05.04.22
Global beauty company Amorepacific Group reported sales of KRW 1.2628 trillion and an operating profit of KRW 171.2 billion in Q1 2022, down 9.0 % and 13.4 % respectively from Q1 2021.
In total, sales in the cosmetics category were KRW 1.1506 trillion in Q1 2022.
The decline in sales was mainly influenced by business uncertainty in both Korea and around the world, due to the second wave of Covid-19.
In China, sales went down by around 10% in the midst of another wave of Covid-19, but Sulwhasoo focused on developing Concentrated Ginseng Renewing and showed a growth in the online channel thus proving its competitiveness in the Chinese market.
In other Asian regions, overall sales decreased as social distancing continued, but main brands launched new innovative products including Sulwhasoo Concentrated Ginseng Renewing Serum and Laneige Water Bank to strengthen their brand competitiveness.
In the North American market, leading brands drove a sales growth of 63%. Laneige saw strong sales, particularly with Lip Sleeping Mask through successful online channel diversification while Sulwhasoo grew in both online and offline sales.
For building a Strong Brand, Amorepacific is working to develop engine products, improve data-driven customer service and expand into new potential categories including dermocosmetics and wellness. For digital transformation, it is focusing on strengthening its capabilities in e-commerce, contents and community to win over a strong fandom and lay the foundation for future growth through digital technology. It is also pushing ahead with data-driven inventory optimization and empathetic ESG management for the goal of business fundamentals innovation.
In total, sales in the cosmetics category were KRW 1.1506 trillion in Q1 2022.
The decline in sales was mainly influenced by business uncertainty in both Korea and around the world, due to the second wave of Covid-19.
Global Performance Impacted by Covid-19
In the Korean market, Amorepacific saw over a 20% growth in the online channel, but decreased sales in the travel retail channel resulted in a decline in the overall sales. The operating profit also went down due to increased spending on marketing.In China, sales went down by around 10% in the midst of another wave of Covid-19, but Sulwhasoo focused on developing Concentrated Ginseng Renewing and showed a growth in the online channel thus proving its competitiveness in the Chinese market.
In other Asian regions, overall sales decreased as social distancing continued, but main brands launched new innovative products including Sulwhasoo Concentrated Ginseng Renewing Serum and Laneige Water Bank to strengthen their brand competitiveness.
In the North American market, leading brands drove a sales growth of 63%. Laneige saw strong sales, particularly with Lip Sleeping Mask through successful online channel diversification while Sulwhasoo grew in both online and offline sales.
Strategy for 2022
Moving forward, Amorepacific Group is carrying out three strategies: Strong Brand, Digital Transformation and Business Fundamentals Innovation under the management policy of Winning Together.For building a Strong Brand, Amorepacific is working to develop engine products, improve data-driven customer service and expand into new potential categories including dermocosmetics and wellness. For digital transformation, it is focusing on strengthening its capabilities in e-commerce, contents and community to win over a strong fandom and lay the foundation for future growth through digital technology. It is also pushing ahead with data-driven inventory optimization and empathetic ESG management for the goal of business fundamentals innovation.