AmorePacific, Korea’s leading cosmetics firm, aims to join the league of the world’s top 10 global cosmetics firms by 2020, CEO Suh Kyung-bae said

2013-09-23 19:06

Amore aims to join global top 10

By Park Ji-won

AmorePacific, the nation’s leading cosmetics firm, aims to join the league of the world’s top 10 global cosmetics firms by 2020, CEO Suh Kyung-bae said. To that end, Suh plans to expand overseas sales by competing with global brands and develop it into a “Great Global Brand Company,” he added. “We expect that more than half of our products will be sold overseas in the near future. Our products are growing in popularity among Asian customers,” Suh said on the 68th anniversary of the company on Sept. 5. “If we keep providing what our customers want in beauty products, we expect the company will earn more than half of our revenue from the overseas market,” Suh said.The firm plans to strengthen its position as a leading global cosmetic company by developing tailored products that meet customer demand in each market. It also plans to maintain a growth balance between high- and low-end products.
R&D power
To ensure success in globalization, Amore has placed top priority on research and development (R&D). The firm conducted regional research to strategically sell products in each country by tailoring the products to meet the skin types and economic situation of each country.
“Thorough research shows us what our customers want and lets us know how to promote the products,” the company said in the statement.
It added that the R&D efforts have helped the firm develop La Neige as its flagship brand.
“Seven years of research, which involved more than 1,200 customers in Asian countries, shows La Neige is the favorite. The research influenced the company’s decision to make La Neige the flagship Asian brand, particularly in China, where it is sold in department stores,” a company official said.
“We are trying to expand market share mainly in China and South East Asia countries,” an official said. The firm plans to build a research and manufacturing facility in Shanghai by March 2014 to boost Chinese business.
The firm is also working on sophisticated marketing strategies in each of these countries.
In Singapore, where customers have high purchasing power, the firm focused on basic skincare products, like moisturizers. In Malaysia and the Philippines, where colorful makeup is more popular among consumers, the company focused on cosmetic kits.
As a result, Le Neige’s new product, Original Essence White Plus Renew, has become a megahit. The product, which was launched in nine countries in March, sold 16,000 sets.
Tailored strategy
AmorePacific has adopted different marketing and sales strategies to meet different demands for each market.
For example, in China, products like La Neige and Sulwhasoo are mainly sold in department stores, while Mamonde is sold online and through home shopping channels. Innisfree, the retail outlet of AmorePacific, opened its flagship store in April 2012. 18 additional stores are now open.
In Taiwan, Thailand, Malaysia and Indonesia, La Neige is gaining popularity through TV commercials. Sulwhasoo attracts customers through beauty consultations in Thailand and other countries as well.
The firm also sells Sulwhasoo in the department stores in the United States and Japan, while Etude opened its store in some cities in Japan. In France, the firm focuses on perfume.
Amore released a perfume called Lolita Lempicka in April 1997 in France. It purchased a French luxury perfume brand, Annick Goutal, to reinforce its perfume line in August 2011. The perfume is now sold in 110 countries.
Despite the economic slump, Amore posted revenue of 2 trillion won in the first half of this year, up 13.7 percent from a year ago on the back of robust sales in China. Its sales there during the second quarter jumped by 34.8 percent.
In China, the increase in sales of La Neige, Mamonde and Sulwhasoo helped boost overall numbers in the first half.