The Commonwealth of Independent States (CIS), a bloc of former Soviet nations including Russia, is emerging as a new growth market for K-beauty. Korean cosmetics companies are establishing local footholds and expanding their presence in distribution channels, moving quickly to secure early market positions.
According to the Korea International Trade Association, Korea's basic cosmetics exports to Russia reached $100.9 million (about 154.4 billion won) from January to May this year, already exceeding half of last year's annual exports of $194.41 million (about 297.5 billion won). If the current pace continues, annual exports this year are expected to surpass 300 billion won for the first time.
Fourcompany, which operates K-beauty brands such as Abib and Naming, recently completed the establishment of its Russian subsidiary and began securing personnel to run its local operations. The company is expected to build its operational base domestically at first, then later begin full-scale distribution expansion and sales activities in Russia. With operations currently spanning around 20 countries and revenue growing rapidly, the strategy is to enter Russia and accelerate its growth momentum.
Fourcompany's revenue grew from 30 billion won in 2019 to 84.6 billion won in 2024, and last year it recorded 165.8 billion won, nearly double the previous year, crossing the 100 billion won mark in one stroke. Operating profit jumped nearly sixfold, from 2.5 billion won in 2024 to 14.4 billion won last year. Abib, a skincare brand launched in 2016, built its global recognition on the strength of its Houttuynia cordata sticker mask packs — known as "gum sticker packs" — and its lineup of basic products.
K-beauty companies' push into Russia is also becoming more active. Dalba Global (483650) is a rare case among K-beauty brands, having invested in the Russian market from its early days. Since 2018, it has settled into the market by pursuing a premium strategy centered on Gold Apple, a leading local beauty distribution channel. Gold Apple is a premium channel known as "Russia's Sephora," carrying numerous global luxury brands such as Chanel, Dior and Estée Lauder. It operates around 40 offline stores along with an online platform covering the entire CIS region.
As a result, Dalba's Russian revenue grew from 40.4 billion won in 2024 to 53.7 billion won last year, and reached 10.7 billion won in the first quarter of this year. In particular, the Gold Apple channel has a higher operating margin than other distribution channels, contributing to the company's improved profitability. A Dalba Global official said, "The profitability of the Gold Apple channel exceeds the level of the 26% operating margin recorded in the first quarter of this year."
Goodai Global's Beauty of Joseon also entered all roughly 40 Gold Apple stores in early 2024, selling sunscreens, serums, moisturizing creams and cleansing oils. A Goodai Global official explained, "Entering Gold Apple means that the K-beauty brand's competitiveness has been recognized to the point where it can stand shoulder to shoulder with global luxury brands."
Amuse, operated by Shinsegae International (031430), entered the local market last year starting with its listing in the Russian beauty distribution channel Létoile. It currently sells products at around 100 stores in Russia and plans to expand its sales points to about 600 stores by the third quarter of this year, including Gold Apple and the large distribution channel Magnit. The company plans to expand its offline footholds across the entire CIS region within the second half of the year, starting with Russia and Kazakhstan.
An industry official stressed, "Russia is a market where digital marketing is not easy, with restrictions on the use of global social media, but as trust in K-beauty steadily rises, there are increasing cases of achieving results centered on premium distribution channels." The official added, "In particular, interest in Korean skincare is spreading rapidly, so the points of contact where various K-beauty brands can meet Russian consumers will expand."
