Beauty Sales: $2.9 billion
Bradley Horowitz, president & CEO, AmorePacific U.S.
Major Products: Prestige and mass fragrance, cosmetic and skin care brands including AmorePacific, Hera, Sulwhasoo, Annick Goutal, Lolita Lempicka, Happy Bath, Etude, Innisfree.
New Products: Primera’s Ecocert-certified Primera Baby Intense Cream, Hera UV mist cushion, Mise-en-scene easy & speedy foam hair color, Laneige Water Supreme Creamy Foundation, Happy Bath Whiteclay Blackhead Foam (One-Touch Cap), Illi Total Age Body Lotion, Luminous, Happy Bath Aqua Cooling Gel.
Comments: Kyung-bae Suh, chairman and chief executive officer of AmorePacific, South Korea’s largest beauty company, said they are striving to deliver Asian beauty to customers all across the globe. Domestically, their products sell in department stores, drug stores, door-to-door and online, with mass brands like Happy Bath to luxury brands, such as Sulwhasoo and Hera. In fact, Suh said the company aims to become Asia’s No.1 and Global Top 7 cosmetics company by 2020, and will do so by developing 10 global megabrands and expanding into the global market.
The R&D, multiple channel and far-reaching global strategies seem to be paying off. For 2012, total sales reached $2.9 billion. The domestic market accounted for the lion’s share, at $2.4 billion. Beauty sales in China contributed $243 million; followed by $143 million from Asia excluding China; Europe with $72 million; and the U.S. with $18 million.
Elle L’aime marked a key U.S. launch for the Lolita Lempicka brand, ownedby Amore Pacific.
In order to achieve its corporate vision of reaching the Global Top 7 position, the company underwent a change in its organizational structure. It also completed its Beauty Production Site— an integrated production and logistics center that consolidates its skin care production sites, makeup production sites, and regional logistics centers that were scattered all over the nation into one place.
As with a number of our Top 20 companies, AmorePacific strove to strengthen working relationships with partners in its supply chain. They established communities according to the types of major suppliers in the supply chain, including packaging materials, raw materials, ODM, and production/transportation.
Product-wise, R&D played an important role in AmorePacific’s drive for developing megabrands. One example is their development of a “cell-trap sponge compact case’ which will make sunscreens easy to use as well as optimize absorption when reapplied on the skin. Not only did AmorePacific develop this form of “nonflowing liquid,” but also the cell-trap technology, which contains liquid contents in the sponge by using a specialized technology of hyper-ultrafine dispersion technology.
They also developed a variety of innovative hair care products, including quick hair dye, hair dye shampoo and hair dye applied with a comb.
As far as sustainable packages, AmorePacific aims to reduce the amount of package used per product by 25% by the year 2020, and is working to develop sustainable and eco-friendly packages. For example, since non-coated plastic materials are easier to recycle, AmorePacific developed high-gloss, noncoated plastic materials that are scratch-resistant.
Last year, AmorePacific acquired the French luxury perfume brand Annick Goutal. Ths year, they launched a new scent from another of their luxury fragrance properties—Lolita Lempicka. One of the top 10 perfume brands in France, Elle L’aime marks Lolita Lempicka’s biggest U.S. launch in over a decade. The new scent made packaging waves in a beautiful glass bottle from Pochet, with engraved tinted glass and silk-screen printing.
In August 2012, Bradley Horowitz, AmorePacific’s chief operating officer, was named as the company’s new president and CEO of of AmorePacific U.S., Inc. Horowitz was charged with directing the company “towards a significant growth trajectory” and is committed to solidifying the brand as a leading skin care authority in North America.
An upward trend continued in the first half of 2013. Increased overseas distribution was cited as a reason for sales climbing 9.2% to $1.5 billion.
Domestic business accounted for $1.2 billion, about 83%. Overseas business topped 17%, at over $257 million—up 39% over the previous year.
Domestically, in the luxury division, door-to-door sales declined while department store figures grew due to new launches. Duty free prospered, again due to Chinese travelers. Digital growth also remained strong. In the mass market, a focus on major products proved to be beneficial.
In the U.S., strong growth was reported in all channels.