What is Amorepacific? Company, Data, Products in 2022


Amorepacific is one of the top 20 worldwide beauty firms and the second-largest cosmetic company in South Korea.

The company is renowned as a luxury beauty brand with high costs.

Although the part of the market in which it operates with actual direct selling and network marketing models is almost entirely limited to South Korea, Amorepacific is considered one of the top MLM companies in the world.

Let’s analyze the company, business model, and product lines based on official data and the most recent public information.

Section 1 – The Company

Amore Pacific Logo

In the first part of our article, we focus on the company, beginning with its history, values, and most recent results.

What is Amorepacific Corporation?

Amorepacific Corporation is one of South Korea’s most prominent cosmetic companies. Founded in 1946 under the name Taepyeongyang Chemical Co., Amorepacific is now owned by the Suh family. Its headquarters are located in Seoul, South Korea.

The company operates across multiple markets, including beauty products, skincare, hair care, personal care, and color cosmetics.

Amorepacific is known for its innovative product development and marketing strategies.

History

Amorepacific Corp. is one of the oldest cosmetics companies in South Korea. In addition to being the nation’s biggest cosmetic manufacturer, the company is famous for its popular Laneige brand, launched in 1993. Its sales volume reached $1.3 billion in 2017.

The company is known for its high-quality and innovative products, including its “green tea” facial mask. This product, which has become a household name in South Korea, was developed by Dr. Lee, who discovered the ingredient while studying traditional Chinese medicine. After his research, he began producing the product in 1995.

In 2001, Amorepacific acquired the L’Oréal Group’s K-beauty division, which included brands such as SKII, Philosophy, Garnier, and Origins. Laneige, another successful Korean brand, was added to the group in 2003.

With the increasing popularity of Korean culture around the globe, Amorepacific expanded into international markets in 2010.

The company entered China in 2011, followed by Japan, Singapore, Thailand, Malaysia, Indonesia, Vietnam, Taiwan, Hong Kong, Philippines, Australia, New Zealand, Canada, France, Germany, Spain, Italy, Switzerland, Austria, Belgium, Denmark, Finland, Ireland, Norway, Portugal, Sweden, Turkey, United Kingdom, India, Pakistan, Sri Lanka, Nepal, Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Papua New Guinea, Brunei Darussalam, East Timor, Macau, and North Korea.

Statistics about Amorepacific and Revenue

This figure depicts Amorepacific Corporation’s global revenue from 2015 to 2021. Amorepacific’s revenue in 2021 is expected to be at 4,863.13 billion Korean won.

Global revenue of Amorepacific 2015-2021Pin
Source: Statista*

Amorepacific Grou reported over 3 trillion South Korean sales won for the domestic market in 2021, and global sales were around 5.33 trillion South Korean won.

Amorepacific sales revenue 2021Pin
Source: Statista*

The company employed around 7.2 thousand people in South Korea in 2020. 

Amorepacific worldwide employeesPin

Amorepacific potential for global growth

Amorepacific Group has been one of Asia’s most profitable companies for decades now, but the group has just begun expanding internationally. This expansion includes entering new marketplaces like Japan, South America, Africa, India, Australia, and the Middle East.

Amorepacific statistics from SimilarwebPin
Screenshot from Similarweb*

In addition to expanding abroad, Amorepacific is looking to diversify its product portfolio and develop new products. The company has already established itself as a leader in skincare and cosmetics in Korea and China, but it wants to expand into new areas such as hair care and oral care.

To do this, Amorepacific must overcome challenges associated with operating in unfamiliar territories. These include cultural differences, language barriers, and different regulations.

However, despite these obstacles, Amorepacific has proven that it knows how to succeed in international markets. For example, the company recently launched its first beauty brand in Japan and plans to launch several others soon.

In fact, Amorepacific plans to open up to 10 stores across Japan over the next five years. The company also plans to enter the Japanese retail sector by opening up to 30 stores within three years.

Moreover, the company is improving its customer experience in overseas markets by offering free shipping and 24/7 support via social media channels.

The company is also working on developing new products. One of these products is POREfessional, designed to help women reduce facial pores and wrinkles. The product contains ingredients that are known for their anti-aging properties, including hyaluronic acid, vitamin E, and green tea extract. 

Finally, Amorepacific is focusing on improving its branding strategy. As part of this effort, the company launched a new corporate identity in 2017. This project aims to make the company look modern and relevant while maintaining its traditional values.

Vision

Amorepacific is committed to creating a culture of excellence, where everyone works together to achieve their mission of being the “Asian Beauty Creator”.

They aim to become the leading cosmetics company in Asia by 2020. Their ultimate goal is to provide people with the best quality products and services.

Sustainability initiatives from Amorepacific

As part of its commitment to sustainability, Amorepacific launched the Beautiful Fair Trade program, which supports communities in developing nations where farmers grow natural resources like nutmeg, bamboo, lotus seeds, Ginseng, and Lilies.

Amorepacific also works closely with local governments to protect environment, including reducing CO2 emissions by 35% since 2009 and sourcing products without chemicals or pesticides.

In addition, Amorepacific has been recognized for its efforts to impact society positively.

For example, Amorepacific received the Corporate Social Responsibility Award from the United Nations Development Programme in 2011. Amorepacific also won the Global CSR Leader award from the World Economic Forum in 2012.

Section 2 – Business Model

Amway business model

Amorepacific’s business model is unique and differs significantly from many other MLM companies. Let’s delve into it in the second section!

Amorepacific’s supply chain and distribution strategy

Inventory days are much shorter at Amorepacific compared to other companies in the cosmetics industry.

While most large retailers take up to six months to clear out old stock, Amorepacific clears its product in just three months. This allows the firm to offer more products to consumers and keep them returning to stores.

The company’s strategy seems to follow that of fast fashion giants ZARA and H&M.

Both ZARA and H&MShorten the time that products go through the supply chain and distribution process, offering customers more product variety, pulling them back to stores, reducing the amount of inventory sitting around in-stores and providing more frequent sales events.

Across its 27 brands, Amorepacific introduces and discontinues products every month.

The company uses a wide range of marketing strategies to ensure there is always something new to buy. These include introducing new products quickly, changing the design of existing products regularly, and keeping price points low.

Amorepacific MLM 

Amorepacific has a ‘hybrid’ sales model. 

In the Asian market, the most significant impact on distribution is through the direct selling model through independent representatives.

In contrast, in the European and American markets, distribution is almost exclusively through in-store sales or online.

Section 3 – Products

AmorePacific products

Amorepacific Corporation has acquired a powerful market presence through dozens of directly controlled brands over the years. We discuss this in the third section of our analysis.

Amorepacific main brands (list and description)

Amorepacific’s brand portfolio ranges from traditional Oriental herbal cosmetics to cutting-edge biotech cosmetics spanning from high-end luxury to premium and low-cost categories.

Its five global champions include Laneige, Sulwha Soo, Mamonde, Innisfree, and Etude House. Each brand has its distinct identity and target consumer group, allowing Amorepacific to provide a singular brand experience across all channels.

Laneige is Korea’s leading cosmetic brand, selling over 10 million units annually. It offers both Korean and Western skincare products targeting different customer groups.

Laneige’s core products are its famous snow white creams, which are well known for being gentle and effective.

In addition to its flagship product, Laneige launched its first ever anti-aging serum called Snow White Serum in 2016. The brand continues to expand its product range to meet customers’ needs.

Sulwha Soo is Korea’s most popular cosmetic brand, selling over 20 million units annually. With its unique concept of ‘natural’, Sulwha Soo’s mainstay products are made without preservatives, artificial colors, or chemical additives. Sulwha Soo’s mission is to make people beautiful naturally.

The brand’s first product, Sulwha Sooluxe, was launched in 2012. Sulwha Soo’s latest innovation, Sulwha Sooluxe, is a natural moisturizing face mask formulated with hyaluronic acid.

Mamonde is Korea’s number one floral cosmetic brand, selling over 15 million units annually. It uses pure ingredients sourced directly from flower farms around Korea to create innovative and luxurious cosmetics. Mamonde’s mainstays include its signature rose water and honey facial masks and rose essence.

Brand’s newest innovation, Rose Essence, is a concentrated form of rose oil extracted from roses grown in the Jeju island region.

Innisfree is Korea’s number three cosmetic brand, selling over 12 million units annually. It creates quality cosmetics that deliver long-lasting effects.

The brand’s mainstays are its original lip balm, Honey Dew, and its signature eye gel, Innisfree Green Tea Eye Gel. Innisfree’s newest innovation, Innisfree Green Apple Lip Balm, contains apple extracts and vitamin E to help maintain moisture and prevent dryness.

Etude House is Korea’s number four cosmetic brand, selling about 8 million units annually. It targets fashionable young girls aged 18 to 25.

The brand’s key product is its iconic black liquid eyeliner, which has been sold since 2003. Over the years, Etude House has expanded its product range to include makeup brushes, eyeshadow palettes, nail polishes, and hair accessories.

Brand strategy

Amorepacific has been operating in South Korea since 1992. Today, it serves over 500 retail locations across the country, including department stores, supermarkets, hypermarkets, convenience stores, and specialty shops.

In addition, it runs about 400 beauty salons and more than 120 beauty centers throughout the country.

The company sells products under four leading brands: Amorepacific, SKII, Laneige, and BH Cosmetics. Its most well-known product is the Laneige BB cream, which has achieved cult status among Korean women.

In terms of distribution, Amorepacific mainly distributes its products via retailers such as department stores, supermarket chains, and online shopping sites.

However, it does not sell directly to consumers. Instead, it uses distributors to reach out to customers.

In marketing, Amorepacific focuses on three areas: advertising, public relations, and events. Advertising includes TV commercials, print ads, billboards, bus advertisements, and direct mailers.

Public relations include press releases, interviews, social media posts, and blog articles. Events include trade fairs, exhibitions, and fashion shows.

Innovation in Amorepacific

South Korea is one of the most innovative countries in the world.

In fact, according to a recent report published by World Economic Forum, it ranks second behind Switzerland. This innovation is reflected in many ways, including the country’s high level of consumer spending, its fast adoption of cutting-edge technologies, and its willingness to invest in R&D.

Amorepacific is no exception to this trend.

From the beginning, the company has been dedicated to developing products that meet the needs of women and men around the globe. With over 60 years of experience, Amorepacific continues to innovate and create products that cater to the changing lifestyles of today’s consumers.

Products categories

The main product sectors in which Amorepacific operates are:

  • Cosmetics
  • Perfume
  • Medical Beauty
  • Beauty Device
  • Inner Beauty
  • Hair Care
  • Body Care
  • Dental Care
  • Tea Culture
  • Pet Care

Section 4 – FAQs About Amorepacific

Amway FAQ

To conclude, a summary of questions and answers about the company. You can use the comments immediately below this fourth section if you have other concerns.

What is Amorepacific Corporation?

Amorepacific is a South Korean cosmetics and skincare firm that sells a variety of skincare and cosmetic goods. Suh Sung-wah founded the group in 1945. The corporation was known as Pacific Ocean Chemical Company LTD before changing its name later.

Is Amorepacific an MLM?

Amorepacific has a ‘hybrid’ sales strategy. The direct selling approach through independent agents has the most extensive influence on distribution in the Asian market. In contrast, distribution in the European and American markets is virtually entirely through in-store or online sales.

Where can I buy Amorepacific's products?

The majority of Amorepacific goods are now purchased in shops. Amorepacific goods are exclusively available in retail locations and online in the United States. However, Amorepacific is still an active MLM in Korea, with direct selling accounting for 51% of their income.

Which brands does Amorepacific own?

Amorepacific owns the following brands: Sulwhasoo, Laneige, Mamonde, Innisfree, Etude, Sienu, Hera, Holitual, Primera, Iope, Hanyul, Lirikos, Espoir, Odyssey, Mirepa, Bro&Tips, Be Ready, Goutal Paris, Aestura, Make On, Vital Beautie, Ryo, Mise en Scène, Labo-H, Ayunche, Amos, Happy Bath, Illiyoon, Median, Boncho Study, Pleasia, Osulloc, Poopoo Monster.

*Sources

1 thought on “What is Amorepacific? Company, Data, Products in 2022”

  1. Hi there, Ade in here from New zealand, i would like to have a question that can i be a member in your direct selling company? Thanks so much

    Regard

    Ade Agustinawati

    Reply

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