Walmart's Strategy to Capture K-Beauty: A Strategy to Recruit Korean Sellers for the Global Beauty Market
On March 12, 2025, Walmart held a global e-commerce launch event (Beauty & Cosmetics) at the Seoul Dragon City Hotel, opening the door for Korean beauty and cosmetic sellers to enter the global market through the Walmart platform. This event is evaluated as a strategic move to strengthen competitiveness in the premium beauty market by combining Walmart's global strategy with the strengths of K-beauty, rather than simply a place to share information.
Why is Walmart focusing on Korean beauty sellers? This event focused on Walmart's global e-commerce vision and beauty market expansion strategy, emphasizing that the innovation and quality of the Korean beauty industry are in line with Walmart's premium strategy. The global competitiveness of K-beauty, strengthening of the premium market, and growth potential of the global e-commerce platform are key backgrounds for Walmart to pay attention to Korean sellers.
Three Strategic Backgrounds for Walmart's Focus on K-Beauty
1) Global Competitiveness of K-Beauty: Synergy of Innovation and Quality
The Korean beauty industry is recognized worldwide for its innovative product capabilities and high quality, represented by K-beauty. Brands such as COSRX, Dr.Jart+, and Laneige have already achieved great success in the global market, raising the status of K-beauty. Walmart is implementing a strategy to strengthen its position in the premium beauty market by utilizing this global competitiveness of K-beauty.
2) Premium Beauty Market Expansion: Capture the Change in Customer Base
Walmart is pursuing a strategy to expand its customer base to premium product groups, moving away from its existing mass image. By attracting high-end beauty brands through collaboration with UK's Space NK ("BeautySpaceNK"), it is targeting high-income customers. The innovation and quality of Korean beauty brands are evaluated as suitable factors for this strategy.
Kelly Kovack
3) Global E-commerce Platform Growth: Opening the Door for Korean Sellers
Walmart Marketplace has been growing rapidly in recent years, attracting global sellers. Through Walmart Fulfillment Services (WFS) and Walmart Cross Border programs, it simplifies logistics and sales processes, providing a basis for Asian sellers to easily enter the US market. Korean sellers can strengthen their competitiveness in the global market by utilizing these systems.
Abbas Haleem
Changes and Growth Opportunities in the Korean Beauty Market
Walmart's strategy is interpreted as a strategic move to strengthen its competitiveness in the premium beauty market by utilizing the potential of the Korean beauty industry beyond simply expanding the global market. Then, what changes will Walmart's strategy bring to the Korean market? And what opportunities and challenges await Korean beauty brands?
1) The Door to the Global Market Opens
Through the Walmart platform, Korean beauty brands can have an opportunity to enter the global market, including the US, more easily. In particular, using Walmart Fulfillment Services (WFS) can solve complex logistics problems, allowing small and medium-sized beauty brands to be competitive in overseas markets. This will be an important opportunity to accelerate the global expansion of the Korean beauty industry.
2) Strengthening Position in the Premium Beauty Market
Walmart's premium beauty market expansion strategy will also have a positive impact on Korean beauty brands. As demand for high-end beauty product groups increases, Korean brands can gain an opportunity to target high-income customers through Walmart. This will be an opportunity to further enhance the global status of K-beauty.
3) Increased Demand Due to Changes in Consumer Trends
Even in economic uncertainty, consumers tend to prefer cost-effective high-end products. Walmart CFO John David Rainey mentioned that "high-income households are leading Walmart's sales growth," suggesting that this trend will act as an opportunity to expand the premium beauty product group.
Tatiana Pile
4) Growth Opportunity Through Seller Support Program
Walmart's "Walmart Start" program provides funding support, marketing campaigns, and mentoring to new beauty brands, helping them enter the market and expand their size. Korean small and medium-sized beauty brands can also strengthen their position in the global market by utilizing these programs.
PYMNTS
Points to Note and Challenges to Solve for Korean Sellers
Walmart's strategy clearly offers great opportunities for Korean beauty brands, but there are also points to note and challenges to solve in the process of entering the global market. The main points that Korean sellers should consider for successful entry are as follows.
1) Intensifying Competition in the Global Market
Korean beauty brands entering the global market through the Walmart platform may face fierce competition with local brands and other global brands. In particular, in the US market, where various premium beauty brands are already established, differentiated product strategies and marketing are essential. Korean brands must highlight their unique strengths and accurately identify the needs of local consumers.
2) Logistics and Distribution Cost Problems
Even with Walmart Fulfillment Services (WFS), logistics and distribution costs to the global market can still be high. In particular, small and medium-sized beauty brands may find it difficult to bear this cost burden, so Walmart's additional support policies are needed. In addition, brands should consider cooperating with local logistics partners to improve logistics efficiency.
3) Cultural Differences and Consumer Preferences
For success in the global market, product development and marketing strategies that consider local consumers' cultural differences and preferences are essential. For example, US consumers are interested in Korean cosmetics trends, but a localized approach is needed in product ingredients, packaging, and usability. Korean brands will have to establish a deep understanding of the local market and customized strategies.
K-Beauty, Spreading the Global Canvas
Walmart's strategy to strengthen Korean beauty's global expansion seems to be the starting point for a bold vision to illuminate the shining potential of K-beauty and showcase its innovative capabilities on the global stage. This means a strategic alliance to jointly pioneer a new horizon called premium beauty beyond simple market expansion.
However, beyond the rosy outlook, there are rugged mountain ranges such as intensifying competition, logistics difficulties, and cultural differences. To overcome these difficulties, organic cooperation between Walmart and Korean beauty brands is essential, and customized support policies that can provide practical help to small and medium-sized beauty brands are urgently needed.
In conclusion, Walmart's move will provide Korean beauty industry with a great opportunity to become a global leader and at the same time, it will be a test bed that demands new challenges. We look forward to the day when Korean beauty brands wisely utilize this opportunity and their creativity and innovation captivate the global beauty market.
Contact us and we'll help you learn more and connect your business. cs@beyondx.ai
