Friday, June 28, 2013, 11:12
AMOREPACIFIC: Goal to be No 1 in China
By Zhuan Ti

AMOREPACIFIC: Goal to be No 1 in China
The luxury beauty brand Sulwhasoo is now available at 27 high-end department stores in Beijing, Shanghai and other major cities. (Photos provided to China Daily)

Popular products from ROK's cosmetics giant

AMOREPACIFIC, the top cosmetics company in the Republic of Korea, has been leading the country's beauty industry for more than 68 years since its founding in 1945.

The rapidly growing global company now has 14 regional offices in 11 countries. It generated KRW 442.8 billion ($383 million) in overseas sales last year, with its China business soaring 38 percent, spearheading the company's development abroad.

Its relationship with China began in 1993, with the establishment of AMOREPACIFIC Cosmetics Co Ltd.

Forecasting high growth for the beauty market in China, it focused on three northeastern cities - Shenyang, Changchun and Harbin, and began to supply the Mamonde and Amore brands. AMOREPACIFIC was able to maintain steady growth and secure its position as the No 4 or 5 beauty company in the region.

Building on years of experience and understanding of the Chinese market, and employing high-caliber talent, the company established AMOREPACIFIC China in 2000 in Shanghai. It expanded with the launch of the LANEIGE brand in 2002, followed by Mamonde in 2005, Sulwhasoo in 2011 and innisfree in 2012.

Multi-brand strategy

The company has a sales target of $2.9 billion by 2020 in China and becoming one of Asia's top cosmetics companies. To achieve the goal, it has adopted a multi-brand strategy, releasing various premium brands, and plans to steadily accelerate its business to other major cities.

For instance, LANEIGE is a premium cosmetic brand that promotes lively, youthful skin with its advanced "Water Science" technology. "Since its first launch in China in 2002, LANEIGE has been receiving great attention from Chinese consumers," said the company.

Through extensive research and studies of water, it is designed to maintain healthy skin using the essential element that makes skin healthier and younger.

LANEIGE made a name for itself in the Chinese market within 10 years of its entry. It is now available in more than 100 major cities and about 300 department store counters.

The secret behind the brand's success in China is research to identify the needs of Chinese consumers, said the company.

After three years of extensive research and in-depth surveys of 3,500 Chinese consumers, the brand has been able to provide products that offer optimized and customized solutions to Chinese women.

In particular, LANEIGE's prevalence in China is also attributed to the tremendous popularity of such products like Water Sleeping Pack_EX, White Plus Renew Line and BB Cushion.

Mamonde, another representative brand, employs a proactive localized strategy in China to achieve growth. It is currently available in 275 cities at 884 department store counters and 2,590 other retail outlets.

Mamonde made its foray into China through customized strategy and marketing. The brand said it "has a full understanding of the skin of Chinese women and finds the optimum ingredients" through in-depth research into ingredients, and joint studies between its AMOREPACIFIC R&D Center and the Shanghai Institute of Pharmaceutical Industry.

With sales growth of its products like Pure White and BB Cream last year, Mamonde has expanded its consumer base through home shopping and online sales, and has plans to actively expand its stores and develop products solely for Chinese consumers.

The brand's latest hit product is First Energy Serum extracted by natural fermentation of the honeysuckle flower. It is widely sought by young Chinese women for its ability to clear external toxic substances and dead cells, revitalizing the skin for a soft and smooth texture.

Mamonde's Total Solution BB Cream is also a driving force behind the brand's growth in China. It provides a wide range of benefits to the skin such as protecting it from ultraviolet rays, enhancing resilience to prevent wrinkle formation and solidifying the hydrating barrier to keep the skin supple and glowing for a long period of time.

Sulwhasoo is a leading luxury beauty brand in the ROK based on over 50 years of research. It uses a holistic approach to skincare by combining herbal medicinal traditions with the most advanced technology.

The brand first arrived in China in 2011 with the opening of its sales counter in Beijing's Parkson Department Store. After rapid expansion it is now available in 27 high-end department stores in Beijing, Shanghai and other major cities. It is dedicated to presenting the ROK's superior herbal medicinal products to Chinese consumers.

Sulwhasoo products were also provided as a gift to the first ladies attending the G20 Seoul Summit in 2010.

In particular, First Care Activating Serum has been a driving force behind the expansion of the brand's consumer base, with nine bottles sold every minute globally.

Another natural cosmetic brand, innisfree, arrived in China last year with its first flagship store in Shanghai. It is now available in 20 stores in major cities.

The brand has been achieving remarkable growth in China for its eco-friendly products. It plans to open 50 stores in China this year and aims to secure a competitive edge in the rapidly growing natural cosmetics market.

Moreover, innisfree aims to become Asia's No 1 natural beauty brand and is solidifying and accelerating its plans to enter new markets including Japan, Hong Kong, India and Singapore.

New development

AMOREPACIFIC is now building the Shanghai Value Center, which is expected to be completed in 2014. It is the largest of its kind in the Chinese cosmetics industry, putting together eco-friendly manufacturing facilities, a R&D center and logistic systems and creating a foundation for the company's sustainable business in China.

AMOREPACIFIC hopes that the center will become a hub for its business in China.

In addition, it is dedicated to fulfilling its corporate social responsibility through activities that support the beauty and health of Chinese women.

In particular, it began an "AMOREPACIFIC Make up your life" campaign for cancer patients.

It is the company's most representative CSR initiative. It provides beauty care tips and know-how relating to makeup, skincare and hair styling to help cancer patients overcome emotional distress and depression, get in touch with their inner beauty and develop a positive attitude toward life.

The campaign began in 2011 for members of a cancer patient club in Shanghai. It has now been held 11 times over the past three years with more than 330 cancer patients participating.

"It has been 20 years since AMOREPACIFIC established its China office in Shenyang in 1993," said Suh Kyung-bae, chairman and CEO of AMOREPACIFIC Group.

"Its business in China can be mainly attributed to the success of Mamonde and LANEIGE, and with the expansion of additional brands including Sulwhasoo and innisfree, it has been able to strengthen competitiveness and enjoy steady growth.

"China is a central market to AMOREPACIFIC's global business and we are making ceaseless efforts to diversify our distribution channels and strengthen our marketing activities in order to fulfill our vision of becoming Asia's No 1 beauty company."

AMOREPACIFIC: Goal to be No 1 in China
The 'AMOREPACIFIC Make up your life' campaign for cancer patients is one of the company's CSR initiatives.