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Hong Kong-Origin ★ "Hallyu" Boom Threatens Japanese Brands
Demand for Korean cosmetics, electronics, and food products is rising as more people become interested in the lifestyles and fashion of Korean wave stars. The number of Korean brand retail stores opened in Hong Kong during the first quarter of this year (January to March) tripled compared to the same period last year. Since Korean products are also reasonably priced, they could potentially pose a threat to Japanese brands going forward. This was reported by NNA, which distributes economic and business information across Asia.
Korean skincare and cosmetics brands are also increasing their store openings. Over the past two years, brands like Etude House and Innisfree have successively opened their first Hong Kong stores. Influenced by the Korean drama "My Love from the Star," which was a huge hit in the Chinese-speaking world, Korean-style fried chicken restaurants have also opened one after another. Korean fashion brands are expected to ride this wave next, with several brands already considering expanding their operations in Hong Kong.
An executive from a major Japanese cosmetics company explained, "The increase in affordable Korean cosmetics is impacting our sales. Korean products are cheaper than Japanese or Western brands, making them more accessible to consumers. Young people, especially those less knowledgeable about cosmetics, sometimes switch their basic skincare products to Korean brands." On the other hand, sales of Japanese products in higher-priced segments, such as those targeting middle-aged and older consumers or anti-aging products, have actually continued to rise.
The tourism industry is also experiencing a Korean wave boom. According to the Korea Tourism Organization, Hong Kong tourists visiting Korea reached approximately 400,000 in 2013, nearly doubling over the past five years. Notably, April this year recorded a monthly high of about 55,000 visitors. The cumulative total from January to April also reached 160,000, a 40% increase compared to the same period last year.
Ma Shih-wen, Deputy General Manager of major travel agency Wing On Travel, stated that the number of tours from Hong Kong to South Korea has expanded by an average of about 10% annually in recent years. The ratio of tours to Japan versus South Korea has also shifted from the previous 7:3 to a recent 6:4, reflecting the growing popularity of South Korea.
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