[Money Today] Silicon2 Accelerates Offline Expansion in Europe and the U.S. as K-Beauty Enters Its Second Boom

 
Silicon2② Expansion of Offline Channels Across the U.S. and Europe

As the Republic of Korea stands at a crossroads between resurgence and decline, it must seize the momentum of the global “K-Wave” before it cools. Money Today has been traveling across the globe to spotlight companies leading the “K-Initiative” in sectors such as food, retail, fashion, and beauty—companies fighting on the front lines of global expansion—to present a clearer direction for Korea’s future.

Key milestones of Silicon2 (Source: Money Today).

In the early 2000s, K-beauty enjoyed its first major boom, driven by explosive demand from China. However, the momentum did not last long. Korean cosmetics, once widely distributed through Chinese daigou channels, quickly vanished from the market as geopolitical tensions escalated.

Since the early 2020s, however, a new wave of K-beauty popularity has emerged—beginning in the United States, expanding to the U.K., and then spreading across Europe, including France, as well as the Middle East. Unlike the first boom, which was concentrated in a single country, this second boom is widening its reach across multiple markets, entering a phase of mid- to long-term growth. Industry experts point to the rise of K-beauty–focused global distribution platforms as one of the most significant differences between the first and second boom— with Kosdaq-listed Silicon2 at the forefront.

Silicon2's Global Strategy: Always One Step Ahead

Silicon2 is a distributor that exports Korean cosmetics. The company operates logistics centers not only in Korea, but also in the United States, Indonesia, Malaysia, Dubai in the United Arab Emirates (UAE), Poland, and Vietnam. It also operates the cross-border e-commerce platform StyleKorean.com and exports domestic products in partnership with global distributors such as Sephora, Ulta, and Costco. Through this platform, about 500 cosmetics brands are sold in wholesale or retail to more than 200 countries. If Kolmar Korea and Cosmax help small and midsize brands with product “manufacturing,” Silicon2 supports the distribution segment that allows these products to be sold in overseas online and offline markets. This is the reason why K-beauty hits such as APR’s Medicube and Gudai Global’s Beauty of Joseon have been able to grow structurally in overseas markets.

Silicon2’s overseas distribution strategy has always moved a step ahead. Its expansion into the U.S. and European markets is a representative example. In an interview with Money Today last July, CEO Sung-Woon Kim drew attention to the European market. At that time, K-beauty was gaining popularity mainly through Amazon in the U.S., and everyone was focused on the North American market. Kim pointed out, “Growth through Amazon alone in the United States cannot guarantee K-beauty’s mid- to long-term growth.” Just as the company entered the U.S. market when everyone was concentrating on China during the first K-beauty boom, it believed that advancing into next markets beyond the U.S. was necessary. Starting from the second half of that year, Silicon2 began establishing local corporations in several European countries, including France and the United Kingdom. By establishing corporations in London and Paris and expanding into offline stores, Silicon2’s strategy led to today’s success. This year, the region driving Silicon2’s revenue growth was not the United States but Europe.

Silicon2 currently operates a total of six overseas offline stores, including its first store in the United States, two stores in the United Kingdom, one in France, and two in Indonesia. In particular, the directly operated Paris store serves as a testbed for K-beauty and plays the role of a platform that connects local customers directly with brands.

Customers browsing products at the Moida store in London (Source: Money Today).

Expanding Physical Presence: A Critical Driver of K-Beauty Growth

Silicon2 is focusing on expanding offline channels because it believes that continuous exposure of Korean products overseas is necessary for the K-beauty boom to continue. The company’s view is that not only must well-made products be introduced intuitively online, but they must also be continuously exposed offline to lead to sales—and the positive user experiences created in this process must be shared online for structural growth to continue.

Silicon2 plans to increase the number of Moida stores in major regions next year as well. The company selects target countries by comprehensively evaluating market growth potential, the maturity of local beauty culture, and demand for K-beauty. Based on this, it plans to expand stores in major hub cities and key commercial districts in the United States, Europe, and the Middle East to further strengthen K-beauty’s influence. Moida stores are scheduled to open in Florida in the United States and in Milan, Italy, in the first half of next year.

A Silicon2 representative said,
“We have secured stable logistics bases within Europe, and we will begin expanding Moida stores in major cities such as Paris in France, as well as in Italy, Germany, and Spain.”