By Jhoo Dong-chan
Cosmetics giant AmorePacific will expand into the Middle East this year, boosted by its success in the Asian market including China.
Industry sources said that AmorePacific’s brands such as Sulwhasoo and Laneige are expected to make inroads into the Middle East’s cosmetics market later this year.
With its global expansion strategy focusing on megacities with populations of more than 10 million, the nation's biggest cosmetics company chose Dubai in the United Arab Emirates for its first business foothold in the Middle East, and will then expand into neighboring nations including Saudi Arabia, Turkey and Iran.
Of them, Iran’s cosmetics market is receiving the most attention, following an end to economic sanctions for the country’s nuclear enrichment program.
Recently, the government held a business conference with Iran to encourage Korean companies to enter the country. Iran’s capital, Tehran, has a population of more than 10 million, a suitable place for AmorePacific’s expansion strategy in the Middle East.
“The Ministry of Trade, Industry and Energy offered joint market research for AmorePacific along with other companies who also wish to do business in Iran,” said an AmorePacific official.
“We understand our brand shop Etude’s products are already sold in Iran through some private traders. We will study further for doing future business in Iran.”
AmorePacific co-CEO Shim Sang-bae shows his confidence for the company’s success in the Middle East.
“We will launch the most suitable brand among AmorePacific’s various affiliated brands after conducting market research,” Shim was quoted as saying.
An AmorePacific official said, however, that the company is not planning to launch its brand shops like Etude and Innisfree in the Middle East but focus on department store brands, meaning Sulwhasoo, Laneige and Mamonde are more likely to be sold there first.
Of them, industry sources believe the company’s luxury brand Sulwhasoo is expected to lead the company’s Middle-Eastern sales. Using Oriental herb mixture techniques, the brand will offer a differentiated character from European products.
Last September, AmorePacific Chairman Suh Kyung-bae pledged to expand the company’s sales at home and abroad from 4.71 trillion won last year to 12 trillion won ($10.9 billion) by 2020.
With plans to target the Middle East this year and Latin America next year, the company has already gained a huge success through sales in China where an estimated 150 million people now use beauty and skincare products.