South Korean cosmetics firms look to North America to reduce risks in China
Ashley Song
May 5, 2023< 1 mins read
South Korean cosmetics manufacturers are bolstering their offensive in the North American market as sales in China and Japan have fallen sharply.
LG Household & Health Care Ltd.’s North American sales for the first quarter of this year amounted to US$102 million, an increase of 21.1 per cent from last year.
This contrasts sharply with the company’s sales in China ($70.6 million) and Japan ($68.2 million), which decreased by 14.1 per cent and 12.8 per cent, respectively.
Industry leader Amorepacific Group’s sales in Asia for the first quarter of this year were $208.7 million, a drop of 27 per cent from last year.
In contrast, their North American sales were $47.6 million, an increase of 80 per cent.
Cosmetics manufacturers have been seeking a basis for mid-term growth, and the North American market has now become crucial.
In response, LG Household & Health Care appointed Moon Hye-young, who previously handled marketing for Starbucks and Amazon in the United States, as the head of the company’s North American operations.
LG Household & Health Care CEO Lee Jung-ae emphasized the importance of the North American market during her New Year’s address in January, vowing to boost business capacity.
Meanwhile, Amorepacific is reportedly considering acquiring a high-potential local beauty firm to increase its presence in the North American market this year.
This story was originally published by Ashley Song, via Korea Bizwire.
