10.17.24
AMOREPACIFIC is #17 on our Top Global Beauty Companies 2024 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#17 AMOREPACIFIC
Seoul, South Korea
www.apgroup.com
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.
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.
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.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#17 AMOREPACIFIC
Seoul, South Korea
www.apgroup.com
Beauty Sales:
$3 BillionKey Personnel:
- Kyungbae Suh, Chairman and Chief Executive Officer
- Sangmok Lee, President
- Young-So Kwon, Luxury; Sang-Bae Shim, SCM
- Dong-Hyun Bae, Planning and Finance
- Min-Jeon Lee, Premium
- Hak-Hee Kang, R&D
- Chan-Hoe Kim, Mass Market
- Jaoe-Cheon Yoo, New Growth
- Giovanni Valentini, CEO, North America Region
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%.
Brands such as Innisfree, Laneige, and Sulwhasoo have been pivotal to Amorepacific’s growth in North America.
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.
