AmorePacific, which started its third Yongsan era with the completion of a new corporate headquarters building in Yongsan, is accelerating its overseas expansion with the goal of becoming the number one cosmetics company in Asia and one of the top three global cosmetics companies by 2025. In particular, the company plans to increase the number of the countries where they have established a foothold to 50 by 2025, and achieve half of its total sales abroad.
AmorePacific set its goal to increase the number of countries that the company will advance to 30 by 2020 and 50 by 2025 in honor of its 73rd anniversary on September 16. Currently, AmorePacific is running its business in 18 countries including China, Hong Kong, Taiwan, Japan, Australia and Canada.
Overseas sales of the AmorePacific Group in 15 countries accounted for 32% of its total sales last year. The group plans to elevate this to 35% by 2020 by entering 30 countries and 50% by 2025 by entering 50 countries.
AmorePacific made inroads into the Oceania including Australia in the first half of this year after the Middle East last year. Laneige, a brand of AmorePacific will enter India for the first time in the second half of this year. Mise-en-scène and Ryoe are set to make their debuts in China and Hong Kong. After 2020, the company plans to further expand into Russia, Western Europe and the Middle East, and make a foray into Central and South America in earnest.
AmorePacific enjoyed a sharp rise in its sales while growing steadily in China. But last year, China's retaliation against South Korea for the deployment of the THAAD System in South Korea dropped the company into a sales slump and has prodded the company into lowering its dependence on the Chinese market and focusing on diversifying its overseas markets.
In particular, AmorePacific will make a foray into the ASEAN, a rapidly growing market on a full scale. AmorePacific is building a production base in the Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, Johor of Malaysia by investing 110 billion won (US$99 million) by 2020.
AmorePacific is also zeroing in on India expected to become the most populous country in the world by 2030 by overtaking China. The company started the Innisfree brand business by establishing a local subsidiary in 2012. The Innisfree business will increase its number of stores to 12 in India this year. In particular, AmorePacific plans to establish offline bases with Innisfree as a major brand via partnership with local companies, focusing on five strategic cities (Delhi, Mumbai, Kolkata, Bangalore and Chennai). Its goal is to increase the number of stores to 50 by 2022.