Charles Sternberg, Assistant Editor02.09.21
Amorepacific Group has reported its fourth quarter and annual results for 2020.
Sales declined 13.3% in the fourth quarter from KRW 1.3 trillion ($1.2 billion) in 2019 to KRW 1.2 trillion ($1.1 billion) in 2020 due to double digit decline in domestic travel retail and other offline channels. Online sales grew by launching e-commerce exclusive products and increasing live streaming shows.
For the full year 2020, Amorepacific Group recorded KRW 4.9301 trillion ($4.4 billion) in sales, a decline of 21.5% year over year.
The prolonged pandemic threatened overseas business, decreasing sales and operating profit. Despite this, growth in online channels was clearly visible because the company carried out active digital marketing activities.
Sulwhasoo led strong sales in large-scale online shopping events on the Singles’ Day and the 6.18 Shopping Festival in China. The group also established a foothold to take-off further by adding new product categories and bolstering channel portfolios. Meanwhile, Amorepacific Group focused on securing profitability and growth drivers by reorganizing offline channels and supplying products to multi-brand stores.
Plans for 2021
This year, Amorepacific Group plans to nurture robust brands, undergo digital transformation, and revamp the business system. To that end, the group will focus on growing “Engine products” that reflect the innate values of Amorepacific brands and the spirit of the times.
On the e-commerce front, the corporation aims to grow by more than 30% in sales. To achieve this goal, the group will bolster its partnerships with major platforms in and out of the country and augment various marketing capabilities including live commerce. Moreover, the corporation will overhaul the company structure to foster profitable growth and expand investment in new growth engines, such as functional foods and derma-cosmetics.
Sales declined 13.3% in the fourth quarter from KRW 1.3 trillion ($1.2 billion) in 2019 to KRW 1.2 trillion ($1.1 billion) in 2020 due to double digit decline in domestic travel retail and other offline channels. Online sales grew by launching e-commerce exclusive products and increasing live streaming shows.
For the full year 2020, Amorepacific Group recorded KRW 4.9301 trillion ($4.4 billion) in sales, a decline of 21.5% year over year.
The prolonged pandemic threatened overseas business, decreasing sales and operating profit. Despite this, growth in online channels was clearly visible because the company carried out active digital marketing activities.
Sulwhasoo led strong sales in large-scale online shopping events on the Singles’ Day and the 6.18 Shopping Festival in China. The group also established a foothold to take-off further by adding new product categories and bolstering channel portfolios. Meanwhile, Amorepacific Group focused on securing profitability and growth drivers by reorganizing offline channels and supplying products to multi-brand stores.
Plans for 2021
This year, Amorepacific Group plans to nurture robust brands, undergo digital transformation, and revamp the business system. To that end, the group will focus on growing “Engine products” that reflect the innate values of Amorepacific brands and the spirit of the times.
On the e-commerce front, the corporation aims to grow by more than 30% in sales. To achieve this goal, the group will bolster its partnerships with major platforms in and out of the country and augment various marketing capabilities including live commerce. Moreover, the corporation will overhaul the company structure to foster profitable growth and expand investment in new growth engines, such as functional foods and derma-cosmetics.
