Cosrx becomes a subsidiary of Amorepacific with plans to further global expansion
01 Nov 2023 --- South Korean cosmetics giant Amorepacific has acquired additional shares of skin care brand Cosrx. With this further stake acquisition, Cosrx will be integrated as a subsidiary of Amorepacific.
The company acquired 288,000 remaining shares held by Cosrx’s largest shareholder and related parties for ₩755.1 billion (US$556.9 million).
“We are thrilled that Cosrx, which has shown rapid growth through differentiated products and marketing based on an exceptional understanding of digital channels, has become a part of our group,” says Seunghwan Kim, CEO at Amorepacific.
In September 2021, Amorepacific acquired 38.4% of Cosrx shares. At that time, they were granted a call option to purchase the remaining shares, which they have now decided to take. After the 2021 investment, both companies co-developed and launched products such as the Vitamin C 23 Serum, Retinol 0.1 Cream from Cosrx’s next-generation core line and RX.
Rising skin care “titan”
Cosrx is a hypoallergenic skin care brand designed for sensitive skin — centered around the Advanced Snail line and The RX line.
Cosrx’s Advanced Snail Line is popular on Amazon.Amorepacific is now expected to own 93.2% of Cosrx shares. The company has shown an average annual sales growth rate of over 60% in the past three years, reporting ₩204.4 billion (US$150.7 million) in 2022.
Amorepacific says the brand has “experienced rapid growth, establishing itself as a rising global skin care titan.” Cosrx has shown an average annual sales growth rate of over 60% in the past three years, reporting ₩204.4 billion (US$150.6 million) in 2022.
This year, in the first half, the beauty brand achieved ₩190.2 billion (US$140.2 million) in sales and ₩71.7 billion (US$52.9 million) in operating profit.
“Moving forward, we aim to amplify Cosrx’s unique strengths while also integrating Amorepacific’s vision and business management expertise to develop it into a captivating brand that global customers will love,” explains Kim.
Global expansion
Cosrx has expanded to around 140 countries, including North America, Southeast Asia, Europe and Japan, with overseas sales accounting for over 90% of its total. Amorepacific plans to accelerate its global expansion through multifaceted collaboration with Cosrx.
Since Cosrx entered Amazon in 2018, products such as the Advanced Snail 96 Mucin Power Essence have topped the Beauty and Personal Care category, particularly distinguishing itself in the North American market.
Additionally, Cosrx conducted a TikTok challenge launched in 2022, which received over 2.1 billion cumulative hashtag views.
Edited by Sabine Waldeck
