AmorePacific Raises Prices of Some Products by Up to 13%

Amorepacific Strives to Overcome Crisis After Falling Behind LG Household & Health Care

[Asia Economy Reporter Lim Hye-seon] Amorepacific, which experienced its "worst year" last year, has implemented price increases along with a brand renewal.

According to the cosmetics industry on the 4th, Amorepacific, the ultra-premium brand of Amorepacific Group, recently renewed its cleansing products and raised prices by up to 13%. The price of the "Treatment Enzyme Peel Cleansing Powder (photo)" increased from 60,000 won to 68,000 won. Amorepacific explained that it improved the ingredients through research and development (R&D). The renewed product added the efficacy of green tea probiotics, which strengthen the skin barrier, to the enzyme derived from green tea lactobacillus that has exfoliating effects. Additionally, for the foam cleanser, the existing product was discontinued and replaced with a new product, raising the price from 39,000 won to 42,000 won, a 7.6% increase. As product renewals accelerate in the first quarter, most product prices are expected to rise.

Earlier, imported cosmetics brands such as Est?e Lauder, MAC, Jo Malone, Clinique, and Bobbi Brown also raised prices of some products by more than 5% as of the 1st. LG Household & Health Care's cosmetics brand belif also increased prices by an average of 10% starting last month. Amorepacific's Sulwhasoo upgraded its 5th generation Yunjo Essence last year and raised the price by 8.3%.

The cosmetics industry expects that the price increases through this brand renewal and the restructuring carried out last year will have a positive impact on first-quarter performance. Last year, voluntary retirements were implemented, and domestic stores such as Aritaum and Innisfree stores in China were reduced. The CEO was replaced with Vice President Kim Seung-hwan (51), and a large-scale organizational restructuring was undertaken.

This year, the company plans to restore corporate value based on the reorganized structure. Amorepacific has set three major business strategies: brand, digital, and restructuring. Half of the total marketing budget will be invested in digital channels to strengthen company-wide digital capabilities. Amorepacific has set a performance target for this year of 5.6 trillion won in sales and 380 billion won in operating profit.

Due to the prolonged COVID-19 pandemic and deteriorating business environment, Amorepacific's sales last year reverted to levels from six years ago, and operating profit plummeted nearly 70% compared to the previous year. Amorepacific Group's sales were tentatively recorded at 4.9301 trillion won, down 21.5% year-on-year, and operating profit decreased by 69.8% to 150.7 billion won. The single corporation sales were also surpassed by LG Household & Health Care, which has been the "perennial second place."

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