Beauty Sales: $4.8 billion
Key Personnel: Kyung-bae Suh, chairman & CEO; Sang-bae Shim, president; Jae-cheon Yoo, executive vice president, luxury business unit; Min-jeon Rhee, executive vice president, marketing strategy unit; Chan-hoi Kim, executive vice president, mass business unit.
Major Products/Brands: Prestige and mass market skin care, personal care, hair care, cosmetics and oral care products including Sulwhasoo, Laneige, Mamonde, Innisfree, Hera, Iope, Happy Bath, Primera, Odyssey, Illi, Lirikos, Aestura, Makeon, Etude, Hanyul, Espoir, Aritaum, Annick Goutal, Lolita Lempika, Vital Beauty, Ryo, Mise-en-Scéne, Median.
New Products: Innisfree: My Cushion, Jeju Sparkling Mineral lines and Cauliflower Mushroom Vital lines; Etude: Blur Cream; Sulwhasoo: 2015 ShineClassic Makeup Limited Edition, Refreshing Cleansing Foam and Age Defying Cream for men; Laneige: Water Sleeping Mask, Water Bank Eye Gel; Lolita Lempicka L’Eau en Blanc (women) and Lolita Lempicka Au Masculin Eau de Parfum Intense (men) and Elle L’aime Edition d’Ete fragrances; Iope: Air Cushion XP Matte Finish SPF 50.
Comments: As the oldest and most prolific ambassador of the global Korean beauty product craze, AmorePacific continues to captivate beauty consumers with its unique approach to ingredients and packaging. Having pioneered the concept of cushion cosmetics with the development of its patented AirCushion package built with a specially designed sponge that maintains the integrity of liquid cosmetic formulas, the company reported that it offered a total of 19 Cushion products from its 13 brands in more than 10 countries in the Asian and North American regions in January 2015.
In 2015 the company recorded solid growth in the domestic and overseas markets, with domestic cosmetics business sales increasing by 13% year-on-year and operating profit increasing 9% year-on-year, thanks to the distinctive brand equity and increased retail competitiveness of its five “global champion brands” Sulwhasoo, Laneige, Mamonde, Innisfree and Etude.
Sulwhasoo expanded its customer base via digital media, while Hera built its brand identity around the concept of “Seoulista” and made preparations for global expansion, the firm said.
The company’s premium business unit, which includes Iope, Laneige, Mamonde and Aritaum, enhanced marketing activities and expanded product categories to increase its reach to a younger customer base. In addition, an aggressive push was made for moisturizer and makeup categories, such as Laneige Water Bank Gel Cream, Laneige Two Tone Collection, Mamonde Rose line and Mamonde Cover Foundation.
Innisfree achieved solid growth across all channels thanks to a positive market response to new products and brisk sales of major products such as Green Tea Seed Serum and Volcanic Pore Clay Mask, the firm said.
News of Note in 2016
In addition to celebrating its 70th anniversary, this year AmorePacific has implemented new stewardship initiatives to double down on its environmental responsibility efforts, launching what it calls the 2020 Sustainable Technology Roadmap which is structured to address three key areas: enhancing consumer safety and trust; minimizing environmental impact and energy reduction; and strengthening local community contributions. One of its key goals focuses on the development of sustainable packaging based on the four strategies of Reduce, Recycle, Reuse and Renewable, which the company said would further help it meet the overarching corporate goal of reducing package use per product by 25% by 2020.
In the meantime, the company continues to build value into its Cushion delivery system with two new advancements.
AmorePacific’s Ultra-Fine Dispersion technology reduces cushion formula particle size by more than 30% to yield a lighter, “more natural expression” for foundation products and “enables optimal infusion of botanical skin care ingredients.”
A new 3D Sponge is a departure from usual flat sponges and firmly deposits the newly refined Cushion formula in a light finish that at one time would have taken several steps to achieve.
In June, AmorePacific signed a strategic partnership agreement with Parfums Christian Dior that paves the way for Dior’s future use of AmorePacific’s proprietary AirCushion technology.