[Click eStock] "Amorepacific, Accelerating Digital Transformation"

Innisfree to Reduce Offline Stores
Yuanta Securities Maintains Amorepacific Target Price at 195,000 Won

[Asia Economy Reporter Gong Byung-sun] Amorepacific announced its achievements in digital transformation this year. According to Amorepacific, digital transformation has also brought changes to marketing and business organizations. It is expected that digital transformation will accelerate next year as well.

On the 15th, according to Yuanta Securities, Amorepacific held a strategic briefing for researchers the day before. The event was attended by Seunghwan Kim, CEO of Amorepacific, Jinpyo Lee, Head of Strategy Division, and Youngmin Hwang, Deputy General Manager of China.

Amorepacific explained that the share of brands such as Sulwhasoo and Laneige exceeded 50% in its China performance. In addition, the contribution of digital in China increased by more than 50%, and business structure improvement seems to have accelerated through offline channel adjustments, product number optimization, and organizational restructuring.

Digital transformation was also achieved. The systematization of digital marketing in Korea and China led to investments in business organizations. Changes in organizational structure, active recruitment of talent, and establishment of new compensation systems to retain key personnel were implemented. Eunjeong Park, a researcher at Yuanta Securities, explained, “They also pursued inorganic growth such as acquiring shares in COSRX,” adding, “We could see a strong will for growth, such as switching internal evaluations to a June fiscal year-end corporation.”

Amorepacific set a goal of 10% growth in the Chinese cosmetics market next year. Sulwhasoo aims for 20-30% growth, and Laneige targets 15-25%, with the luxury sector expected to lead growth. Furthermore, the contribution of high-end luxury and the MZ (Millennial and Generation Z) generation, as well as digital concentration, are expected to accelerate further.

Innisfree also plans to offset offline sales decline with online growth. The number of offline stores, which was 280 this year, is expected to decrease to 140 next year.

Accordingly, Yuanta Securities maintained its investment opinion on Amorepacific as ‘Hold’ with a target price of 195,000 KRW. The closing price on the previous day was 181,500 KRW.

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