SHANGHAI ― AmorePacific Group, a leading South Korean beauty goods maker, said that it will aim to increase sales ninefold in China by 2020.
The group chairman Suh Kyung-bae said Wednesday that this was in line with its new vision to become the top cosmetics brand in Asia and the world.
“We will strive to become the No. 1 in Asia by 2020, and ultimately the global No. 1 in the future, from being Korea’s No. 1 beauty products maker,” Suh said during an opening ceremony for its new plant in Shanghai.
The company said it would use the new Beauty Campus in Shanghai to grow by about 40 percent annually, and achieve sales of 3 trillion won ($2.83 billion) by 2020.
AmorePacific’s Beauty Campus in Shanghai (AmorePacific)
This would account for about 28 percent of its total estimated sales of 12 trillion won.
The company recorded 338.7 billion won in sales last year, and is expected to post sales of 450 billion won this year.
“The new plant was built to actively respond to the fast-growing Chinese beauty market,” Suh said.
“We believe Shanghai would be a bridgehead for the company to further expand in China and Asia.”
The 92,787-square-meter plant houses a research center, and packaging, storage and welfare facilities for 300 employees, of which almost 90 percent are Chinese workers.
It has the capacity to produce some 13,000 tons of beauty products, or 100 million goods of Amore’s popular brands such as Sulwhasoo, Etude House and Mamonde.
“I have a strong belief that the company can increase productivity only if workers can feel a sense of ownership and security. Shortly put, workers’ satisfaction equals consumers’ satisfaction,” Suh said.
AmorePacific Group chairman Suh Kyung-bae speaks during a press conference at Beauty Campus Shanghai last week. (AmorePacific)
The third floor of the four-story building has a gym, tennis court, basketball court, cafeteria and outdoor resting area.
In 1992, the company entered China, which has become the world’s largest economy on purchasing power parity calculations, by setting up a Shanghai unit.
AmorePacific’s major brands such as Laneige, Mamonde, Sulwhasoo, Innisfree and Etude House were launched globally over the past 12 years.
By Suk Gee-hyun, Korea Herald correspondent
(monicasuk@heraldcorp.com)
