Sales: $3.5 billion
Key Personnel: Kyung-Bae Suh, president and chief executive officer; Sang-Bae Shim, president; Young-So Kwon, executive director, sales and marketing; Dong-Hyun Bae, chief financial officer; Yang-Sun Chai, marketing; Jeonggy Baek, vice chairman; Jae-Wan Shim, new growth; Chan-Hoe Kim, mass; Jae-Cheon Ryu, luxury; Dong-Hyun Bae, management support; Byeoung-Do Kang, SCM; Min-Jeon Lee, premium; Sang-Hoon Han, R&D.
Major Products: Cosmetics—Amorepacific, Hera, Sulwhasoo, Lirikos, Hyosia, Verite, Laneige, Iope, Mamonde, TeenClear, Primera, Hanyul, InnisFree, Lolita Lempicka, Odyssey, Etude, Espoir. Personal Care—Mise-en-Scene, Ryo, Illi, Happy Bath, Dantrol, Median, Songyeum; Health Care (including tea, beauty foods/supplements and drugs)—O’Sulloc, VB, Natural Beauty Food, Ketotop.
New Products: Hera Cell Essence.
Comments: Sales rose despite a sluggish domestic market that remained weak following recession and reduced consumer spending. That trend led to lower demand for luxury products in department stores, yet higher sales of mid- and low-priced products in mass retailers. Also providing a lift to AmorePacific’s sales was greater demand from online and home shopping channels.
Sales of cosmetics accounted for nearly 85% of sales last year, with personal care and green tea products representing the rest. By region, Korea accounted for 82.6% of sales, followed by China (10.8%), Asia (3.4%), Europe (2.4%) and North America (0.8%).
Sales of the AmorePacific brand rose 6%, even as sales in high-end department stores declined. To overcome that obstacle, the company focused on moderately priced brands and online sales. To boost door-to-door sales, AmorePacific introduced new products under its Iope and Laniege brands and introduced the moderately priced Modi Nail line. Online sales rose significantly, as demand for Verite, available only through home shopping networks, soared. Online sales of Sulwhasoo and Hera were also strong, according to the company. Sales of personal care products, such as hair care and body care, increased 8%, driven by gains for Illi.
Sales in China jumped 30%, due to the popularity of Laneige, Mamonde, Innisfree and Etude. In fact, AmorePacific says Laneige is the preferred premium cosmetic brand among young Chinese women, which explains its 40% sales gain last year.
Elsewhere, sales in North America increased 26% due to the introduction of new AmorePacific products in the US. And while sales declined overall in Europe, results in France got a boost from the popularity of Lolita Lempicka fragrances.
For the first quarter of 2014, sales increased nearly 16%, driven by gains in department store and travel retail sales, tempered by a decline in door-to-door sales. Outside Korea, sales in China were up on the strength of Laneige and Sulwhasoo. Sales rose in the US, too, as Laneige debuted in Target.