Sales: $4.2 billion
Key Personnel: Kyung-bae Suh, chairman and CEO; Jeong-gy Baek, vice chairman; Sang-bae Shim, president; Young-chul Son, auditor general; Dong-hyun Bae, executive vice president, corporate support unit; Yang-sun Chai, executive vice president, marketing strategy unit; Jae-cheon Yoo, executive vice president, luxury business unit; Min-jeon Rhee, executive vice president, premium business unit; Chan-hoi Kim, executive vice president, mass business unit; Byeong-do Kang, executive vice president, SCM unit; Sang-hoon Han, executive vice president, R&D unit; Jae-wan Shim, executive vice president, new growth business unit; Seung-hwan Kim, executive vice president, strategy unit.
Major Products: Skin Care—Sulwhasoo, Laneige, Mamonde, Innisfree, Hera, Iope, Happy Bath, Primera, Odyssey, Illi, Lirikos, Aestura, Makeon; Cosmetics—Etude, Hanyul, Espoir, Aritaum; Fragrance—Annick Goutal, Lolita Lempika; Inner Beauty—Vital Beauty; Hair Care—Ryo, Mise-en-Scéne; Oral Care—Median.
New Products: Seoulista skin care.
Comments: When industry executives talk about the Korean influence in the global beauty industry, they’re talking about AmorePacific. While most industry-leading companies are tickled with double-digit gains, AP has been posting 20%+ gains for years in a quest to become a top 10 company in the global beauty market. In recent years, Korean formulators in general and AmorePacific R&D in particular, have given the world a host of beauty concepts, such as BB creams and BB cushions. One of the newest to watch are products formulated with ingredients derived from Jeju Island, a popular tourist spot off the coast of the Korean Pennisula.
Following 2014’s results, AmorePacific has nearly reached its goal, despite beauty market weakness at home and abroad. Sales rose 21% last year. Domestic sales rose nearly 16% in 2014 and international sales surged more than 53%; during that time, duty-free sales jumped as Chinese visitors flocked to Korea.
Still the year wasn’t without challenges. Company executives noted that traditional luxury department store sales slumped, but AmorePacific increased its door-to-door efforts and found new growth in duty free channels, thanks to the opening of dufree stand-alone stores. Verite, an online-exclusive brand, continued to gain a following. AmorePacific boasts it is the No 1. player in the body care segment, thanks to the success of Happy Bath and Illi.
Within the domestic cosmetics market, the company is rebuilding its Etude brand to appeal to younger consumers. As part of that plan, company executives moved the eSpoir cosmetics line out from under the Etude umbrella and aimed eSpoir at consumers interested in the growing professional cosmetics market.
International sales surged on the growing popularity of the big five brands—Sulwhasoo, Laneige, Mamonde, Innisfree and Etude. China and other ASEAN countries led the way. Outside Asia, the US business turned a profit for the first time, thanks to the success of the Amorepacific and Aritaum brands in department stores.
For the first quarter, sales jumped nearly 27%. In June, Amore Pacific formed a partnership with Christian Dior regarding its cushion technology.
“This agreement holds great significance in that our ‘cushion’ technology is appreciated by one of the world’s most respected luxury brand companies and a powerhouse in the global beauty industry,” said Sang-Bae Shim, president, AmorePacific.