South Korea
www.amorepacific.com
Sales: $1.7 billion
Key Personnel:
Kyung-Bae Suh, president and chief executive officer; Sang-Bae Shim, executive director and executive VP, production and logistics; Young-So Known, executive director and executive director, sales and marketing; Dong-Hyun Bae, executive director and executive director, business; Chang-Soo Yang, director, marketing; Hak-Hee Kang, director of R&D.
Major Products:
Cosmetics—Amorepacific, Hera, Sulwhasoo, Lirikos, Verite, Laneige, Iope, Mamonde, TeenClear, Primera, InnisFree, Lolita Lempicka, Odyssey, Etude, Espoir; Personal Care—Mise-en-Scene, Ryoe, Happy Bath, Dantrol, Median, Songyeum; Health Care (including tea, beauty foods/supplements and drugs).
New Products:
Sulwhasoo (China)
Comments:
Amore Pacific’s sales rose 16.4% in 2010 but operating profit fell 13.2% to about $296 million. Net profits rose 25.9% to $248 million. By channel, door-to-door sales represented 29.8% of total sales, posting year-over-year growth of 9.5%. Department stores accounted for 20.6% of sales, up 39.1% and the specialty channel accounted for 13.2%, up 1.5% for the year. The hypermarket channel accounted for 8.4% of sales, with 7.1% year-over-year growth, according to the firm.
Sales of Amore Pacific’s cosmetic unit were $1.4 billion, up 16%. Within cosmetics, the luxury segment represented 63% of sales, posting a gain of 20%. By brand, Sulwhasoo was up 22%, Hera gained 14% and Amore Pacific was up 36%, according to the company.The premium segment of its cosmetics unit accounted for 33% of sales, with brands such as Laneige (up 15%), Hannule (up 69%) and Iope (up 17%), turning in solid performances.
Sales within Amore Pacific’s Mass Cosmetics & Sulloc division rose 19% for the year to about $304 million. Mis-en-scene was up 19%, Happy Bath and Sulloc both posted 27% growth and Ryoe proved especially robust, posting a gain of 62%.
Looking at its international performance, Amore Pacific was pleased to report that the overseas business turned profitable, backed by solid sales growth and profitability in all regions. Sales were $292 million and operating profit was nearly $8 million, according to the company. China represented 42% of overseas sales (+22%), followed by France (29%), Asia, excluding China, (25%), and the US (3%).
This spring, Amore Pacific rolled out Sulwhasoo into mainland China. The range of premium herbal medicinal cosmetics is now being sold at Parkson department store and Shin Kong Place in Beijing. The firm plans to add as many as eight shops in high-class department stores in other major cities like Shanghai before the end of this year.
The move into China further expands Sulwhasoo’s international presence beyond its Korean routes; it entered Hong Kong in 2004 and launched in Bergdorf Goodman in New York City in June 2010. In addition, Amore Pacific opened the doors to the new Sulwhasoo Spa in Hong Kong in 2010.
Be sure to log on to Happi.com this month to see and hear Mintel’s Taya Tomasello talk about AmorePacific’s Innisfree White Tone Up Sleeping Mask.
