S. Korea's Amorepacific bets on luxury cosmetics for Europe push

Amorepacific

05/01/2018 17:24

* Amorepacific began selling in France in 2017 
    * Aims to draw customers with herbal-inspired formulas 
    * Rival South Korean firms also working on Europe business 
 
    By Sarah White and Pascale Denis 
    PARIS, Jan 5 (Reuters) - South Korean cosmetics company 
Amorepacific  090430.KS  aims to expand in Europe by launching 
one of its luxury brands in Britain this year and in Germany in 
2019, after introducing its products in France in 2017, a senior 
executive said. 
    Amorepacific, South Korea's biggest beauty firm, began 
selling its luxury Sulwhasoo brand of creams and other cosmetic 
products in Galeries Lafayette department store in Paris in 
September. 
    Thierry Maman, the head of the group's European operations, 
said its products should reach British department stores, such 
as Selfridges, this year, with Germany to follow after that. 
    Maman, hired by Amorepacific in 2015 from the perfume and 
beauty arm of LVMH's  LVMH.PA  Givenchy, said the Paris outlet 
was "a good testing ground" as the label considered whether to 
open its own stores or offer its products through other shops. 
    "You don't become international from one day to the next," 
he said. 
    The group first tried to break into the French cosmetics 
market, one of the world's most competitive, 30 years ago but 
withdrew after just two years due to poor sales. It bought 
French perfume house Annick Goutal in 2011.  
    Maman said France was a tough market but added Sulwhasoo was 
betting on drawing customers with its traditional, 
herbal-inspired formulas. 
    South Korean beauty products, which have expanded in Asia 
and especially China, have gained a reputation for innovation 
and using natural ingredients, such as snail slime or tea 
leaves. 
    Other Korean firms have attracted foreign investors and 
pushed into Europe, such as Dr.Jart+, partly backed by Estee 
Lauder  EL.N  and whose products are sold in the beauty chain 
Sephora. 
    Rivals often offer cheaper ranges of skincare or make-up 
products, which are particularly popular with young consumers.  
    Amorepacific, whose products include a sponge applicator for 
make-up that has been mimicked by global brands like L'Oreal's 
 OREP.PA  Lancome, might offer more of its middle-of-the-range 
labels to Europe in future, Maman said. 
    Amorepacific's European revenues, including Goutal, were 
less than 50 million euros ($60.2 million) annually but were 
expected to rise by 20 percent in 2018, Maman said. 
    Amorepacific's sales were hit this year by diplomatic 
tensions with China that reduced Chinese tourists to South 
Korea.  urn:newsml:reuters.com:*:nL4N1N643M 
    Relations are now on the mend, but Amorepacific Corp's sales 
fell 8 percent to about 4 trillion won ($3.8 billion) in the 
year to September. 
     
    ($1 = 0.8300 euros) 
    ($1 = 1,061.9600 won) 
 
 (Editing by Edmund Blair) 
 ((sarah.white1@thomsonreuters.com; + 33)(0)(1 49 49 56 85;)) 
 
Keywords: AMOREPACIFIC EUROPE/