Amorepacific plans partnership with Sephora to grow in U.S.

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Amorepacific plans partnership with Sephora to grow in U.S.

Published: 13 Nov. 2024, 15:23

LEE JAE-LIM
[email protected]

Amorepacific CEO Kim Seung-hwan speaks during the company's annual Investor Day at its headquarters in Yongsan District, central Seoul, on Wednesday. [AMOREPACIFIC]

Korean cosmetics giant Amorepacific will partner with major retailers like Sephora to grow its presence overseas.

“With the rising global recognition of Korean culture, the cosmetics industry is experiencing significant growth,” Amorepacific Group CEO Kim Seung-hwan said during the company’s annual Investor Day on Wednesday at the company's headquarters in Yongsan District, central Seoul. “Amorepacific will enhance its global presence through strong sales growth and improved profitability.”

Over the next three years, the group aims to achieve average annual sales growth of 10 percent and to reach an operating profit margin of 12 percent by 2027.

He outlined four strategies to reach this goal: enhancing brand competitiveness, accelerating global rebalancing, strengthening channel responsiveness and preparing for future growth.

“The company will prioritize markets like the U.S., Japan, Europe, India and the Middle East to accelerate global rebalancing,” Kim emphasized.

Amorepacific will strengthen partnerships with major retailers like Sephora in markets such as U.S., Japan and Europe, penetrate emerging markets like India and the Middle East and restructure and improve management to stabilize operations in China.

It also plans to diversify the portfolios of both its flagship brands and future growth brands. For core brands like Sulwhasoo, Innisfree and Ryo, the goal is to enhance profitability and expand into global markets. Hera, Aestura and Illiyoon were identified as potential brands to be nurtured so they could develop into future growth engines.

The company will also collaborate with global distributors such as Amazon as well as new growth platforms such as TikTok Shop. It will also work to strengthen competitiveness of its own platform, AmoreMall.

For future growth, the cosmetics company will focus on digital innovation, such as through services like the AI skin diagnosis system, Dr. Amore, and personalized makeup service Custom Match.

The event was attended by 80 analysts and investors from both domestic and international firms. Kim and Giovanni Valentini, CEO of Amorepacific North America, gave presentations.

BY LEE JAE-LIM [[email protected]]