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Tag: AmorePacific

  • Revolutionizing Beauty: Amorepacific Transforms Seoul Flagship Store into High-Tech, AI-Powered Personalized Cosmetics Lab

    Revolutionizing Beauty: Amorepacific Transforms Seoul Flagship Store into High-Tech, AI-Powered Personalized Cosmetics Lab

    Asia’s leading beauty brand, Amorepacific, has unveiled its rejuvenated flagship retail hub, Amore Yongsan. With a new approach focused on artificial intelligence-powered diagnostics, personalized cosmetic products, and a unique shopping experience, this flagship makeover reflects the current trends in the beauty industry.

    Navigating the New Age of Beauty

    Situated at the company’s headquarters, the refurbished retail space is an innovative blend of shopping, beauty services, and customer-centric research. It is designed to provide a holistic beauty experience to the patrons, right from product discovery to purchase.

    Amore Yongsan, as explained by an Amorepacific representative, is now an interactive platform where customers are invited to partake in a ‘Create New Beauty’ vision. This vision promises an invigorating beauty journey that extends beyond simple purchases to include personalized cosmetology, in-depth skin diagnostics, as well as active participation in the development of new products.

    Innovation at the Heart of the Concept

    Two revolutionary features steal the limelight in this revamp. The first is the ‘Amore Bespoke’ service, a first-of-its-kind on-demand beauty offering. It allows customers to design custom-made products in the makeup, lip, and haircare categories, catering to their individual needs and preferences.

    The second is ‘City Lab’, an AI-assisted skin and scalp diagnostic platform. Utilizing Amorepacific’s historical skin research data, this platform uses predictive technology to forecast potential skin alterations based on various lifestyle factors.

    The decision to relaunch was driven by the increasing demand for personalized, tech-powered beauty experiences. This move also signals Amorepacific’s competitive positioning against other K-beauty brands, as it seeks to attract a younger consumer base and international clientele who crave immersive retail experiences.

    Questions & Answers

    What is the ‘Create New Beauty’ vision?
    It is Amorepacfic’s innovative approach to provide a comprehensive beauty journey to its customers. It includes personalized cosmetics, advanced skin analysis, and active customer participation in product development.

    What is the Amore Bespoke service?
    Amore Bespoke is an on-demand beauty service that allows customers to create custom-made products in makeup, lip, and haircare categories based on their individual needs and preferences.

    What is the function of the ‘City Lab’?
    The City Lab is an AI-powered skin and scalp analysis platform. It uses Amorepacific’s historical skin research data and predictive technology to forecast potential skin changes due to various lifestyle factors.

  • Global Expansion Fuels 41% Profit Surge for Korean Beauty Mogul, Amorepacific

    Global Expansion Fuels 41% Profit Surge for Korean Beauty Mogul, Amorepacific

    Amorepacific, a renowned South Korean health and beauty conglomerate, has reported robust results for the third quarter. The company attributes this success to the global expansion of its primary beauty brands.

    For the quarter that concluded in September, the consolidated revenue witnessed a 4% increase year on year, reaching US$752 million, whereas the operating profit experienced a significant surge of 41%, amounting to $71 million.

    Domestic Market Performance

    The domestic market also performed well, presenting a 4% increase in revenue and a 24% rise in operating profit. The company credits this rise to increased sales across various channels such as online platforms, department stores, multi-brand shops, and duty-free and cross-border platforms.

    International Market Performance

    Internationally, the company saw a 3% growth in revenue and an impressive 73% leap in operating profit. This growth is seen as a result of the company’s consistent expansion efforts in global markets.

    Brand Performances

    In terms of individual brands, Innisfree topped with a revenue of $338.6 million. This was closely followed by Etude with a revenue of $192.4 million, Amos Professional at $138.7 million, Osulloc at $185.6 million, and Espoir at $129.2 million.

    The company stated, “The robust performance of our flagship brands, coupled with continued efficiency measures, has allowed us to bolster both growth and profitability across markets.”

    Questions & Answers

    What is the key factor behind Amorepacific’s robust Q3 results?
    The company attributes its solid Q3 performance to the global expansion of its main beauty brands.

    Which brand performed the best in terms of revenue?
    Innisfree topped the chart with a revenue of $338.6 million.

    How did the company perform in the domestic and international markets?
    Amorepacific saw a 4% increase in domestic revenue and a 3% growth in international revenue. The operating profit rose 24% domestically and jumped 73% internationally.

  • Amorepacific Group’s net profit halved last year

    Amorepacific Group’s net profit halved last year

    On April 28, Amore Pacific Group announced key figures for Q1 FY2022, with the Korean beauty giant reporting sales of $997 million, down 9% year-on-year, operating profit of $136 million, down 13.4% year-on-year, and net profit of $104 million, down 25.2% year-on-year.

    The earnings report noted that domestic sales in Korea continued to account for the largest share of sales at 62.9%, down 9.9% year-over-year, while overseas sales fell 6.1%. In addition, in its fiscal 2021 earnings report, it noted that the Korean beauty giant’s sales rose 8% to $4.26 billion in 2021, which ended on December 31 last year, while operating profit soared 136.4% to $286 million, with sales up 8% year-over-year to $4.2 billion and net profit of $240 million , a 1224% jump compared to 2020.

    For the reason that its revenue decreased 10%, Amore Pacific Group said pure domestic (Korean) revenue increased from strong online sales growth (over 20%) but travel retail revenue declined by double digit (24% of total revenue).

    In the first quarter of 2022, group revenue in Asia fell 10% to $300 million due to revenue decline from resurgence of COVID-19 and restructuring of offline stores.

    Notably, in Asia, Amore Pacific’s premium brand Sulwhasoo contributed accounting 35% in its Luxury Subsidiary. Sulwhasoo strengthened representative anti-aging solution line of Sulwhasoo strengthened its representative anti-aging solution line of “Concentrated Ginseng Renewing Serum Ex, eye cream”.

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  • Amorepacific sees sharp plunge in sales

    Amorepacific sees sharp plunge in sales

    South Korean beauty conglomerate Amorepacific has recorded a 15.6 percent year-on-year drop in sales for its third quarter of this year, with operating profit plummeting 62.6 percent to US$13.2 million.

    In its home market, revenue was down 18.6 percent with operating profit dropping 49.8 percent. Despite a 10 percent increase in online sales, the domestic performance failed to improve as revenue in the travel retail channel declined by a double-digit rate.

    Meanwhile, sales in China, which usually accounts for about 50 percent of the company’s Asian sales, declined by 40 percent due to “offline channel restructuring of major brands and the slowdown in cosmetics consumption”. The overseas business’s loss of $6.5 million was attributed to the contraction in China sales, resulting from the country’s zero Covid policy of rolling lockdowns and movement restrictions.

    In contrast to China, sales in other international markets saw improvement. Elsewhere in Asia, revenue jumped by around 20 percent due to the reopening of Southeast Asian borders. The group saw sales in North America and Europe surge by 97 percent and 60 percent respectively due to steady growth of its major brands.

    Amorepacific has been diversifying its international business, which previously heavily relied on China, rapidly expanding its portfolio in North America during the past year. In September, the group acquired the American beauty brand Tata Harper as a stepping stone for its regional expansion plan.

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  • Amorepacific alligns on offline experiences for online shoppers

    Amorepacific alligns on offline experiences for online shoppers

    Amid difficult times for traditional offline retailers, Amorepacific is charting a new course for its operations across many of its most important brands. The goal is not simply to adapt to the so-called New Normal, but to embrace it with new and meaningful experiences for consumers.

    There is no doubt that the foot traffic in offline stores is falling sharply as more and more consumers find what they need via e-commerce. This long-term trend has accelerated due to the prolonged pandemic, and the beauty industry has not been immune. Many retailers have shuttered branches and shopping centers like Seoul’s Myeongdong district, which has long been a hub for attracting tourists from around the world, are experiencing unprecedented difficulties as tourists have stayed away.

    As Korea’s leading beauty conglomerate, Amorepacific has moved quickly to provide differentiated experiences for consumers, seeking to overcome the shock of the crisis with new distribution channels and strategies that embrace a combination of enhanced offline and expanded online approaches, while at the same time pioneering new markets overseas.

    In this new approach, the offline environment takes on an added role as an experience platform. More than just for buying products, it’s a place where customers can begin to explore a new world of beauty through new contents and services. Amorepacific’s aim is to create synergy between online and offline environments in creative ways that strengthen brand loyalty while also attracting new customers.

    “We know that consumer needs are changing and it’s time for us to embrace new and creative ways to approach them,” said Suh Kyung-bae, Chairman & CEO of Amorepacific Group, in his new year’s address, “Amorepacific continues to evolve but we will always focus on providing outstanding beauty experiences for our customers.”

    Amorepacific’s offline stores with outstanding beauty experiences

    • Amore Store Gwanggyo is an experience-based beauty store whare customers can meet and experience 40 brands and 2,000 products of Amorepacific. REFILL STATION opened in October 2020 at Amore Store Gwanggyo which enables customers to choose from 15 shampoo and bodywash products to refill recycled containers made from coconut shells. It is economical, environmentally friendly, and the contents are always at a discount from regularly bottled products.
    • Amore Seongsu is a place where customers can get to know beauty trend and experience Amorepacific’s latest beauty science and technology. BASE PICKER is a new service launched on April 6th at Amore Store Seongsu. Customers can create personalized foundation and cushion products from a choice of 2 textures, 2 product types and 100 colors. BASE PICKER was developed in collaboration with the Korea Advanced Institute of Science and Technology after conducting three years of research on skin tones and foundation colors. Tailored products are mixed on the spot with a special robot operated by patented technology in a fast and hygienic process.
    • IOPE lab is located in Seoul’s Myeongdong shopping district. It’s a place where customers can receive personalized measurement and genetic analysis of their skin type, and obtain personalized skincare solutions. Customers can also try the store’s personalized hydrogel mask service. Created with a 3D printer on the spot, the service received a 2020 CES Innovation Award.
    • FACEFIT by ARITAUM is located in Seoul’s Times Square Mall. Operated with professionally trained face-fit consultants, the store offers one-on-one personalized service optimized for each customer’s individual facial features. Customers can choose from key Amorepacific brands such as HERA, IOPE and HANYUL, and experience “face-only-fitness” as they learn how to exercise their facial muscles. The store also provides mini-makeup services and precise diagnosis of each customer’s skin problems.
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  • Amorepacific inks Memorandum of Understanding with Shopee to boost growth of K-beauty

    Amorepacific inks Memorandum of Understanding with Shopee to boost growth of K-beauty

     Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, and Amorepacific, Korea’s leading beauty company, have signed a Memorandum of Understanding (MOU) to strengthen regional partnership and accelerate the growth of K-beauty in the booming online beauty category in Southeast Asia. This year, Amorepacific will not only be focusing on growing its online presence in Southeast Asia, but have also included Taiwan as a new market within the partnership to boost its reach and share in the wider region. 

    Since launching on Shopee Mall in 2018, Amorepacific has recorded more than 13x of growth in Gross Merchandise Value (GMV), and doubled its e-commerce business regionally, in 2020. The leading Asian beauty brand aims to take its success further on Shopee with data-driven strategies, joint marketing efforts and more co-branded collaborations. Amorepacific also aims to expand the coverage of its current portfolio of brands on Shopee to more markets, in order to meet untapped demand and provide more assortment to consumers. These brands include Sulwhasoo, Laneige, Mamonde, Ryo, Mise en scene, innisfree and Etude. 

    Michael Youngsoo Kim, Head of Amorepacific APAC Regional Headquarters, said, “As our key e-commerce partner in the region, we are glad that we have seen strong and successful results with Shopee, and want to take it further by collaborating on new and innovative initiatives. 

    With Shopee’s deep understanding of the local market landscape in the region, engaged users, and data expertise, we believe that Amorepacific and Shopee together, will be able to better serve the needs of consumers by bringing more of our world-class products to them. We also look forward to the first regional campaign of Sulwhasoo on Shopee Premium, which will help to expand our brand presence with the growing online luxury beauty shoppers.” 

    Chris Feng, Chief Executive Officer at Shopee, said, “As one of the invited brand partners of Shopee’s newly launched Regional Champion Brands Programme1, we are confident of helping Amorepacific capture more growth and opportunities regionally with priority access and support on all regional initiatives and resources. This partnership will also enable us to tap on their vast portfolio and industry expertise to strengthen Shopee’s beauty and personal care offering, giving our shoppers more choices, as well as upgrading the online shopping experience. We look forward to working with Amorepacific to achieve even greater success than before, as they scale their presence and investment on e-commerce this year forward.” 

    Exclusive regional campaign for Sulwhasoo to drive premium category growth 

    With the growth in demand of premium beauty brands exceeding mass beauty brands on Shopee, Amorepacific will be launching the first regional campaign for Sulwhasoo on Shopee Premium this April, to drive online sales and premium category growth on e-commerce. This follows the exemplary performance of Sulwhasoo’s launch in Indonesia, Vietnam and Thailand on Shopee last year. 

    Sulwhasoo can curate brand content and tap on the differentiated user experience on Shopee Premium to enhance its brand storytelling, and deepen engagement with the growing number of premium and luxury consumer segments2. The beauty brand will also explore launching a brand membership programme on Shopee to reward loyal shoppers. 

    Engage users with personalised and unique content 

    Amorepacific also aims to leverage Shopee’s market leadership and deep data insights into consumer shopping trends and behaviour, to help pre-launch new exclusive products that serve existing brand lovers and acquire new users. In addition, Amorepacific will also explore introducing its brand ambassadors such as popular Korean celebrities and artistes, into its Shopee campaigns, strengthening its brand affinity and awareness with consumers across the region. 

    Korean beauty and skincare continues to attract a huge following in Asia and beyond. In Shopee’s annual mega campaigns from 9.9 to 12.12, Amorepacific brands such as Laneige and innisfree consistently ranked in the top five of the beauty category. This is driven by consumers’ preference toward skincare products made with unique, natural ingredient formulas4 and personalised beauty solutions, as well as the global rise of Korean pop culture, particularly throughout Southeast Asia. 

  • AmorePacific opens first ‘refill store’

    AmorePacific opens first ‘refill store’

    South Korean cosmetics giant AmorePacific Corp has opened a so-called ‘refill station’ – a first for the nation’s cosmetics industry.

    The company opened the facility as a trial inside its new Gwanggyo store that opened last week in Suwon, Gyeonggi Province.

    Customers can take an empty container made of coconut shells from the store and fill it with the product of their choice, with 15 different kinds of shampoos and body washes on offer.

    After filling the container with the product of their choice and measuring the weight, they pay per gram.

    Although the price is different by product, customers can generally fill a container at savings of roughly 50 percent compared to pre-packaged cosmetics products.

    The contents for refill will be limited to those with a manufacturing date of less than 100 days prior. Returned empty containers will be sterilised before being released to be refilled.

    “We decided to run the refill station to better meet the demand of the times requiring a wider variety of sales methods and the promotion of refill products,” the company said.

  • AmorePacific launches selected brands on Amazon

    AmorePacific launches selected brands on Amazon

    South Korean beauty group AmorePacific has launched two key brands on Amazon’s Premium Beauty store in the US as it looks to build its online presence. The beauty firm has introduced the AmorePacific and Mamonde brands on Amazon, including skincare and makeup.

    AmorePacific’s green tea skincare essentials – the Treatment Enzyme Peeling Cleansing Powder, Vintage Single Extract Essence, and Time Response Skin Reserve Creme.< “As the leader in Korean beauty, we are thrilled to collaborate and bring Korea’s best known, performance-driven brands to Amazon customers,” said Brian Lee, head of business development at AmorePacific US. “We strive for our portfolio of brands to continue significant growth in the digital space as more and more US customers pursue the convenience of online shopping.” The skincare and makeup range launched on Amazon include the AmorePacific’s Vintage Single Extract Essence and Mamonde’s Petal Spa Oil to Foam Cleanser. “AmorePacific’s brands cater to US customers’ continued enthusiasm for premium skincare with natural ingredients, as well as their latest interest in beauty routines as a form of self-care,” the company said in a statement.

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  • AmorePacific launches luxury brand Sulwhasoo into India

    AmorePacific launches luxury brand Sulwhasoo into India

    South Korea beauty giant AmorePacific has launched its luxury brand Sulwhasoo across India exclusively with Indian retailer Nykaa.

    “In recent years, Nykaa has led the South Korean beauty conversation in India, focusing on educating Indian customers on the novelty of the products and ingredients,” said Falguni Nayar, founder & CEO of Nykaa.

    Prior to Sulwhasoo, Amorepacific already introduced other brands in the country such as Innisfree, Laneige, and Etude.

    “I believe our customers in India are going to experience Sulwhasoo’s unique beauty solutions and to create more sophisticated and healthier skin care routines in the future,” said Michael Youngsoo Kim, Head of Amorepacific APAC RHQ.

    Sulwhasoo is Amorepacific’s signature luxury brand based on Korean ginseng.

    The Sulwhasoo India range will include the brand’s First Care Activating Serum and other lines such as Concentrated Ginseng Renewing line and Essential line.

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  • AmorePacific buys Australian luxury skincare brand

    AmorePacific buys Australian luxury skincare brand

    South Korean beauty firm AmorePacific has acquired a substantial minority stake in Australian luxury skincare brand Rationale.

    The investment is aimed at boosting AmorePacific’s credentials in the high-end personalized cosmetics market and will help Rationale expand across Asia, focusing on South Korea, Hong Kong, and Singapore initially during the next five years. The deal also effectively gives AmorePacific a manufacturing facility in Australia.

    Rationale currently operates 15 flagship stores in Australia, sells via its own online site and also through a network of about 50 medical agencies including dermatologists and plastic surgeons.

    Under the deal, AmorePacific will secure an advisory role and voting rights on Rationale’s board.

    “With a truly shared innovation vision, Rationale and AmorePacific will take personalized skincare solutions to a new level,” said Saehong Ahn, president of AmorePacific, in a statement.

    “AmorePacific will continue to look into mergers and acquisitions and partnerships with promising companies and secure opportunities for future growth.”

    Richard Parker, who founded Rationale in 1992, described the alignment between the two companies as “intuitive”.

    “Rationale is acknowledged worldwide as the environmental skincare authority and leader in epigenetic research, and we are thrilled to be empowered to expand this vital work with AmorePacific.

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  • Amorepacific launching Etude in Indonesia

    Amorepacific launching Etude in Indonesia

    South Korean beauty company Amorepacific Group is set to launch the Etude brand in Indonesia.

    The firm has partnered with local lifestyle retailer PT Mitra Adiperkasa Tbk (MAP) to boost the growth of its business in the territory.

    MAP plans to expand Amorepacific’s presence beyond Jakarta and across Bali, Surabaya and Bandung, giving more local customers better accessibility to the Etude brand, as well as Amorepacific’s other global brands such as Sulwhasoo, Laneige and Innisfree.

    “We are looking forward to working with MAP, the largest retailer in Indonesia to unlock the enormous potential the country has to offer,” said Amorepacific Group president Dong-hyun Bae.

    “With their expertise in retail, MAP and Amorepacific’s global brands are expected to create a great synergy and thereby provide the best quality service to the customers in Indonesia.”

  • Amorepacific launches 3D face mask-printing technology at CES 2020

    Amorepacific launches 3D face mask-printing technology at CES 2020

    South Korean beauty company Amorepacific has revealed a high-tech 3D face-mask printing system called IOPE Tailored 3D Mask at the annual Consumer Electronics Show in Las Vegas.

    Amorepacific has teamed up with 3D printing-system developer Lincsolution to create a system that prints bespoke face masks.

    Using its own smartphone app to instantly measure users’ facial dimensions, Amorepacific’s printing system designs a personalized hydrogel mask that caters to individual facial features and skin conditions.

    “Digitalisation is making waves in the beauty industry,” said Wonseok Park, senior VP of Amorepacific R&D center’s innovation division. “Amorepacific is actively investing in converging the best of both worlds to develop creative products for our customers.”

    The Amorepacific’s 3D printing technology will be available to its customers at the brand’s Seoul flagship store opening this April through the lab-based skincare brand IOPE.

    Besides the IOPE Tailored 3D Mask, Amorepacific introduced its MakeOn Flexible LED Patch, a flexible LED beauty device. Fitting close to the skin, minimizing light dispersion and maximizing the skincare effect, as well as providing a hands-free wearable experience, the flexible LED device will be available in Korea through the company’s beauty device brand MakeOn this year.

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  • Amorepacific invests in US brand Milk Makeup

    Amorepacific invests in US brand Milk Makeup

    South Korean beauty conglomerate Amorepacific has invested in American company Milk Group’s makeup and skincare division Milk Makeup.

    Seoul-based Amorepacific joins Main Post Partners and Alliance Consumer Growth as minority shareholders in the beauty brand, forming a strategic partnership that will assist the brand as it enters the South Korean marketplace.

    “The South Korean beauty market is highly competitive and incredibly innovative, so we are thrilled to have Amorepacific’s help to ensure our success in this important beauty space,” said Milk Makeup CEO and co-founder Mazdack Rassi. “This strategic partnership will allow us to benefit from Amorepacific’s significant expertise and resources. And in true partnership, Milk Makeup will share the strategies that have made it one of the fastest-growing color brands in the US.”

    “We were impressed by Amorepacific’s track record of internally starting and growing beauty brands,” said Milk Makeup chairman Scott Sassa. “This shared belief in building brands designed to last for decades was central to establishing this relationship.”

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  • Amorepacific opens Sulwhasoo Universe at Hainan

    Amorepacific opens Sulwhasoo Universe at Hainan

    Korean beauty firm Amorepacific has launched a new pop-up store, “Sulwhasoo Universe”.

    The firm hosted an event at the China Duty Free Group (CDFG) Sanya International Duty-Free Shopping Complex – the world’s largest duty-free store – to celebrate the opening on July 6. The event also served to mark with the 40th year anniversary of CDFG.

    Sulwhasoo Universe is a global pop-up store campaign to mark the launch of the Sulwhasoo First Care Activating Serum EX “Star Collection”. The brand opened its first pop-up store in Korea on May 15, following it up with a string of other stores in eleven major cities around the world.

    Open until July 31, the Sulwhasoo Universe pop-up store presents content based on an observatory-inspired concept to deliver a brand story behind the serum, a signature Sulwhasoo product.

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  • Amorepacific adopts a new eco-friendly packaging

    Amorepacific adopts a new eco-friendly packaging

    Nowadays, products purchased online are typically delivered in a big box with bubble wrap for protection. But once the package is safely delivered, the packaging becomes nothing more than waste. Amorepacific, however, has chosen to make use of eco-friendly packaging, adopting paper materials instead of bubble wrap.

    What seems like a small and insignificant change is the result of hard work, with an eye to the environment.

    The company’s new paper packaging, which was piled up among workers and automatic packaging devices at a logistics centre in Osan, Gyeonggi Province, consists of eco-friendly shock-absorbing packing material called ‘geami’ and ‘papillon’.

    When the product is wrapped with geami and the remaining space is stuffed with papillon, it can withstand most external shocks.

    It took months of research and testing before such materials were put into use. Furthermore, paper packaging is two or three times more expensive than bubble wrap, and its use extends the time required for packaging.

    Despite all of the disadvantages of the new materials, paper packaging was chosen because its value to the environment cannot be calculated and converted into money, the company says.

    Amorepacific needed a pre-emptive response as the problem of over-packing and using plastic is becoming a serious social problem, and as the number of consumers considering the environment increased. The remaining problem was how consumers would react to such change. As expected, some customers complained that they were sent garbage.

    Soon enough, however, the mood turned with positive comments regarding the new packaging surfacing online.

    Amorepacific continues to change to contribute to the environment. It no longer uses vinyl tape on its packages, replacing it instead with paper tape.

    The company has stopped using colour-coated boxes, and also uses smaller and slimmer boxes when possible. Product containers also went through major changes to become more eco-friendly.

    It was a difficult process as many consumers buy cosmetics because of the packaging.

    Since aesthetic standards cannot be ignored, Amorepacific changed the design of containers to reduce the amount of plastic used, made transparent containers for easy recycling, and used paper to make dual-structure containers.

    In addition, last year Amorepacific used paper that was certified with Forest Stewardship Council (FSC), which is given to paper produced in a sustainable way, on boxes for 500 different products.

    Although the company’s packaging materials research team is having difficulty developing new designs, it is continuously developing cosmetics containers that maximise aesthetic effects and at the same time reflect eco-friendly elements without affecting product preservation.

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