Seunghwan Kim, Amorepacific CEO: "Strengthening Global Presence... Will Diversify Portfolio"

Brand Competitiveness, Global Rebalancing, Channel Responsiveness, Future Growth
Key Strategic Directions Presented
Annual Average Sales Growth Rate 10%, Operating Profit Margin Target 12% by 2027

Seunghwan Kim, CEO of Amorepacific, unveiled a global growth strategy that includes strengthening brand competitiveness during the 'Investor Day' held for institutional investors.

According to Amorepacific on the 13th, CEO Kim presented this strategy on the 12th at the company's headquarters in Yongsan-gu, Seoul, during the '2024 Investor Day.' Approximately 80 major domestic and international securities analysts and institutional investors attended the event, which was also attended by Giovanni Valentini, head of the North American division.

Kim Seung-hwan, CEO of Amorepacific, is presenting at the Investor Day held on the 12th. Photo by Amorepacific

First, CEO Seunghwan Kim introduced specific plans aimed at strengthening leadership in the global market. Along with a review of past performance, he announced the growth strategy for 2025. Giovanni Valentini, head of the North American division, also presented, explaining the brand growth strategy, marketing, and organizational operation strategy for the North American market. A Q&A session with attending institutional investors followed.

In his presentation, CEO Kim emphasized, "As Korea's cultural status rises in the global market, the cosmetics industry is also experiencing significant growth," adding, "Amorepacific will further strengthen its position in the global market through healthy sales growth and securing profitability." He then outlined key strategic directions including ▲strengthening brand competitiveness ▲accelerating global rebalancing ▲enhancing channel responsiveness ▲preparing for future growth.

First, through a review of past performance, CEO Kim stated that Amorepacific achieved global rebalancing by growing overseas, mainly in Western markets. Domestically, the business structure diversified with the expansion of multibrand shops (MBS) and e-commerce channels, leading to improvements in sales and profitability.

He then emphasized diversifying the portfolio into global flagship brands and future growth brands to strengthen brand competitiveness. Among global flagship brands, Sulwhasoo, Innisfree, and Ryo aim to improve profitability and expand in global markets, while Laneige and COSRX will focus on securing growth potential. He also explained plans to nurture next-generation global brands such as Hera, Estra, and Illiyoon to secure future growth engines.

To accelerate global rebalancing, he announced plans to focus on key strategic markets including the United States, Japan, Europe, India, and the Middle East. In advanced markets such as the U.S., Japan, and Europe, Amorepacific will strengthen partnerships with major distribution channels like Sephora to expand brand and customer bases. He also stated plans to intensify efforts to target emerging growth markets such as India and the Middle East. Regarding the China business, he said they will normalize operations through transaction structure improvements and strengthened management.

To enhance channel responsiveness, Amorepacific plans to build capabilities to respond to global platforms like Amazon and operate optimized marketing strategies. They also shared strategies for targeting major e-commerce channels such as AmoreMall.

Finally, CEO Kim said they are preparing for future growth through innovation using digital technology. He highlighted new digital-based services currently in operation, such as 'Dr. Amore,' an AI skin diagnosis system, and 'Custom Match,' a personalized makeup solution. Alongside this, he stated that they will enhance productivity in development, planning, marketing, design, and sales through digital AI technology.

Meanwhile, on the 12th, Amorepacific disclosed a corporate value enhancement plan specifying management goals and achievement plans for the next three years. According to the plan, they aim to continuously pursue the global growth strategy to achieve an average annual sales growth rate of 10% and an operating profit margin of 12% by 2027.