COSRX’s Revenue Rises 138% YoY in First Half of 2023

Skincare brand COSRX reported a year-on-year growth of 138% in the first half of 2023. 

 

The achievement signifies an anticipated two-fold increase by the end of 2023.

 

The success of COSRX in the first half of 2023 is attributed to four key strategies: leading global beauty trends; building and investing in B2C process with Amazon, Shopee and Qoo10 Japan; expanding customer touchpoints through global retailers like Ulta and Watson; and diversifying product portfolio and boosting sales of million-seller products. 

Since early 2022, COSRX has actively run a series of global marketing campaigns centered around TikTok. In efforts to target Millennials and Gen Z, the brand orchestrated seasonal TikTok challenges that led to an exponential growth of the brand hashtag #COSRX. In 18 months, the accumulated views skyrocketed from around 200 million in January 2022 to over 2.1 billion in June 2023, showcasing an unprecedented growth rate of 749%.

 

COSRX recognized the potential of TikTok as a platform to engage and educate users about skincare. In efforts to harness this power, COSRX launched a series of TikTok challenges featuring the Advanced Snail 96 Mucin Power Essence that offered a unique combination of fun, interactive and informational. In doing so, COSRX was successful in catapulting the product into stardom, making it a viral sensation with a cult following.
 

Season 1 & 2 of the Snail Challenges, #SlapSnail and #SnailDanceChallenge, witnessed an overwhelming global response, attracting renowned influencers such as Dr. Shah, Hyram, Lexi Rivera, Andrew Davila, Ben Azelart, and K-Pop star Somi Jun. The challenges contributed to the essence's widespread popularity, resulting in sold-out stocks across stores worldwide.

 

In Season 3, the #SnailDuoShot challenge took the TikTok by storm, amassing over 100 million views within a month, further solidifying the essence's viral status. Additionally, the brand's main hashtag, #COSRX, experienced an exponential growth, reaching 1.3 billion views on TikTok, showcasing the brand's growth and engagement on the platform.

 

The #LayerYourSPF challenge also played a significant role in driving hashtag growth. With the consistent efforts and enthusiastic participation of Gen-Z TikTokers in all these challenges, #COSRX surpassed a remarkable milestone of 2.1 billion views on TikTok, alongside global beauty giants like L'Oréal and Glossier.

 

Since achieving 1.3 billion views, COSRX's popularity has continued to soar. As of June 2023, it has now crossed the 2.1 billion mark. The brand's consistent engagement with its audience and strategic campaign efforts have contributed to its continued success on TikTok and growing global influence.

COSRX strategically developed its business diversification focusing on the B2C business model. In particular, the sustained growth in key markets such as North America and Southeast Asia have been achieved through such strategies. Notably, Shopee and Amazon have been major players in driving the success in these markets.

 

By optimizing Amazon ad campaigns, COSRX secured top positions in the beauty category – both Advanced Snail 96 Mucin Power Essence and Advanced Snail 92 All In One Cream have been ranked the #1 best seller position in Amazon's Beauty & Personal Care category – resulting in a remarkable 163% YoY growth in Amazon sales. Moreover, the Acne Pimple Master Patch (Master Patch Original Fit) continues to hold strong as a powerhouse product, earning COSRX the “Amazon Champion Seller” title.

 

During the first half of the year, COSRX achieved notable success in Shopee's biggest promotion, the June Double Digit Day, where the brand secured the top spot in the Philippines and Singapore. Notably, COSRX products also claimed the first position in the skincare category following the Double-Digit Day promotions held in April and May in the Philippines. Demonstrating continuous growth, COSRX recently earned the covetous title of “Top Beauty Seller” in TikTok Shop Malaysia, further validating the brand's value and expanding reach through its live commerce initiatives.

 

The Japanese market stands out with a notable sales growth in their new derm line. Particularly, the Vitamin C 23 Serum has firmly established itself as a hero product within the Japanese market, experiencing successful sales growth. During the first half of 2023, the serum sold over 270,000 units, achieving a historic sales record at the Qoo10 Mega Discount (MEGAWARI) promotion. The rapid success of the Vitamin C 23 Serum within the Japanese skincare market is attributed to its trend-setting nature, as the brand was quick to recognize and preemptively target the growing demand for Vitamin C-based skincare solutions.

To ensure their products are accessible to consumers worldwide, COSRX focused on expanding its presence in offline retail outlets. Currently, their products are available at retail giants like Ulta, Watsons, Sociolla and drug stores. They have also expanded into European and Southeast Asian offline markets, achieving remarkable success in these regions.

 

During the first half of 2023, COSRX achieved million-seller status with five products: the Acne Pimple Master Patch (Master Patch Original Fit); Advanced Snail 96 Mucin Power Essence; Low-pH Good Morning Gel Cleanser; Advanced Snail 92 All-in-One Cream; and Aloe Soothing Sun Cream SPF 50+/PA+++. To further grow this portfolio, COSRX employed a product diversification strategy through the launch of its derm line called The RX, and in so doing, aimed to reduce reliance on its hero products. The strategy successfully contributed to the company's overall performance, and with its launch, the brand expects to increase the number of million-seller products to 10 by year’s end.