Generation 1 brands of K-beauty, which were once called 'national cosmetics' and enjoyed widespread popularity, are showing signs of revival. Brands like Missha, Skin Food, Vidi Vici, and TONYMOLY have improved their performance by focusing on brand restructuring and global expansion.
These brands led the market as 'road shop' models with cost-effectiveness as their weapon from the mid-2000s to the early 2010s. However, the consumer paradigm shifted rapidly to an online-centered model, and the long-term Chinese ban on Korean entertainment products hit them hard. In particular, the distribution structure based on standalone stores has fallen behind and become outdated in the face of multi-brand stores like Olive Young.
Indie brands that emerged through social networking services (SNS) have swiftly responded to trends like 'low irritation and clean beauty,' gaining favor among the MZ generation (born between 1980 and 2000), while Generation 1 brands have been criticized for lagging behind that trend. For reference, clean beauty refers to cosmetics made primarily from low-irritation ingredients, excluding harmful components.
However, recently, these brands have quickly modified their strategies and succeeded in making a comeback. Able C&C, which operates Missha, recorded sales of 264.5 billion won and an operating profit of 20.3 billion won in 2023, marking a full recovery from an operating loss of 68 billion won in 2020. Notably, 56.4% of total sales occurred overseas, proving the demand for global K-beauty. Skin Food also saw its sales increase by about 20 billion won to 78.1 billion won in the same year. TONYMOLY achieved an operating profit of 9.6 billion won in 2023, successfully returning to the black for the first time in seven years. The expansion into the U.S., Japan, and Taiwan has been identified as key to their performance resurgence.
Large corporate affiliated brands are no exception. Shinsegae International has begun a comprehensive renewal to celebrate the 20th anniversary of the Vidi Vici brand. They have changed their logo and packaging, reinforcing their global expansion strategy. In fact, despite overall poor performance in the first quarter of 2025, Vidi Vici recorded a 20% increase in sales compared to the same period last year, driving growth in the cosmetics institutional sector.
Industry insiders point to the absorption of the 'indie beauty formula' as the background for this revival. It is said that existing large brands have strategically adopted the strategies successfully utilized by indie brands, including a focus on core product portfolios, an emphasis on clean beauty and ethical consumption values, and emotional branding. Focused marketing on single hit products, such as Missha's 'Vita C Ampoule' and Skin Food's 'Carrot Pad,' are representative examples. The distribution channels have also changed. They actively entered multi-brand channels such as Olive Young, Daiso, and Musinsa, broadening their points of contact with consumers.
A beauty industry official noted, 'Generation 1 brands are actively diversifying their domestic and international distribution channels based on proven product power and reasonable pricing,' adding, 'This is becoming an opportunity to be re-evaluated alongside the recent indie brand boom.'