Amorepacific and Cosrx partner up to advance K-beauty globally
28 Sep 2021 --- Global beauty company Amorepacific has secured minority shares of Cosrx via a new investment agreement, under which the companies will pursue joint projects in various areas.
“Through this partnership with Cosrx, a brand popular with Millennials and Generation Z generation globally for its marketing and digital business capability, we aim to grow together and enhance the prestige of K-beauty in the global market,” says Ahn Sae-hong, president, Amorepacific.
Through this partnership, the two companies plan to share knowledge on targeting the global beauty market and create a strong synergy effect.
Both companies will be building a solid partnership in R&D, production infrastructure and product development.
“Amorepacific will continue to build partnerships with brands at home and abroad with high growth potential to leverage our R&D and production capabilities,” adds Sae-hong.
Cosrx’s market reach
Amorepacific made moves after Cosrx showed an upwards growth trend on the global stage led by its products, including the Original Clear Pad, the Acne Patch and the Good Morning Gel Cleanser.
Cosrx solidified its position as an emerging power in K-beauty and entered approximately 40 countries, including the US, Southeast Asia and Europe, with overseas sales accounting for 80% of total sales.
The partnership will pave the way toward growth for the two companies while enhancing the prestige of K-beauty on a global scale.
The company’s deep understanding of Millennials and Gen Z – along with its communication capabilities on global platforms like Amazon and its competitiveness in the North American market – are valuable to Amorepacific in targeting these demographics through digital channels.
On the other hand, Amorepacific’s long-standing knowledge and strong R&D and production capabilities will greatly support Cosrx, which is striving to become a global brand.
Korean beauty market booms
K-beauty is rising in the global cosmetics scene, with multiple Korean cosmetics brands trying to reach a global audience.
Echoing this and in efforts to expand its global reach is Spes, a Korean hair product manufacturer, formulated HAU Mango Shampoo that “improves” hair gloss and moisturization. The company has a history of exporting to various markets, including the US, England, Australia and Asian regions.
Cosrx recently introduced its first collection of lip products, which features four formulations touted as smoothing, plumping, softening and quenching the lips.
Cosrx also upgraded its Acne Pimple Master Patch to Master Patch Intensive, a version of the hydrocolloid patches that form a protective, air-tight, healing seal around blemishes
Tracking Amorepacific’s growth
Amorepacific has expanded its product portfolio, and investment reach over the past year. In July, the company launched Base Picker, a service that manufactures customized foundation and cushion products tailored to individual customers.
The Base Picker provides an option of 100 colors based on the customer’s skin tone.
Amorepacific reduced 70% of its plastic use.
Also, the company tapped into ingestible beauty as it launched a skincare brand called Soluderm that offers products for eating and applying.
The two items in this brand are the Vita Collagen Ampoule Program to apply to skin and the Inner Full Collagen Ampoule for drinking.
Additionally, Amorepacific’s clean beauty brand Primera’s Skin Relief UV Protector Ex was selected as Korea’s green product of the year in 2021.
Amorepacific also launched a service called “bathbot,” which makes customized bath bomb products that aid in relaxation.
Amorepacific also entered a strategic investment and partnership with HEM, a company specializing in microbiome research, to strengthen microbiome research and develop products in various areas, including health foods and cosmetics.
Sustainability efforts
In sustainability efforts, Amorepacific announced the “2030 A More Beautiful Promise,” a set of sustainability management goals it aims to achieve by 2030. A total of five goals are set under two guiding pillars, which are “moving forward together with customers and society” and “coexisting responsibly with nature.”
The company also reduced 70% of its plastic use by developing a technology of manufacturing paper containers that increases the expiration date up to 36 months. Additionally, it unveiled plans to increase the use of recyclable, reusable plastic by implementing the 4R strategy that includes reducing, recycling, reusing and reversing.
Edited by Nicole Kerr
