With an annual sales revenue of USD 3.36 billion in 2022, Amorepacific in Korea is one of the top cosmetics companies in the country. Known for its diverse brands in beauty and skincare brands, Amorepacific has played a significant role in shaping the beauty landscape in South Korea. Fueled by a commitment to high-quality products and a certified brand name, Amorepacific continues to be a cherished choice among domestic consumers, solidifying its position as a leading cosmetic company in the country.
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Crafting elegance: the birth and rise of Amorepacific
Amorepacific, a leading South Korean chaebol, was founded by Suh Sung Whan (서성환) in 1945. It initially operated under the name “Taepyeongyang (태평양)”, which translates to the Pacific Ocean in Korean. In 1948, it introduced Melody Cream, the company’s first brand product. Later in 1951, it launched ABC Pomade, the first plant-based pomade in South Korea.
During this period, the company garnered widespread popularity and success by selling cosmetics directly to consumers through house visits. Over the years, it expanded its portfolio by launching new brands, such as Mamonde in 1991 and Innisfree in 2000. In 2002, “Amore (아모레)” was added to the company name, resulting in the current company name Amorepacific.
Amorepacific’s influence in South Korea
Amorepacific is one of the top two beauty companies in South Korea alongside LG Household & Health Care (H&H). It accounted for 25.21% of all cosmetics produced in South Korea in 2022, the second highest after LG H&H. It is also the only Korean company that has secured a place on the list of the global top 100 luxury brands in terms of sales in 2022.
In addition to its industry achievements, Amorepacific boasts a diverse portfolio. It features over 30 brands, spanning from beauty and household goods, to healthcare under the company. Notably, according to research and analysis company Wiseapp, seven of the top ten most-sold cosmetic brands online in the first half of 2022 were from Amorepacific. This shows the popularity of the company’s products among Korean consumers.
Moreover, Amorepacific’s artistic-looking headquarters also contributes to its image as a beauty icon in Korea. The distinctive and aesthetically pleasing design of the headquarters reflects the company’s commitment to creativity and innovation. In addition, its Art Museum of Amorepacific enhances the company’s image of a beauty icon by blending beauty with art, emphasizing that beauty is not only expressed through cosmetic products but also artwork.
Sulwhasoo’s evolution: embracing modernity, global appeal, and youthful resonance
Cosmetics brand Sulwhasoo is actively reshaping its brand image to resonate with the preferences of the MZ Generation.
Sulwhasoo, a premium beauty brand under Amorepacific, specializes in premium Korean herbal medicine-based cosmetics and skincare products. With its long history and premium image, old females were the brand’s main consumers. However, recognizing the need to attract young consumers, the brand strategically chose Rosé (로제), a member of the popular K-pop group Blackpink, as its ambassador.
To further connect with the younger audience, it built the House of Sulwhasoo Bukchon, a flagship store designed with the concept of “Hanok (한옥)”, reflecting traditional Korean architecture. This unique space features an attractive storefront and a museum-style presentation of its products, offering a unique experience that has garnered positive responses from the younger consumer demographic.
In addition to its celebrity endorsement and innovative retail concept, Sulwhasoo implemented a shift in its packaging. It changed the Chinese characters into English to resonate with global consumers and modernize its traditional brand image. This multi-faceted approach demonstrates Sulwhasoo’s commitment to adapting and appealing to a diverse and contemporary consumer base.
Osulloc: Redefining beauty through tea culture
Osulluc, a premium tea brand under Amorepacific, was created due to the desire of Amorepacific’s founder to revive Korea’s lost traditional tea culture. Although Osulluc is the only tea brand under Amorepacific, the brand complements Amorepacific’s vision of new beauty. Amorepacific encompasses not only the external appearance but also internal well-being. With Osulluc’s healthy tea products, consumers can nurture their internal beauty, fostering a holistic approach to well-being.
To attract young consumers, the brand renovated offline stores with different concepts, reflecting the consumer trend of selecting destinations with distinct specialties. For instance, Osulluc in Hannam has the concept of a gallery café, and its store in Bukchon has a room with the concept of a cocktail bar. In addition, the brand made an effort to put its products on e-commerce platforms like KakaoTalk Gift, Coupang, and Naver Fassto for easier access to younger consumers. With such strategies, the brand is gaining success in the industry. Its sales increased from USD 35.6 million in 2020 to USD 60.8 million in 2022.
How Amorepacific is strengthening its position in the beauty industry
Amorepacific is expanding its e-commerce channels and enhancing online communication to strengthen its position in the industry. It gradually closed down offline stores and started to focus more on online communication with consumers. For instance, it created the company’s first virtual influencer “G.G (지지)” and opened pop-up stores on the South Korean metaverse platform Zepeto.
Amorepacific is also known for its dedication to research and development (R&D) development. With a heavy focus on research and innovation, the company allocates more than 2% of its sales on R&D. Through such investments, the company has been able to develop innovative cosmetics like the cushion foundation. Amorepacific’s brand Iope launched the first cushion cosmetic, Iope Air Cushion, in 2008. Considered an innovation in the cosmetic industry, Iope Air Cushion achieved significant global success, with over 140 million units sold from 2008 to 2017.
Furthermore, Amorepacific has implemented eco-friendly practices, including sustainable sourcing of ingredients and environmental consciousness. This is to appeal to Korean consumers who are showing increasing interest in eco-friendly and sustainable consumption. It is also the first Korean beauty company to join RE100, committing to become an eco-friendly company that uses 100% renewable electricity.
Key takeaways on Amorepacific in South Korea
- As one of the top two cosmetic companies in South Korea, Amorepacific is seen as the beauty icon in South Korea with its high-quality products and certified brand name.
- Amorepacific’s brands are greatly favored by Korean consumers. Seven of the top ten most sold cosmetics online in the first half of 2022 were from Amorepacific.
- Sulwhasoo and Osulluc, traditionally perceived brands, are undergoing a brand image transformation to modernize and appeal to younger consumers.
- Amorepacific is strengthening its position in the domestic beauty industry. It is expanding its e-commerce channels, investing in R&D development, and leading sustainable beauty with eco-friendly practices.
