Record High Sales
South Korea's top cosmetics maker AmorePacific Group said its sales in 2015 jumped 20.1 percent on-year to 5.66 trillion won (US$4.68 billion) and its operating profit stood at 913.6 billion won (US$755.67 million), up 38.6 percent. Thanks to its cosmetics subsidiaries’ growth in markets at home and abroad, the group’s sales and operating profits showed strong growth.
As duty-free sales amounted to 1 trillion won (US$827.13 million) due to the increase in foreign travelers, it helped push up domestic sales. Based on strong growth of its major high-end brands, such as Sulhwasoo, Hera and Primera, the share in the department store channel also increased.
For overseas cosmetics business, the group saw high sales growth in the markets in Asia and North America, leading strong growth.
In Asian markets, AmorePacific increased its sales by 51.5 percent on-year through the expansion of its markets, based on its five global brands including Sulhwasoo, Laneige, Mamonde, Innisfree and Etude House, and improvement of profitability.
Sulhwasoo has established its status as the leading luxury cosmetics brand in Asia by expanding customer interaction, mainly in the Chinese and ASEAN markets, and strengthening its VIP marketing strategy. Laneige has solidified its position as the global premium beauty brand for young women further by beefing up its product competitiveness and marketing activities.
Mamonde has seen its sales and profits grow through steady brand renewal, while Innisfree is accelerating the Asian market invasion based on its differentiated brand story. Etude House is improving the brand power by innovating products, stores and services, and expanding the global business foundation.
In addition, the group has strengthened its brand portfolio in the Chinese market by launching new brands such as IOPE and Ryoe. In the North American markets, it saw its sales grow by 39 percent on-year by expanding its regional and distribution channels. In particular, AmorePacific expanded the sales outlets of its leading brands, including Sulhwasoo and Laneige, in the U.S. and pushed into the Canadian market, pushing up sales. In contrast, the company saw a decrease in sales and operating profits in the European market due to low domestic consumption, the weak euro and its reorganization of distribution channels.