Speaking to Cosmetics Design at the sidelines of the Cosme Tokyo 2014 event today, Kang explained how the South Korea-based company is enjoying a wave of popularity throughout the Asia Pacific region that is putting the company in a stronger position.
Overseas trade will feed the expansion
“We aim to sustain the current level of growth momentum so that by 2020 we should feature as the number one cosmetics player in the Asia Pacific region,” said Kang,
“But more than that, we are also aiming to become the biggest cosmetics player in the fast-growing China market and to become the seventh biggest player worldwide.
“Most of this growth will naturally be derived from overseas trade, and in particular from the China market. This means that exports should rise from the current rate of approximately 20% to about 50% by the year 2020.”
China will be pivotal
Kang went on to explain that the company is aiming to grow its footprint in the China market by expanding its dedicated retail presence in tier one and some tier two cities.
“We want to have standalone stores throughout China. Until now we have had more of a presence in department stores in the country, but if we have our own dedicated stores this means we will have more power and be able to control the brands better.”
Currently the company features in the top 20 biggest players in the world, which came about from a combined turnover of $3.7 billion from its cosmetics, personal care and health care businesses in 2013.
Success will come from 'brand Korea'
A lot of the company’s success has come of the back of a wave of growing interest in brands from Korea, which in recent years have come to be associated with high quality and value for money, attributes that also specifically apply to cosmetics and personal care from the country.
“Korea has come to be known for particularly innovative cosmetics products, too. The reinvention of the BB and alphabet creams first came out of this country and has become a global phenomenon,” Kang said.
“AmorePacific’s key to success has come about from a combination of being innovative, offering value for money and also blending in elements that are distinctly Korean, to both distinguish our products and to help them benefit from the good reputation.”
This is reflected by the fact that many of the company’s product line contain ingredients and mineral extracts that have been sourced in different parts of the region, especially Jeju island and the Western Peninsula.