South Korean cosmetics giant targets China
players says expanding in China will help raise its global
The company says it wants to reach the top ten world cosmetics companies by the year 2015, which will mean achieving sales of Korean Wan 5 trillion ($4.9bn). This will see the business competing with the world's biggest personal care and cosmetics players, including Beiersdorf, L'Oreal, Estee Lauder, Proctor & Gamble and Johnson & Johnson. Aiming at China for growth All of these companies are targeting the Asian and Chinese markets but the competition is likely to be further intensified by the presence of big Japanese players such as Kao and Shiseido who are also vying to carve out a larger slice of the fast-growing market. "By 2010, we plan to introduce various cosmetics brands in China," said Amorepacific CEO Seo Kyung-bae, speaking to reporters for Korean national newspapers. Although this year Brazil is expected to become the fastest growing cosmetics market in the world, the China market is still very much firing on all cylinders as economic growth and retail sales continue apace. China still offers growth opportunities Chinese economic growth has been hovering at around the 10 per cent market for more than two years, fuelling a huge boom in consumer spending that has given a major boost to the fast moving consumer goods sector. Latest statistics from market research provider TNS, suggest that current growth in the market for cosmetics and personal care goods is set to make it the world's largest market by 2009, when it is expected to oust the US market from the number one position. Amorepacific is most likely to be targeting the China skin care with brands such as the Time Response skin care range. Thanks mostly to its increasing international sales, the company last year notched up a 6.6 per cent growth in its yearly turnover, to reach Korean Wan 1.3 trillion. In 2007 the company concentrated its business growth around innovation, stressing growth through global promotion, a focus on its core capabilities, a reduction in costs and overseas business operations.