Amorepacific North American Sales Soar with ROSÉ on Board, Expected to Exceed 200 Billion Won for the First Time
ROSÉ UPDATE – April 12, 2023 KST
Amorepacific, the leading South Korean cosmetics company, is expected to see its sales and operating profits approach pre-COVID-19 levels this year, thanks to its successful expansion strategy in the North American market. Despite challenges posed by reduced demand in the Chinese market, the company has managed to strengthen its global presence and break new ground.
According to industry sources on April 12, 2023, Amorepacific’s sales in North America, one of its main international markets, have been growing significantly. As part of its plan to capitalize on this growth, the company aims to expand into new categories and enhance product competitiveness through its acquisition of the US-based clean beauty brand, Tata Harper.
An Amorepacific representative stated, “By acquiring Tata Harper, which is famous for luxury clean beauty in the US, we have secured a long-term growth engine in North America, and we plan to further strengthen our position in the market.”
Securities analysts believe that Amorepacific’s sales and operating profits are on a recovery trajectory. The company’s consolidated sales forecast for this year is KRW 4.48 trillion, an 8.3% increase compared to last year. Operating profits are projected to increase by 64.1%, narrowing the gap with pre-COVID-19 levels of KRW 427.8 billion in 2019. Sales in the North American market are expected to reach KRW 267.9 billion, marking the first time the company surpasses KRW 200 billion in the region.
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Amorepacific has been focusing on solidifying its position as a global beauty company in the North American market. Last September, they appointed BLACKPINK ROSÉ as the exclusive model for their flagship brand, Sulwhasoo, and recently selected Tilda Swinton as their new global ambassador (joining ROSÉ who started her activities as the global ambassador in September of 2022). The company has also replaced Korean text on their cosmetic packaging with English, aiming to appeal to younger consumers and enhance their global image.
This year, Amorepacific expects to reap the benefits of acquiring the American clean beauty brand, Tata Harper. In September of last year, the company invested KRW 168.1 billion to acquire Tata Harper as part of its North American market expansion strategy.
In fact, Amorepacific saw impressive results in the North American market last year, with sales in the region growing by 80.1% to KRW 183.3 billion. During the same period, domestic sales and sales in other Asian countries (China, Japan, etc.) decreased by 15.9% and 22.8%, respectively.
In addition to their international efforts, Amorepacific plans to focus on digital business strategies at home. With e-commerce sales growing by 20% compared to the previous year, the company aims to further enhance its digital-based business.
An Amorepacific representative shared, “This year, we plan to continue providing customer-centric value by upgrading our brand and products, as well as implementing digital strategies. We will strive to leap forward as a global beauty brand by re-establishing our presence in markets such as North America, Korea, China, Japan, and ASEAN countries.”
Hanuri Meritz Securities analyst Eun-seo Lee said, “Amorepacific is expected to see strong sales in the North American market this year, fueled by the success of Tata Harper’s acquisition and favorable performance on platforms such as Sephora and Amazon.”
Source: Consumer News Korea