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Korea Herald
03-05-2025
- Business
- Korea Herald
What's K-beauty's top firm in Q1? Amorepacific rises as LG H&H falls
China dependence likely drives split in Q1 performance of Korean beauty giants The first quarter earnings of South Korea's top two beauty giants, Amorepacific and LG Household & Health Care, have been largely shaped by their approaches to international market diversification beyond China. In the January–March period, Amorepacific Holdings reported consolidated revenue of 1.16 trillion won ($817 million), up 15.7 percent from a year earlier, with operating profit climbing 55.2 percent on-year to 128.9 billion won. Noticeable in the company's profit growth was the strong performance of its overseas markets, where sales surged 40.5 percent on-year to 473 billion won, and operating income profit more than doubled to 69.6 billion won. This upswing stemmed from Amorepacific's global rebalancing strategy, spanning North America as well as Europe, the Middle East and Africa. Sales in the Americas surged 79 percent, fueled by aggressive product rollouts from flagship brands -- Laneige, Innisfree and Sulwhasoo -- alongside robust performance from skin care brand Cosrx, which was newly consolidated into the company's earnings. Revenues in Europe, the Middle East and Africa tripled, with brands such as Laneige and Innisfree leading the explosive growth. Yet, in the Greater China region, overall sales declined, while improved cost efficiencies and streamlined operations led to a modest return to profitability. Meanwhile, in other parts of Asia, strong performances from both flagship and emerging brands fueled a 53 percent surge in sales. Amorepacific has been reducing its dependence on the Chinese market, having suffered collateral damage from China's sweeping ban on Korean cultural exports -- widely seen as economic retaliation for South Korea's 2016 deployment of the US Terminal High Altitude Area Defense system. The move led to a sharp decline in Chinese tourism to Korea, along with reduced exports of Korean food and cosmetics. Unlike Amorepacific's proactive pivot toward global diversification -- particularly in Western markets -- fellow beauty giant LG H&H remains relatively in the early stages of reducing its reliance on China. In the first quarter of this year, LG H&H reported more muted results, with consolidated revenue down 1.8 percent to 1.69 trillion won on-year and operating profit slipping 5.7 percent to 142.4 billion won, amid sluggish domestic demand and ongoing headwinds in the Chinese market. Modest gains in Japan, up 23.2 percent, and North America, up 3.1 percent, signaled early signs of recovery, contributing to a 4.2 percent uptick in overall overseas revenue. However, with China still making up nearly 40 percent of total international sales, a 4.1 percent decline in the Chinese market weighed heavily on the results. Yet, despite a downturn in its core beauty division, LG H&H found strength in its premium daily beauty lineup within the Home Care & Daily Beauty division. Bolstered by strong performances from brands like Physiogel and Dr. Groot, the segment saw revenue rise 2.2 percent to 573.3 billion won, while operating profit jumped 13.7 percent to 36.6 billion won. 'While we've seen growth in key domestic and international channels, overall sales declined due to continued weakness in outlets such as duty-free stores and door-to-door sales,' said an LG H&H official. 'We plan to strengthen market responsiveness through customized marketing strategies tailored to each retail channel.' In a bid to fast-track its global ambitions, LG H&H announced earlier this week that it would participate in a $130 million paid-in capital increase for its North American subsidiary. The investment is poised to ramp up marketing for brands like The Face Shop and CNP, while broadening the subsidiary's product lineup and deepening its reach in online retail, the company explained.
Forbes
01-05-2025
- Entertainment
- Forbes
The Whoo, A Luxury Korean Skincare Brand With Royal Roots, Makes Its US Debut
The Whoo Imperial Youth Contour Eye Cream Every year Frieze New York draws people from all over the world to admire contemporary art from galleries and artists originating from around the globe. At first, an art fair may seem like an unlikely place to showcase a beauty brand, but for The Whoo, it makes perfect sense. The luxury Korean skincare brand embodies how beauty can be an art form in itself. With ancient traditions dating back to the Joseon Dynasty combined with cutting-edge science, Frieze New York is the perfect opportunity to introduce the storied brand to the US, where they will present a unique brand booth experience that highlights the product collection and artwork made in collaboration with artist Jian Yoo. 'We believe that it's not just about making sales, but rather to deliver brand heritage, which is the foundation of our brand,' says HongJu Lee, Vice President of The Whoo, LG H&H. 'That's why we want to use Frieze as an opportunity to deliver the experience of Eastern luxury that manifests in our aesthetics, originating from the royal family, and we want to make that a fun experience. As a brand, we make consistent sponsorships for artisans and artists. That's why we believe that as a global art fair, Frieze would be a perfect opportunity for us to represent and show our brand heritage and share all the happiness with the global audience.' They will be the only beauty brand with a presence there. Inspired by royal beauty rituals, The Whoo reimagines skincare traditions that originated from Korea's Joseon Dynasty, when the royal favored a youthful complexion. Their formulas are rooted in ancient herbal medicine. 'We blend ingredients like wild ginseng, licorice root and thyme, all of the traditional ingredients that were used in herbal medicine for wellness during the Joseon era for kings and the royal family,' Lee says. 'We're also elevated by modern science. We grow our botanicals in our beauty garden, and we pair them with more modern ingredients by incorporating technology in our research and development lab.' The Whoo Royal Beauty Research Center The royal family of the Joseon Dynasty did a lot of research on longevity and overall wellness, and much of that informs the herbal medicine and rituals used by The Whoo today. One of the main rituals was Gongjindan, which focuses on skin health and longevity and is incorporated into all of The Whoo's formulas. Their signature Gong Jin Solution is a clinically-tested proprietary blend of precious herbs adapted from an ancient royal herbal remedy, combined with modern ingredients including glycoproteins, arginine and glutamic acid. The Whoo's R&D labs continue the tradition of Gongjindan by studying how that ritual delivers skin longevity effects. 'We developed our own Gongjindan Prescription to fill the skin with a lot of firming and elasticity, to give skin a healthy and youthful glow,' Lee says. 'That formula has been the base and foundation throughout the brand.' The Joseon Dynasty has a deep influence on The Whoo. 'Our brand is inspired by a lot of royal philosophies, and they include respect for humankind, kindness, the art of balance and the pursuit for fundamental beauty,' Lee says. 'These philosophies have lasted for over 500 years, and by drawing inspiration from that, we try to create the Korean heritage and add a modern touch to present that to the global audience.' Beloved in Korea, with over $2 billion in annual sales, The Whoo initially launched there in 2003. Their US debut is the first time the brand will be available outside of Asia, though they eventually plan to expand to other markets as well. Initially the products will exclusively be sold on their website in the US. The Whoo Imperial Youth Concentrate Serum Korean skincare has flooded the global beauty market, giving The Whoo serious competition. But Lee believes their approach and offerings are unique. 'What differentiates us is in the beauty market, there are a lot of brands that focus on one specific ingredient or technology, but there's not so many that blend those ingredients and technology together with ancient wisdom and modern science to develop a very well-rounded, high-quality formula,' she says. 'That's something that we really specialize in.' The Whoo is launching with just three products in the US. The Imperial Youth Cream has a deliciously rich texture that sinks right into skin, leaving radiance and lasting hydration. It visibly improves five signs of aging: crow's feet, deep nasolabial folds, deep forehead wrinkles, fine under-eye wrinkles and facial sagging. The Imperial Youth Recovery Serum tackles dryness, dullness, fine lines and wrinkles, lifting skin along the way. The Imperial Youth Contour Eye Cream firms and smooths the delicate skin around the eyes while minimizing dark circles, wrinkles and dryness. 'When entering the US market, we contemplated what would be the best collection that represents The Whoo and that's why we chose the Imperial Youth Collection,' Lee says. 'It is the most luxurious line within our brand, with the highest efficacy and potent formulas, from the ingredients to the design. They manifest our strong brand heritage and philosophy within the products. We also have incorporated our rare wild ginseng ingredient, which is a 30-year-old precious ginseng that's different from regular ginseng.' The Whoo Imperial Youth Cream Unlike regular ginseng, which is grown by farmers, their wild ginseng is naturally grown to withstand harsh conditions and is harvested by hand. It takes 30 years to reach maturity. 'Regular ginseng usually die out after six years, but wild ginseng thrives for 30-plus years by condensing the most essential energy,' Lee says. 'That's why they're known for their resilience and longevity effects. They possess a very potent skin longevity effect as well as anti-aging effects. They feature a special ingredient called ginsenoside, which is very abundant in wild ginseng and offers superior collagen boosting benefits that create physically plumper, tighter and stronger skin.' A unique anti-aging compound, ginsenoside is one of the most prized medicinal ingredients in Korea. All of The Whoo's formulas are created in their own R&D center, which has over 500 researchers. Additionally, they are consistently researching skin longevity and traditional herbal medicine, plus they collaborate with external dermatologists, scientists and academics, which all inform their products. The packaging reflects the brand's homage to history. 'In terms of the design, we have incorporated the purple color that represented the royal family in Korean culture, and added the Phoenix symbol on the top, which represents immortality,' Lee says. 'They deliver a sense of The Whoo's philosophy inspired by its Korean heritage.' Even the name of the brand is a nod to the royal family. Derived from The History of Whoo in Korea, it originates from the Chinese character 后 (Whoo), which translates to 'empress' or 'queen.' It's fitting for a brand that is truly fit for a queen.
