[Exclusive] "Amorepacific Betting on Health Supplements"... Launching Customized Services and Accelerating US Expansion

Vital Beauty and CubeMe 'Top Two in Health Supplements'... Strengthening Key Products and Launching New Items Crucial
Launching My Vital Beauty Service in Second Half... Global Expansion of Health Supplements to US, Vietnam, and More

[Asia Economy Reporter Lee Seon-ae] Amorepacific Group is set to actively expand its health functional food business. In response to the post-COVID-19 era, the company has recently established a management strategy based on three key themes: customization, online, and global. They plan to start customized services and intensify online sales while aiming to expand their business into the global market.

◆ Launch of Customized Health Functional Food Service = According to Amorepacific Group on the 26th, Amorepacific will launch a tentative service called 'My Vital Beauty' in the second half of this year to implement a personalized recommendation and sales service for its health functional food brand 'Vital Beauty.' Previously, Vital Beauty was selected as a pilot project operator for the 'Personalized Health Functional Food Recommendation and Sales' regulatory sandbox by the Ministry of Food and Drug Safety.

Now, customers can visit Amorepacific's 'My Vital Beauty' service locations and purchase health functional foods that are portioned and packaged according to their individual health status. Through portioning and repackaging finished products, which was previously impossible, Vital Beauty can provide scientifically and objectively based health functional food solutions such as a 'one packet per day' tailored precisely to the customer.

Additionally, preparations are underway for overseas expansion to countries such as the United States and Vietnam. An Amorepacific Group official explained, "In the second half of the year, we will introduce new customized services to expand the health functional food business, and we are also preparing for Vital Beauty's overseas expansion targeting next year."

Vital Beauty is a health functional food brand launched by Amorepacific in 2002. Its representative products include 'Myeongjaksu,' 'Meta Green,' 'Super Collagen,' and 'Probiotics from Green Tea.' Myeongjaksu, which contains red ginseng and ginseng berries (secondary ingredients), saw a 27% increase in cumulative sales from March to May compared to the previous year, as interest in immunity rose due to the COVID-19 pandemic. The 'Meta Green Slim,' introduced this month, is a new product in the Meta Green line, which has surpassed 5 million cumulative sales since its launch in 2012. Released as a digital-exclusive product, 'Meta Green Slim' sold over 5,000 units within 10 days of launch, and online (AP Mall) customer reviews average a rating above 4.8, receiving positive feedback. Super Collagen, a bestseller loved steadily for 10 years since its first release in 2010, is an inner beauty product that allows easy intake of low-molecular collagen. After a product upgrade last year, it achieved the highest sales growth rate among all Vital Beauty brand products.

In February, Amorepacific opened the 'Green Tea Probiotics Research Center' to strengthen research and product development of new probiotic materials discovered in organic tea fields in Jeju, and also launched the new product 'Probiotics from Green Tea.' The home shopping launch broadcast recorded a sold-out status with all six-month sets sold out. Its excellent efficacy and easy-to-consume formulation have been positively evaluated by customers, and the product has been selling at a rate of one unit per minute for two months since its release, showing rapid growth. Amorepacific plans to further strengthen the performance of Vital Beauty's flagship products and focus on launching innovative new products.

◆ Focus on Diversifying the CubeMe Line = To expand its health functional food business, Amorepacific is also actively promoting the expansion of the 'CubeMe' business, launched as a twin-top brand alongside Vital Beauty. Representative products include 'Perfect Cube,' 'Slim Cube,' and 'Collagen Cube.' CubeMe has rapidly grown within about a year since its launch, expanding its sales channels to over 700 stores both online and offline, including various e-commerce platforms, department stores, and drugstores. In 2019, it achieved sales more than three times the target for the year, and the flagship product Collagen Cube sold out 5,000 units in one day at launch, receiving explosive customer response. Based on these excellent results, CubeMe is expanding customer sales touchpoints through various distribution channels and was listed in Costco, known for its high and strict entry standards, at the end of last year.

An Amorepacific Group official said, "CubeMe's achievements are meaningful as they were obtained in a short period in the Korean inner beauty market," adding, "Building on this, we plan to expand services into various fields such as skincare, diet lines, meal management, yoga, and meditation, and aim to extend the business scope to the Asian region within this year."