Challenges Facing Ali and Taewoo in E-Commerce Market

Ali and Taewoo's struggle in the e-commerce market reveals declining user engagement and trust issues in their platforms.

### The Struggles of Ali and Taewoo in the E-Commerce Market: Analyzing Current Trends and Challenges
* 📉 Despite the initial rapid growth of Ali and Taewoo in the Chinese commerce sector, their performance in our country reveals significant challenges as they face **stiff competition from local e-commerce platforms**.
* 📊 Monthly active user counts indicate that while Taewoo was expected to **surpass competitors**, it remains **stagnant**, and Ali Taimu has seen a **decline in users for two consecutive months**, raising concerns about their **engagement levels**.
* 💰 Sales figures show that domestic competitors outperform Ali, which struggles with **low purchase conversion rates**, averaging only **1.3%**, compared to Coupang's impressive **78-88%**.
* 🔍 The image problem surrounding Ali and Temu, perceived as **low-quality and cheap**, has led to a **decline in consumer trust**, further exacerbating their challenges despite heavy marketing efforts.
* 🌍 While the online sales in our country increased by **22.2%**, the overall competitive landscape has shifted, with Coupang entering the Chinese market to **directly compete with Alibaba**.
* 💸 The Chinese government's financial support for e-commerce platforms like AliExpress, totaling around **2.325 trillion won**, raises questions about the **sustainability of these platforms** amidst declining sales and quality concerns.
* 📦 The cosmetics industry, particularly with companies like Amorepacific and LG Household & Health Care, is also experiencing a shift, as **small and medium enterprises are increasingly gaining market share** over traditional giants.
* 🌟 As the global market evolves, the future of Ali and Taewoo remains uncertain, with a **critical need for innovative strategies** to adapt to **changing consumer preferences and competitive dynamics**.

Ali and Taewoo can completely dominate the market in our country. These e-commerce companies are facing a significant challenge. Their growth has been rapid, and it seems like a strong wave is coming. However, upon closer inspection, it turns out that the explosive potential isn't as strong as expected. Today, I want to share the current status of Ali and Taewoo in Chinese commerce. 

There’s nothing more honest than numbers, right? To find out how Taewoo and Ali are currently doing in our country, I’ve prepared a few indicators. The monthly active user count refers to the number of people who access the app at least once a month. At the beginning of this year, when we were discussing this item, it was said that if this growth trend continues, Taewoo would surpass 11th Street and rise to third place.

Most experts had anticipated this, but as of June, there are still four competitors. The more serious issue is that if we look at the number of Ali Taimu users, it has decreased for two consecutive months. This means that people are not even using the app anymore. If the number of people using the app decreases, what does it matter? As long as sales increase and the average transaction value goes up, everything should be fine. However, if we look at the sales figures, all four competitors are domestic companies. Despite Ali making a lot of noise and conducting business in our country, they are not performing better than the competitors. It seems they are stuck at browsing; people are just checking it out for fun and not following through with purchases. The phenomenon of low purchase conversion rates is becoming more pronounced. There is a concept of purchase conversion rate, which measures the probability of users who actually enter the app and make a purchase. If we analyze this, the situation appears to be more serious. Coupang has a conversion rate of about 78-88%.

So, when 100 people enter, seven or eight of them make a purchase. This indicates that Coupang's rate is quite disproportionately high, while the average is around 1.3%. Although there are many users who download from Ali and Temu, when we look at the actual conversion rates and sales, those numbers shrink significantly. Given this context, it seems that the e-commerce platforms that once seemed poised to dominate our country are currently struggling to gain traction. Despite benefiting from media attention, advertising, and massive marketing budgets, why haven't they achieved explosive growth? Why are the results gradually declining? This is primarily due to the image problem of the platforms themselves. Products from Ali and Temu, which come from China, are often perceived as too cheap and of poor quality, and there are even concerns about safety. This continues to be reported and announced.

The level of trust has significantly decreased, and the image has also deteriorated. This is part of the analysis. Secondly, it seems that e-commerce companies in our country are quite formidable. According to the data from the Ministry of Trade, Industry and Energy, sales in offline stores fell by about 0.2% in April compared to a year ago. However, online sales increased by 22.2%. There are several reasons for this, one of the main ones being that significant discounts were offered to compete with Alibaba's 100 billion festival, which led to an increase in sales. In fact, Coupang, for the first time in 13 years, reported a turnaround from deficit to profit, which was widely reported. However, there are indications that it may return to a deficit this year. The reason for this is the fierce competition due to Alibaba's aggressive pricing strategy. Currently, the competitiveness of direct purchase items coming from China is...

Since it was impossible to compete in our country, Coupang directly entered China. They have set up a logistics center in Wei and are directly allowing Chinese wholesale vendors, who sell products through Alibaba and Taobao, to set up shop there. They are recruiting these vendors under very attractive conditions. Some of the products sold by these vendors include typical items like mobile phone chargers and fast chargers. In the past, the price difference was three to four times, but now it’s only about 1.5 times for certain items. From a consumer's perspective, this kind of competition is always welcome. Ultimately, we can say that the market's cleansing function has been at work in our country. There are many low-quality products, so the inferior ones naturally get eliminated. This is the case in our country, but is it also struggling in other countries, especially in the case of Taobao?

In the same case, they are much more sincere about the global market, such as the United States or Europe, than the Korean market. I mentioned this last time. Looking at the performance of Taimu in the United States, it seems a bit unusual. Until last year, Taimu showed an insane growth rate in the U.S. market, but it has suddenly begun to slow down, with reports emerging from various places. However, it is somewhat different from our country. The reason is that consumers are turning away, and many believe that there is a strategic judgment behind Taimu's headquarters in Pinder. The biggest reason for this is that they were shocked by TikTok's exit. Seeing TikTok facing serious consequences and having to cease operations in the U.S. has made them realize that they could also be expelled from the U.S. market. They are worried that all the money they have spent so far could end up being wasted.

They were spending astronomical amounts of money on advertising in the U.S., and to keep the promise of delivering all products within a week, they were operating at a loss of a dollar for every $15 item sold, to the point where analyses were showing this. Recently, they have started tightening their purse strings and have ceased spending money in the U.S. There are also talks about moving the logistics center they planned to build in the U.S. to Mexico. In fact, in the fourth quarter of last year, Taewoo's revenue from the U.S. market accounted for 57% of their total global sales, but this dropped to 40% in the first quarter of this year. They are aiming to reduce this to 1%. Europe is also facing issues with electric vehicles and overproduction, and there are discussions about regulating direct purchases of goods coming from China, which used to account for about 35% but has seen changes this year.

Overall sales have decreased to about 30%, indicating a lower market share. The situation in the U.S. and Europe seems a bit unstable, and based on this judgment, we may no longer be able to expand our business further. Ultimately, analyses from foreign media suggest that this will shift to East Asia. Strategically, it seems that the U.S. and Europe may not perform well, and there is a tendency to redirect focus towards Asia, including Korea. 

However, there are limitations to selling products through direct purchases. Regardless of the country, products must pass through that country's customs. The number of officials involved in the customs clearance process is fixed. Therefore, even if the number of orders from AliExpress increases significantly—by three, five, or six times—it becomes increasingly difficult to receive products more quickly. This ultimately affects the consumer experience.

In this situation, it's quite difficult to significantly increase sales in one country solely through direct purchases. We currently have over 70 countries where we are operating, including African countries, South American countries, ASEAN, and Central Asia, where many products are purchased through this channel. However, from the perspective of those countries, there isn't much of an industrial base to produce such goods locally. They are offered at very low prices, which results in less resistance from those countries. 

So, it's not a matter of worrying about what might happen if the U.S. blocks us. We can still consider countries like Mexico, Brazil, and Chile. Regardless, the way Ali is making money is through low pricing strategies. Recently, China has been trying to address overproduction, and this might be related to that issue. There seems to be a somewhat ambiguous connection.

Recently, there has been a significant issue regarding China's overproduction. Both the United States and Europe continue to issue warnings to China. There are discussions about whether this is a state-sponsored effort to push an enormous amount of goods overseas, as it is unable to sell them domestically. However, this perspective needs to be examined more closely. It is essential to identify which items are being overproduced. The items in question include steel, aluminum, textiles, electric vehicles, secondary batteries, and solar panels. It is acknowledged that there is indeed overproduction in steel and aluminum. However, it is denied that electric vehicles, secondary batteries, and solar panels are overproduced. In the case of steel, there are local governments where steel production clusters have been established, and these local governments are facing financial difficulties.

The factories are unable to stop operations. There is a desire for the U.S. to impose some sanctions, as that would provide a justification to halt production. However, regarding electric vehicles, solar energy, and secondary batteries, China continues to assert that we are not overproducing. It is difficult to fully trust China's statements. 

Now, are there any products sold on AliExpress? No, there aren't. The products sold on AliExpress are mostly items produced by large corporations linked to state agencies, which are focused on mass production of a limited variety of goods. In contrast, the items sold on AliExpress are produced in small quantities with a wide variety. Thus, the claim that overproduction is the reason to promote AliExpress does not quite hold up. 

So why does the Chinese government continue to try to expand AliExpress into the global market? The reason is that it is politically beneficial.

From the perspective of the Chinese government, large corporations and capitalists are important, but in reality, the countless ordinary citizens and small business owners are politically even more significant. However, right now, as consumption in China is stagnating, self-employed individuals and small enterprises are facing serious difficulties. These are the people who produce goods that platforms like Taobao and Alibaba sell overseas. Through these platforms, many small businesses and micro-entrepreneurs are able to earn money. From the viewpoint of the Chinese government, this is a very favorable business model. Moreover, China is continuously promoting advanced industries, and the incorporation of AI in e-commerce by platforms like Alibaba and Temu aligns perfectly with this goal. It is reported that the amount of financial support the Chinese government has provided to these e-commerce companies amounts to approximately 2.325 trillion won in South Korean currency.

There are research results indicating that a significant amount of funding has already been provided, and now China is planning to offer even more support. If the Chinese government’s funding comes in for building logistics centers and establishing logistics systems, even if there is a slight slowdown in support from the United States or our country, we cannot predict how expansions will proceed through various forms of promotion in the future. The question arises: how will this be utilized if it comes to our country? There is an aspect we can foresee. Currently, it has been noted that Alibaba is experiencing a general decline in sales. The demand for direct purchases from China has also decreased significantly, and ongoing quality issues have led to controversies. As a result, Korean companies that sell products in Korea are facing a situation where consumers are somewhat reluctant to purchase items from Alibaba. From the perspective of these companies, they expected higher sales, but it seems that is not the case.

I noticed that there isn't much difference from other domestic platforms in our country; the sales aren't particularly extraordinary, and for some items, they might even be lower. However, in this situation, the only thing that is selling well on Ali is surprisingly fresh food. I thought that since this is a Chinese platform, people would have reservations about purchasing fresh food, but due to the recent rise in prices, many people have started buying fresh food on Ali, which is perceived as a very affordable platform. This analysis is currently being discussed. However, there is one major obstacle: Ali does not have a cold chain. They need to have a system in place to store these fresh products and maintain the appropriate temperature during delivery and transportation.

The country also needs to grant permission, and the construction is so large that it will be very difficult to establish a system. There are rumors that Alibaba will soon acquire Homeplus Express. When looking at the number of stores, it belongs to the big four. If we only consider the metropolitan area, Homeplus Express has the most stores. If Alibaba acquires Homeplus Express, it will at least have the effect of establishing a storage facility. Of course, the cost of building the system for moving this is very high, but China could potentially cover that. Moreover, Taimu is also gradually pulling back from the U.S. and Europe, and it is said to be benchmarking Alibaba's business model. We don't know for sure, as it doesn't seem to have any plans at the moment, but there is a significant amount of Chinese capital here.

There are projections that it could be put into action. So, you might be wondering what exactly is going well or not. The truth is, who can accurately predict events that have not yet occurred? Currently, the expectations surrounding Ali and Temu regarding Chinese commerce are somewhat off the mark. In the midst of this, the Chinese government is wholeheartedly investing money to grow e-commerce globally, setting long-term plans for their own interests and meticulously implementing them. However, our country is presenting measures that are quite spontaneous, such as banning direct purchases, which are unlikely to have any real effect. We need to ensure that consumers can continue to enjoy competition among businesses and that our country can thrive through exports.

Small business owners sincerely hope that more comprehensive and thoughtful policies will emerge to protect them. Amorepacific reported an operating profit of 4.2 billion won in the second quarter, and its stock price has plummeted as well. However, on the other hand, there are claims that the beauty industry is thriving in the global market. It raises questions about why such seemingly contradictory narratives are circulating. Today, we will discuss the Korean cosmetics industry, the Chinese market, and the relationship between small and large enterprises. 

You might remember that at one point, high-priced cosmetics based on traditional herbal medicine gained immense popularity. Furthermore, traders from China came to Korea and purchased a large amount of cosmetics at duty-free shops.

The relationship between China and cosmetics was inseparable. However, 2016 was the last year that this connection held strong. What happened in 2016? The THAAD incident occurred. In this situation, alongside THAAD, a wave of patriotic consumption in China also emerged, leading to a sharp decline in cosmetic sales. As you can see, due to the impact of the THAAD incident, the export growth rate plummeted in 2016. Then, starting in 2022, it began to decrease significantly. When we think of major companies in the South Korean cosmetics industry, two names come to mind: LG Household & Health Care and Amorepacific. This time, both companies likely faced a decline in sales in China, but only Amorepacific's performance was severely impacted. In this regard, the stark differences in the business strategies of these two companies become evident. First of all, Amorepacific...

Currently, various structural adjustments are being made to expand into the Chinese market. We have begun targeting the American, Japanese, and European markets. As the costs of investing in other countries increase and the sales of products in China decrease while establishing an exit strategy, the situation with cosmetics in China is not a new issue. However, with this quarter's full-scale structural adjustments, an astonishing operating loss of 4.2 billion has emerged. Consequently, the stock price has also plummeted by 28%. The market capitalization has vanished overnight, exceeding 2 trillion. Some believe that this was a necessary ordeal that needed to be faced at some point. If we successfully develop markets in other countries, there are predictions that Amorepacific will revive. Meanwhile, LG Household & Health Care is looking to revive the Chinese market.

The mindset is strong. Of course, other countries are also venturing into the market. However, Amorepacific has not made the bold decision to abandon China. Instead, they are trying to make the brand more appealing to Chinese consumers by renewing it and bringing in numerous Chinese idol singers for events and concerts. This is how they are currently promoting themselves. The uncertainty of the Chinese market is something everyone is already aware of, so I don’t need to elaborate on that. This is why experts are expressing concerns about whether it is wise to pour so much investment into China. Cosmetics account for the second-largest share of total exports from our country. However, when looking specifically at small and medium-sized enterprises, cosmetics hold an overwhelming first place in exports. The cosmetics industry itself can be seen as playing a crucial role in driving Korea's exports. Meanwhile, the proportion of exports to China continues to...

It is decreasing. Nevertheless, the sales of our country's cosmetics are increasingly growing worldwide. Which country should we target? Many small and medium-sized cosmetic companies in our country are not aggressively entering the Chinese market but are instead moving towards the United States, Japan, and Europe. In particular, the proportion of cosmetics exported to the United States has been increasing every year, and last year, for the first time ever, the export value of cosmetics to the U.S. surpassed 1 billion dollars. Achieving the top spot on Amazon is truly remarkable, especially for a small indie brand. In Japan, among the countries that import cosmetics worldwide, Korea has surpassed France to take the number one position. Back in 2012, the import proportion between Korea and France was four times different. However, over the past eight years, we have steadily been closing that gap.

In 2022, Japan became the number one country for cosmetics imports. There was a time when we used a lot of Japanese cosmetics in our country, especially SK-II, which I won't let slip by. You know about that, right? However, if you go into most offline retail stores, you'll find that they have a whole section dedicated to these products. Cosmetics, as a consumer good, have very unique characteristics. They are one of the products where customers express a lot of needs, especially since they are applied directly to the skin. Finding products that suit me, made from ingredients I like, is very important. Moreover, after applying cosmetics to our faces, we can't tell which brand we've used. Whether I use a 200,000 won product or a 20,000 won product, the price difference is tenfold.

There is a difference, but after applying it, the feeling of utility is such that there isn't a big difference. Whether you use Apple or Galaxy, you can tell right away. The moment you step into a car, you see the logo of that car. With cosmetics, I don't need to show each product individually from my pouch. In fact, there is no need to use famous brands. If I use a super high-end brand, it’s more about the satisfaction of owning it, and I have the financial means to buy it. There are definitely people who buy those, but most people naturally gravitate towards cheaper products that suit them well. It's not that they don't have money; they just can't find a reason to invest so much money. The problem is that it’s hard to find the right product, so often people just choose from a few options among the products offered by large companies. For example, something like this.

Large corporations heavily advertise their flagship products, claiming that using them will improve everything. They promote their products with slogans suggesting that they are the best choice. From the consumer's perspective, while not everyone may be fully satisfied, they tend to think, Oh, this is the trend; this is what's popular these days, and thus follow suit. This type of consumer pattern was prevalent until the mid-2010s, where large corporations led the way and consumers followed. However, after the emergence of new media like social media and YouTube, this dynamic began to change rapidly. In a world where influencers review and introduce products, consumers are influenced more than ever. As a result, there has been a growing preference for products from small and medium-sized enterprises that cater to their needs, rather than relying solely on large corporate products. Information is now being gathered and utilized through existing offline channels such as road shops, convenience stores, and dealerships.

Rather, it has expanded into various media channels such as SNS, YouTube, and TikTok, establishing a system for two-way communication between consumers and companies. Therefore, it is not easy for large corporations. The infrastructure for business itself may be better equipped in existing large companies that have been doing well, but the reality is that large companies are struggling compared to small and medium-sized enterprises. Honestly, in the cosmetics industry, large corporations with a history and tradition may have more ideas and can produce products directly in their own factories. However, that is not the case. When it comes to creating new products, numerous decisions must be made. The constant influx of customer feedback and needs must be met in real-time, making the production routine more suitable for small and medium-sized enterprises than for large corporations. Because of this aspect, the beauty industry in our country is expanding globally.

One reason it can expand is that most indie brands do not have their own factories for manufacturing cosmetics. Instead, we have ODM production companies in our country. These companies handle research and development, planning, product manufacturing, and delivery, all in a one-stop system. ODM companies have very good technology and experience in producing even large-scale products, allowing them to supply high-quality products with a short lead time. China is also well-equipped for manufacturing; it is often referred to as the world's factory. However, one issue with Chinese cosmetics is that the name China itself can be a drawback. Despite China's ability to manufacture quickly and efficiently, it struggles to enter international markets. In contrast, our country has the best ODM system in the world, especially with Korea's K.

Beauty is gaining significant attention and selling well as it combines with various aspects of K-culture. As I mentioned earlier, this is very advantageous for small and medium-sized enterprises. You may have seen a lot of this. The influencer is using a cushion, which is from our country's small cosmetics brand, Tirtir. It has gained immense popularity in the United States and is currently ranked first in the entire beauty category on Amazon, particularly in the color cosmetics category. 

We do not force our products onto customers; rather, we create products that customers want. It’s not a coincidence that we became number one just six months after entering the U.S. market. Opportunities like this arise when we communicate with our customers. Skin tones and ethnicities are all different, so we always monitor customer feedback after launching our products. We gather this feedback and aim to make changes accordingly, focusing on a diverse range of products in small quantities.

I am curious about inventory management and business strategies for production. Of course, not all small and medium-sized cosmetic companies are successful. Most of these companies, when they first sell cosmetics, especially when exporting to overseas markets, initially sell online. They adopt a strategy of moving to offline stores only after they have achieved significant success and validation through online sales. The advantage of this approach is that it eliminates the need for an offline distribution network, thus reducing costs. For example, T.L.R. reportedly ranked first on Amazon. After achieving that top position, numerous major U.S. distribution companies approached them with proposals to use their distribution networks to sell their products, indicating that they cannot keep up with the demand. On the other hand, companies like LG Household & Health Care and Amorepacific operate offline stores as large corporations.

You have to match the scale, right? All of this comes at a cost. Until now, when targeting the Japanese market, if you look at the advertising models used, they mainly featured Hallyu stars like TVXQ and Yoon Sang-moo, or Bae Yong-joon, and so on. However, in the case of Tirtir, they reportedly used a local model for their advertisements. Of course, this means that they lose the connection to Hallyu, which is a significant advantage. They really had to compete with Japan's top products based on performance, and it worked. The moment it succeeded, they secured the top position in the e-commerce platform in the Japanese market, which became a stepping stone for them to enter the U.S. market. As a result, even though they are a small to medium-sized enterprise, they are being evaluated as clever in selling their products. In a way, this reflects our country's manufacturing industry.

중소기업이 대기업을 약간 압도할 수 있는 거의 유일한 분야가 화장품이 아닐까 하는 생각이 듭니다. 대부분의 분야가 양극화되고 있다는 말이 많이 나오고 있죠. 소비 양극화가 정말로 눈에 띄게 나타나고 있는 분야가 화장품입니다. 우리가 보통 화장품을 구매할 때는 올리브영 같은 곳에 가서 많이 사는데, 5만 원 넘는 제품은 별로 없습니다. 그런데 백화점에 가서 화장품들을 보면 굉장히 고가의 제품이 많습니다. 아무래도 아모레퍼시픽이나 LG생활건강이 내놓았던 제품군의 포지셔닝이 굉장히 애매해졌다는 부분도 무시할 수 없습니다. 그러다 보니 아모레퍼시픽은 요즘 트렌드에 맞춰 코스RX와 같은 회사도 적극적으로 인수하고, 저가 브랜드를 많이 만들겠다는 식으로 전략을 수정하고 있습니다. LG생활건강도...

Health is still adhering to existing methods here; they cannot let go of mid-range brands. Unlike brands like Samsung for phones or Hyundai for cars, the cosmetics industry is seeing numerous small and medium enterprises competing. In fact, large corporations are having a tough time. The cosmetics industry, which is a major export product, is expected to change in the future. It will be interesting to see whether Amorepacific, the Goliath of the industry, can regain its former glory. This will be a key point to watch. 

As for dieting, don't worry about calories; just enjoy your food. Instead, try a keto diet. Download the SBS Premium app now.

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The Struggles of Ali and Taewoo in Chinese E-Commerce

Ali and Taewoo's rapid growth in the e-commerce market is facing challenges, with Taewoo's user count stagnating and Ali's users decreasing for two consecutive months.

Despite their presence and marketing efforts, both companies are struggling to outperform domestic competitors and are experiencing low purchase conversion rates.

The negative perception of their products and aggressive competition from local e-commerce companies are contributing to their difficulties in gaining traction and achieving explosive growth.

Coupang's Expansion into China and Its Global Impact

Coupang has entered the Chinese market by setting up a logistics center and recruiting wholesale vendors under attractive conditions.

The price difference for certain products has narrowed, benefiting consumers.

However, Coupang's global expansion, particularly in the U.

and Europe, is facing challenges, leading to a shift in focus towards East Asia, including Korea.

The Global Impact of Low-Priced Goods and China's Overproduction

The company operates in over 70 countries, using low pricing strategies to drive sales, particularly in regions with minimal industrial production.

China's overproduction issue, especially in steel and aluminum, has raised concerns, leading to warnings from the U.

The Chinese government's expansion of AliExpress is politically motivated, aiming to support ordinary citizens and small businesses during a period of stagnating domestic consumption.

China is increasing its funding for logistics centers and systems, potentially impacting future expansions.

Alibaba is experiencing a decline in sales, leading to consumer reluctance in purchasing from the platform, except for fresh food, which is surprisingly popular.

The acquisition of Homeplus Express by Alibaba could help establish a storage facility, while China's investment in e-commerce growth raises questions about its potential impact on other countries.

The Contradictory Narratives of the Korean Cosmetics Industry

Small business owners hope for better policies to protect them, while Amorepacific reports a significant operating loss and plummeting stock price.

The beauty industry's global success contrasts with the decline in cosmetic sales in China since the 2016 THAAD incident.

Amorepacific's struggle in China differs from LG Household & Health Care's approach, with both companies now targeting other markets and Amorepacific attempting to revive its brand in China.

The Growing Global Influence of Korean Cosmetics

Korean cosmetics are increasingly targeting the U.

, Japan, and Europe, with exports to the U.

surpassing $1 billion for the first time.

Korea has now taken the top spot from France in cosmetics imports to Japan, closing the gap significantly over the past eight years.

The unique characteristics of cosmetics, combined with the influence of social media and influencers, are driving a shift towards small and medium-sized enterprises, as consumers seek products that better suit their needs.

The Impact of Small and Medium-Sized Enterprises in the Beauty Industry

Small and medium-sized enterprises (SMEs) are thriving in the cosmetics industry, leveraging two-way communication with consumers through social media and other channels.

The country's ODM production companies play a crucial role in the success of indie brands, offering a one-stop system for research, development, and manufacturing.

Beauty is gaining global attention, with brands like Tirtir achieving rapid success in the U.

market through customer feedback and a strategic online-to-offline sales approach.

Tirtir, a small to medium-sized enterprise, used a local model for advertising in Japan, competing with top products and securing the top position on e-commerce.

This success in Japan became a stepping stone for their entry into the U.

The cosmetics industry is seeing a unique competition between small and medium enterprises and large corporations, with a shift in strategy from companies like Amorepacific and LG Household & Health to adapt to the changing market.