SYNOPSIS ON

Increasing Penetration of Korean Cosmetic Industry import in India

UNDER SUPERVISION OF:
Dr. Areej Aftab Siddiqui
SUBMITTED BY

NAM  : PRIYA SHARMA

ENROLLMENT NO   : 31 – B

Submitted in partial fulfilment of the requirements for qualifying

Executive Post Graduate Diploma in International Business (IB) 2019-2020

TITLE OF THE PROJECT

Increasing Penetration of Korean Cosmetic Industry import in India

STATEMENT OF THE PROBLEM

International buying pattern of imported cosmetics & skincare products
represent approximately US$57.5 billion of global demand in year 2018.
Skincare remains the largest and most profitable sub-category of the beauty
industry.
South Korea is a leading innovator and manufacturer of skin care and its
related development, so much so that even western counterparts reproduces
the Korean innovation.
It’s certain that Korea is the future. Indian brands are adapting products for the
Korean cosmetic catalogue. Korea also has the R&D, OEM labs and
infrastructure to manufacture cosmetic products.
The developers of cosmetics have bloggers, vloggers, other influencer and
Internet marketing in mind. More than Self-consumption, South Korea is
famous for its Cosmetic exports, a significant chunk of its GDP, It is thus no
wonder that K-Beauty is having such an impact on the Indian Consumers that it
is eyeing to tap the market in near future.
The value of beauty cosmetics & skincare products imports rose by 49.2% for
all importing countries since 2014 and since then it is only growing significantly
in most countries, the digital boom is also playing an important role in the
surge in demand.
India major cosmetics imports constitute mainly - coloured-cosmetics, matte
liquid lipsticks, liquid lip makeup, eye makeup, specialized skincare products
for differet body parts, fragrances, anti-wrinkle products for mature skin,
complexion brightening for male and female both, anti-blemish as well as skin
whitening lotions and creams, salon professional hair-care, hair colors, various
accessories and styling products, besides razor, raw material and preparation
products for male grooming sector as well. Such as shaving creams and skin
care products. fragrances, color
Sun care products such as sunscreens, sun burn soothing gels etc. The
increasing demand is also being seen in Professional products for Salon etc
such as - Body treatments, slimming treatments, massage and bath products
for use in spas.
Imports of organic personal care and cosmetics products is also in huge
demand., especially in the professional segment. Basically, demand is high but
import supply has to face a big obstruction which is Government (Ministry of
Health, GOI) legalities and documentations to obtain import license for each
brand separately.
This Indian licensing authority for mandatory registration of all cosmetics
imported in India is the office of the Central Drugs Standard Control
Organization (CDSCO) in the office of the Drug Controller General of India
(DCGI). The Indian Regularity Authority is CDSCO is established to look after
Import of Drug and Cosmetics Regulations, Standards, Customs and Tariffs.
The DCGI’s office administers the Indian Drugs and Cosmetics Act of 1940,
which governs the manufacture, sale, import, export and clinical research of
drugs and cosmetics in India.
The India Import is a lot complicated than it seems due to problems of
extensive documentations, lab testing, Red-tapism, laidback procedures,
tariffs, strict rules, ban of certain chemicals. Clearance issue at customs etc,
this obstruction make the business more lucrative for those who are able to
legally enter the market as they have a huge market of 138 crores citizens to
target and sell products to. This researchreport will strive to know the deand of
Korean cosmetics in India and constraints for Korean brands to receive
clearance and sell themselves legally in Indian Market

OBJECTIVES OF THE STUDY

The purpose of this report is to:
1. Identify key macro trends influencing Korean cosmetic purchase and
similar trends in India for South Korean Cosmetic brands.
2. Provide insight into South Korea’s participation in the Indian
Domestic Market with future scope.
3. Study challenges or ease of South Korea cosmetic import to India
( the acceptance rate by CDSCO and trade environment in India and
other issues if any).
4. Highlight untapped opportunities for South Korean exporters in
Indian markets.

RESEARCH  METHODOLOGY
The project being undertaken is exploratory research. Exploratory research
intends merely to discover existing known data in-depth and explore the
research questions out of existing data, however it does not intend to offer
final and conclusive solutions to existing problems. This type of research is
usually conducted to study a problem that has not been clearly demarcated
yet.
Conducted in order to determine the nature of the problem, exploratory
research is not intended to provide conclusive evidence, but helps us to have a
better understanding of the existing problem. When conducting exploratory
research, the researcher ought to be willing to change his/her direction as a
result of revelation of new data and new insights.
PRIMARY DATA: Most of the information will be gathered through primary
sources.  The methods that will be used to collect primary data are:
a)      Questionnaire
b)      Interview
Questionnaire – It consists of both open ended and close ended questions.
 SECONDARY DATA: Secondary data that will be used are websites and
published materials related to Industry trends and past reports as well as any
relevant information or update in the related market. secondary data in the
form of internal sources come from books and internet. The data can also be
taken from Retailers or manufacturers market revelations.
Secondary data from various
 Magazines
 Newspapers
 Internet
 Manufacturer website
 Retailer website
 Published Journals / Reports
 Market Reports (both Korea and India)
 Survey etc

CRITERIA FOR SELECTION:

A criterion for Information in this work will be sourced from books,
newspapers, trade journals, white papers, industry portals, online sellers,
traders, wholesalers, brand/ company, monitoring sales trends, Amazon
reports, industry news and developments, besides paid databases.

METHOD USE TO CLASSIFY DATA:

Data Analysis & Interpretation – Classification & tabulation transforms the raw
data collected through questionnaire or other past data in journals in to useful
information by organizing & compiling data contained in each questionnaire
i.e., observation and responses are converted in to understandable and orderly
metrics that are used to organize and analyze the data. We can also quantify
the result if needed.

¨      Simple data tabulation.

¨      Calculating the percentage of the responses.
¨      Formula used = (name of responses / total responses) * 100
Graphical analysis by means of pie charts bar graphs etc.

NUMBER OF RESPONDENTS
Total samples of approximately 50 industry people respondents to be surveyed
to receive responses to the questionnaires.

QUESTIONNAIRE LINK (Google Form)

https://docs.google.com/forms/u/4/d/1YTVvY-
BaFBY9dXVN1kcDbshUuS3hhgPCpYQFeXuHoG0/edit?
usp=forms_home&ths=true