Retailers eye Oriental medicine
Published: 04 Oct. 2010, 21:54
“These types of products are less irritating to the skin and exude an elegant fragrance,” Kim said. “I also like that they have various functions, such as the toothpaste protecting the gums and the shampoo preventing hair loss.”
The market for products that contain herbs and other ingredients used in Oriental medicine is expanding at a rapid pace as consumers seek out products using natural ingredients and strive to lead healthier lives. Companies are releasing a host of offerings in this segment of the market, from diapers and soap to cosmetics and even menstrual pads.
According to the Korea Cosmetics Association, sales of cosmetics containing herbs and other ingredients found in Oriental medicine grew to 1.2 trillion won ($1.07 billion) in 2009, up from 714.4 billion won in 2006. The number of companies offering such products rose from 19 to 32 firms during the period, while total production grew from about 323 million individual products in 2006 to nearly 772 million in 2009.
The main domestic player is Amore Pacific’s Sulwhasoo brand. First established in 1997, Sulwhasoo generated revenues of 540 billion won last year - accounting for 11 percent of the entire domestic cosmetics market. Most major cosmetics firms also have a similar lineup of products featuring herbs and ingredients used in Oriental medicine, including LG Household & Health Care’s Whoo brand and Hankook Cosmetics’ Sansim line.
Industry sources say the market for these types of products has expanded from the older generation to younger consumers, helping make them trendy and even hip.
But the rising popularity of these products has some observers worried about safety and quality issues. In some cases, products advertised containing Oriental medicines only had minute traces of such ingredients.
“The ingredients used in Oriental medicine are great when used correctly but can be harmful when mishandled,” said a representative of a cosmetics company. “So a minimum amount of regulation is needed to stop the indiscriminate manufacturing of these products.”
By Kim Jeen-kyung [joyce@joongang.co.kr]
with the Korea JoongAng Daily
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