Amorepacific Group’s innisfree (CEO Im Hye-yeong) signed a shared growth agreement with innisfree Managers Association (President Seong Nak-eum), while ETUDE (CEO Shim Jae-wan) signed a shared growth agreement with ETUDE Managers Association (President Jo Yong-u).
Following ARITAUM on Friday, October 16, the new shared growth agreements were signed on the 19th (Mon) with ETUDE and on the 21st (Wed) with innisfree. With the new agreements, the three franchise businesses managed by Amorepacific Group are expected to accelerate shared growth efforts.
On the afternoon of Wednesday, October 21, innisfree agreed on three items with the association including KRW 4 billion in support and the two parties committed to faithful fulfilment of the agreement.
Key details of the agreement include special rent support for stores and increased online mall revenue sharing. Stores headquarters will provide KRW 4 billion in support for one-month rent and sales activities to store owners in support of them overcoming the COVID-19 crisis. The two parties plan to discuss a separate strategy to increase the share of customers registered on ‘My Shop’, a scheme introduced to promote shared growth between the two parties.
innisfree CEO Im Hye-yeong said, “innisfree stores are our important partners” and added, “we will continue to identify measures that can increase revenues of both store owners and headquarters to respond to changes in the distribution structures online and offline.”
In the agreement with ETUDE, which was signed on Monday, October 19, there are 7 policies including mid-to-long term action plan and a short-term support of KRW 1.4 billion.
To support overcoming COVID-19 crisis, each store will receive special rent support and can return inventory products with poor performance. Stores that will close until the first quarter next year are exempt from returning the support fund provided for interior design and can return all remaining products. In mid-to-long-term perspective, store-exclusive products will be expanded and the ‘My Shop’ scheme, which partially shares the sales of the online mall, will be adjusted to increase the revenue share of store owners.
ETUDE CEO Shim Jae-wan said, “The stores are our important partners where customers experience our brand and products. We will further strengthen communication and collaboration by taking this agreement as an opportunity.”
The agreement signed at the Amorepacific headquarters on October 16 (Fri) among ARITAUM stores headquarters, nationwide ARITAUM Managers Association, and nationwide ARITAUM Owners Association included 7 items as well as a support of KRW 6 billion.
Stores headquarters will provide rent support to stores and receive special return of inventory products by this year in support of the stores overcoming the crisis triggered by COVID-19. For any stores that close down by the first quarter next year, stores are exempt from returning the support fund provided for interior design and can return all remaining products, which is equivalent to a support of KRW 6 billion in total. To enhance stores’ competitiveness, store-exclusive products will be expanded to 50%, while ‘My Store’ scheme, which partially shares the sales of online mall, will be adjusted to increase the revenue share of store owners.
Amorepacific President Ahn Sae-hong said, “Our franchise business is struggling due to the spread of COVID-19, but our stores are our important channel and partner” and added, “we will build a strong shared growth partnership and fulfill our role and responsibility as stores headquarters to contribute to creating a shared growth culture in the cosmetics industry.”
By signing agreements with all three franchise stores of ARITAUM, ETUDE, and innisfree, Amorepacific Group has confirmed the amount of support funds for the second half of this year at KRW 12 billion. The total amount of support provided this year is KRW 20 billion adding to the 8 billion provided in the first half to overcome COVID-19.
Amorepacific Group has been dedicated to leading K-beauty trend across the world with store owners as a way for the cosmetics industry to contribute to the development of the country’s economy. It is committed to continue such effort with a heavier responsibility so that it can grow together with store owners as well as many partners.