Cosmetics companies drive overseas expansionLocal cosmetics companies are taking more aggressive approaches to win over foreign markets, as they gain confidence from easing tensions between Korea and China, industry officials said Friday.
AmorePacific, which suffered a drop in stock prices and exports due to Seoul’s diplomatic row with Beijing, is set on a three-pronged marketing strategy eyeing China, Southeast Asia and North America, its officials said.
In China, it plans to strengthen its market presence through its research center in Shanghai that opened in 2014. The center will work with Chinese universities, hospitals and research institutions to inspect the safety and effectiveness of company products marketed in China, based on the result of studies of facial and hair characteristics of local customers. The company is set to complete a new production plant in Malaysia by 2020 to advance into the growing market of Southeast Asian countries.
For the U.S. market, AmorePacific is hoping to gain more spotlight for its brands Laneige and Innisfree. It will aim for more distribution of Laneige products by putting them on shelves of at least half of beauty chain Sephora’s stores across the country.
The firm is scheduled to open its first store for another brand, Etude House, in Dubai sometime later this year or early next year.
LG Household and Health Care said it will seek to enlarge its brand image abroad by pitching its high-end cosmetics lines. Company officials said they will increase shops at China’s luxury department stores for such brands as O Hui, VDL and Belief.
The company will promote the same high-end lines in Southeast Asian countries, including Singapore, Taiwan and Vietnam, officials said.
Able C&C, best known for its makeup brand Missha, is planning some 30 stores, operated directly by the company headquarters, in key Chinese cities. The stores will be in addition to 100 Missha shops in China plus over 3,000 sale outlets. The firm is also strengthening its domestic network, scheduling 200 new shops over the next two years and hiring 30 more staff for research and development.
Cosmax aims for stable growth in China while it seeks entry in new markets like Thailand and Russia. The strategy is to strengthen the network with locally incorporated entities to boost marketing effectiveness.
In China, the plant in Shanghai will increase production, while the company branch in Guangzhou will reach out for client diversification. The company is also planning to market health supplements in the United States, its second such overseas attempt after China.
“Our goal is to become the world’s No. 1 [manufacturing] company that has both the growth and profitability in health supplements and cosmetics,” a Cosmax official said. “We will be focusing on creating new demands at home while actively pushing for growth in overseas markets.”
Kolmar said it is expanding its business network in China through its Beijing branch, where its sales are expected to surpass 200 billion won ($179.77 million) in 2019, when its factory in Wuxi, in the southern province of Jiangsu, is due to go operational. The company plans to concentrate on research and development for the Chinese market for better localization.
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