KUALA LUMPUR: Global beauty company, AmorePacific Malaysia Sdn Bhd targets its sales and profit to grow by 20 per cent this year, bolstered by expanding brands portfolio and sales channels, as well as extensive marketing plans.
AmorePacific Malaysia general manager, Margaret Chin said the company, a wholly-owned unit of AmorePacific Corp based in South Korea, has already surpassed its sales target for January.
“We want to start the year positively, and we believed we can achieve the numbers that we projected,” Chin told Bernama in an interview recently.
The company has allocated RM10 million in capital expenditure this year and about 15 per cent of its net sales is allocated for advertising and promotion.
The group recently launched its first drugstore brand, haircare line Ryo and planned to launch professional haircare line for salons, Amos Professional by end of this year.
It would also introduce new brands – HERA, Mise En Scene and Happy Bath by next year.
“HERA is a luxury brand, competing with the likes of Nars and YSL, so we are looking for exclusive locations such as Pavilion or KLCC for flagship stores,” she said.
For existing brands, Chin said AmorePacific would continue to expand in new malls and second tier city.
“For example four brands to be opened in the South Quay Mall in JB and the Central iCity Shopping Centre in Shah Alam,” she said.
Chin said the company would also be penetrating into more online platforms especially now, as it has a strong e-commerce team in place.
AmorePacific’s business portfolio includes more than 30 brands dedicated to meet consumer demands.
Among these, its five global champion brands – Sulwhasoo, Laneige, Mamonde, Innisfree and Etude are all available in Malaysia.
Malaysia is the biggest market for the brand Laneige in Asia Pacific.
Chin said the company has also expanded in East Malaysia and recently opened a warehouse in Kota Kinabalu in September 2018 to cater the market.
It currently have 8 outlets and was looking at adding another two by year-end.
“Kota Kinabalu has high tourist arrival, especially from Korea and China. It contributed to sales growth which can achieved 40 to 50 per cent a year,” she said.
Chin said AmorePacific had done well last year despite the impact from slower global economy, stiff competition and declining departmental store business.
“We also saw a drastic decline of China’s tourists that usually flocked to Malaysia in fourth quarter. Despite all these challenges, our sales and profit grew 24 per cent from the year before,” she added.
Asia Pacific’s beauty and cosmetic market currently experiencing rapid growth due to its young population, with Malaysia being one of AmorePacific’s main market besides Singapore, Thailand, Indonesia and Vietnam.
It recently opened offices in the Philippines and Australia.
AmorePacific is also building a research and production complex in Johor Baharu, which would serve as its hub in Asean region for halal cosmetics research and production.
“Originally it was planned to open by 2020 but there would be two years delay due to the change in regulations,
“Once the facility is up and running, we will definitely expand our product offerings and the new facility will also be manufacturing halal products for global market,” she said. — Bernama