AmorePacific Raises the Stakes in the US

By Tom Branna , Editorial Director | September 28, 2012

The leading player in the Korean beauty market is expanding its reach in the US with new products, new distribution and big plans.

With new products, a new president and new distribution plans, AmorePacific is taking a new direction in the US—one that company executives insist will double sales in the US and Canada in just three years.

“Our mission is to accelerate sales growth,” explained Bradley Horowitz who, in June, was named president and chief executive officer of AmorePacific US. Earlier this year, he joined the company as chief operating officer.

AmorePacific’s global sales topped $2.3 billion last year, making it one of the biggest players in the beauty industry, but the company’s presence in the US and Canada is on a less grand scale. Last year, sales in the US and Canada totaled $15 million. Horowitz expects to change all that—and rather quickly. AmorePacific products are available in select Bergdorf Goodman, Nordstrom, Neiman Marcus and Sephora retail stores, as well as AmorePacific Beauty Gallery and Spa in New York City, but Horowitz wants more. The distribution plan is “narrow and deep,” and should provide plenty of room for AmorePacific to grow. After all, there are 230 Nordstrom stores in the US, 40 Neiman Marcus stores and over 300 Sephora stores in North America.

“Where our products are available today, we are doing great,” insisted Horowitz. “We are one of the fastest-growing brands at Neiman Marcus, where our growth rate is nearly 20% and our growth rate in Sephora is over 50%. Our business is very healthy; the customer is responding. Now we have to tell our product story more often to more people.”

Horowitz isn’t new to the competitive US beauty business. He has more than 20 years of strategic, sales, marketing and management experience in the industry. Prior to joining AmorePacific, Horowitz was founder and CEO of BJH Consulting, where he served as an executive consultant for several of the beauty industry’s leading cosmetic and fragrance companies, including Oscar de la Renta, Coty Beauty, Beauté Prestige International and VMV Hypoallergenics. Before that, he held a variety of marketing and sales positions throughout the cosmetics industry, including serving as senior VP-sales for the Designer Fragrance Division of L’Oreal USA, and senior VP-marketing for Clarins USA, Inc.

A Strong Lineup
AmorePacific’s product story begins at one of the largest research and development centers in Asia. There, the company has developed novel means to extract Epigallocatechin Gallate (EGCG) from green tea and stabilize the material in cosmetics through a patented process. EGCG, an antioxidant polyphenol flavonoid, is the key ingredient in AmorePacific’s Time Response Cream, which retails for more than $400, yet has a loyal following with consumers. The cream promises to restore collagen production to minimize appearance of fine lines, wrinkles and sagging; stimulate hyaluronic acid production for increased moisture levels; minimize excess sebum; regulate melanin and stimulate skin’s own antioxidant production. According to clinical test results conducted by AmorePacific, skin roughness started to decrease after 2 weeks and it was constantly and significantly decreased through 8 weeks. Facial skin elasticity increased 10% after 5 weeks and it was maintained through 8 weeks.
AmorePacific is taking the EGCG story even further this year with the launch of Advanced Time Response Intensive Skin Renewal Ampoules, which have even more efficacy. For example, skin smoothness improved 19.8% after 2 weeks, and 28.5% after 5 weeks; while skin elasticity improved 1.5% after 2 weeks and 10.2% after 5 weeks.

Time Response Skin Renewal Crème is one of AmorePacific’s best-selling products in the US.

Time Response may be AmorePacific’s biggest line in the US, but the company has several top-selling brands. For example, the No. 1 product at Sephora is Treatment Enzyme Peel ($60/70g) that helps brighten and even skin tone while providing a soft and smooth complexion; eliminates dry, dull surface cells and toxins and improves penetration of other treatment products due to removal of dead cells. The product contains papain, allantoin and green tea leaf extract.

What’s New?
This fall, AmorePacific is rolling out Luminous Effect, a collection that promises to inhibit melanin production and reduce existing pigment for a more translucent effect. Both the serum and the brightening masque contain Asian botanicals to promote a brighter complexion.

According to AmorePacific, its exclusive Meladefying Complex regulates all five steps of skin’s natural melanin formation process when used consistently. Its first mechanism of action is to desensitize melanocytes to create only minimum amounts, even when irritated by environmental stressors.
Next, it works to neutralize inflammatory stimuli while inhibiting the formation of new melasma-based blood vessels, making it harder for new melanin to be formed. Finally, it works to inhibit the DNA deformation of melanocytes caused by UV, effectively blocking unpredicted melanin generation and fortifying the dermal-epidermal junction. Luminous Effect Brightening Serum (1oz) retails for $220 and Luminous Effect Brightening Masque (6 masks) retails for $120.

Last month, the company introduced Future Response Age Defense Cream which contains both green tea and pine mushroom extracts, as well as AB-12 Complex, a compound of 12 different Asian botanicals that are said to address the 12 symptoms of aging to improve skin’s moisture, resiliency, radiance, tone and firmness. Future Response’s ingredient list includes cotton to stimulate the production of keratin and reduce irritation; palm cactus to stimulate ceramide production and boost barrier function; magnolia to control excess pigmentation and gotu cola to stimulate growth and migration of cells. A 1.7oz cream retails for $195.

Treatment Enzyme Peel is a big hit in Sephora, where it is AmorePacific’s best-selling product.
“The cosmetics industry demands innovation,” insisted Horowitz. “Our pipeline over the next two years will bring a lot of game-changers to the marketplace.”

Obviously, AmorePacific’s anti-aging breakthroughs don’t come cheap, but Horowitz noted that it costs more to create skin care products that actually do more.

“As food, drug and mass brands have become stronger, the onus is on us to deliver even more effective products,” he explained. “We’re putting in more dollars into R&D to deliver what the consumer wants and deliver these highly effective products with great service.”

To promote all of these products, AmorePacific is developing a new website, and new print ads debut this fall. At the same time, Horowitz says the company can win in-store by developing highly trained sales people, providing extensive sampling and creating events that give AmorePacific customers a luxurious experience.

For example, AmorePacific’s services include a “Beauty Creator” on the East and West Coast of the US who performs demonstrations on proper skin hygiene and skin care regimens, while building and maintaining positive working relationships with department staff. Through this combination of product, personnel and promotion, Horowitz is confident about his company’s US prospects.

“Consumers look to and respect Asia as a source for fine skin care. AmorePacific is driven by its research and development,” insisted Horowitz. “In a very cluttered skin care market, AmorePacific offers a real point of difference.”

Related End-User Markets:

blog comments powered by Disqus
  • Why Look Good, When You Can Look Perfect?

    Why Look Good, When You Can Look Perfect?

    Tom Branna, Editorial Director||April 4, 2016
    A new way to try-before-you buy is capturing the attention of consumers and the beauty industry.

  • NYSCC Explores Product Innovation

    NYSCC Explores Product Innovation

    Christine Esposito, Associate Editor||March 14, 2016
    New product development, formulation expertise and proper preservation are topics of discussion at February monthly meeting.

  • Battling Pollution via Skin Care

    Battling Pollution via Skin Care

    Christine Esposito, Associate Editor||March 7, 2016
    Canadian start-up turns to crowdfunding to help launch a new anti-pollution moisturizer.

  • Bite Now

    Bite Now

    Christine Esposito, Associate Editor||May 2, 2016
    Is the time finally right for beauty-from-within to move into the mainstream?

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • The New Spot For Acne Care

    The New Spot For Acne Care

    Tom Branna, Editorial Director||April 1, 2016
    Acne Treatment Research Center opens in Morristown, NJ.

  • The Scalp Microbiome

    The Scalp Microbiome

    Nava Dayan PhD, Dr. Nava Dayan LLC||April 1, 2016
    A review of recent findings and innovative approaches for treating scalp disorders.

  • Multi-Cultural Beauty Update

    Multi-Cultural Beauty Update

    Christine Esposito, Associate Editor||April 1, 2016
    Established brands and start-ups address the needs of multi-cultural beauty consumers.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers

  • Inspiring the Next Generation Of Personal Care Products

    Inspiring the Next Generation Of Personal Care Products

    March 1, 2016
    In-Cosmetics 2016 returns to Paris next month, April 12-14, 2016.

  • Shielding Skin from Airborne Antagonists

    Shielding Skin from Airborne Antagonists

    Shyam Gupta, Ph.D., John Stanek and Melinda Wochner, Bioderm Research and CoValence Laboratories, Inc.||March 1, 2016
    The enemy, it seems, is all around us. Researchers explain how to alleviate damage caused by a variety of villains.

  • Innovation On Display

    Melissa Meisel, Associate Editor||February 3, 2016
    P&G Beauty Digital Studio showcases new products for 2016

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.

  • In-Cosmetics Paris Has Sights on US

    In-Cosmetics Paris Has Sights on US

    Imogen Matthews , In-Cosmetics||December 2, 2015
    Market focus is on the USA.

  • Just Wild About Harry’s Cosmeticology

    Just Wild About Harry’s Cosmeticology

    Tom Branna, Editorial Director||November 2, 2015
    The ninth edition, edited by Meyer Rosen, has been expanded and improved with an emphasis on the future of the industry.

  • Lush Is Flush with Novel Ideas

    Lush Is Flush with Novel Ideas

    Tom Branna, Editorial Director||November 2, 2015
    New products are the lifeblood of every company. Lush will launch more than 200 of them.

  • Contract Manufacturing/Private Label Directory

    Contract Manufacturing/Private Label Directory

    October 1, 2015
    Our directory is your source to find a manufacturer to get your product to market.

  • Winner Unmasked

    Winner Unmasked

    October 1, 2015
    Laneige’s Water Sleeping Mask takes home top honors as Happi’s first Anti-Aging Product of the Year.

  • An Arduous Task?

    An Arduous Task?

    Tom Branna, Editorial Director||October 1, 2015
    Elizabeth Arden's JuE Wong is confident that the way to right the company’s ship is by tapping into its rich heritage.

  • Tried & True

    Tried & True

    Melissa Meisel, Associate Editor||October 1, 2015
    Test providers strive to prove a product’s efficacy for consumer confidence.

  • Market Your Cosmetics In Europe with Safety

    Market Your Cosmetics In Europe with Safety

    Pascal Yvon, IDEA TESTS Group||October 1, 2015
    Compliance to European safety regulations for cosmetic products, final formulations and ingredients.

  • Talking Point

    Talking Point

    Christine Esposito, Associate Editor||October 1, 2015
    For its inaugural Sustainability Dialog in Frankfurt, Clariant gathered stakeholders that included a mix of customers, third

  • A Consumer Revolution

    A Consumer Revolution

    Melissa Meisel, Associate Editor||June 1, 2015
    IRI’s 2015 Summit celebrates the progression of information.

  • Interior Design

    Interior Design

    Melissa Meisel , Associate Editor||May 1, 2015
    Nutritional products can improve and beautify skin from the inside out.

  • Face Valued

    Face Valued

    Christine Esposito, Associate Editor||May 1, 2015
    Skin care formulations that promise to protect a prized possession—one’s appearance—are always in demand.