10.25.23
Amorepacific is #15 on our Top Global Beauty Companies 2023 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Domestically, the company’s Luxury unit cornerstone, which accounts for 56% of its total domestic revenue, experienced a 14% decline in retail sales, despite online sales of Sulwhasoo, Hera, Primera and Goutal growing by more than 20%. Its Premium unit, which accounts for 23% of the company’s total domestic revenue, also experienced a 27% decline in sales. Sales in its Daily Beauty unit, which accounts for 16% of total domestic revenue, also fell 12% in light of a reorganization of the product portfolio.
The company’s overseas revenue declined 17%, but it wasn’t all bad—while Asia revenue declined by 24%, North America revenue grew a whopping 83% and Europe posted +37% growth, thanks to increased brand presence in growth channels like Sephora and Amazon. Growth was also attributed to interest in its Laneige and Goutal brands.
In August 2022, Amorepacific earned the Red Dot Design Award 2022 in the Brands & Communication Design category for its development of Braille tags for hair care and body products. The tag was designed to help visually impaired consumers distinguish between products like shampoo and body wash, which can often be housed in similar packaging. The silicone-based tags come in four types indicating body wash, body lotion, shampoo, and conditioner, and are written in both Korean and English on each of the tags.
In September, Amorepacific announced it was acquiring Tata’s Natural Alchemy, a luxury clean beauty cosmetics brand founded in 2010. Commenting on the acquisition, Jinpyo Lee, Amorepacific’s chief strategy officer at Amorepacific Group, said the brand’s health and beauty core values resonated with values held by society and consumers today and, fueled by Amorepacific’s R&D and P&L infrastructure, he said he expected Tata Harper would be able to significantly expand its footprint in the Western and Asian markets.
That same month, the company also debuted a refreshed, revitalized identity for its 40-year-old Goutal fragrance brand, hallmarked by a new bottle design. The new bottle pays homage to its iconic look with a new shape and cap redesigned to reflect modernity while keeping its unique, vintage character.
In December, the company announced a strategic collaboration with Johns Hopkins University to support a new research program, New Beauty Research Initiative (NBRI). The collaboration was defined as a “corporate gift agreement” targeted to support NBRI, a mid-to-long-term research program, in fostering innovative research and advancements that add value to the health and beauty of consumers. Under the agreement, NBRI will work with Johns Hopkins’ commitment to supporting science innovation, which covers a wide range of fields including fundamental studies and clinical research, to study new targets and mechanisms while also carrying out clinical bioactivity tests on original materials developed by Amorepacific.
By Q2 2023, the pace of loss seemed to slow down a bit. Although domestic revenue was down 11.6%, overseas revenue was up 27.5%
Domestic Luxury unit sales were down 12% and Premium product sales were down 24% in comparison to Q2 2022. And although Daily Beauty unit sales were down, they were only down 0.4% in comparison to this time last year, thanks to strong e-commerce and multi-brand shop channels.
Overseas business revenue was up 27%, with Asia sales growing 14%, and sales in North and EMEA more than doubling due to strong growth in Amorepacific’s major brands like Laneige, Sulwhasoo, Innisfree and Goutal.
Read Next: LG H&H is #16.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Beauty Sales:
$4.1 billionKey Personnel:
- Suh Kyung-bae, chairman
- Lee Dong Soon, president
Major Products/Brands:
Cosmetics, Fragrance, Hair Care and Body Care, including: Amorepacific, Primera, Soon+, Sulwhasoo, Iope, Odyssey, Laneige, Hanyul, Mirepa, Mamonde, Lirikos, Bro&tips, Innisfree, Outrun, Be Ready, Etude, Easypeasy, Enough Project, Sienu, Espoir, Hera, Rarekind, Holitual, Steady:D; Fragrances—Goutal Paris, Fradore; Medical Beauty—Aestura; Beauty Device—oMakeon; Inner Beauty—Vital Beautie and Cube Me; Hair Care—Ryo, Mise en Scéne, Fresh Pop, Labo-H, Ayunche, Amos Professional; Body Care—Happy Bath, Illiyoon, Fillvoid.New Products:
Innisfree Green Tea Seed hyaluronic serum, Innisfree No-Sebum AC powder, Etude Curl Fix mascara, Espoir Be Natural cushion foundation, The Sleek lipstick, Vintage Single Extract Essence.Financial Summary:
Citing a difficult post-Covid market and a struggling travel retail environment, Amorepacific saw its sales plummet 15% and net profits fall 50%.Domestically, the company’s Luxury unit cornerstone, which accounts for 56% of its total domestic revenue, experienced a 14% decline in retail sales, despite online sales of Sulwhasoo, Hera, Primera and Goutal growing by more than 20%. Its Premium unit, which accounts for 23% of the company’s total domestic revenue, also experienced a 27% decline in sales. Sales in its Daily Beauty unit, which accounts for 16% of total domestic revenue, also fell 12% in light of a reorganization of the product portfolio.
The company’s overseas revenue declined 17%, but it wasn’t all bad—while Asia revenue declined by 24%, North America revenue grew a whopping 83% and Europe posted +37% growth, thanks to increased brand presence in growth channels like Sephora and Amazon. Growth was also attributed to interest in its Laneige and Goutal brands.
2022-2023 Highlights:
Ever the innovator, Amorepacific continued to trailblaze in 2022.In August 2022, Amorepacific earned the Red Dot Design Award 2022 in the Brands & Communication Design category for its development of Braille tags for hair care and body products. The tag was designed to help visually impaired consumers distinguish between products like shampoo and body wash, which can often be housed in similar packaging. The silicone-based tags come in four types indicating body wash, body lotion, shampoo, and conditioner, and are written in both Korean and English on each of the tags.
In September, Amorepacific announced it was acquiring Tata’s Natural Alchemy, a luxury clean beauty cosmetics brand founded in 2010. Commenting on the acquisition, Jinpyo Lee, Amorepacific’s chief strategy officer at Amorepacific Group, said the brand’s health and beauty core values resonated with values held by society and consumers today and, fueled by Amorepacific’s R&D and P&L infrastructure, he said he expected Tata Harper would be able to significantly expand its footprint in the Western and Asian markets.
That same month, the company also debuted a refreshed, revitalized identity for its 40-year-old Goutal fragrance brand, hallmarked by a new bottle design. The new bottle pays homage to its iconic look with a new shape and cap redesigned to reflect modernity while keeping its unique, vintage character.
In December, the company announced a strategic collaboration with Johns Hopkins University to support a new research program, New Beauty Research Initiative (NBRI). The collaboration was defined as a “corporate gift agreement” targeted to support NBRI, a mid-to-long-term research program, in fostering innovative research and advancements that add value to the health and beauty of consumers. Under the agreement, NBRI will work with Johns Hopkins’ commitment to supporting science innovation, which covers a wide range of fields including fundamental studies and clinical research, to study new targets and mechanisms while also carrying out clinical bioactivity tests on original materials developed by Amorepacific.
Looking Ahead:
Despite the bright spots in 2023, Amorepacific’s Q1 2023 sales fell 20% and operating profit also sank 52%. Domestic sales dipped 24.6% and international sales dropped 16.8%. The company blamed a double-digit decline in travel retail and e-commerce.By Q2 2023, the pace of loss seemed to slow down a bit. Although domestic revenue was down 11.6%, overseas revenue was up 27.5%
Domestic Luxury unit sales were down 12% and Premium product sales were down 24% in comparison to Q2 2022. And although Daily Beauty unit sales were down, they were only down 0.4% in comparison to this time last year, thanks to strong e-commerce and multi-brand shop channels.
Overseas business revenue was up 27%, with Asia sales growing 14%, and sales in North and EMEA more than doubling due to strong growth in Amorepacific’s major brands like Laneige, Sulwhasoo, Innisfree and Goutal.
Read Next: LG H&H is #16.