15. AmorePacific
Korea
www.amorepacific.co.kr
Beauty Sales: $1.8 billion

Key Personnel: Kyung-Bae Suh, president and chief executive officer; Sang-Bae Shim, chief production officer; Young-So Kwon, executive vice president, cosmetics counseling sales.

Products/Brands: Skin care and makeup from brands such as Laneíge, Iope, Mamonde, Innisfree, Hera, Lirikos. Fragrances including Lolita Lempika, Castel Bajac, Espoir.

New Products: Sulwhasoo su Essence, ioPE Whitegen RXC, V=B Yeginseng, Laneíge premium makeup.

Comments: AmorePacific’s sales reached $1.8 billion in 2007. The company’s cosmetics sales rose 9.3% in Japan, and 24.8% in overseas markets. AmorePacific continued strong growth in the domestic market, securing its lead in the prestige channels and showing a strong performance in the mass cosmetics channel. The company increased per counselor sales and enhanced growth in the door-to-door channel. In the department store sector, AmorePacific saw continued strong performance by reinforcing its men’s brands and makeup categories.
  
By brand, Sulwhasoo strengthened its lead in the herbal cosmetics market, with new products such as Su Essence, while products such as Jaeumsaeng Cream and Yunjo Essence continued to grow. AmorePacific also extended its popular inner beauty brand V=B with Yeginseng, a red ginseng line. Laneíge premium makeup expanded to Moscow, where it opened a store within the Lotte Department Store.
  
AmorePacific wants to be a global company, and like many, is looking to China for increased sales. Among its many efforts, the firm has been increasing Mamonde’s presence at specialty and department store counters. It also expressed high hopes for Hannule, a new herbal brand targeting the mass market. In North America, AmorePacific is seeking space in duty-free shops.
  
For the first half of 2008, ended July 31, sales were up 12% due to strong growth in all cosmetics channels. In the second quarter, cosmetics sales jumped almost 20%, with a huge increase in discount sales, followed by department store, specialty store and door-to-door channels. Strong sales growth from Laneíge and its men’s line were contributors as was premium hair care brand Ryoe. AmorePacific holds the lead in prestige in domestic channels. The company reported its strongest overseas sales in France (43%), followed by China (33%) and Asia (excluding China; 21%). The U.S. accounted for 3% of overseas sales. With operating profit at 18.7% over the same period last year, AmorePacific said it was its strongest profit growth since 2001.