[Edaily Reporter KYUNG GYEYOUNG ] Although “Prime Day,” the massive discount event hosted by Amazon, North America’s largest e-commerce platform, has ended, K-Beauty exports to North America have not slowed down. Building on proven online demand, K-Beauty is expanding its reach into brick-and-mortar stores, leading to a further increase in exports.

According to the Ministry of Trade, Industry and Energy and the Korea Customs Service on the 9th, total cosmetics exports in July reached $1.35 billion, a 37.8% increase compared to July of last year. In particular, cosmetics exports to the United States rose 44% to $239 million. There had been concerns that July exports to the U.S. might be affected because Amazon Prime Day—which is typically held in July—was moved up to June this year, but these results have dispelled those concerns.

The accelerating growth in exports is driven by the expansion of K-Beauty distribution channels. APR(278470), which has emerged as a new powerhouse in the K-Beauty sector, entered Walmart in June following its launch at Target in April, while d'Alba Global has expanded its reach to offline consumers by increasing the number of Costco stores carrying its products to 450. Kim Myung-ju, an analyst at Korea Investment & Securities, noted, “The fact that exports to the U.S. are steadily increasing even after Amazon Prime Day has ended is because the impact of brand companies’ distribution channels is now taking full effect.”

K-Beauty’s online and offline expansion in the U.S. is expected to intensify further in the second half of the year. AMOREPACIFIC CORPORATION(090430), a traditional powerhouse in K-Beauty, expanded its presence in U.S. Sephora stores—both online and offline—last year with Estra and Hanul, followed by IOPE in March, and launched Mamonde on Amazon in May. The strategy is to reinforce a virtuous cycle by extending the consumer touchpoints established online—as seen with brands like Laneige, Ilyoon, and Mise-en-Scène—into offline channels.

LG H&H(051900)Following The Face Shop’s entry into Walmart—the largest offline channel in the U.S.—last month, the company plans to simultaneously launch HINs, a color cosmetics brand operated by its subsidiary Viva Wave, on both the online and offline platforms of Ulta Beauty in the second half of this year.

Kwon Woo-jeong, an analyst at KYOBOSECURITIESCO.,LTD., noted, “While Amazon accounts for 20% of the U.S. cosmetics market, specialty beauty stores and retailers like Target and Walmart account for over 40%, making it a market at least twice as large.” He added, “It is also significant that the company can secure a new customer base distinct from its online audience.”