Amorepacific wants to increase its market share in the make up niche
While make-up only represents to date 20% of the turnover of the AMOREPACIFIC Group, the leaders of the Korean group make no secrets of their ambitions in this beauty niche. Boosted by the tremendous success, in the past two years, of foundations the Mist Cushion with a very innovative patented packaging implementing a foam sponge containing a liquid formula, leaders do intend to increase this share, thanks to other forthcoming innovations, to 30% of the turnover. AMOREPACIFICs corporate vision Global Total Care Provider of Beauty & Health defines the companys goal to become one of the world’s top 7 and Asias no.1 cosmetics company by 2020.
More details from Eun-Im Lee, Vice President of the Marketing/Make-Up Value Division.
MakeUp in …: Quite extraordinary this innovation from your R & D Centres! Can you tell us what it is all about?
Eun-Im Lee: To be frank we’re quite proud of it. We now use in many of our ranges like Hera of course, but also Laneige or Iope and Lirikos…. The foam sponge contains a liquid formula that can be is lightly taken out with another latex sponge this time, for a very easy application on the skin. The case is of course of the air-tight type to ensure tight sealing. Covering is good, the texture is light with a nice powdery matte finish and I also like the brightening effect it provides to the skin. What is also very interesting about this formula is that it combines multiple benefits: moisturizing, whitening, UVA & UVB protection with high indexes, a refreshing effect called the cool down effect which is nice in the summer…. Women love this product and consider it like a new foundation product category combining skin care and light make-up. It is a foundation which very lightly enables to limit the number of products to apply on the skin to the advantage of a single one with a make-up effect. It can in fact replace the make-up base. In order to build up women’s loyalty, each product is sold with a refill, providing more than 2 months of continuous use guaranteed.
But this is not the only innovation, we strongly believe in the continuation of the BB cream with the launch of CC creams whose characteristics is to be a formula based 70% on skincare and 30% on make-up. Its claim is also skin care in a compact We are starting the year with the launch of the Treatment Color Control Cushion in the Armorepacific more line. A formula rich in anti-oxidants from green tea extracts, with its very moisturizing extracts of bamboo sap, with a maximum SPF 50 + index, and which comes in 4 shades.
Finally, thanks to a close collaboration with Western artistic directors, we have just launched our new range of lipstick Hera Rouge Holic. It not only provides true intense, vibrant and bright colours but also a formula based on argan oil and green tea extracts that moisturizes and stimulates collagen production. Finally formulated with a newly developed dual structure polymer, the formula guarantees a perfect adhesion to the lips as well as an 8 hour hold.
MakeUp in …: A few words on your group…
Eun-Im Lee: With pleasure. Since its founding in 1945, AMOREPACIFIC Corp. has supported the Asian pursuit of beauty and introduced women all around the world to the beauty of Asia. AMOREPACIFIC aims to create a new concept of beauty that harmonizes both inner and outer beauty and to help women achieve their dream of living a beautiful and healthy life.
The company continues to expand its presence to the world beyond China, France and the United States. AMOREPACIFIC is also devoted to the development of sustainable products and the importance of engaging in corporate social responsibility activities in order to enhance sustainable development of the human race in harmony with nature.
Today our group employs nearly 9,000 people across a dozen countries. Sales exceeded the five billion dollar mark last year. In terms of brands, the Group owns twenty brands in the beauty industry that are designed for women and men, seven households brands and three healthcare brands. Concerning beauty” brands, we can name Hera, Sulwhasoo, Iope, Laneige, Mamonde, Lirikos, Primera,Innisfree, Etude, Lolita Lempicka, Hanyul, Annick Goutal, Hyosiah, Illi, Odyssey, Mirepa, ABC, Aritaum, Verite. And in healthcare, Osulloc, VB Program, Ogarden.
AMOREPACIFICs corporate vision Global Total Care Provider of Beauty & Health defines the companys goal to become one of the world’s top 7 and Asias no.1 cosmetics company by 2020, through the development of 10 global beauty-brands.
AMOREPACIFIC strives to establish the foundation for sustainable growth by developing products that serve the needs of customers all over the world, expanding its presence in the overseas markets, and exploring alternative methods for continuous growth. In addition, the companys commitment to becoming a responsible corporate citizen remains a high priority on its corporate agenda and as a part of its commitment, the company is making significant efforts minimize the impact on the environment and enhance the interest of all stakeholders.
AMOREPACIFIC is expanding its global presence, mainly around the five key markets of North America, Western Europe, Southeast Asia, Japan and Greater China. Our Group increase the overseas sales portion to about 45% by 2020 as part of its vision to become one of the worlds top 7 cosmetics manufacturers by 2020. The sales from China, in particular, increased by 34%.
MakeUp in …: What is the core value of your company?
Eun-Im Lee: With its vision of being the Asian Beauty Creator, AMOREPACIFIC has declared the five core values that will guide the companys codes of conduct, collectively called the AMOREPACIFIC Way. The core values include Openness, Innovation, Proximity, Sincerity, and Challenge. Openness highlights that truth can be discovered through open communication with customers. Innovation demonstrates the companys commitment to always developing new ideas.
Proximity assures customers that the company will always stay close to the customers, both physically and psychologically. Sincerity promises the companys dedication in all matters and Challenge reflects a positive attitude to continually seek improvement.
MakeUp in …: Your Group put at the highest level its environmental responsibility?
Eun-Im Lee: Absolutely! Our Group formally declared unlimited responsibility for the environment in 1993, unveiling its vision for sustainable management as part of its commitment to become the most respected cosmetics company in Asia by 2015. Since then, AMOREPACIFIC has actively supported many corporate social responsibility initiatives including the innovative development of sustainable products that promotes harmony between customers, the environment and society, the reduction of greenhouse gas emissions and wastes to protect the environment, the promotion of mutual growth between its employees and business partners, efforts to bring positive changes in the lives of humankind, especially for women, and other activities that can help create a harmonious society. As a result of such efforts, we have been listed first among the domestic beauty health companies on the DJSI World, DJSI Asia/Pacific and DJSI Korea for three consecutive years. The company has also been named as the World Leader in the Personal Products segment for three years in a row.
Since 2008, AMOREPACIFIC has produced sustainable products to enable its customers, the environment, and society to live and grow in harmony. As of March 2012, the company released a total of 314 sustainable products. Since 2011, AMOREPACIFIC has labelled those products that meet the companys strict sustainability standards as the AMOREPACIFIC Promise products, representing the companys devotion to making the earth more beautiful.
In an attempt to fulfil its social and environmental responsibility, AMOREPACIFIC implements sustainability in the sourcing of plant materials. So far, the company has secured Beautiful Purchase contracts on 12 ingredients including camellia and beans. Through this effort, the company is providing farmers with a stable income source and eco-friendly cultivating methods, while increasing customers reliability on the product by transparently unveiling place of origin of the materials.
Under the slogan of Beautiful People, Better Tomorrow, AMOREPACIFIC has endeavoured to support women in the development of a healthy and beautiful lifestyle and create a healthy and happy society based on the harmony between humans and nature.
MakeUp in …: Of course you heavily rely on research and development.
Eun-Im Lee: The founder of AMOREPACIFIC strongly believed in the importance of attaining a scientific and technological edge in order to become a leading global company. Since the establishment of its research laboratory in 1954 a first in Koreas cosmetics industry, AMOREPACIFIC has invested aggressively in R&D activities. The Technology R&D Center has been working towards achieving technological innovations, with the mid- and long-term vision of developing Asian beauty products by combining natural ingredients and biotechnology, and attaining sustainable R&D.
The Group has also built research institutes in Tokyo, Japan, in Shanghai, China, and in Chartres, France. These research institutes contribute to local business success by developing products best suited for the local women based upon the characteristics of local womens skin, regional and climate variables. The Shanghai R&D Center, in particular, expands R&D for global markets by developing products specially designed for local women by taking regional and climate properties into consideration, in cooperation with the Dermatology Department at a local university. In order to strengthen its manufacturing and R&D capacity in China, the Group has constructed a new business complex with a goal to complete the construction by 2014.
In 2010, the group has constructed the second Technology R&D Center, considered the worlds best and most advanced cosmetics research center, to foster creative and effective research into the needs of global customers, as well as the beauty of Asia. This world-class research center was built with the idea of free communication and “harmony with nature. With this building, AMOREPACIFIC plans to increase the number of researchers to 500 (compared to 350 researchers employed as of 2011) and thereby concentrate on becoming a Global Top 7 cosmetics company by 2015.
MakeUp in …: And innovation concerns as much formulas as it does packaging!
Eun-Im Lee: Absolutely! We give as much importance to the content as we do to the container. Approximately 15% of our products are renewed annually. And twice a year, we create limited editions. The least we can say is that it is motivating.
Thus for Laneige, the new Spring Summer collection Love Recipe gives the place of honour to products in a limited edition with fanciful decorations and colours like the multi-purpose products dual pot one reference of which combines a blush texture and a gloss texture and the other a concealer and a colour corrector. Here again packagings are not only fun and addictive like small icicles but on top of it formulas also have skincare and make-up properties… This limited edition is the continuation of the success of the 2012 collection, which still exists in a limited edition on the theme Love in Bloom whose design, inspired from peonies and tulips was the result of a collaboration with the Scandinavian illustrator Sanna Annukka.
Finally on the side of packaging, our company has always been one step ahead. The foundation Sliding Pact of Laneige with its design directly inspired from a mobile phone, created at the time of its launch a small revolution: sliding cover, one hand opening, outside mirror… now in times of touch pads, we of course have to re-design it! The rotating mascara auto Magic in the Hera range was launched in 2006, the first of its kind in the world which provided inspiration to many. Our team of designers are of course working in designing tomorrow’s revolutionary packagings but that all I can say for now!
MakeUp in …: An environmental and technological concern that you wanted to find everywhere in your Beauty Campus opened last year.
Eun-Im Lee: You are right! The Group opened a Beauty Campus, the worlds top integrated production-supply chain management center in Osan in 2012, combining a skin care center, makeup center and local distribution centres into one location. This Beauty Campus introduced the most advanced, absolute-quality and eco-friendly” facilities to produce the best quality products to customers around the world, as well as all kinds of facilities for employees under the belief that the best products can be produced only when the employees are happy. The Beauty Campus has various effective, eco-friendly facilities that work in harmony with nature such as solar-power modules, LED lighting and excellent sanitation facilities. In addition, this beauty campus takes the lead in reducing the energy consumption and greenhouse gas emission by making full use of natural lighting as well as off-peak electricity.
This Beauty Campus has also various facilities for employees including in-door garden, exterior resting place, multi-purpose assembly hall, fitness center and nursery. This beauty campus exhibits works of nationally and internationally known artists to help employees find the true meaning of beauty and come up with creative idea.
Meanwhile, the beauty campus has botanical garden and green gallery to enhance communication with customers while providing safe and excellent-quality products using the best ingredients.
This Beauty Campus has the most advanced, flexible production systems, including Multi-Cell Line for fast-production on a large scale and production of multiple items on a small scale, Recipe Control System, which ensures the consistent-quality products regardless of the person in charge of production and Fool Proof System, which automatically detects any defective products. In addition, the beauty campus introduced an innovative distribution system with 11 stacker-cranes in order to deliver the best products to customers in the least amount of time.