Below is a look at the company's 2019 highlights, recent acquisitions, best-selling brands and latest innovations.
- Suh Kyungbae, chairman and chief executive officer
- Bae Donghyun, president and chief executive officer
Skincare, Cosmetics and Hair Care sold under brands including:
- Sulwhasoo, Laneige, Mamonde
- Innisfree, Hera, Iope
- Happy Bath, Primera, Odyssey
- Illi, Lirikos, Aestura
- Makeon, Etude, Hanyul
- Espoir, Aritaum, Annick Goutal
- Ryo, Mise-en-Scéne
- Laneige Layering Cover Cushion and Stained Glasstick
- Mamonde All Stay Foundation
- Ryo Hair Loss Care Shampoo
- Sulwhasoo Concentrated Ginseng Renewing line
- Innisfree My Foundation
- Bija Cica Balm
- Etude Mini Two Match
- Shine Chic Lip Lacquer
The K-Beauty bubble is shrinking and although Amorepacific posted a modest corporate sales gain of 1% in 2018, the company is mobilizing to improve product innovation to help lessen the inevitable pinch. Beauty sales grew 3% in 2018 thanks to international sales (+8.2%). Domestically, the company’s luxury division sales got a 3.6% boost from gains in travel retail and the success of products including Sulwhasoo Bloomstay Vitalizing line, Hera Rosy-Satin cream and Vitalbeautie Jaeumbo Ampoules. Sales in the company’s Asia international sector rose 8.2% due to expanded new market entry.
Sales in North America rose on the strength of skincare sales. Within the past year, Amorepacific introduced its Mamonde and Innisfree brands to the U.S. and in March, the U.S. portfolio expanded further with the launch of Mamonde at Ulta Beauty.
In April, the company also expanded its European presence by launching its Laneige brand in 800 Sephora stores across 18 European countries including France, Russia, Spain and Italy.
By Q4 2018, the company’s total revenues were up 3% (in comparison to the previous year) but operating profits fell 19.2%. Domestic revenue was flat and operating profits dropped 31.9%.
The company’s overseas revenue grew 7.4% but operating profits fell a whopping 69%.
In packaging news, the company’s 2018 Sustainability Report affirmed Amorepacific’s commitment to environmental responsibility. Instead of using petroleum-derived raw materials, 67 of the company’s new products were housed in biomass plastics derived from renewable plant-derived raw materials, while recycled packaging was used for 27 new products. Sustainably sourced, FSC-certified paper was used for 573 products in 2018. And finally, 33 products featured “universal-designed” packaging characterized by designs that enable convenient product use to consumers “regardless of age or discomfort.”
News of Note in 2019
In his New Year address, Chairman Suh Kyungbae said the company designated its 2019 management policy as “Exciting Changes,” framing the inevitable market shifts and evolving consumers as “golden opportunities for new innovations.” By Q2 2019, total revenue was up 3.7%. Domestic revenue growth was calculated at +1.6%, and +7.4% internationally, led by North American revenues (+54%) which the company said were boosted in part by the Laneige entry in Sephora and the Innisfree store launch in California.
In June 2019 Amorepacific signed a memorandum of understanding (MOU) with TerraCycle to recycle empty bottles. The MOU indicated at least 100 tons of empty plastic bottles would be recycled each year for three years; the ratio of using recycled empty bottles for Amorepacific products and furnishings increase 10% in the first year, 20% in the second and 30% in the third year; and that Amorepacific would achieve 100% recycling of empty bottles and 50% of those used for products and furnishings by 2025.
Saehong Ahn, president of Amorepacific Corp., said his company would prepare for the age of “No Plastic” by reusing collected empty bottles and developing environmentally friendly materials. Starting with Innisfree in 2003, Amorepacific Group has collected a total of 1,736 tons of empty cosmetic bottles (as of 2018) and is currently studying various recycle possibilities to minimize the damage to nature induced by these containers. The company has also been continuing its GREENCYCLE campaign, an environmental CSR activity of recycling empty cosmetic bottles or upcycling them into creative artworks.
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