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    Top 20 Companies

    9. AmorePacific

    ...

    9. AmorePacific
    AmorePacific received a Gold Award in the DuPont Awards for Packaging Innovation, for its Prime Reserve jar.
    9. AmorePacific
    Jamie Matusow with Joanna Cosgrove, Editor-in-Chief with Contributing Editor11.01.17
    Update: Amorepacific ranks at #19 on our latest report Top 20 Global Beauty Companies 2021.

    South Korea

    www.amorepacific.com


    Beauty Sales:

    $5.6 billion

    Key Personnel:

    Suh Kyungbae, chairman and chief executive officer; Shim Sangbae, president and chief executive officer.

    Major Products/Brands:

    Sulwhasoo, Laneige, Mamonde, Innisfree, Etude, Lolita Lempicka, Annick Goutal.

    New Products:

    Etude Play 101 Pencil, Etude Real Powder Cushion, Innisfree Green Tea Seed Serum, Innisfree Jeju Volcanic Pore Clay Mask, Innisfree Jeju Lava Sea Water, Innisfree My Cushion, eSpoir No Wear Lipstick and Pro Tailor Foundation, Amos Professional Feel the Green Tea.

    Comments:

    AmorePacific’s introduction of the IOPE Air Cushion compact in 2008, changed the cosmetic industry’s foundation game, transitioned beauty routines worldwide and catapulted the South Korean company further toward its goal of becoming one of the largest global beauty players. In fact, in October 2016, the company’s cushion compacts hit the 100-million-unit mark in sales. The brand’s cushion technology holds 177 patent applications and 26 registered patents as of October 2016.

    For 2016, AmorePacific Group reported that sales had increased 18.3% year over year to $5.6 billion, driven by its cosmetics subsidiaries in Korea and abroad. The domestic business saw a sales increase of 12% thanks to “brand power and enhanced retail expertise.” Overseas business showed solid growth through its five “Global Champion Brands,” namely Sulwhasoo, Laneige, Mamonde, innisfree and Etude. Sales in overseas markets jumped 35%.

    AmorePacific’s Luxury portfolio made significant contributions to the bottom line. Sulwhasoo strengthened its position as Asia’s luxury brand by opening flagship stores that provide customers with unique brand experiences. HERA increased steps toward global expansion with its trendy Seoulista brand story and product lineup. Travel retail grew with the expansion of global and online stores. In the door-to-door channel, its digital sales platform led to increased customer convenience and greater sales efficiency. Premium Business strengthened core brand values through marketing activities and new product releases while maintaining sustained growth in its directly-run online store and mobile commerce platform.

    Mass business decreased in sales due to a toothpaste recall and poor performance of oral care in general. In the hair and body care category, premium offerings such as Ryo and mise en scène brands grew stronger. In body care, Happy Bath and ILLI saw continued growth.

    Overseas business reported high growth boosted by the five Global Champion Brands, mentioned above. In Asia, sales were up 38% year on year. In luxury makeup, HERA was launched in China, and Sulwhasoo opened more stores. Innisfree posted a solid growth due to what AmorePacific calls an “unmatched brand experience.” Brand awareness grew for Etude, leading to increased sales. 

    Sales in North America showed a growth of 10%, due to an expansion in Canada, with new shops in department stores and in specialty stores, for the Sulwhasoo and Laneige brands. In Europe, company sales increased by 4% due to sales growth of key products.

    2017 News of Note

    In January, AmorePacific partnered with Alshaya Group, one of the largest retailers in the Middle East, with plans to open the first Etude House store in Dubai during the second half of 2017. Etude House ranks as Korea’s No. 1 makeup brand targeting a young demographic. AmorePacific says it has invested in building regional expertise in the Middle East by assigning its regional experts called Hyecho in major cities such as Dubai, Abu Dhabi, Teheran and Istanbul to build local market insight.

    In May, the Korean company announced that a Sulwhasoo store was set to open exclusively at Galeries Lafayette in Paris in September, achieving a long-term goal to bring high-end Korean cosmetics to France.

    AmorePacific prides itself on its packaging. In May, the company received a Gold Award in the DuPont Awards for Packaging Innovation, for its Prime Reserve jar, “designed with the consumer experience in mind.” According to AmorePacific, “The elegant design of the jar provides consumers the ultimate indulgence and is an attractive addition to the consumers’ personal care product display in the home.” Made of 10 different components, this molded “jar within a jar” conveys luxury with its “remarkable” feel and weight. In addition, product manufacturers can decorate the outer jars while leaving the inner jar untouched and, if the formulation of the product is ever altered, the outer jar can still remain the same.

    According to AmorePacific, the previous package had the same water ripple effect but was made using the CNC shaving process. By using the new injection molding process, AmorePacific was able to achieve the same extraordinary effect with a 76% reduction in material waste. This package was a great success in molding advancement, consumer indulgence and sustainability, going well beyond what was expected to deliver a high level of “premiumness” and distinctiveness, according to DuPont judges. 
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