The open innovation program "fibona" was launched in 2019. In one of its activities, "co-creation with startups," the challenge was taken on to recruit overseas startups for the first time in the search for co-creation partners in its third screening in 2021.

South Korea, known as a "beauty powerhouse," was chosen for the first overseas screening.Through Innobranch, an open innovation platform of the Korea International Trade Association (KITA), we invited startup companies in South Korea to submit applications under the theme of "medical beauty.” Despite the short application period of about one month, about 60 applications were received.

This startup screening was made possible by the collaboration between fibona and overseas research centers. Why was the screening held in South Korea? What are the differences between South Korea and Japan in terms of beauty technology? Shiseido Asia Pacific Innovation Center (APIC) members Tomo Osawa, Tomoyuki Kariya, and Jenny Haejung Park, who were involved in the screening process, and fibona member Akane Yanagihara reflect on their efforts.

fibona and overseas research centers collaborate for Korean startups screening

Kariya:
I am also a member of APIC, and I have been a Shiseido member since 2018. I have been stationed at an overseas research base since 2018, also as a member of APIC. I was involved in skincare development in Japan for about three years before transferring overseas. In my daily work, I am in charge of searching for unique technologies in South Korea.

Jenny:
I am also in charge of South Korea at APIC. I have worked as a makeup artist and educator in South Korea and Japan, and I am currently in charge of trend research as well as exploring innovative technologies in South Korea.

Yanagihara:
I work at the Global Innovation Center in Yokohama. I joined the R&D Strategy Department this year after working in a research position in skincare development. As a fibona member, I have been involved in the operation of the program since the first startup screening in 2019.

Focus on the area of "medical beauty" in the first overseas collaboration

We started working on the specifics around July 2021. We consulted with Mr. Kariya and Jenny, and they agreed to conduct this startup screening because it was a different approach from the activities they had both been involved in. In countries where startups are active, there are often organizations that serve as platforms to support them, and during our research with Mr. Kariya and Jenny, we learned of the existence of "Innobranch," an open innovation platform of the Korea International Trade Association (KITA). So, we decided to solicit applications from the public through KITA.

Jenny:
I was very interested in the idea of partnering with a start-up company. Innobranch is a new platform built in 2019, but it already has about 200,000 users and supports about 30 companies a year.

Insights gained from holding the startup screening in Korea

Kariya:
As I am in charge of Korea, I was simply happy that Japan, which is where are headquarters are, paid attention to Korean beauty techniques.

Another thing that made me happy was the fact that about 60 Korean startups applied for the program. As Mr. Osawa mentioned earlier, until then, we had been searching for technologies by physically visiting exhibitions and looking at each technology one by one. A rather muddy method, so to speak. It was a great opportunity for us to make new contacts with companies we had met through a completely different approach.

Jenny:
What’s difficult about tech scouting at trade shows is that there is a large element of professional judgment that must be made solely by those of us who visit the site. But with an open call, we could exchange opinions with a large number of members. This was also a new experience for us.

Osawa:
The application period was one month, so I honestly thought we wouldn't get that many applicants. We received applications from less than 15 companies at first, and when I thought that was all we were going to receive, I was surprised by the number of additional applications we received before the deadline. It was very difficult to decide which ones to keep for the final presentation screening.

Strengths of Startups Unique to Korea

Kariya:
As a Japanese person working in Korea, I feel that medical treatment for beauty has become very familiar to the Korean people. Cosmetic treatments, such as laser therapy, which are a bit difficult to perform in Japan, are commonly known as "skin management" in Korea, and are performed on a daily basis. Many of the entries for this year's competition were inspired by such cosmetic medicine, and it was refreshing to see techniques and ideas that have been taken to the next level.

From the Japanese point of view, cosmetics are generally considered to be an approach to the surface of the skin. However, Korean cosmetic medicine often uses aggressive technologies, such as working on the deeper layers of the skin with unique techniques, or using digital technology to link with devices. Of course, laws are different in Japan and Korea, but the speed of technological innovation was also demonstrated through proposals for various approaches that go beyond the realm of conventional cosmetics.

Jenny：
I too got the impression that many of the technologies were beyond the realm of cosmetics and yet sought instant effects. There were still many other startups with advanced technology using AI.

Encounters with Beauty Tech Companies Made Possible by the Open Call

Osawa:
In Singapore, the Economic Development Board (EDB) also acts as a bridge for global companies wishing to collaborate on joint research and other partnerships by providing a list of candidate universities and research institutes with their technologies. The EDB (Economic Development Board) also works to promote collaboration by providing a list of candidate universities and research institutes' technologies to foreign global companies that wish to collaborate. In terms of Innobranch in Korea, I think that the cosmetics and beauty-related genres are particularly strong. The quantity and quality are overwhelmingly different. It's like a national characteristic, or a difference in the strength of each country's genres.

Jenny：
I've seen this before in Korean trend reports. I read that there are about 60 beauty tech startups in Korea. That's about the same number of companies that applied for this year's competition.

Osawa:
That's amazing (laughs).

Jenny：
Of course, it may be a coincidence, but if all the beauty tech startups in Korea showed interest in Shiseido, I would be very happy. We may have another opportunity to work with companies that were not selected this time.

Osawa:
I was very impressed with the screening process. As a participant in the screening process, I wish the presentation time had been longer. The presentations were good and enthusiastic, but I think it was because the research was backed up well by the technology. I felt it was difficult to judge the presentations based on the short Q&A session on the day of judging.

Fibona’s Initiatives as Seen from the Perspective of Researchers at Overseas Bases

Osawa:
First of all, I think it is wonderful that you are continuing various efforts such as co-creation with startup companies, regular actions with external parties, and expansion of research ideas. Thanks to the fibona members, we were able to smoothly collaborate on this screening, and I appreciate and hope that young employees are playing a central role in these activities. I hope you will continue to do so in the future.

Yanagihara:
Thank you very much. We were just thinking about how to proceed with global expansion in the future, and what we gained through this screening of startups in Korea was very significant. Please let us consult with you on various aspects of our future development.

Both fibona and Shiseido can grow even more.

Jenny：
I am also more and more eager to explore new technologies. I hope that through collaboration with new technologies possessed by startup companies, we will be able to expand into new fields such as the metaverse (a three-dimensional virtual space that differs from the real world and its services).

Kariya:
First of all, my goal is to bring the collaboration with LABnPEOPLE, the company we adopted this time, to a proper output goal. At the same time, I would like to be conscious of improving my discerning ability to find the seeds of future innovation.

Yanagihara:
Looking back on the startup screening in Korea, I realized how important it is to accurately grasp the strengths and characteristics of each country and region and to have opportunities to approach technologies that will serve as seeds of innovation in a broad range of areas. In the future, I would like to work on initiatives that contribute to the creation of higher value through broad horizontal collaboration within the company, including globally, rather than through discrete point-to-point connections.


（text: Hanae Abe　edit: Kaori Sasagawa）