May 09, 2024

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[THE INVESTOR] Korean beauty and cosmetics conglomerate Amorepacific has decided to revise its overseas growth strategy by actively pursuing more mergers and acquisitions, Chairman Seo Kyung-bae said on Nov. 14.

“We will definitely consider M&As if they can add variety to our product lines or accelerate our overseas expansion,” he said in a recent interview with a local media outlet.

 

Amorepacific Chairman Seo Kyung-bae

Amorepacific’s overseas sales have been growing rapidly since Seo took office in 1997. In the third quarter, sales increased 6.5 percent on-year to 1.31 trillion won (US$1.17 billion won).

Until now, the company’s global expansion strategy was mostly focused on pushing its own brands rather than pursuing M&As.

Amorepacific last acquisition was in 2011 when it bought French perfume maker Annick Gouta.

Even as it has decided to reduce its dependency on its largest overseas market China, where sales have dipped following the prolonged diplomatic tensions between Seoul and Beijing over the deployment of THAAD missile system, Amorepacific’s core strategy has not changed.

But there appears to be a slight shift in strategy of late. In September, it opened the first Sulwhasoo store at Galeries Lafayette, an upscale department store in Paris. In the same month, it also opened the flagship store of its budget brand Innisfree at Union Square in Manhattan, New York.

By Song Seung-hyun (ssh@heraldcorp.com)