An Analysis of Network Trends in the Global Cosmetics Trade

Abstract

Purpose - The purpose of this study is to analyze the current status of the global cosmetics market and the characteristics of establishing trade networks in order to improve Korea’s cosmetics industry. Design/methodology/approach - This study analyzed changes in the network construction trend of the global cosmetics trade using Social Network Analysis (SNA) in order to examine the changes in major import and export markets. Findings - As a result of the visualization of the network, the network of cosmetic trade in the past has shown that the countries of the world are connected mainly with Western European countries such as France, Germany, UK, and developed countries such as the USA and Japan. However, with the passage of time, new countries such as China, Korea, Hong Kong and ASEAN countries have joined the global cosmetics trade network as a centralized country. In addition, as a result of the export-centricity analysis, as the centrality of East Asian countries such as Korea, Japan, and China increased, the export network of cosmetic trade was reorganized around Western countries and East Asian countries. Furthermore, a result of the import-centricity analysis shows that the network of the global cosmetics import market has been more diversified and closer with the development of the global economy. Research implications or Originality - Cosmetic exporters are increasingly in need of promoting export diversification to various countries with increasing import-centricity as well as maintaining existing network links. Therefore, it is necessary to closely grasp market trends not only in the world’s major markets such as China, USA, and Western Europe, but also in Russia, Eastern Europe, and ASEAN, which are emerging as important markets, and require the establishment of national support policies and corporate strategies for active entry.