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Amore Pacific's hybrid approach to the Chinese market

  • Author:Nancy
  • Source:China Daily
  • Release on :2019-10-30

   Amore Pacific's hybrid approach to the Chinese market

The deployment of high-end cosmetics and mass market products will become the dual focus of Korean cosmetics company Amore Pacific in China. Amore Pacific accounts for one-fifth of the company's total revenue in China and is one of its fastest growing markets. The company's business in China.

In an exclusive interview with China Daily, Kao said that this hybrid approach is supported by continuous digital driving, including data analysis for product customization and social media interaction to better interact with new and old consumers. .

“For new products launched in China, we are shifting from “intuitive-driven readiness” to using data that describes our customers’ clear preferences,” Kao said. Under his leadership, the group’s nearly 30% of its revenue comes from online business channels. .


The company is one of the early adopters of China's digital wave, and the recent establishment of a dedicated office with Chinese Internet giant Alibaba in Hangzhou is the best example of its efforts. The goal is to use data analysis to customize products based on the preferences of the self-expression Chinese consumer group.

Gao said that under this initiative, the first two jointly developed skin care products will use the data summary of the recipes and packaging that people follow, and made their debut in China early next year.

China's younger generation of customers are also willing to pay extra for premium products and services. “So, we are investing heavily to enhance the immersive experience of high-end product lines, such as the SPA service in our Sulwhasoo store,” he said.

At the same time, according to consulting firm Kantar Worldpanel, young people in small towns have formed new growth points in the industry, and spending in 2018 has increased by 7.8% compared to 2017. In 2018, online sales of beauty products (including cosmetics and personal care products) in small towns jumped 38%, twice the growth rate of big cities.

In order to adapt to this trend, Amorepacific recently launched the mass market-oriented skincare brand Primera through Alibaba's Tmall website, in order to comply with the online trend and meet the pursuit of natural ingredients in cosmetics.

From the popularity of social commerce sites to short-lived video sites and a host of popular apps, you can also see the rise of young people in small towns. By entering these emerging groups, Tmall said its sales of beauty products jumped more than 60% last year, exceeding the industry's average growth rate.

Yu Zhiqiang, general manager of the China Consumer Index, said: “Still, the average expenditure of young people in small towns is still 18% lower than that of young people living in big cities. This comparison actually represents the huge growth potential of marketers.”

Gao Wang praised the continuous improvement of China's business environment, saying that the opening is witnessing "faster pace and greater pace."

For example, China’s adjustments to the import procedures for non-special-purpose cosmetics have effectively reduced import time from two months to six months to five working days. Kao said that this will help the company launch new products at the China International Import Expo in November, such as smart beauty machines, 3D printed skin masks and tailor-made mixed color lipsticks.

He said: "The upcoming CIIE and the November 11th shopping event will undoubtedly demonstrate China's pursuit of innovation and warm welcome to foreign companies.


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