[Seoul, Korea—April 17, 2017] Amorepacific Group, South Korea’s largest beauty company, today announced the achievement of another milestone in its development and growth, becoming South Korea’s first global beauty company to reach 7th on the Women’s Wear Daily’s Beauty Top 100. The accomplishment marks a 5-spot jump for Amorepacific from last year’s position at twelve.
The influence of WWD’s annual rankings of the world’s top-100 beauty companies is based on sales of previous fiscal year and is widely acknowledged in the beauty industry. WWD summed up Amorepacific’s 2016 performance as “another year of strong growth.”
Amorepacific established its place in the top-20 in 2007 and moved up this year to 7th in ten years. During this period, South Korea’s cosmetics leader has more than quadrupled sales of beauty products (KRW 1.56 trillion to KRW 6.69 trillion) and nearly quintupled operating profit (KRW 237 billion to KRW 1.82 trillion)1).
In addition to the company’s strong focus on innovation, this company’s growth is credited to three vital growth strategies: brand singularity, commitment to innovation and market diversity.
Amorepacific’s business portfolio includes more than 20 brands dedicated to market leadership and meeting diverse consumer demands. Among these, Amorepacific’s five global champion brands —Sulwhasoo, Laneige, Mamonde, innisfree, and Etude—are strategically managed to offer “singular” brand experiences to their diverse international consumer base. In 2015, Sulwhasoo became the first Korean beauty brand to generate KRW 1 trillion in cumulative sales. In 2016, innisfree also broke the KRW 1 trillion sales mark solidifying its leadership in the natural beauty category.
Commitment to innovation
Since establishing Korea’s first cosmetics research lab in 1954, Amorepacific has written a history of firsts in the Korean beauty industry including the pioneering of innovative product categories capable of delivering value to consumers and setting marketplace trends. Few of these beauty categories which are transforming beauty culture around the world are boosting essences, sleeping masks, cushion foundations and two-tone lip bars.
For its global business, Amorepacific strategically focuses on Greater China, ASEAN, and the North America region. With overseas exports accounting for 25 percent of total revenue last year, Amorepacific is dedicated to diversifying its access to markets around the world. For ASEAN region, while solidifying brand presences in mature markets like Singapore, Malaysia, and Thailand, future sales growth will be led by expansion through mega cities throughout the region, including in Vietnam, Indonesia, and the Philippines. As for North America region, Amorepacific will expand its brand portfolio this year by launching innisfree brand in the US market which will be added to existing brands Amorepacific flagship, Sulwhasoo and Laneige. As for the Middle East region, Etude will open its first store in Dubai this year.
“As a global beauty company representing South Korea, it is an honor to be recognized as one of the world’s top ten beauty companies,” said Amorepacific Chairman & CEO Suh Kyungbae. “Our growth strategy remains firmly focused on creating innovative, singular brands and products that appeal to consumers in target markets, and we will continue to work towards becoming a Great Company delivering new beauty values to customers around world.”
Amorepacific’s Total Sales, Operating profit, Market capitalization
- 1) Based on sales and profit comparison between 2006 and 2016 only
- 2) Basic sum of figures from operating company (Amorepacific Corporation) and holding company (Amorepacific Group) after restructuring in 2006