By Park Ji-won
Amore Pacific, the nation’s leading cosmetic manufacturer, is moving to enter India by opening an store carrying Innisfree, the firm’s popular budget brand.
“We aim to open a shop in India this year with our flagship skin care brand Innisfree,” said Kim Yong-mock at the brand’s global team.
The firm, which set up an office and business entity Innisfree Cosmetic India there in November 2012, is currently awaiting business approval from the Indian government.
The subsidiary is 100 percent owned by Innisfree. The government there lifted regulations in January 2012, which capped an investment ceiling at 51 percent for one brand.
“We have been preparing for operations in India since last year as a new market after China. We will develop products to meet local demand,” Kim added.
He said it is likely to open its first shop in New Delhi as a strategic location for future expansion.
India has emerged as a promising cosmetics market.
Due to the increasing disposable income and product availability, cosmetic sales in India are expected to post an average annual growth rate of 18 percent from 2011 to 2014, according to a report by industry research firm RNCOS,.
Innisfree started expanding overseas from last year, opening 17 shops in China and 2 shops in Hong Kong. It also launched an online shopping mall in Japan in April 2013.
The official said it plans to increase its outlets in China to 50 this year.
The firm’s sales were 229.4 billion won ($196.8 million) in 2012, up from 140.5 billion won in 2011, and a 1.6-fold increase.