea at low prices and sell them in the local markets with huge profit margins. If you are a person who is looking to import cosmetics from Korea and sell them in your country with good profit margins, then you are on the right page.
In this article, we will discuss eight important things that you must know before you start sourcing cosmetics from Korea. So let's get started and discuss these points one by one.
Every country has it's own trade and customs regulations. If you want to import also something from another country, then you have to follow these rules and regulations. Otherwise, if you fail to comply with these rules and regulations, your products can get stuck in customs, and you may need to pay heavy amounts to get them cleared. If you are importing products from Korea, then you also need to know about the rule and regulation of their country. So basically, you have to comply with the laws and regulations of both sides, and it is important to have knowledge about the rules and regulations of both sides if you want to source a product successfully. If you are not sure how you can do it, then you can take help from a professional Sourcing agency like KR Sourcing. They will not only help you to understand the regulations, but they will also assist you with all the complicated procedures that are involved in the sourcing process.
MOQ stands for minimum order quantity. If you want to source cosmetics from Korea, then you will need k-beauty supplies. There are plenty of methods for finding a supplier but the problem you face is the minimum order quantity.
Most suppliers have a minimum order quantity limit which is usually high and is not affordable for new startup and small businesses. Most suppliers usually have a minimum order quantity limit of 5,000 or 10,000 products. It means that you cannot order products in less quantity than 5,000. Suppose you decided to start a business to import cosmetics from Korea and sell them in your country to make a profit. When you find a supplier from Korea, he will have a minimum order quantity limit. If he has a minimum order quantity limit of 5,000, then you will have to order a 5,000 products minimum. Otherwise, you won't be able to place the order. This a huge drawback because newbies cannot afford to have that much budget. Although there are a few suppliers with low MOQ limits, they are tough to find.
If you are unable to find a Korean Cosmetics supplier with low MOQ, then you can contact KR Sourcing. We will help you to connect with Korean cosmetics supplies with low MOQ so that you can make a start and source products easily from Korea.
3. ODM/ OEM/ White label
ODM and OEM are the two most commonly used words in the manufacturing industry. Many people get confused here because both these terms are co-related, which can cause confusion. Most business startups do not have the resources to design and manufacture their products. Therefore, they outsource their work to contract manufacturers that are commonly known as OEM and ODM manufacturing firms.
OEM stands for original equipment manufacturers. OEM companies design and manufacturer products according to the requirements provided by the buyer. When a manufacturer designs an OEM product, its size, colour, shape, functions, design, and materials are customized according to the requirements of the buyer.
ODM stands for original design manufacturers. ODM companies design and manufacture products on their own. They are in charge of research and development of the product. You only have to tell them what you need; they will take care of everything from designing the product to manufacturing it.
When it comes to white label products, then the concept is completely different. White label means you rebrand a product that is manufactured by someone else and sell them in your own brand name at your own price.
If you are planning to source cosmetics form Korea, then you need to have an in-depth understanding of all these terms. You need to determine if you are going for an OEM, ODM or White-label product. It will make things a lot easier for you.
Cosmetics usually involves skincare and beauty products. Their products are made up of different formulas having different ingredients in them. Usually, they are a mixture of different products and ingredients. In some countries, some of these ingredients might be illegal to import. So, if your product is having an ingredient in its formula that is illegal in your country, you might face problem in importing that product. This is the reason why you need to verify the formula of the products that you are going to import and see if they are legal in your country or not.
If you are planning to import cosmetics and beauty products from Korea, then you have to pay special attention to the packaging. Usually, cosmetics are sensitive products, and they must be handled with care. You can ask your supplier to use protective layers inside the packaging to protect your products from any damage. Some suppliers will do it for free, and some may ask for extra charges. It is totally the worth even if you have to pay a little bit extra for secure packaging because it will ensure that your products reach you safely. You can even ask for your personal branding on your products, or you can import them as white label and rebrand them in your own country.
6. Quality Is Directly Proportional To Cost
Korean cosmetic products are pretty cheap because they are manufactured in large quantity which reduces their manufacturing cost, and as a result, their overall cost decreases. One thing that you must keep in mind is that you must do market research to know the pricing of the raw materials. By doing a little bit of market analysis, you will be able to estimate the price of the product that you are looking for.
You must choose a supplier who provides you with the products at a price that is near to your estimated price. If the quoted price is too low as compared to the estimated price, then avoid purchasing products from that supplier because he will ultimately decrease the quality of your products to cope up for the price.
7. Communication With Supplier
When you are planning to source cosmetics or beauty products from Korea, then one thing that you must keep in mind is that having good communication with your supplier is crucial. But the problem here is that almost 95% of the population of Korea only speaks the Korean language. Same is the case with suppliers. Most suppliers won't be able to understand English so you will need to get help from a professional translator or translating agency to ensure smooth communication with a supplier. This is the only way by using which you can convey your requirements to the supplier.
Here you can take help from KR Sourcing. We can help you communicate with suppliers in the Korean language and make sure that suppliers have completely understood your requirements. We have expert translators that can assist you in communication with suppliers.
8. Perform Background Check On Manufacturer
This is an extremely crucial point. Before importing any cosmetics or beauty products, make sure to perform a background check on the supplier/manufacturer. The background check should be performed by a person who is familiar with Korean business market and knows all thick and thins. As you are residing in another country, it might be difficult for you to perform a background check on manufacturers. Although some websites allow you to check the reviews of manufactures from previous clients, it is easy to get fake reviews these days, and you can easily get manipulated. Therefore, it is recommended to include a third party sourcing agency to make sure that your investment is safe.
At KR Sourcing, we perform a detailed background check of both suppliers and clients to ensure that everything goes well on both ends.
These are the 8 important points that you need to know before you start sourcing cosmetics from Korea. If you have any questions or you need to ask anything feel free to contact us. You can also book a free consultation, and one of our professionals will get in touch with you.