South Korean cosmetics giant AmorePacific is banking on its fragrance business as a way to secure a solid foothold in the U.S. beauty market.
AmorePacific said Monday that its fragrance brand Annick Goutal will open a second store, a 65-square-meter unit at 955 Madison Avenue in New York, this month. The opening follows the flagship outlet on Bleecker Street in New York that opened last summer.
Annick Goutal, originally a French perfume house, was acquired by AmorePacific in 2011. The brand sells scented products for the home, bath products, soaps, creams and a skin care line for both genders.
The Paris flagship store of AmorePacific’s fragrance brand, Annick Goutal. (AmorePacific Group)
The Korean cosmetics firm’s bold decision to open a store next to a number of luxury boutiques comes amid growing demand for fine fragrances.
According to market researcher NPD Group, U.S. sales of prestige fragrances grew 10 percent during the 12 months ending February 2014 to $285 million. The NPD’s research showed that the positive trend continued for the remainder of the year.
Nearly 60 percent of U.S. women use both scented body products and fine fragrances, regardless of their race or age, NPD Group’s data showed.
Industry sources said AmorePacific’s decision to open another store in New York was a sign of its confidence in the fragrance business in the U.S.
“We’ve been seeing higher-than-expected sales figures from the first flagship store in New York, not only for perfume but soap and bath products as well,” an official from AmorePacific said.
“We leased a larger space for the second flagship store as we believe in our potential in the market.”
The perfume house has been gradually expanding its U.S. market share since it was acquired by the Korea firm. Major retailers including Saks Fifth Avenue, Bergdorf Goodman, Henri Bendel and Bloomingdale’s are carrying the brand in Manhattan.
By Suk Gee-hyun (monicasuk@heraldcorp.com)
