Based on Solid Growth in China

Products of the History of Whoo brand

Amorepacific and LG Household & Health Care (LG H&H), the two largest players in the domestic cosmetics industry, posted sharply contrasting results last year amid a COVID-19-sparked crisis.

Amorepacific, a major affiliate of Amorepacific Group, racked up 4,432.2 billion won in sales and 143 billion in operating profit in 2020. Compared to 2019, its sales and operating profit decreased by 20.6 percent and 66.6 percent, respectively. It was the first time since 2014 that Amorepacific’s sales remained in the four trillion range. On the other hand, the Beauty Care Division of LG Household & Health Care beat Amorepacific by chalking up 4.458.1 billion won in sales and 822.8 billion won in operating profit.

The contrasting results were attributed to their reliance on different distribution channels. Amorepacific relied on offline channels such as duty-free shops, department stores and road shops.

On the other hand, LG Household & Health Care strengthened its brands based on high-priced products and fared well in overseas markets such as China and the United States. In particular, the company’s Whoo brand has solidified its position as a luxury brand in China and performed well in China’s online market.

Thanks to increased sales through digital channels, its cosmetics sales grew 41 percent on year in the fourth quarter of 2020 and 21 percent for the whole of 2020. As a result, the Beauty Care Division of LG Household & Health recorded a mere 6.1 percent drop in sales despite unfavorable internal and external factors, receiving a better scorecard than Amorepacific.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution