Amorepacific Signs Win-Win Agreement with Aritaum Franchisee Council

From the left in the photo: Nam Hyo-cheol, Chairman of Jeongyeonghyeop; Ahn Se-hong, CEO of Amorepacific; Kim Ik-soo, Chairman of Jeonahyeop.

[Asia Economy Reporter Yujin Cho] Amorepacific (CEO Sehong Ahn) has signed a win-win agreement with the nationwide Aritaum store owners' councils, including the National Aritaum Management Association and the National Aritaum Store Owners Association, which are franchisee organizations of Aritaum.

At the signing ceremony held at Amorepacific headquarters on the 16th, the three parties?the franchisor headquarters, the National Aritaum Management Association, and the National Aritaum Store Owners Association?agreed on seven implementation plans including support worth 6 billion KRW and pledged to faithfully implement them and strive for mutual growth.

The main contents of the agreement include special rent support for each franchise store, special inventory returns, easing of store closure burdens, expansion of exclusive products, and increased profit sharing from the online direct mall.

Specifically, the franchisor headquarters will support franchise stores with rent to overcome the COVID-19 crisis and will specially accept returns of inventory products within this year. For stores closing by the first quarter of next year, interior support fund refunds will be waived and all products will be returned, totaling support worth approximately 6 billion KRW.

From a mid- to long-term perspective to enhance franchise store competitiveness, exclusive products for franchise stores, currently about 20% of sales, will be expanded to 50%. The Aritaum Mall 'My Store' system, which shares a portion of sales from the online direct mall, will also be revised to increase the profit share for franchise store owners.

Amorepacific CEO Sehong Ahn emphasized, "Although the franchise business overall faces great difficulties due to the spread of COVID-19, franchise stores are important channels and partners," and added, "We will establish a proper win-win cooperative relationship, fulfill the franchisor headquarters' roles and responsibilities, and contribute to fostering a culture of mutual growth in the cosmetics industry."

Meanwhile, Amorepacific Group is preparing to sign win-win agreements with the franchise store owners' councils of Innisfree and Etude, in addition to Aritaum, with whom the agreement was signed on this day. Earlier this year, the group supported these three franchise stores with about 7 billion KRW and plans to provide additional support worth approximately 10 billion KRW in the second half of the year.

This content was produced with the assistance of AI translation services.