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The group behind brands like Sulwhasoo, Etude House and Innisfree, is considering giving sales in the key market a much-needed boost by cutting back on physical stores and accelerating expansion of its premium offering and digital channels, The Korea Herald reports.
Amorepacific president Kim Seung-hwan reportedly dropped hints about a strategic shift for its approach to the China market during a meeting with local analysts this week. The group is looking to cut stores to 140, from around 800 as of 2020, a source told The Korea Herald.
In 2021, revenue from Amorepacific’s China subsidiary is forecasted to grow just 6 percent, lagging behind overall projections for the local cosmetics industry of at least 17 percent, Business Korea writes.
There’s no doubt Amorepacific is facing growing competition from local C-beauty upstarts, many of which peddle accessible beauty offerings rivalling its Innisfree and Etude House brands.
In addition to shuttering physical stores and investing in premium brands like Sulwahsoo, the group will double down on e-commerce, with a goal that digital sales will make up 30 percent of its local business.