Jamie Matusow, Editor-in-Chief11.02.15
Update: Amorepacific ranks at #19 on our latest report Top 20 Global Beauty Companies 2021.
Seoul, South Korea
www.amorepacific.com
Beauty Sales: $4.3 billion
Key Personnel: Kyung-bae Suh, chairman and CEO; Jeong-gy Baek, vice chairman; Sang-bae Shim, president; Jae-cheon Yoo, executive vice president, luxury business unit; Min-jeon Rhee, executive vice president, premium business unit; Chan-hoi Kim, executive vice president, mass business unit.
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.
Seoul, South Korea
www.amorepacific.com
Beauty Sales: $4.3 billion
Key Personnel: Kyung-bae Suh, chairman and CEO; Jeong-gy Baek, vice chairman; Sang-bae Shim, president; Jae-cheon Yoo, executive vice president, luxury business unit; Min-jeon Rhee, executive vice president, premium business unit; Chan-hoi Kim, executive vice president, mass business unit.
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.
AmorePacific Group offers a multitude of cushion products from its 13 brands.
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.
