Abstract

AmorePacific is the new success story in the global cosmetics market, more specifically in Asia. The South Korean group achieved US$5.58 billion in sales in 2016, and ranked 7th worldwide, 3rd in Asia and 1st in Korea in terms of sales. With its long rich history, Amore managed to keep growing at a steady pace to achieve current results. The company keeps setting ambitious goals, it aims to become number one in Asia by 2020 with US$ 8.2 billion, and increase overseas sales from 30% of overall sales to 51%. AmorePacific managed to become the company it is today through working on all of its processes, but it also leveraged on external factors. The Korean wave that was started by Korean drama and music, kept gaining popularity in Asia and Worldwide. As market leader, AmorePacific followed in the same direction as the Korean market. But the group was not only successful due to external factors, Amore built a strong corporate culture since it was founded. It believes in high quality natural products, and a bigger purpose of changing the world through beauty. AmorePacific also keeps developing cutting edge technology through continuous R&D with the purpose of putting out disruptive innovations. Amore also has strong collaborative corporate structure, creative and innovative marketing strategy, good supply chain management and an extensive and diversified brand portfolio of 28 brands. Looking forward, the Korean group is facing a saturated and slowing Korean market, a fierce global competition and highly demanding customers. As AmorePacific chose to pursue an internationalization strategy, it currently relies mainly on Asia, but is also trying to expand into North America and Western Europe. CEO Suh Kyung-bae would have to decide if the company should focus on Asia and emerging markets or try to fight with the big global players.

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