Amorepacific starts year strongly in the West driven by Laneige and Innisfree

According to the firm’s Q1 reports, revenues from the western regions increased by 42% year-on-year to KRW105.1bn (USD77.28m).

This was driven by robust growth in both the Americas and Europe.

The former recorded a revenue increase of 40% to KRW87.8bn (USD64.56m).

This was driven by the launch of Laneige’s Bouncy & Firm Sleeping Mask, the third iteration of the brand’s best-selling series of sleeping mask.

The launch was supported by brand campaigns such as pop-up events, which helped to strengthen customer experience. The brand’s global brand ambassador, American actor Sydney Sweeney, also helped generate buzz.

Additionally, Innisfree expanded its presence through the multi-brand retail channel. At the same time, the brand also launched key products such as its Vitamin C Green Tea Enzyme Brightening Serum and Daily UV Defense Mineral Sunscreen SPF 50.

Flagship luxury brand Sulwhasoo boosted awareness of its online platform, which resulted in a growth in sales and customer base.

Europe sales surge

Over in Europe, revenue increased by 52% to KRW17.3bn (USD12.72m).

Laneige sales doubled on the back of its lip care products and key skin care products.

The brand’s popular lip care products include the Lip Sleeping Mask and Lip Glowy Balm.

CosmeticsDesign-Asia​ previously reported​ that Laneige’s Lip Glowy Balm has been successful with a younger audience, with one being sold every six seconds based on 2023 sales data.

Laneige’s Bouncy & Firm Sleeping Mask also helped to “enhance brand attractiveness” through online and offline marketing, said the firm.

Innisfree launched a rebranding campaign across major markets in Europe, including France, Italy, Spain and the UK.

The brand also expanded its presence in the UK by launching with beauty retailer Space NK.

Asia market shows softness​

While the Americas and Europe showed progress, the company experienced declines in Asia.

In China, revenues declined by 19%, attributed to downsizing inventory in major sales channels.

However, Sulwhasoo and Laneige experienced sales growth with the renewal of products such Sulwhasoo’s Concentrated Ginseng line as well as Laneige’s Skin Veil Base EX.

In other parts of Asia, including South East Asia and Japan, revenue dipped by 4%.

In SEA, the firm made several key launches, including Laneige’s Water Bank line, Bouncy & Firm Sleeping Mask as well as Sulwhasoo’s Ultimate S and Ginseng products.

According to the company, sales of its key products were strong.

Amorepacific also launched Aestura in Vietnam​ following its entry into Japan.

In Japan, overall revenue declined due to the restructuring of Innisfree and Etude.

However, Laneige posted strong sales with robust performance online and in multi-brand shop channels.

Sales was further bolstered by new brand launches Hera, Aestura, and Primera.

Domestic market positive

Amorepacific had reported positive growth in its home market, with luxury growing by 4% to KRW323.1bn (USD237.59m) while its premium brands grew by 10% to KRW126.1bn (USD92.72m).

Its luxury portfolio, which consists of brands such as Sulwhasoo and Hera, accounts for over half of domestic revenue (57%).

The growth in luxury was driven by new product innovations and channel expansions, including Hera’s Rouge Classy lipstick.

The premium portfolio was driven by its major brands Laneige and Aestura and its performance online and in multi-brand stores.

Its personal care division, which has brands such as Illiyoon, Labo-H, and Mise-en-Scene, dipped by 2% to KRW95.2bn (USD70m)

According to the firm, revenue was affected by global e-commerce sales despite sales increases in multi-brand channels.

Overall, Amorepacific’s revenue dipped slightly by 0.2% to KRW911.5.bn (USD670.27m) while operating profit increased by 12.9% to KRW72.7bn (USD53.46m).