The South Korean beauty conglomerate hopes that the MOU will fortify its partnership with Lazada and reinvigorate its e-commerce business in SEA.
"Amorepacific will continue to create touchpoints with more ASEAN customers and promote innovation in the customer experience through the digital channel,” said Ahn Saehong, president of Amorepacific.
The agreement will allow Amorepacific to utilise Lazada’s network to accelerate growth and increase its market share in the region by showcasing its products to a larger consumer base.
The company said it will leverage on its partner’s digital technology and competitive standing in the e-commerce space to reinforce its leadership in the SEA’s beauty market.
Ahn said the company expects the MOU to be mutually beneficial for both companies.
For instance, the MOU opens up the possibility to launch new brands and collaborate on various projects with Lazada.
This would include exploring new retail business that combine both online and offline channels, as well as data marketing.
Additionally, the companies will work to establish a partnership to protect intellectual property rights on the platform and ensure the stability of the online platform.
Pierre Poignant, CEO of Lazada Group, said that beauty was an important category for the e-commerce platform.
"Beauty is one of Lazada's top product categories across the region and we are excited to combine our digital expertise with Amorepacific's offerings to create the best shopping experience for our customers."
He added: "This partnership is our commitment and joint ambition to build our Asian beauty and skin care category and provide an elevated shopping experience."
Currently, Amorepacific distributes brands such as Laniege, Mamonde, Innisfree and Etude House on Lazada to major SEA markets including Singapore, Vietnam and Thailand.
In 2017, Mamonde debuted in Singapore exclusively through Lazada in order to test the waters before launching in brick-and-mortar stores.
Securing strong partnerships
As its domestic business continues to be sluggish, Amorepacific has been turning its focus on its overseas market.
According to the company, strengthening its brand competitiveness by expanding its offline stores in ASEAN, as well as China and Australia, contributed to its overseas growth in its first quarter.
Recently, the company expanded its presence in India by launching Etude House exclusively through local beauty retailer, Nykaa.
In February, Amorepacific entered into another partnership with A.S. Watson Group to distribute its premium brands, including Laniege and Mamonde into new markets.
A.S. Watson had previously helped Amorepacific launch Mamonde, RYO and Mise-En-Scene across Asia.
The partnership with A.S. Watson will give the company access to the retailer’s online and offline channels in Asia and in Europe.