AmorePacific expands in China with beauty production and R&D centre

By Pooja Kondhia and Andrew McDougall

- Last updated on GMT

Related tags: Cosmetics

AmorePacific expands in China with beauty production and R&D centre
Korean cosmetics firm AmorePacific has invested in a beauty production and research and development facility in Shanghai as it looks to expand its operations in China.

“[With this expansion] we will improve our responsiveness to China's dramatically growing market by utilizing the Shanghai Production & Research Centre [which is] set to open as a hub of Chinese production, research and distribution,”​ commented Kyung-Bae Suh, AmorePacific CEO.

Accelerating business growth

The Shanghai Production & Research Centre, located in the new business area in Maluzhen, Jiading District, is planning to complete construction in March 2013, with the global business focusing on accelerating business growth in China.

The new facility has a production capacity of 7,500 tons and 100 million products, representing a 16-fold increase compared to current production capacity, per year.

AmorePacific explains the centre will be organized into both cell production methods suited for small-quantity production and mass production methods prepared for the rapid demand of China's market.

China on the up

China has been one of the most lucrative emerging markets in the cosmetics industry, and according to recent figures from event organisers of PCHi, the market for personal care and home care grew at an annual compound growth rate of over 12 per cent between 2011 – 2014.

And according to market analyst Euromonitor, the BRIC markets have driven growth in super premium beauty products, accounting for 39 per cent of growth over 2005 – 2010, with India, Brazil and China individually contributing the biggest percentage growth globally.

In particular, analyst Fflur Roberts advised companies to target China, which saw 15 per cent value growth in 2009, higher than the 13 per cent for skin care overall.

A general mistrust of domestic brands in favour of international, and a perceived link between price and efficiency, will help grow sales in the country, she told CosmeticsDesign-Europe.com.

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