Beauty Sales: $3 Billion

Major Products/Brands: Cosmetics, Fragrance, Beauty, Medical Beauty & Devices, Hair Care, and Body Care, including Sulwhasoo, Laneige, Innisfree, AP, Hera, Primera, Iope, Mamonde, Hanyul, Espoir, Etude, Mise en Scéne, Odyssey, B.Ready, Holitual, Goutal Paris, Aestura, MakeOn, Vital Beautie; Ryo, Mise-En-Scéne, Labo-H, Ayunche, Amos Professional, Longtake, Illiyoon, Happy Bath, Skin U, Tata Harper.

New Products:

• Labo-H Kuromi collaboration
• Laneige Hello Kitty Water Bank Gel Cream
• Laneige x Bao Neo Cushion and Neo Powder
• Hera Black Cushion Foundation Glow Lasting Foundation
• Primera Organience Barrier Repair
• Espoir Be Velvet Fluid Foundation

Comments: As with other Korean-based Top 20 brands, sales were down at Amorepacific, which posted an 11% decline in its 2023 revenues, with domestic sales dropping 14% due largely to a 20% decline in the travel retail channel. Luxury product sales also declined 16% due to weak e-commerce sales. Sales of premium products suffered a similar fate with an 18% decline, as did daily beauty product sales, which fell 9%.

International sales dipped 6%, due to a 16% decline in Asia revenue. However, sales in the Americas grew by 58%, driven by strong sales of Laneige. Revenues in Europe, Middle East, and Africa (EMEA) increased 62%, due to business expansion in the UK and the Middle East.

In June, Amorepacific appointed Giovanni Valentini as CEO of North America. Valentini is an industry veteran with experience at L’Oréal and Unilever. At Amorepacific, he’ll work to strengthen the region’s organizational structure, optimize operations, and champion the business objectives of Laneige, Innisfree, and Sulwhasoo, as well as new-to-market brands. He will also have global brand holder responsibility for U.S.-based brand Tata Harper Skincare, which was acquired by Amorepacific in 2022.

North America is a key market for Amorepacific. In addition to the 2023’s 58% sales surge, the North American share of Amorepacific’s international business expanded from 5.5% in 2021 to 20.5% in 2023. Brands such as Laneige, Innisfree and Sulwhasoo have been pivotal in this growth.

2024 Highlights:

In March, Amorepacific’s Innisfree brand debuted a rebrand in the U.S. market, featuring new packaging, a new logo, and new, clean, cruelty-free formulas. The debut coincided with news of the brand doubling its distribution to more than 1,200 brick-and-mortar Sephora stores, plus full distribution at Sephora at Kohl’s.

In September, Amorepacific secured a RE100 Leadership Award, winning the “Market Trailblazer” category for achievements in transitioning to renewable energy and driving market change. The RE100 Leadership Awards is organized by The Climate Group, a non-profit foundation that actively promotes the use of renewable energy among companies and governments in partnership with CDP. Amorepacific became the first in the Korean beauty industry to join RE100 in 2021 and established a roadmap to convert 100% to renewable energy across all its business locations by 2025.

In November, Amorepacific acquired COSRX, a hypoallergenic skincare brand designed for sensitive skin that has a viral following due in part to a key beneficial ingredient: snail mucin. Prior to the acquisition, the brand had a presence in 140 countries, including North America, Southeast Asia, Europe, and Japan, with overseas sales accounting for over 90% of its total. Since it entered Amazon in 2018, essential products such as the Advanced Snail 96 Mucin Power Essence sat atop the Beauty & Personal Care category.

Looking Ahead:

After posting a 2024 Q1 sales dip of just 0.2%, Q2 2024 saw greater decline with revenues falling 4.3%. Luxury sales decreased 7% due to slumps in travel retail and new commerce (door to door) revenue, and sales in the company’s daily beauty category dipped 8%.

Premium sales were a bright spot, posting a 3% gain led by multi-brand shop and online channel interest in Laneige and Aestura, plus the consolidation of COSRX sales.

Amorepacific’s overseas business unit was a mixed bag. Sales in Asia were down 22%, impacted by a 44% decrease in China offset by a 25% increase in Southeast Asia, and Japan. Sales also boomed in the company’s western region. Revenue in the Americas was up 65%, led by strong demand for COSRX, Laneige, Innisfree and Sulwhasoo, while EMEA revenue increased a whopping 182% thanks in large part to Laneige entering Boots online and offline retail channels.

Beauty Sales: $4.1 billion

Major Products/Brands: Cosmetics, Fragrance, Hair Care and Body Care, including: Amorepacific, Primera, Soon+, Sulwhasoo, Iope, Odyssey, Laneige, Hanyul, Mirepa, Mamonde, Lirikos, Bro&tips, Innisfree, Outrun, Be Ready, Etude, Easypeasy, Enough Project, Sienu, Espoir, Hera, Rarekind, Holitual, Steady:D; Fragrances—Goutal Paris, Fradore; Medical Beauty—Aestura; Beauty Device—oMakeon; Inner Beauty—Vital Beautie and Cube Me; Hair Care—Ryo, Mise en Scéne, Fresh Pop, Labo-H, Ayunche, Amos Professional; Body Care—Happy Bath, Illiyoon, Fillvoid.

New Products: Innisfree Green Tea Seed hyaluronic serum, Innisfree No-Sebum AC powder, Etude Curl Fix mascara, Espoir Be Natural cushion foundation, The Sleek lipstick, Vintage Single Extract Essence.

Financial Summary:

Citing a difficult post-Covid market and a struggling travel retail environment, Amorepacific saw its sales plummet 15% and net profits fall 50%.

Domestically, the company’s Luxury unit cornerstone, which accounts for 56% of its total domestic revenue, experienced a 14% decline in retail sales, despite online sales of Sulwhasoo, Hera, Primera and Goutal growing by more than 20%. Its Premium unit, which accounts for 23% of the company’s total domestic revenue, also experienced a 27% decline in sales. Sales in its Daily Beauty unit, which accounts for 16% of total domestic revenue, also fell 12% in light of a reorganization of the product portfolio.

The company’s overseas revenue declined 17%, but it wasn’t all bad—while Asia revenue declined by 24%, North America revenue grew a whopping 83% and Europe posted +37% growth, thanks to increased brand presence in growth channels like Sephora and Amazon. Growth was also attributed to interest in its Laneige and Goutal brands.

2022-2023 Highlights:

Ever the innovator, Amorepacific continued to trailblaze in 2022.

In August 2022, Amorepacific earned the Red Dot Design Award 2022 in the Brands & Communication Design category for its development of Braille tags for hair care and body products. The tag was designed to help visually impaired consumers distinguish between products like shampoo and body wash, which can often be housed in similar packaging. The silicone-based tags come in four types indicating body wash, body lotion, shampoo, and conditioner, and are written in both Korean and English on each of the tags.

In September, Amorepacific announced it was acquiring Tata’s Natural Alchemy, a luxury clean beauty cosmetics brand founded in 2010. Commenting on the acquisition, Jinpyo Lee, Amorepacific’s chief strategy officer at Amorepacific Group, said the brand’s health and beauty core values resonated with values held by society and consumers today and, fueled by Amorepacific’s R&D and P&L infrastructure, he said he expected Tata Harper would be able to significantly expand its footprint in the Western and Asian markets.

That same month, the company also debuted a refreshed, revitalized identity for its 40-year-old Goutal fragrance brand, hallmarked by a new bottle design. The new bottle pays homage to its iconic look with a new shape and cap redesigned to reflect modernity while keeping its unique, vintage character.

In December, the company announced a strategic collaboration with Johns Hopkins University to support a new research program, New Beauty Research Initiative (NBRI). The collaboration was defined as a “corporate gift agreement” targeted to support NBRI, a mid-to-long-term research program, in fostering innovative research and advancements that add value to the health and beauty of consumers. Under the agreement, NBRI will work with Johns Hopkins’ commitment to supporting science innovation, which covers a wide range of fields including fundamental studies and clinical research, to study new targets and mechanisms while also carrying out clinical bioactivity tests on original materials developed by Amorepacific.

Looking Ahead:

Despite the bright spots in 2023, Amorepacific’s Q1 2023 sales fell 20% and operating profit also sank 52%. Domestic sales dipped 24.6% and international sales dropped 16.8%. The company blamed a double-digit decline in travel retail and e-commerce.

By Q2 2023, the pace of loss seemed to slow down a bit. Although domestic revenue was down 11.6%, overseas revenue was up 27.5%

Domestic Luxury unit sales were down 12% and Premium product sales were down 24% in comparison to Q2 2022. And although Daily Beauty unit sales were down, they were only down 0.4% in comparison to this time last year, thanks to strong e-commerce and multi-brand shop channels.

Overseas business revenue was up 27%, with Asia sales growing 14%, and sales in North and EMEA more than doubling due to strong growth in Amorepacific’s major brands like Laneige, Sulwhasoo, Innisfree and Goutal.

Corporate Sales: $4.5 billion
Beauty Sales: $4.4 billion

Major Brands/Products: More than 20 luxe and “daily” cosmetics, personal care, and health care brands including Amore Pacific, Sulwhasoo, Laneige, Mamonde, Innisfree, Etude, Sienu, Hera, Primera, IOPE, Hanyul, Lirikos, Goutal Paris.

New Products: Sulwhasoo Concentrated Ginseng Renewing Line, Hera Black Cushion, Amore Pacific Time Response Intensive Renewal Ampoule.

Financial Summary:

A push on hero products in multiple brands helped boost Beauty sales at Amorepacific to $4.4 billion in 2021, an increase of 11.58% over the previous year. Domestic luxury sales grew 22% over the previous year to $1.3 billion.

In 2021, Amorepacific Group focused on generating online sales and developing strong brands and as a result, says it was able to “significantly increase the profitability of the business and strengthen its presence in both Korean and global markets.”

The South Korean company says it continued with its efforts to improve the profitability and efficiency of traditional retail channels and at the same time, diversified its online channel portfolio and increased investment in digital marketing. In the Korean market, luxury brands including Sulwhasoo and Hera reported good performance, largely driven by their growth in the online channel. Premium brands including Laneige and Mamonde collaborated with brands in other areas, such as Maison Kitsune and Mardi Mercredi, and created a variety of digital content, which aided their growth in the online channel.

In China, Sulwhasoo and Laneige recorded double-digit sales growth through their active push into digital channels. In the North American market, both Laneige and innisfree entered Amazon, and the growth in online channels contributed greatly to the overall performance. In Europe, Amorepacific expanded its online customer touchpoints with Laneige entering Cult Beauty, a British e-commerce channel, and with innisfree joining Sephora.

Brands also strengthened their competitiveness through the development of Engine Product, their core product line. In the Korean market, Sulwhasoo and Hera launched an advanced version of their star product, Concentrated Ginseng Renewing and Black Cushion, respectively to sharpen their competitive edge, and daily beauty brands including Ryo, Mise-en-scène, Happy Bath and Illiyoon turned their functional premium lineup into a springboard for further growth. In the global market, the strategy to focus on the core product resulted in the growth of high-end lineups including Sulwhasoo Concentrated Ginseng Renewing as well as the functional skincare category in Laneige.

2021-2022 Highlights:

In October 2021, Amorepacific entered into an investment agreement to secure minority shares of emerging K-beauty company COSRX, as well as pursue joint projects. COSRX is a K-beauty brand with eight product lines distributed in 40 countries, including the U.S., Southeast Asia, Europe, China and Japan, with overseas sales accounting for 80% of total sales. Amorepacific agreed to acquire a 38.4% minority stake in COSRX for $153 million, making the group the second largest shareholder of COSRX.

In December 2021, Laneige Water Sleeping Mask, featuring Eastman’s Cristal Renew packaging, entered Sephora.

In May, the Korea Times reported that Amorepacific employees had been caught embezzling more than $2 million. The majority of the money was later recovered and those involved were punished.

In 2022, Amorepacific Group vowed to use the same Engine Product strategy. Through the development of Engine Products, market analysis, better customer service and expansion into new beauty business, Amorepacific Group said it would fortify its brand assets and at the same time, strengthen its content operation capabilities, build an online-based fandom community and innovate its digital-powered business model. In addition, the company said it would strengthen ESG management with “empathy-building practices,” revamp its business fundamentals to become more profitable and adopt a new management system.

In September 2022, Amorepacific entered into a definitive agreement to acquire Tata’s Natural Alchemy, LLC (Tata Harper), a U.S. based pioneer in natural luxury skincare, in a move that further signals the company’s intention to continue its penetration of global markets via a focus on consumers in North America. The closing of the acquisition is expected to take place in early 4Q 2022. Harper, the company’s co-founder, will continue to lead the brand.

Sulwhasoo also launched an advanced version of their star product—Concentrated Ginseng Renewing and Black Cushion—in the Korean market to sharpen their competitive edge.

Corporate Sales: $4.2 billion
Beauty Sales: $4 billion

Major Products/Brands: Happy Bath, Illiyoon, Fillvoid, Amorepacific, Primera, Soon+, Sulwhasoo, Iope, Odyssey, Laniege, Hanyul, Mirepa, Mamonde, Lirikos, Bro&tips, Innisfree, Outrun, Be Ready, Etude, Easypeasy, Enough Project, Sienu, Espoir, Hera, Rarekind, Holitual, Steady:D, Median Boncho Study, Pleasia, Ryo, Mise en Scéne, Fresh Pop, Labo-H, Ayunche, Amos Professional, Goutal Paris, Fradore, Aestura

New Products: Soluderm, Mamonde Probiotics Ceramide Cream, Hanyul Yuja Vita-C Serum, SkinU Lacto Cream Bubble Wash, Laneige Lip Treatment Balm

Comments: Covid-19 took a deep bite out of Amorepacific’s overall revenue (-20.6%), operating profit (—66.6%) and channel sales, which also dipped in double digits—but it wasn’t all bad news. International travel retail sales made their comeback with the resumption of consumer air travel, and online sales soared 50%, with an especially great performance turned in by the Amorepacific brand in China.

The company saw the beginning of its post-pandemic recovery begin in Q1, as sales climbed almost 11% and operating profits leapt 190%. International sales also provided a welcome boost (+9.6%) to overall revenue, as did sales of domestic cosmetics (+9.9%) and sales in China (+30%), but that growth was tempered by losses in North American sales, where retail stores were still dealing with closures and foot traffic restrictions.

On the heels of launching its new luxury skin care brand Sienu and acquiring a minority share of Australian luxury skin care group Rationale in May, June saw Amorepacific’s sustainable and innovative Laneige Layering Cover Cushion earn the 2020 WorldStar Packaging Award from the World Packaging Organization, and launched Enough Project, a “pragmatic” lifestyle brand comprised of seven vegan-friendly and gender-free skin care products. Then in July, the company demonstrated its commitment to improved environmental responsibility with the launch of several eco-friendly products highlighting “metal zero” pumps in containers made of 100% recycled plastic.

In October, the company opened a shampoo and body wash Refill Station–the first in Korea. Consumers choose from 15 products that are dispensed into coconut shell-origin containers. The station only sells content made within 100 days and the containers are disinfected before a refill using an ultraviolet LED lamp. The following month, Amorepacific announced a three-way collaboration with Dow Packaging and Specialty Plastics and Flair Flexible Packaging. Flair Flexible Packaging will use Dow’s Innate TF-BOPE resins to develop new, recyclable packaging for Amorepacific’s Sulwhasoo, Primera and Illiyoon products. The company also invested $3 billion KRW in DMIL, a media start-up that will help the company build partnerships with beauty influencer content and commerce.

In December, CES announced that Amorepacific’s Lip Factory by Color Tailor customized lip manufacturing technology was an honoree for the 2021 Innovation Award in the Health & Wellness category. The technology is an integrated online-offline lip makeup manufacturing system. It utilizes the AI-based mobile application to analyze users’ facial features and recommend customized colors. The pigment dispensing system Lip Factory then manufactures the customized color product immediately on-site.

2021 Highlights

This past March, the brand debuted a newly developed, eco-friendly, paper tube that both reduced the use of plastic by 70% and increased the expiration date of product formula it holds by 36 months. The company said they would initially be put in its clean beauty range, Primera.

After the company’s May announcement that it would be pulling its Innisfree brand from the North American market, Amorepacific posted incredible gains in Q2 2021, with net profits jumping 2,680%, operating profit gains of 188.5% and sales growing 10.4%. The company attributed the growth to a boom in luxury cosmetic sales, which grew almost 100% in China and 40% in Korea.

In June, the brand also unveiled its “2030 A MORE Beautiful Promise” campaign, a set of sustainability management goals under the umbrella of “moving forward together with customers and society” and “coexisting responsibly with nature,” for more meaningful growth. Included in the plan are achieving carbon neutrality and zero-waste-to-landfill across global production sites, reducing the use of plastics in product packaging, and creating 100% reusable, recyclable or compostable plastic packaging materials, and investing 10 billion KRW into biodiversity conservation efforts.

And in September, the company hosted an online ceremony for its 76th anniversary in the “metaverse” in which all Amorepacific members from Korea and abroad took part in a three-day festival filled with virtual events.

Beauty Sales: $5.7 billion

Major Products/Brands:

• Sulwhasoo, Laneige, Mamonde
• Innisfree, Hera, Iope
• Happy Bath, Primera, Odyssey
• Illi, Lirikos, Aestura
• Makeon, Etude, Hanyul
• Espoir, Aritaum, Annick Goutal
• Vital Beauty, Ryo, Mise-en-Scéne

New Products:

• Sulwhasoo Timetreasure, Bloomstay Vitalizing Eye Cream
• Hera Glow Lasting Foundation, Sienu
• Laneige Radiant-C Cream, Iope Retinol Expert 0.1%
• Hanyul Red Rice Essential line, Iope Tailored 3D Mask
• H hair care, Enough Project

Comments: Amorepacific enjoyed a modest boost of 3.4% in sales in 2019, led by the domestic cosmetic sales of its popular Sulwhasoo luxury brand, as well as its Ryo hair care line and online interest in newer brands such as Illiyoo and Fresh Pop.

A deeper dive revealed Innisfree revenue dipped 8% due to declined revenue in road shops and travel retail. And despite posting online sales growth, the Etude brand saw revenue drop 18% in 2019 with mitigated losses as a result of closing down directly owned stores to reduce expenses. Amos Professional’s sales also declined 1%, which the company attributed to strong competition in the hair care market.

In better news, Espoir sales climbed 11% thanks to seasonal makeup sales, reduced expenditures and improved sales promotion communication with consumers. Aestura sales also rose 11%, driven by the sales of 365, a new skin care line.

Last year the company continued to further its commitment to lessening its environmental footprint. On the heels of its 2018 agreement with TerraCycle, Amorepacific strengthened its sustainability management efforts in March which translated into boosting the sustainable recycling efforts associated with brands such as Primera, Happy Bath and Innisfree, while continuing to strengthen its broader corporate standards on the development of more sustainable products. Innovations have included the use of recycled packaging mediums such as paper and plant-based plastics. This past August, Innisfree unveiled an eco-friendly paper bottle for its Intensive Hydrating Serum which uses 51.8% less plastic than the original packaging. Housed in a paper casing, the bottle features an outer paper mold made from mixed scrap paper, which can be pulled away from the inner plastic container so that the paper and plastic can both be recycled separately.

In December, Amorepacific announced it had entered into a partnership with coveted Indie brand Milk Makeup. The move gave Amorepacific a minority stake in the company, enabling it to help support Milk Makeup’s planned entrance into the Korean market, following its expansion into the UK, Germany, Spain and Scandinavia last year.

2020 Highlights

In May the company announced a partnership with the Australian luxury skin care company Rational with the expectation of securing a local production base in Australia and strengthening its retail network, which Amorepacific hoped would provide a foundation for its operations in Oceania.

Looking Ahead

Like many companies, Amorepacific was hit hard by the global pandemic with roughly 60% of its China stores closed in February and over 95% of its stores closed in North American and Europe through March. Although online sales climbed 80% in Q1 2020, domestic sales fall over 22%. Q2 2020 was even worse: The company’s net profit declined 88.2% from a year earlier as another coronavirus outbreak cratered cosmetics sales at home and abroad. According to a regulatory filing, the company’s Q2 net income for April-June was 6.7 billion won (U.S. $5.6 million) which starkly contrasts with the same period last year when that amount was 57.1 billion won. Flagging in-person domestic sales were somewhat brightened by a 60% increase in online sales channels.

Beauty Sales: $4.8 billion

Major Products/Brands:
Skincare, Cosmetics and Hair Care sold under brands including:

• Sulwhasoo, Laneige, Mamonde
• Innisfree, Hera, Iope
• Happy Bath, Primera, Odyssey
• Illi, Lirikos, Aestura
• Makeon, Etude, Hanyul
• Espoir, Aritaum, Annick Goutal
• Ryo, Mise-en-Scéne

New Products:

• Laneige Layering Cover Cushion and Stained Glasstick
• Mamonde All Stay Foundation
• Ryo Hair Loss Care Shampoo
• Sulwhasoo Concentrated Ginseng Renewing line
• Innisfree My Foundation
• Bija Cica Balm
• Etude Mini Two Match
• Shine Chic Lip Lacquer

Comments: The K-Beauty bubble is shrinking and although Amorepacific posted a modest corporate sales gain of 1% in 2018, the company is mobilizing to improve product innovation to help lessen the inevitable pinch. Beauty sales grew 3% in 2018 thanks to international sales (+8.2%). Domestically, the company’s luxury division sales got a 3.6% boost from gains in travel retail and the success of products including Sulwhasoo Bloomstay Vitalizing line, Hera Rosy-Satin cream and Vitalbeautie Jaeumbo Ampoules. Sales in the company’s Asia international sector rose 8.2% due to expanded new market entry.

Sales in North America rose on the strength of skincare sales. Within the past year, Amorepacific introduced its Mamonde and Innisfree brands to the U.S. and in March, the U.S. portfolio expanded further with the launch of Mamonde at Ulta Beauty.

In April, the company also expanded its European presence by launching its Laneige brand in 800 Sephora stores across 18 European countries including France, Russia, Spain and Italy.
By Q4 2018, the company’s total revenues were up 3% (in comparison to the previous year) but operating profits fell 19.2%. Domestic revenue was flat and operating profits dropped 31.9%.

The company’s overseas revenue grew 7.4% but operating profits fell a whopping 69%.

In packaging news, the company’s 2018 Sustainability Report affirmed Amorepacific’s commitment to environmental responsibility. Instead of using petroleum-derived raw materials, 67 of the company’s new products were housed in biomass plastics derived from renewable plant-derived raw materials, while recycled packaging was used for 27 new products. Sustainably sourced, FSC-certified paper was used for 573 products in 2018. And finally, 33 products featured “universal-designed” packaging characterized by designs that enable convenient product use to consumers “regardless of age or discomfort.”

News of Note in 2019

In his New Year address, Chairman Suh Kyungbae said the company designated its 2019 management policy as “Exciting Changes,” framing the inevitable market shifts and evolving consumers as “golden opportunities for new innovations.” By Q2 2019, total revenue was up 3.7%. Domestic revenue growth was calculated at +1.6%, and +7.4% internationally, led by North American revenues (+54%) which the company said were boosted in part by the Laneige entry in Sephora and the Innisfree store launch in California.

Looking Ahead

In June 2019 Amorepacific signed a memorandum of understanding (MOU) with TerraCycle to recycle empty bottles. The MOU indicated at least 100 tons of empty plastic bottles would be recycled each year for three years; the ratio of using recycled empty bottles for Amorepacific products and furnishings increase 10% in the first year, 20% in the second and 30% in the third year; and that Amorepacific would achieve 100% recycling of empty bottles and 50% of those used for products and furnishings by 2025.

Saehong Ahn, president of Amorepacific Corp., said his company would prepare for the age of “No Plastic” by reusing collected empty bottles and developing environmentally friendly materials. Starting with Innisfree in 2003, Amorepacific Group has collected a total of 1,736 tons of empty cosmetic bottles (as of 2018) and is currently studying various recycle possibilities to minimize the damage to nature induced by these containers. The company has also been continuing its GREENCYCLE campaign, an environmental CSR activity of recycling empty cosmetic bottles or upcycling them into creative artworks.

Beauty Sales: $5.6 billion (FY 2017 Beauty Sales: $5.5 billion)

Major Products/Brands:
Twenty cosmetics, personal care, and health care prestige and masstige brands including the following U.S./global brands:

• Etude House, Amorepacific, Laneige, Annick Goutal,
• Sulwhasoo, Mamonde, Iope. And: Innisfree, Hera,
• Happy Bath, Primera, Hanyul, Espoir, Aritaum,
• Vital Beauty, Ryo, and Mise-en-Scéne

New Products:

• Amorepacific Botanical Radiance Oil
• Mamonde Petal Purifying Bubble Mask
• Sulwhasoo First Care Activating Mask
• Etude House Quick And Easy Blur Tint
• Innisfree Vivid Creamy Lip Tint

Amorepacific Group is Korea’s Largest Beauty Company

Amorepacific was one of a handful of companies on this year’s list that dipped in annual net sales. After growing for several years in a row, sales fell 10% last year. Sales of Amorepacific dropped 9%; Innisfree, 16% and Etude, 18%. In response, the company looked toward other parts of the world for growth, including expansion of Etude in Kuwait and Dubai, Laneige in Australia, Mamonde in the U.S. (in Ulta), and Hera in Singapore.

Amorepacific Group said it would focus on the development of innovative global products, presenting an enhanced customer experience, and improving its digital infrastructure to lay groundwork for sustainable growth. Overall, while overseas sales rose by 7%, domestic sales in South Korea dropped 16%, due to declines in the number of Chinese tourists and declining sales in duty-free channels and retail stores in tourist areas. CEO Suh Kyung-bae blamed the domestic decline on the economic recession and a changing consumer environment.

Still, the company achieved net sales of $5.6 billion.

At 73 years old, Amorepacific Group is Korea’s largest beauty company and an unquestionable leader of K-Beauty and its enthusiastic spread throughout the world. Included on Forbes’ ‘World’s 100 Most Innovative Companies’ list for four consecutive years, Amorepacific is known for developing never-before-seen innovative products such as the Cushion Foundation, Sleeping Mask and Boosting Serum. These products expanded into new beauty categories in the global beauty market, changing daily beauty routines for women around the world.

2018 Highlights

In January, Amorepacific Group expanded its U.S. brand portfolio, adding Mamonde—a mid-priced skin-care and makeup brand inspired by flowers—to current brands Innisfree, Laneige and Sulwhassoo. Amorepacific Group introduced Mamonde in 1991, and the U.S. market is the brand’s first international venture outside of Asia.

Jessica Hanson, president and general manager, Amorepacific US Inc., who was appointed in October 2017, said they’d be simplifying multi-step routines and upgrading packaging to be more in line with prestige products.

In May, Amorepacific U.S. Inc. opened its first-ever global beauty pop-up shop on Bleecker Street in New York City.

In June, Amorepacific Group officially entered the Middle East with its No.1 young makeup brand Etude House, and opened its first store in the Dubai Mall in March, then rapidly expanded to other locations. Sales of the “playful” brand reportedly rose 15%.

“We’ve finally begun to spread the essence of Asian Beauty to customers in the Middle East that have great insight in beauty,” said Suh Kyung-bae, who was recognized as Forbes’ “Asia’s Businessman of the Year” in 2015 and also ranked 20th in “The Best Performing CEOs in the World” selected by Harvard Business Review in 2017. He added, “We are well on track in realizing the dream of becoming a great brand company that makes the world a more beautiful world by actively spreading the singular and innovative beauty culture of Amorepacific across Asia, North America, Europe and the Middle East.”

Since 1945, Amorepacific has had a single, clear mission: to present its unique perception of  “Asian Beauty” to the world, as well as combine the best of natural Asian ingredients and advanced biotechnology.

Beauty Sales: $5.6 billion

Major Products/Brands: Sulwhasoo, Laneige, Mamonde, Innisfree, Etude, Lolita Lempicka, Annick Goutal.

New Products: Etude Play 101 Pencil, Etude Real Powder Cushion, Innisfree Green Tea Seed Serum, Innisfree Jeju Volcanic Pore Clay Mask, Innisfree Jeju Lava Sea Water, Innisfree My Cushion, eSpoir No Wear Lipstick and Pro Tailor Foundation, Amos Professional Feel the Green Tea.

Comments: AmorePacific’s introduction of the IOPE Air Cushion compact in 2008, changed the cosmetic industry’s foundation game, transitioned beauty routines worldwide and catapulted the South Korean company further toward its goal of becoming one of the largest global beauty players. In fact, in October 2016, the company’s cushion compacts hit the 100-million-unit mark in sales. The brand’s cushion technology holds 177 patent applications and 26 registered patents as of October 2016.

For 2016, AmorePacific Group reported that sales had increased 18.3% year over year to $5.6 billion, driven by its cosmetics subsidiaries in Korea and abroad. The domestic business saw a sales increase of 12% thanks to “brand power and enhanced retail expertise.” Overseas business showed solid growth through its five “Global Champion Brands,” namely Sulwhasoo, Laneige, Mamonde, innisfree and Etude. Sales in overseas markets jumped 35%.

AmorePacific’s Luxury portfolio made significant contributions to the bottom line. Sulwhasoo strengthened its position as Asia’s luxury brand by opening flagship stores that provide customers with unique brand experiences. HERA increased steps toward global expansion with its trendy Seoulista brand story and product lineup. Travel retail grew with the expansion of global and online stores. In the door-to-door channel, its digital sales platform led to increased customer convenience and greater sales efficiency. Premium Business strengthened core brand values through marketing activities and new product releases while maintaining sustained growth in its directly-run online store and mobile commerce platform.

Mass business decreased in sales due to a toothpaste recall and poor performance of oral care in general. In the hair and body care category, premium offerings such as Ryo and mise en scène brands grew stronger. In body care, Happy Bath and ILLI saw continued growth.

Overseas business reported high growth boosted by the five Global Champion Brands, mentioned above. In Asia, sales were up 38% year on year. In luxury makeup, HERA was launched in China, and Sulwhasoo opened more stores. Innisfree posted a solid growth due to what AmorePacific calls an “unmatched brand experience.” Brand awareness grew for Etude, leading to increased sales.

Sales in North America showed a growth of 10%, due to an expansion in Canada, with new shops in department stores and in specialty stores, for the Sulwhasoo and Laneige brands. In Europe, company sales increased by 4% due to sales growth of key products.

2017 News of Note

In January, AmorePacific partnered with Alshaya Group, one of the largest retailers in the Middle East, with plans to open the first Etude House store in Dubai during the second half of 2017. Etude House ranks as Korea’s No. 1 makeup brand targeting a young demographic. AmorePacific says it has invested in building regional expertise in the Middle East by assigning its regional experts called Hyecho in major cities such as Dubai, Abu Dhabi, Teheran and Istanbul to build local market insight.

In May, the Korean company announced that a Sulwhasoo store was set to open exclusively at Galeries Lafayette in Paris in September, achieving a long-term goal to bring high-end Korean cosmetics to France.

AmorePacific prides itself on its packaging. In May, the company received a Gold Award in the DuPont Awards for Packaging Innovation, for its Prime Reserve jar, “designed with the consumer experience in mind.” According to AmorePacific, “The elegant design of the jar provides consumers the ultimate indulgence and is an attractive addition to the consumers’ personal care product display in the home.” Made of 10 different components, this molded “jar within a jar” conveys luxury with its “remarkable” feel and weight. In addition, product manufacturers can decorate the outer jars while leaving the inner jar untouched and, if the formulation of the product is ever altered, the outer jar can still remain the same.

According to AmorePacific, the previous package had the same water ripple effect but was made using the CNC shaving process. By using the new injection molding process, AmorePacific was able to achieve the same extraordinary effect with a 76% reduction in material waste. This package was a great success in molding advancement, consumer indulgence and sustainability, going well beyond what was expected to deliver a high level of “premiumness” and distinctiveness, according to DuPont judges.

Beauty Sales: $4.8 billion

Major Products/Brands: Prestige and mass market skin care, personal care, hair care, cosmetics and oral care products including Sulwhasoo, Laneige, Mamonde, Innisfree, Hera, Iope, Happy Bath, Primera, Odyssey, Illi, Lirikos, Aestura, Makeon, Etude, Hanyul, Espoir, Aritaum, Annick Goutal, Lolita Lempika, Vital Beauty, Ryo, Mise-en-Scéne, Median.

New Products: Innisfree: My Cushion, Jeju Sparkling Mineral lines and Cauliflower Mushroom Vital lines; Etude: Blur Cream; Sulwhasoo: 2015 ShineClassic Makeup Limited Edition, Refreshing Cleansing Foam and Age Defying Cream for men; Laneige: Water Sleeping Mask, Water Bank Eye Gel; Lolita Lempicka L’Eau en Blanc (women) and Lolita Lempicka Au Masculin Eau de Parfum Intense (men) and Elle L’aime Edition d’Ete fragrances; Iope: Air Cushion XP Matte Finish SPF 50.

Comments: As the oldest and most prolific ambassador of the global Korean beauty product craze, AmorePacific continues to captivate beauty consumers with its unique approach to ingredients and packaging. Having pioneered the concept of cushion cosmetics with the development of its patented AirCushion package built with a specially designed sponge that maintains the integrity of liquid cosmetic formulas, the company reported that it offered a total of 19 Cushion products from its 13 brands in more than 10 countries in the Asian and North American regions in January 2015.

In 2015 the company recorded solid growth in the domestic and overseas markets, with domestic cosmetics business sales increasing by 13% year-on-year and operating profit increasing 9% year-on-year, thanks to the distinctive brand equity and increased retail competitiveness of its five “global champion brands” Sulwhasoo, Laneige, Mamonde, Innisfree and Etude.

Sulwhasoo expanded its customer base via digital media, while Hera built its brand identity around the concept of “Seoulista” and made preparations for global expansion, the firm said.

The company’s premium business unit, which includes Iope, Laneige, Mamonde and Aritaum, enhanced marketing activities and expanded product categories to increase its reach to a younger customer base. In addition, an aggressive push was made for moisturizer and makeup categories, such as Laneige Water Bank Gel Cream, Laneige Two Tone Collection, Mamonde Rose line and Mamonde Cover Foundation.

Innisfree achieved solid growth across all channels thanks to a positive market response to new products and brisk sales of major products such as Green Tea Seed Serum and Volcanic Pore Clay Mask, the firm said.

News of Note in 2016

In addition to celebrating its 70th anniversary, this year AmorePacific has implemented new stewardship initiatives to double down on its environmental responsibility efforts, launching what it calls the 2020 Sustainable Technology Roadmap which is structured to address three key areas: enhancing consumer safety and trust; minimizing environmental impact and energy reduction; and strengthening local community contributions. One of its key goals focuses on the development of sustainable packaging based on the four strategies of Reduce, Recycle, Reuse and Renewable, which the company said would further help it meet the overarching corporate goal of reducing package use per product by 25% by 2020.

In the meantime, the company continues to build value into its Cushion delivery system with two new advancements.

AmorePacific’s Ultra-Fine Dispersion technology reduces cushion formula particle size by more than 30% to yield a lighter, “more natural expression” for foundation products and “enables optimal infusion of botanical skin care ingredients.”

A new 3D Sponge is a departure from usual flat sponges and firmly deposits the newly refined Cushion formula in a light finish that at one time would have taken several steps to achieve.

Looking Ahead

In June, AmorePacific signed a strategic partnership agreement with Parfums Christian Dior that paves the way for Dior’s future use of AmorePacific’s proprietary AirCushion technology.

Beauty Sales: $4.3 billion

Major Products/Brands: Prestige and mass market skin care, personal care, hair care, cosmetics and oral care products including Sulwhasoo, Laneige, Mamonde, Innisfree, Hera, Iope, Happy Bath, Primera, Odyssey, Illi, Lirikos, Aestura, Makeon, Etude, Hanyul, Espoir, Aritaum, Annick Goutal, Lolita Lempika, Vital Beauty, Ryo, Mise-en-Scéne, Median.

New Products: Laneige Water Sleeping Mask, Mise-en-Scéne Damage Care Perfect Serum Mamonde Extra Moisture Emulsion, Lirikos Marine Expert Restoring Eye-Cream, Happy Bath Bio Bebe Soothing Lotion, Mise-en-Scène Damage Care Shampoo, Innisfree Olive Real Cleansing Oil.

Comments: AmorePacific has perhaps single-handedly brought Korean beauty formulations and packaging into the global spotlight. From creative color cosmetics and BB and CC creams, to the trendsetting cushion compact, the company continued to make beauty headlines in 2014 as it furthered its quest to become a top-ranking player in the beauty industry. Commenting on the year, Kyung-bae Suh, chairman and CEO, said the Korean powerhouse would “endeavor to become a great global company that brings a brighter future to the next generation by changing the world into a more beautiful and healthier place.” In addition, the company is striving to minimize its impact on the environment and fulfill its corporate social responsibility through management practices, even aiming to balance employees’ work and private lives.

Despite weakened beauty sales domestically and abroad, sales rose an enviable 21%. Domestic sales rose nearly 16% in 2014 and international sales surged more than 53%; during that time, duty-free sales strengthened as Chinese visitors flocked to Korea. Still the company worked to surmount certain challenges. When traditional luxury department store sales decreased, AmorePacific revved up its door-to-door efforts and expanded in duty-free channels, in some cases, opening specialty stores for leading brands. On the Premium end, Aritaum diversified brands and increased customer service. Verite, developed as an online-exclusive brand, continued to build a following. Functional products in personal care continued to do well.

AmorePacific claims it is No 1 in the body care category, due to brands Happy Bath and Illi. Within the domestic market, the company is revitalizing its Etude brand to appeal to younger consumers. As part of that plan, company executives moved the eSpoir cosmetics line out from under the Etude umbrella and aimed it at consumers interested in the growing professional cosmetics market. International sales soared based on AmorePacific’s five leading brands: Sulwhasoo, Laneige, Mamonde, Innisfree and Etude. China and other ASEAN countries led the way. In the U.S., business was profitable for the first time, due to the AmorePacific and Aritaum brands in department stores.

Sulwhasoo enjoyed great success in China, where sales of the holistic beauty brand rose 81% year over year. Laneige entered Target stores in the U.S. in 2014, and grew strongly with overseas sales up 35% year over year.

AmorePacific is now focusing on developing portable, high-tech cosmetic devices as its next growth category. In August 2014, the company launched a special brand for cosmetic devices called MakeON, and released a Cleansing Enhancer and a Makeup Enhancer; both rely on motion activity to improve skin.

News of Note

With its commitment toward sustainability, in 2014, the Innisfree brand developed Jeju tangerine paper in collaboration with Korean manufacturer Hansol Paper. This project improved upon the brand’s existing green packages, as well as on productivity. The packaging material contains 95% recycled paper and 5% tangerine peel, and is more eco-friendly than previous packaging materials.

With the goal of 25% reduction of package use per product by 2020, AmorePacific cut down the packaging of some of its products during 2014, including IOPE plant stem cell skin renewal emersion, Hanyul Cleansing Cream and Lirikos Marine Expert Restoring Eye Cream. The company also partnered with a company that produces PCR PETG material, and is conducting tests hoping to use it going forward.

In June, Amore Pacific formed a strategic partnership with Parfums Christian Dior regarding its cushion technology. Since the 2008 launch of the “IOPE AirCushion”—a specially designed sponge that safely contains and preserves a liquid formula comprised of foundation, sun protection and various skin care ingredients—Amore Pacific has introduced “Cushion” products under 13 different in-house brands, and holds at least 14 patents registered in both South Korea and abroad.

The Korean company says that one cushion product was sold every 1.2 seconds in 2014. Sales of the cushion products outside of Korea skyrocketed 140% year on year.

The company marks its 70th anniversary in 2015.

Beauty Sales: $2.4 billion

Major Products: Sulwhasoo, Laneige, IOPE, Mamonde, Innisfree, Etude, AmorePacific, Hera, Aritaum, Primera, Lirikos, Hanyul, Annick Goutal, Iope, Verite, Lolita Lempicka, Illi, Happy Bath, Mise-en-Scene, Ryo.

New Products: Mamode Total Solution Essence BB Balm, IOPE Plant Stemcell Emulsion, Apple Juicy Liquid Foaming Cleanser, Lirikos Marine Expert Restoring Cream, Laneige Water Bank Essence, Sulwhasoo Ageless Complexion with SPF 30, Sulwhasoo Microdeep Intensive Filling Cream & Patch.

Comments: Four wildly popular products continued to gain users and in part led to a good year at AmorePacific—and also showed the company’s breadth in the beauty world: Aritaum Modi nail polish, Iope Air Cushion Compact, Verite (a home-shopping network exclusive) and Sulwhasoo First Care Activating Serum. Iope was the first to launch the year’s sensation—the air cushion compact, a sponge soaked with foundation and enclosed in a portable case that allows for easy, no-mess application. A focus on customer service at retail also generated positive results.

AmorePacific recorded $2.6 billion in sales in 2013, a 6% year-over-year growth. Sales rose despite a still-sluggish domestic market, which led to lower demand for luxury products in department stores, yet higher sales of mid- and low-priced products in mass retailers. Online and home shopping channels also gave sales a boost.

Cosmetics accounted for nearly 85% of sales last year, with personal care and green tea products representing the rest. Sales of hair cosmetic products grew 8% compared to the previous year. For hair care products, mise-en-Scène’s hair dye and nourishing products exhibited high growth, while Illi saw an increased market share with its premium anti-aging body care product line.

By region, Korea accounted for 82.6% of sales, followed by China (10.8%), Asia (3.4%), Europe (2.4%) and North America (0.8%). Sales of the AmorePacific brand rose 6%, even as sales in high-end department stores declined. To balance the situation, the company focused on moderately priced brands and online sales. To boost door-to-door sales, AmorePacific introduced new products under its Iope and Laniege brands and introduced the moderately priced Modi Nail line. Sales in China jumped 30%, due to the popularity of Laneige, Mamonde, Innisfree and Etude. In fact, Laneige, a premium cosmetic brand popular with young Chinese women, skyrocketed with a 40% sales gain last year. Laneige also hit the shelves in Target.

Sales in North America increased 26% to more than $22 million due to the introduction of new AmorePacific products in the U.S. And while sales declined overall in Europe, results in France got a boost thanks to Lolita Lempicka fragrances.

In March 2013, AmorePacific officially declared a ban on unnecessary animal testing on cosmetic products, and sought to find alternatives.

In March 2014, the company’s Hanyul brand was renewed into a natural-oriented skincare brand focusing on the traditional beauty care methods and plants of Korea.

As part of its sustainability efforts, AmorePacific is working on developing materials and alternatives, with the goal of reducing the amount of product packaging by 25% by 2020.

Sulwhasoo’s First Care Activating Serum, which just hit $1 billion in sales worldwide, is described as “the one universal product on the market that helps boost the effectiveness of subsequent treatments.” In September, the brand launched a new product in the U.S.: Luminature Essential Finisher. Sulwhasoo introduced the “Finisher” category to Korea in 2013 with the Luminature Essential Finisher. Not only were they the first to launch internationally, they are the first to introduce this category in the U.S.

Beauty Sales: $2.9 billion

Major Products: Prestige and mass fragrance, cosmetic and skin care brands including AmorePacific, Hera, Sulwhasoo, Annick Goutal, Lolita Lempicka, Happy Bath, Etude, Innisfree.

New Products: Primera’s Ecocert-certified Primera Baby Intense Cream, Hera UV mist cushion, Mise-en-scene easy & speedy foam hair color, Laneige Water Supreme Creamy Foundation, Happy Bath Whiteclay Blackhead Foam (One-Touch Cap), Illi Total Age Body Lotion, Luminous, Happy Bath Aqua Cooling Gel.

Comments: Kyung-bae Suh, chairman and chief executive officer of AmorePacific, South Korea’s largest beauty company, said they are striving to deliver Asian beauty to customers all across the globe. Domestically, their products sell in department stores, drug stores, door-to-door and online, with mass brands like Happy Bath to luxury brands, such as Sulwhasoo and Hera. In fact, Suh said the company aims to become Asia’s No.1 and Global Top 7 cosmetics company by 2020, and will do so by developing 10 global megabrands and expanding into the global market.

The R&D, multiple channel and far-reaching global strategies seem to be paying off. For 2012, total sales reached $2.9 billion. The domestic market accounted for the lion’s share, at $2.4 billion. Beauty sales in China contributed $243 million; followed by $143 million from Asia excluding China; Europe with $72 million; and the U.S. with $18 million.

Elle L’aime marked a key U.S. launch for the Lolita Lempicka brand, ownedby Amore Pacific.

In 2012, AmorePacific achieved strong growth despite a slowdown of South Korea’s economy through brand focus and innovation and new growth channels. A weaker consumer confidence slowed demand for luxury products, but on the flip side, there was substantial growth in the mid to low-end segment. Increased attention was also paid to the online channel. So even though growth slowed in the door to-door channel, the company said its cosmetics business achieved 9.6% growth compared to 2011, led by sales in department stores, duty free shops, online and Aritaum stores.

In order to achieve its corporate vision of reaching the Global Top 7 position, the company underwent a change in its organizational structure. It also completed its Beauty Production Site— an integrated production and logistics center that consolidates its skin care production sites, makeup production sites, and regional logistics centers that were scattered all over the nation into one place.

As with a number of our Top 20 companies, AmorePacific strove to strengthen working relationships with partners in its supply chain. They established communities according to the types of major suppliers in the supply chain, including packaging materials, raw materials, ODM, and production/transportation.

Product-wise, R&D played an important role in AmorePacific’s drive for developing megabrands. One example is their development of a “cell-trap sponge compact case’ which will make sunscreens easy to use as well as optimize absorption when reapplied on the skin. Not only did AmorePacific develop this form of “nonflowing liquid,” but also the cell-trap technology, which contains liquid contents in the sponge by using a specialized technology of hyper-ultrafine dispersion technology.

They also developed a variety of innovative hair care products, including quick hair dye, hair dye shampoo and hair dye applied with a comb.

As far as sustainable packages, AmorePacific aims to reduce the amount of package used per product by 25% by the year 2020, and is working to develop sustainable and eco-friendly packages. For example, since non-coated plastic materials are easier to recycle, AmorePacific developed high-gloss, noncoated plastic materials that are scratch-resistant.

Last year, AmorePacific acquired the French luxury perfume brand Annick Goutal. Ths year, they launched a new scent from another of their luxury fragrance properties—Lolita Lempicka. One of the top 10 perfume brands in France, Elle L’aime marks Lolita Lempicka’s biggest U.S. launch in over a decade. The new scent made packaging waves in a beautiful glass bottle from Pochet, with engraved tinted glass and silk-screen printing.

In August 2012, Bradley Horowitz, AmorePacific’s chief operating officer, was named as the company’s new president and CEO of of AmorePacific U.S., Inc. Horowitz was charged with directing the company “towards a significant growth trajectory” and is committed to solidifying the brand as a leading skin care authority in North America.

An upward trend continued in the first half of 2013. Increased overseas distribution was cited as a reason for sales climbing 9.2% to $1.5 billion.

Domestic business accounted for $1.2 billion, about 83%. Overseas business topped 17%, at over $257 million—up 39% over the previous year.

Domestically, in the luxury division, door-to-door sales declined while department store figures grew due to new launches. Duty free prospered, again due to Chinese travelers. Digital growth also remained strong. In the mass market, a focus on major products proved to be beneficial.

In the U.S., strong growth was reported in all channels.

Beauty Sales: $2.9 billion

Major Products: Premium and mass market cosmetics and personal care products sold under brands including AmorePacific, Hera, Sulwhasoo, Hyosia, Lirikos, Verite, Laneige, Iope, Mamonde, TeenClear, Primera, InnisFree, Lolita Lempicka, Annick Goutal, Odyssey, Etude, Espoir, Mise-en-Scene, Ryoe, Illi, Happy Bath, Dantrol, Median, Songyeum.

Future Response is one of AmorePacific’s new launches for fall.

New Products: AmorePacific Future Response Age Defense Crème, Green Tea Seed Treatment Oil, AmorePacific Moisture Bound Vitalizing Body Lotion, Laneige Silk Intense Lipstick, Dantrol Dandruff Control Shampoo.

Comments: South Korea’s AmorePacific is intent on global expansion, and has visions of becoming one of the world’s top 10 cosmetic firms by 2015. It’s progressing strongly in the U.S., and aims to almost triple sales in China by 2015 as it expands in Asia.

Perhaps the only cosmetics company in the world to grow and harvest its own green tea for use with its botanically based cosmetics and skin care products, it reports double-digit growth in all categories. Sales rose 12.4% last year to just over $2.2 billion. Overseas sales increased by nearly 23% to about $282 million. In general, the company reports that sales outpaced market growth. Luxury product sales were strong (up 11.4%) due to good results in department stores and duty-free shops. Sales rose more than 10% in door-to-door sales, although the company noted that sales slowed in the second half of 2011.

AmorePacific says sales climbed more than 15% within its Aritaum store channel (1,300 stores in Korea) and through the online and home shopping sales channel, driven by customer communication via social media and increased marketing activities. Premium brands such as Laneige and Iope posted good gains.

Mass market sales (which include the Sulloc tea business) surged 18%, driven by AmorePacific’s top hair care brands, Ryoe and Mise-en-Scene, which expanded its line of functional products to cater to more customized individual needs. In addition, the company’s top cleansing line, Happy Bath, expanded its market share with the addition of a body cleansing line as well as moisturizing products.

Korea accounts for more than 80% of company sales, but the company has operations throughout Asia, France and the U.S. Last year, international sales rose 30% to more than $350 million. China accounted for 46% of international sales. This year, AmorePacific is expanding its duty-free business in Hong Kong and Singapore, and is entering Indonesia, Malaysia and Vietnam.

Strong on R&D, AmorePacific is expanding from tea to beans, cultivating a bean garden to identify legumes that would make good ingredients for beauty products.

Bradley Horowitz was named president and CEO of AmorePacific U.S.

According to its Vision 2015, AmorePacific’s goal is to become a “global total care provider of beauty and health.” The company’s strategy is to grow into one of the world’s top 10 cosmetics companies by developing 10 megabrands. Based on its core competency in Asian beauty, AmorePacific is developing products that satisfy the demands of the global market. At the same time, company executives insist they are determined to make AmorePacific one of the most respected beauty companies that represents social contribution, environmental responsibility and positive stakeholder engagement. AmorePacific’s focus on the environment ranges from green buildings to reduction of greenhouse gases; sustainable products have increased by more than 100%, and more than 72 tons of empty bottles have been collected.

Late in 2011, AmorePacific signed its first overseas merger—a deal to acquire French luxury perfume brand Annick Goutal.

Earlier this year, the company named Bradley Horowitz, the company’s former chief operating officer, president and CEO of AmorePacific U.S. Horowitz is focused on directing the company towards a significant growth trajectory and is committed to solidifying the brand as a leading skin care authority in North America by overseeing all strategic marketing, sales and operation functions.

In the U.S., the AmorePacific brand is sold in approximately 200 specialty stores, including Bergdorf Goodman, Holt Renfrew, Neiman Marcus, Nordstrom and Sephora.

In addition to expanding in the U.S., the company is also reportedly eyeing new market development in the next few years in markets including Brazil, India, the Middle East and Australia.

Beauty Sales: $1.8 billion

Major Products/Brands: Skin care, makeup, fragrances, shampoos and toothpastes under brands including Sulwhasoo, Hera, Laneige Hannule, Etude House, Mamonde, TeenClear, Primera, InnisFree, Lolita Lempicka, Annick Goutal, Mise-en-Scene, Happy Bath, Ryoe.

New Products: AmorePacific Rejuvenating Serum, Annick Goutal, Innisfree White Tone Up Sleeping Mask, Mamonde Age Control Skin Softener, Mise-en-Scene Style Green Refresh Shampoo.

Comments: AmorePacific Corp. may be the largest cosmetics company in South Korea, but it’s not content to own just its domestic market.It aims to become not only a major player in Asia, but a global leader as well. In a sluggish economy, AmorePacific achieved double-digit growth in 2010.

Its more than 20 brands of beauty products include skin care, makeup, fragrances, shampoos and toothpastes, while green tea and mineral water round out its portfolio.

Amore Pacific’s sales rose 16.4% in 2010. By channel, door-to-door sales represented 29.8% of total sales, posting year-over-year growth of 9.5%. Department stores accounted for 20.6% of sales, up 39.1% and the specialty channel accounted for 13.2%, up 1.5% for the year. The hypermarket channel accounted for 8.4% of sales, with 7.1% year-over-year growth, according to the firm.

Sales of AmorePacific’s cosmetics unit were $1.5 billion, up 16%. Within cosmetics, the luxury segment represented 63% of sales, posting a gain of 20%. By brand, Sulwhasoo was up 22%, Hera gained 14% and AmorePacific was up 36%. The premium segment of its cosmetics unit accounted for 33% of sales, with brands such as Laneige (up 15%), Hannule (up 69%) and Iope (up 17%) turning in solid performances.

Sales within AmorePacific’s mass cosmetics & Sulloc division rose 19%, to about $308 million. Mis-en-scene was up 19%, Happy Bath and Sulloc both reached 27% growth and Ryoe had a 62% gain.

From a global perspective, AmorePacific said that its overseas business had turned profitable, backed by solid sales growth and profitability in all regions. Sales were $292 million and operating profit was nearly $8 million. China represented 42% of overseas sales (22%), followed by France (29%), Asia, excluding China (25%) and the U.S. (3%).

This spring, AmorePacific rolled out Sulwhasoo into mainland China—(following an entry into New York City’s Bergdorf Goodman in June 2010). The range of premium herbal medicinal cosmetics is now being sold at Parkson department store and Shin Kong Place in Beijing. The firm plans to add as many as eight shops in upscale department stores in other major cities like Shanghai before the end of this year.

AmorePacific is focused on R&D and sustainability, and in 2010, increased the number of sustainable products it produced by 97% to a total of 69. The Mamonde Age Control Skin Softener became the first cosmetic product to receive Carbon Footprint Label certification. Mise-en-Scene Style Green Refresh Shampoo is the first shampoo in Korea to receive the Korea Eco-label; containers were made using PCR PET material.

In August 2011, AmorePacific Corp. announced that it had completed a deal to take over French luxury perfume brand Annick Goutal, which it said was an effort to appeal to European consumers. AmorePacific also owns French luxury brand Lolita Lempicka.

Moving ahead, AmorePacific says its vision is to become Asia’s most respected beauty company as well as a “global total care provider of beauty and health” by 2015. Strategic plans are to grow into one of the world’s top 10 cosmetics companies by developing 10 megabrands.

Beauty Sales: $1.8 billion

Products/Brands: Skin care and makeup from brands such as Laneíge, Iope, Mamonde, Innisfree, Hera, Lirikos. Fragrances including Lolita Lempika, Castel Bajac, Espoir.

New Products: Sulwhasoo su Essence, ioPE Whitegen RXC, V=B Yeginseng, Laneíge premium makeup.

Comments: AmorePacific’s sales reached $1.8 billion in 2007. The company’s cosmetics sales rose 9.3% in Japan, and 24.8% in overseas markets. AmorePacific continued strong growth in the domestic market, securing its lead in the prestige channels and showing a strong performance in the mass cosmetics channel. The company increased per counselor sales and enhanced growth in the door-to-door channel. In the department store sector, AmorePacific saw continued strong performance by reinforcing its men’s brands and makeup categories.

By brand, Sulwhasoo strengthened its lead in the herbal cosmetics market, with new products such as Su Essence, while products such as Jaeumsaeng Cream and Yunjo Essence continued to grow. AmorePacific also extended its popular inner beauty brand V=B with Yeginseng, a red ginseng line. Laneíge premium makeup expanded to Moscow, where it opened a store within the Lotte Department Store.

AmorePacific wants to be a global company, and like many, is looking to China for increased sales. Among its many efforts, the firm has been increasing Mamonde’s presence at specialty and department store counters. It also expressed high hopes for Hannule, a new herbal brand targeting the mass market. In North America, AmorePacific is seeking space in duty-free shops.

For the first half of 2008, ended July 31, sales were up 12% due to strong growth in all cosmetics channels. In the second quarter, cosmetics sales jumped almost 20%, with a huge increase in discount sales, followed by department store, specialty store and door-to-door channels. Strong sales growth from Laneíge and its men’s line were contributors as was premium hair care brand Ryoe. AmorePacific holds the lead in prestige in domestic channels. The company reported its strongest overseas sales in France (43%), followed by China (33%) and Asia (excluding China; 21%). The U.S. accounted for 3% of overseas sales. With operating profit at 18.7% over the same period last year, AmorePacific said it was its strongest profit growth since 2001.