On 17th April 2017, the global conglomerate announced the result, making AmorePacific the first beauty brand in South Korea to step into seventh place.
Rising through the ranks
Ranking in 12th place last year, it has jumped five positions thanks its strong commitment towards its three core strategies — brand singularity, innovation and market diversity.
WWD puts together an annual list of the top 100 beauty companies from around the world and bases its decisions on sales of the previous fiscal year.
“As a global beauty company representing South Korea, it is an honour to be recognised as one of the world’s top ten beauty companies,” said Suh Kyungbae, Chairman & CEO, AmorePacific.
WWD said that AmorePacific's result demonstrates “another year of strong growth”. Since the company first emerged in WWD’s top 20 in 2007, the heavyweight has more than quadrupled its beauty products sales from KRW 1.56 tn (€1.28 bn) to KRW 6.69 trillion (€5.50 bn).
The beauty name has also almost quintupled operating profit too from KRW 237 bn (€236 mn) to KRW 1.82 tn (€1.50 bn).
With over 20 brands striving towards maximising their market leadership by satisfying growing and evolving consumer demands, AmorePacific has selected five global champion brands to provide "singular brand experiences".
Sulwhasoo, Laneige, Mamonde, innisfree, and Etude are strategically managed to diversify their offerings to accurately meet the needs of South Korean, wider APAC and global consumers’ needs.
In 2015, Sulwhasoo hit the KRW 1 tn (€818 mn) mark in cumulative sales, making it the first Korean beauty brand to do so. Innisfree quickly followed suit in 2016, by reaching KRW 1 tn (€818 mn) sales and dominating the natural beauty space.
Creating innovative product categories that set the benchmark for other global conglomerates and spark multiple worldwide trends has been a priority for AmorePacific. Beauty categories including boosting essences, sleeping masks, cushion foundations and two-tone lip bars are on the up and changing the way consumers use beauty products.
“Our growth strategy remains firmly focused on creating innovative, singular brands and products that appeal to consumers in target markets, and we will continue to work towards becoming a Great Company delivering new beauty values to customers around the world,” Kyungbae concluded.
Broadening the market
Greater China, ASEAN, and the US region are key geographical areas for AmorePacific moving forward. Overseas exports make up 25% of total revenue in 2016, and so this is an area the company is looking to strengthen.
With the ASEAN area specifically, AmorePacific hopes to optimise its brand presence in mature markets such as Singapore, Malaysia, and Thailand, while also expanding sales and boosting future sales growth through emerging and on-trend cities including Vietnam, Indonesia, and the Philippines.