Over N Over Magnificence is being requested a number of questions on its costs — prospects have left feedback on the Korean magnificence retailer’s Instagram account, and others have requested questions whereas procuring at its Chicago shops.
New tariffs on items from South Korea have brought on a slight panic amongst Chicago customers, who fear their favourite Korean magnificence manufacturers will turn out to be too expensive .
“Clients are very involved,” Over N Over Magnificence Advertising Supervisor Kat Taborda stated.
South Korea was dealing with 25% tariffs in April when President Donald Trump introduced a slew of “reciprocal” tariffs except international locations negotiated a commerce deal. Whereas Trump paused the deadline for international locations till final week, he introduced the U.S. was capable of attain a brand new commerce take care of South Korea on July 30 that included 15% tariffs.
Korean magnificence, referred to as Okay-beauty, has turn out to be standard lately as “Hallyu,” or the Korean Wave, continues to choose up steam. Hallyu refers back to the rising international reputation of Korean tradition from merchandise to leisure, like Okay-pop music.
Okay-beauty product opinions can web hundreds of thousands of TikTok views, with influencers praising the cheaper price tag — aggressive with drugstore pricing — and progressive formulation for objects like toners, masks and sunscreens.
Chicago is house to a handful of small companies specializing in Okay-beauty. And devoted customers know most small companies import from South Korea, not like main retailers like Amazon that always supply Korean merchandise with American formulation, Taborda stated.
Over N Over primarily sells skincare. Costs vary from $2 for face masks to $54.95 for an essence or toner.
Proprietor Johnny Shin stated after the baseline 10% tariffs on most international locations, together with South Korea, have been enacted in April, vendor costs began going up.
Fantastic thing about Joseon’s sunscreen — a viral product and Over N Over bestseller — was out there wholesale for $8 every. After April, Shin stated its vendor is now charging them $11.
However the retailer hasn’t elevated its costs, and it doesn’t plan to.
“There’s a lot competitors occurring, so we attempt to preserve it as little as we are able to,” Shin stated.
Fortunately, he has a “nice relationship” together with his distributors, and so they’ve supplied free delivery, which has helped Over N Over not cross alongside its increased prices to prospects.
However Shin stated it’s unclear how the brand new 15% tariff will influence pricing.
“Our vendor can be debating — have they got to cost up once more or keep the identical?” he stated.
Over N Over, which has a location in Bucktown and Streeterville, plans to open a 3rd location in South Loop this fall. It was purported to open sooner, however Trump’s tariff bulletins earlier this yr created an excessive amount of uncertainty.
“The largest factor is we try to not change the costs immediately, and we’ve tried to even decrease some costs. … We don’t need the 15% [tariff] mirrored on the patron,” Taborda stated. “We’re consuming it into our revenue.”
Osaka Ebisu, a Japanese and Korean magnificence retailer in Bridgeport, sells skincare, make-up and hair care merchandise. Most objects are lower than $30.
Proprietor Kelvin Li stated he raised costs a few months in the past by about 10%, although some went up increased. A top-selling Korean model at Osaka Ebisu is Anua. The skincare line’s Heartleaf 77 Soothing Toner went from $19.99 to $22.99, a 15% enhance.
Li anticipates elevating costs once more with the brand new 15% tariffs, however he hopes to barter a take care of distributors. In the meantime, Japanese imports even have new 15% tariffs.
Li stated he’s working with distributors to see in the event that they each can take in the upper prices “so we don’t have to extend the value for the client.”
He stated some Korean manufacturers supply issues like make-up brushes from China, the place tariffs are 30%. Li stated gross sales of these merchandise — which jumped from $14 to $22 — have fallen.
“We see barely any gross sales for these merchandise,” he stated, including he plans to inventory fewer of these objects.
The concern of worth will increase from tariffs led some Okay-beauty followers to replenish, even earlier than Trump began his commerce struggle earlier this yr.
Over N Over noticed Fantastic thing about Joseon and Medicube merchandise fly off the cabinets. At Osaka Ebisu, Li stated he’s seen prospects seize as many as eight of the identical product.
“As soon as we obtained a [tariff] discover from our provider, we despatched out a discover on Instagram and TikTok as nicely,” Li stated. “If persons are nonetheless prepared to pay for that worth, we are going to nonetheless carry [the items].”
Shin, of Over N Over, has not too long ago seen prospects spending much less since South Korea’s tariffs have been introduced.
“I feel the common sale per buyer has gone down,” he stated. “I don’t know if it’s due to the tariff, however … we get a number of questions on it.”
If the tariffs have been any increased, Shin stated he may need to lift Over N Over’s costs.
“I can not put together long run as a result of all the pieces is unsure proper now,” he stated. “If [tariffs] worsen, then perhaps I’d should do a worth change. … That’s the worst state of affairs.”
At Osaka Ebisu, Michelle Meng had toothpaste, a keychain and a hair care product in her basket. Meng, 24, primarily buys Korean make-up and desires she had stocked up on her favorites earlier than the tariffs hit.
“It might in all probability cease me from procuring,” she stated.
Donna Robles, 19, compares costs at Okay-beauty shops with these on Amazon to seek out higher offers.
“As a university scholar who doesn’t have a giant revenue, [higher prices] would make it laborious for me to buy,” she stated.
