11.07.12
14. AmorePacific Corp.
Seoul, South Korea
www.amorepacific.com
Beauty Sales: $2.9 billion
Key Personnel: Kyung-Bae Suh, president and chief executive officer; Sang-Bae Shim, chief production officer; Young-So Kwon, executive director, sales and marketing; Bradley Horowitz, president and CEO of AmorePacific U.S.
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. |
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. |
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.