The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The group behind brands like Sulwhasoo, Etude House and Innisfree, is considering giving sales in the key market a much-needed boost by cutting back on physical stores and accelerating expansion of its premium offering and digital channels, The Korea Herald reports.
Amorepacific president Kim Seung-hwan reportedly dropped hints about a strategic shift for its approach to the China market during a meeting with local analysts this week. The group is looking to cut stores to 140, from around 800 as of 2020, a source told The Korea Herald.
In 2021, revenue from Amorepacific’s China subsidiary is forecasted to grow just 6 percent, lagging behind overall projections for the local cosmetics industry of at least 17 percent, Business Korea writes.
There’s no doubt Amorepacific is facing growing competition from local C-beauty upstarts, many of which peddle accessible beauty offerings rivalling its Innisfree and Etude House brands.
In addition to shuttering physical stores and investing in premium brands like Sulwahsoo, the group will double down on e-commerce, with a goal that digital sales will make up 30 percent of its local business.
The Amorepacific-owned Korean beauty brand, once on track to become a global business, is now worth less than the par value of its issued stock,
This week’s round-up of global markets fashion business news also features the China Duty Free Group, Uniqlo’s Japanese owner and a pan-African e-commerce platform in Côte d’Ivoire.
Affluent members of the Indian diaspora are underserved by fashion retailers, but dedicated e-commerce sites are not a silver bullet for Indian designers aiming to reach them.
This week’s round-up of global markets fashion business news also features Brazil’s JHSF, the Abu Dhabi Investment Authority and the impact of Taiwan’s earthquake on textile supply chains.
This week’s round-up of global markets fashion business news also features Dubai’s Majid Al Futtaim, a Polish fashion giant‘s Russia controversy and the bombing of a Malaysian retailer over blasphemous socks.