Sales: $5.7 billion
Key Personnel: Suh Kyungbae, chairman and chief executive officer; Shim Sangbae, president and chief executive officer.
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: Happy Bath and Illi brand extensions; Innisfree—Jeju Lava Sea Water, My Cushion; Etude—Play 101 Stick and Brow Gel Tint; Amorepacific Resort Collection.
Comments: With 2016 sales rising 18% in local currency, AmorePacific continues to climb the ranks of the world’s biggest beauty companies. It ranks No. 8 on The International Top 30 list, but the company cracked the Top 10 in Women’s Wear Daily’s Global 100 beauty companies. Hitting that milestone has been a goal of the company for more than a decade.
As CEO Suh Kyungbae noted, the results underscored the company’s management slogan, “Together, We Can.”
Sales in Korea rose 12% to just over four billion won, but international sales jumped 35% as all five major brands— Sulwhasoo, Laneige, Mamonde, Innisfree and Etude—all posted an increase in sales.
Within the Korean market, prestige beauty sales increased as Sulwhasoo opened a flagship store and Hera expanded its Seoulista brand. Travel retail got a lift through the expansion of global and online stores and a new digital platform improved door-to-door efficiency. Mass sales were mixed, as the oral care business suffered from a toothpaste recall, but hair and body care sales benefitted from the consumer’s desire for premium-priced formulas. Outside Korea, Asian sales soared 38% thanks to the successful launch of Hera in China. Sales in North America got a double-digit lift following an expansion in Canada. Sales increased just 4% in Europe.
For the first quarter of 2017, sales rose 5.5% in local currency, but the rate of increase slowed due to a stagnant Korean economy and a decline in the country’s tourism. However, international sales rose 17% as the company opened new Sulwhasoo stores and Laneige expanded its customer base throughout Asia. Innisfree, too, grew throughout the region, especially in the large Indonesian market. European sales increased 7% following the decision to invest more in Annick Goutal. Only North American sales fell in Q1, as AmorePacific rejiggered its business portfolio to reverse a 16% decline in US results.