The success of the Physiogel cream is the journey of marketers thinking outside the box.

The dermatological moisturizer stayed on pharmacy shelves for a long time as a psoriasis treatment, but became one of the most-loved skin care remedies here after being promoted as a miraculous cream for the face and body.

Since 2013, the cream has marked more than 30 percent sales growth each year ― over 70 percent in 2014 particularly ― and the marketing of Physiogel in South Korea has become a global sensation. 

“Our focus was very simple: We were confident that our product was one of the best moisturizers in the world and we would do whatever it takes to expand our customer base,” said Yang Jung-mi, skin health & wellness marketing manager at GlaxoSmithKline Korea, the manufacturer of the cream.

A few things grabbed GSK’s attention.

The first was the growing domestic cosmetics goods market boosted by the diversified distribution channel.

The launch of drugstores such as Watsons and Olive Young brought people easier access to a variety of unfamiliar cosmetics. Industrial insiders estimate the size of the drugstore market to be around 800 billion won ($700 million), with 60-70 percent of products displayed being cosmetics goods.

The growing popularity of TV home shopping also encouraged GSK to make a daring move. That packaging of three or four bottles of the cream marked as sold-out on several occasions and gave the greenlight to repositioning.

The second booster was the change of the Korean consumer’s attitude ― from luxury-seeking to a more practical approach. “Many of our consumers have previously used (AmorePacific’s prestige brand) Sulwhasoo or equivalently premium brands. These people were not afraid to use drugstore products from high-end department store-sold luxury items. As long as the products were good, they’d buy it,” Yang said.

In 2012, after a long discussion with the headquarters still dubious about whether the prescription-oriented product could entice notoriously finicky Koreans, the company declared the repositioning of the cream. It advanced to the mass market driven by Olive Young and hired fashion model Hyoni Kang as a brand ambassador to demonstrate Physiogel as a fashionable choice to keep skin moist and soft for up to 72 hours.

TV commercials, magazine advertisements and an online campaign through Facebook and other social media have indeed changed customers’ perspectives, Yang said. “According to our internal survey results, Physiogel was noted for its moisture-retaining effect when competing with other aesthetic facial creams,” Yang said.

This year, the company leveled up its aggression, releasing the Physiogel Daily Moisture Therapy series, which the intention to become cosmetic goods rather than “derma cosmetics.”

The company hired top-notch actress Kim Min-hee as its brand ambassador to promote the idiosyncratic Biomimic substances ― claimed to be similar to skin texture ― as an everyday applicable beauty cream.

“We are now taking completely two tracks. While we have still spared the Physiogel AI intensive care line for dermatologists’ prescriptions, the ordinary Physiogel will go as cosmetics, not even over-the-counter products,” she said.

The success of Physiogel became a textbook case for other GSK markets around the world. “Now, the headquarters is also observing our moves. It is a happy challenge,” Yang said.

By Bae Ji-sook (baejisook@heraldcorp.com)