The sales of Sulwhasoo, the leading K-beauty brand, in China have increased sharply. What’s more, the results are significant as they came out during the traditional off-season.
Sulwhasoo has been praised for rejuvenating herself by selecting Girls’ Generation’s Taeyeon as a promotional ambassador for ‘New Concentrated Ginseng Renewing Cream’ in August.
Amorepacific Group announced on the 29th that its sales in the third quarter recorded 1.21 trillion won, up 0.5% from the same period of the previous year.
Operating profit fell 15.3% to 51.7 billion won. The group’s total cosmetics sales were estimated at 1.11 trillion won.
Specifically, Amorepacific’s sales in the third quarter recorded KRW 1.108.9 trillion, an increase of 1.9% from the same period of the previous year, and operating profit of KRW 50.3 billion, a decrease of 10.2% from the previous year.
Domestic sales were 721.5 billion won (7.3%↑) and operating profit was 58.7 billion won (63%↑). Overseas sales were 384.1 billion won, down 9.2% from the same period last year, and operating profit plunged 56.5% to 8.5 billion won.
The sharp increase in domestic market sales is attributed to a 30% increase in online channel sales. As a result, operating profit also increased significantly.
In particular, luxury brands drove sales growth in online channels. The launch of Sulwhasoo’s ‘Concentrated Ginseng Saeng’ and Hera’s ‘Black Cushion Couture’ strengthened brand competitiveness, leading to an increase in sales.
In the overseas market, North America performed well, but in Asia, it decreased due to the restructuring of innisfree stores, closure of some Southeast Asian countries, and shortened sales.
In the midst of this, Sulwhasoo’s ‘Concentrated Ginseng Renewing Cream’ was launched in China, and overall Sulwhasoo sales grew by about 50%.
The brisk sales of the Concentrated Ginseng Saeng Line also stood out in Thailand and Indonesia.
Although sales declined due to the reorganization of offline stores by major subsidiaries of the group, profitability improved as the proportion of online sales increased.
The losses of Innisfree and Etude decreased, and Espoir succeeded in turning the black.
O’sulloc’s online sales increased thanks to the strong harvest of Chuseok gift sets and the strengthening of live commerce, as well as its operating profit.
A company official said, “We plan to continuously pursue management strategies such as brand development, digital transformation, and business improvement.
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