Mar 9 β€’ 20:26 UTC πŸ‡°πŸ‡· Korea Hankyoreh (KR)

War Erupts Before the Middle East 'Golden Opportunity'... K-Beauty Logistics in Emergency mode

The outbreak of war in the Middle East before the Eid al-Fitr holiday has created tension in the K-beauty industry, which is dependent on the holiday's lucrative market.

The K-beauty industry is facing an emergency situation ahead of Eid al-Fitr, one of the largest holidays in the Middle East, due to the outbreak of war. While there is limited immediate damage, the ongoing conflict has reduced logistics capacity by half, causing concerns that sustained hostilities will result in significant losses. Industry insiders expressed their disappointment that after substantial preparations for the holiday, the war has jeopardized their chance to capitalize on this crucial sales period, which follows the Ramadan fasting month.

Eid al-Fitr marks the end of Ramadan, and during this festive time, Middle Eastern consumers traditionally purchase gifts and new clothes to present to family and friends. This period represents a 'golden opportunity' for beauty and cosmetics companies, as different reports indicate that retail sales during Ramadan in the UAE could reach approximately $10 billion, with the beauty segment expected to see over 20% growth. Many K-beauty brands had invested in gift sets and skincare marketing in anticipation of this peak sales season.

However, the escalation of conflict has led to concerns over the logistics that are critical to the Middle Eastern markets. Key shipping routes, including the Strait of Hormuz and certain airspaces, are now threatened, halting the regular flow of goods. While K-beauty sales have not yet faced an outright shutdown, industry members fear that if the war continues and the supply chain remains disrupted, they will run into inventory shortages. They are monitoring the situation closely as the volume of logistics has dropped significantly, illustrating the fragile state of their operations under these circumstances.

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