Amorepacific Records Gains in 2016

Amorepacific Group reported sales gain of 18.3% (to KRW 6.6976 trillion) this year and operating profit rose 18.5% from a year earlier. The group attributed the continued growth in sales and operating profit to the growth of its cosmetics subsidiaries in Korea and overseas markets.

Amorepacific’s domestic business recorded a 12% sales gain. Within its domestic sector, Amorepacific said the luxury unit reported a solid qualitative growth on the back of a competitive brand portfolio. Amorepacific said Sulwhasoo strengthened its position as Asia’s luxury brand through opening flagship stores that provide customers with unique brand experiences while Hera laid a solid groundwork for global expansion by reinforcing its trend-leading ‘Seoulista’ brand story and product lineup.  The travel retail channel saw its sales grow substantially buoyed by key brand sales. The growth potential in travel retail was bolstered through the expansion of global and online stores. In the door-to-door channel, the successful establishment of its digital sales platform led to increased customer convenience and greater sales efficiency. The premium business strengthened core brand values through a variety of marketing activities and new product releases while maintaining sustained growth in its directly-run online store and mobile commerce platform. Its mass business experienced a decrease in sales and operating profit due to the toothpaste recall and a sluggish performance of the oral care segment. In the hair and body care segment, the drive toward premium offerings continued to meet a wider range of customer needs. Ryo and mise en scène brands strengthened their leadership in the hair care market through the increased sales of its best-seller products. In the body care segment, Happy Bath and ILLI enjoyed continued growth driven by a variety of new product releases. The Osulloc division focused on qualitative growth by enhancing its brand value through a more competitive product lineup and the overhaul of its distribution channels.
 
Amorepacific’s overseas business unit recorded an impressive +35% sales gain. The overseas business experienced high growth boosted by its five “Global Champion Brands,” namely Sulwhasoo, Laneige, Mamonde, innisfree and Etude. 

In Asia, the company recorded a robust sales growth of 38%. It strengthened its luxury makeup segment by launching Hera in China while Sulwhasoo expanded customer touch points through opening more stores in department stores, as well as road shops and launching into online shopping malls in China. innisfree posted a solid growth based on unmatched brand experience, products and services and accelerated its foray into the ASEAN region by launching in Vietnam. Etude also enjoyed continued growth due to higher brand awareness and robust sales of bestselling products and new releases, including Play 101 Pencil, Real Powder Cushion, etc. 

In North America, the company posted sales growth of 10% by expanding its business in Canada with new shops in department stores and specialty stores for the Sulwhasoo and Laneige brands, as well as expanded distribution network and optimized product portfolio. 

In Europe, the company saw its sales increase by 4% due to sales growth of key products.