One of the Spanish companies that has been able to take advantage of the appeal of the k-wave (Korean wave) is Miin Cosmetics.
Born in Barcelona in 2014, it has seen the sector grow since it was a niche market until it has become a trend, which has caused the business to now experience a period of full expansion.
“We have 10 of our own stores and this year we plan to open 16 more. We need to grow in order not to lose the opportunity to be benchmarks in Europe”, points out Lilin Yang, founder of the business she started when she was 27. He had then moved from China to Barcelona to study Tourism, but when he finished his studies he decided to start a business in Korean cosmetics because he saw the enthusiasm generated among his friends by the products he bought when visiting Seoul. In his entrepreneurial adventure, he convinced the Swiss businessman Patrick Zigan, and together they started with a small shop in Dreta de l’Eixample in Barcelona.
It wasn’t until the last few years, when k-beauty exploded, that Miin Cosmetics began its aggressive local and international expansion. In Spain, the firm has a presence – through its own stores – in the cities of Madrid, Valencia, Bilbao, Seville, Malaga and Zaragoza, and abroad, it has opened establishments in the main cities of France, Italy and Germany.
“We plan to invoice 30 million euros this year, compared to 19.3 million the previous year, which represents a growth of more than 50%”, says the entrepreneur, who adds that the business has been profitable practically from the beginning, generating an ebitda (gross profit) close to 10%.
The growth of the company would not be understood without two other divisions of its business: online sales and the distribution of cosmetics to other companies. In fact, the latter division contributes 40% of Miin’s revenue, while the rest is split equally between brick-and-mortar and online sales.
The omnichannel strategy has been key since the beginning of the business. While the physical store serves to teach the public about Korean cosmetics, especially when it was less known, social networks – Instagram and TikTok – have been key to accelerating growth through advertising campaigns with influencers.
The business model that Miin has followed for many years has been to import Korean cosmetic brands. In general, they belong to medium ranges, since the aim of the brand is to convince the consumer that skin care can be within the reach of most pockets. Among these, the Cosrx, Klairs, Mizon and Benton brands stand out, and each stands out for certain products, whether they are made from snail slime, vitamin C, collagen or vegan products. “We’ve been exploring our cosmetics in Europe through Miin for years, and thanks to its store network, it helps us explain Korean beauty culture to Western consumers,” says Helena Kim, spokesperson for the Klairs brand, who also collaborates with other distributors.
Currently, the Catalan company has a catalog made up of 35 brands and, before the end of the year, plans to exceed fifty. The range of brands to choose from is very wide. Over the past five years, the number of brands has doubled to over 28,000, according to data from the South Korean government. Competition is fierce and Europe is an emerging market where they have more opportunities to expand than within the country, where the industry has been established for more years.
In addition to importing brands, Miin has had two of its own cosmetics firms for the past three years, whose formulation is designed in Barcelona, ??while production is outsourced to South Korea. “Our own brands serve us to respond to the demands of the European clientele, who usually ask for higher concentrations of active ingredients because they are used to more aggressive products with the skin, which seek to heal and not so much prevent, while Korean cosmetics advocate on the contrary”.
Interest in Korean cosmetics arises from skin care, but Yang assures that make-up is also popular. What’s more, the entrepreneur now wants to diversify, importing hair care products and other Korean lifestyle items, such as air diffusers or decorative candles. For Miin, the Korean wave has only just begun.
