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Korean Brands Target the U.S. Market

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Amore Pacific and LG's New Focus


AmorePacific and LG, the top two Korean companies, aggressively target the U.S. market in earnest. Korean brands are lowering their share of exports to China, which is suffering from COVID-19 and political problems, and focusing more on the United States. 

According to the Korea Institute of Cosmetics Industry, the proportion of Korean cosmetics companies' exports to China fell 6.7 percent from 53.2 percent last year to 46.5 percent in the first half of this year. On the other hand, exports to the U.S. jumped 11.0% from 9.2% last year.


AmorePacific's Success on Amazon Prime Day


AmorePacific's brand topped sales in the Amazon Prime Day Beauty/Personal Care category, an online shopping event by Amazon, the world's largest e-commerce company. AmorePacific sold its flagship brands such as Sulwhasoo, Innisfree, and Laneige, attracting many customers.

In particular, Laneige's products ranked first in sales in the beauty/personal care category. Laneige's flagship product, Lip Sleeping Mask-Berry, was the most sold, and Lip Glowy Balm was the third most sold. The Water Sleeping Mask was also in the top 100. In other brands, Sulwhasoo's Yoonjo Essence sold out all the prepared supplies, and Innisfree's Daily UV Defense Sunscreen ranked 34th. 

For AmorePacific, this was in stark contrast to the fact that not a single brand was listed in the top 10 at the recent "6.18 Shopping Festival" in China.


What is Amazon Prime Day?


Amazon Prime Day is an annual event only for paid members of Amazon. This year, it was held for two days from July 12 to 13, 2022, and more than 300 million products were sold.



LG's Expansion Strategy


LG Household & Health Care Vice President ordered business expansion in North America, the world's largest market. LG Household & Health Care started to target the market through mergers and acquisitions (M&A) of U.S. cosmetics companies in 2019.

In 2019, LG acquired New AVON, an American cosmetics company, and in 2020, LG acquired the North American business rights of GlaxoSmithKline (GSK). And this year, LG acquired a 65 percent stake in the American beauty brand "The Creme Shop." In addition, it is taking over Boinca, which owns the fashion hair care brand Arctic Fox, to target the North American market in earnest.



Source:

  • Amazon Prime Day
  • AmorePacific
  • LG Household & Health Care

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