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K-beauty makers focus on US as China business slows

Link [2022-06-17 22:28:37]

Amorepacific’s booth during BTS concert in Los Angeles, California, in November 2021 South Korea’s major cosmetics makers are trying to lure more customers in North America as the K-beauty boom has been weakening in China, the world’s top consumer market.Amorepacific Corp. showcased its key brands such as Sulwhasoo and Laneige on Amazon, the largest online shopping mall in the US. The cosmetics giant also expanded its presence in the offline market through a major beauty product retailer Sephora and a department store chain Kohl’s.Amorepacific said on Wednesday its sales in North America surged 60% in the first quarter from a year earlier.The company officially launched a masstige lineup Laneige in March and its premium brand Sulwhasoo in April on Amazon, respectively.“We had introduced them for test on Amazon so far and we decided to speed up sales from this year,” said an Amorepacific official.For offline markets, Sulwhasoo secured shops at 51 Sephora stores in March, while Innisfree, Amorepacific’s low-cost brand, increased its outlets into about 490 retailers including Sephora and Kohl’s.Such moves came as the company reported disappointing first-quarter sales and operating profit as revenue from China, its key market, fell.Its crosstown rival LG Household & Health Care Ltd. expanded its US business through acquisitions.In April, the maker of high-end cosmetics the History of Whoo bought a 65% stake in The Crème Shop Inc., a Los Angeles-based beauty brand with South Korean heritage for $120 million. The Crème Shop specializes in basic and color cosmetics for young generations.LG Household last year purchased a 56% stake in Boinca that has the US vegan hair care brand Arctic Fox for $100 million.“Interests in K-beauty is gradually growing, riding on the Korean wave including BTS and other global stars among millennial and Gen Z consumers there,” said an industry source, referring to the worldwide popularity of South Korean culture.By Soo-Jung Haagatha77@hankyung.comJongwoo Cheon edited this article.