Going global: Rationale gears up for overseas expansion following Amorepacific deal

Founded in 1992, Rationale is well-known in Australia for its result-driven, science-backed approach to skin health and personalised services like its DNArray Medical Consultation.

The brand is currently available Australia-wide through 15 standalone stores, its website and its network of doctors.

In the last five years, Rationale has recorded double-digit growth in its average annual sales driven by its ability to provide an all-rounded luxury experience.

“We recognised an opportunity to deliver the perfect Rationale luxury experience through our flagship locations—a move that spearheaded our growth and allowed us to offer the complete experience: the consultation, the tailored skincare regimens and our facial treatments,” ​said CEO Shamini Rajarethnam.

Moving forward, the firm aims to replicate this model overseas, said Rajarethnam.

“​Our investment in this model has seen an unwavering commitment to perfecting this offering in Australia—and soon, around the world.”​

Rajarethnam told CosmeticsDesign-Asia​ that an overseas expansion was always part of its vision.

“​It has always been important to us to bring Rationale to the world but to do that, we’ve been focused on achieving our objectives in Australia. Knowing we have a winning formula, now, we are able to prepare for a considered global entry and replicate this Rationale ecosystem worldwide.​”​

In particular, the company believes the brand will resonate with consumers in Asia, who tend to place a high priority on skin care.

“While we don’t subscribe to trends, the opportunity for us is within the universal appeal of Rationale and being able to connect with this dedicated client. We believe there is power in the relationships that we can foster within these markets,” ​said Rajarethnam.

Two of a kind

Recently, Amorepacific acquired a significant minority share of Rationale Group, securing an advisory role and voting rights on its board of directors. 

“In Amorepacific, we have found a true kindred spirit; an industry giant who shares our excellence in world-leading innovation and research, our passion for the arts and culture, and a profound understanding of superlative client experiences,” ​said Rajarethnam.

Together with Amorepacific, Rationale aims to realise its global expansion plans in markets such as South Korea, the UK, the US, Hong Kong and Singapore by 2025.

According to Rajarethnam, the firm has begun preparing for expansion and expects to enter the global market in 2021.

Amorepacific, on the other hand, hopes to use the partnership to secure a local production base in Australia and strengthen its retail network to build a foundation for its operations in the region.

The South Korean firm first made its entry into Oceania in 2018 and has since launched its brands Laneige, Innisfree, AMOREPACIFIC and Sulwhasoo in the region.

Additionally, Amorepacific hopes to tap into the brand’s expertise in personalised skin care, an area the company has plans to focus on.

"With a truly shared innovation vision, Rationale and Amorepacific will take personalised skincare solutions to a new level,"​ said Amorepacific President Saehong Ahn.

Rajarethnama added: “We are very aligned with Amorepacific’s focus on delivering the best experience and formulation to their clients, so we see many different collaborative opportunities that we can work on together to mutually benefit and build both brand portfolios in the years to come.”​