the herbal medicine cosmetics market share in Korea, according
to the company. Headlining the collection is Sulwhasoo’s Concentrated Ginseng Cream ($220)—formulated with roots, berries
and the water of rare six-year-old Korean ginseng.
This year, the company is targeting sales growth of 10%.
Sales: $1.3 billion
grances—Lolita Lempika, Castel Bajac, Espoir. Personal care—
Mise-en-Scene, Happy Bath, Median, Songyeum
Mis-en-scene premium product line, Refreshing Essentials skin
care, Contour Lift Extreme, Future Response Age Defense Creme
Sales rose more than 15% last year, while net income soared
nearly 33%. Sales of cosmetics accounted for 83% of sales. By
distribution, door-to-door sales rose 6.2% to account for 31.7%
of sales. Department store sales gained 19.3% to 17.2% of sales,
specialty store sales rose 23% to 15.1% of sales and hypermarket sales jumped 24.9% to 9.2% of sales.
Sales of luxury cosmetics rose 10% on the strength of major
brands such as Sulwhasoo, Hera and Amorepacific.
The remaining 17% of revenue is derived from the Amore
Pacific’s personal care and green tea business. During the year,
Mis-en-scene launched a premium product line and Ryoe became the No. 1 shampoo in the hair loss segment, as its sales
jumped 137%. That helped the division’s sales rise 13% last year.
Sales outside Korea represent just 16% of sales, with China
alone accounting for 42% of international sales. Last year, Chinese sales jumped 55% on the strength of the Laneige and Ma-monde brands. Sales in Asia, excluding China, rose 8% to
account for 20% of overseas sales. Sales rose in several countries
including Taiwan (up 10%), Hong Kong (up 12%) and Malaysia
(up 81%). France represented 34% of overseas sales, but posted
a gain of just 1%. Finally, while the U.S. represents just 4% of
overseas sales, the business posted a 25% gain in sales due to
increases in Amore Shops, the company’s specialty store chain.
Last spring, the Sulwhasoo skin care brand made its U.S.
debut at Bergdorf Goodman. Sulwhasoo is founded on the traditional philosophy of“Sang-Seng,”the belief that all things exist
in relation to one another, and optimal vitality is achieved when
these objects exist in harmony and balance. The highly coveted
collection is synonymous with skin care, boasting more than half
Marc Puig, chairman and chief executive officer; Manuel Puig, vice chairman
Fragrances—Paco Rabanne, Carolina
Herrera, Prada, Adolfo Dominquez,
Antonio Banderas; Cosmetics and personal care—Payor, Unica, Vitesses,
Payot, Única, Vitesse, Heno de Pravia,
Lactovit, Maja, Tresemmé (distributor)
Ricci Ricci, CH Men, L’Eau Ambrée, Seduction in Black and Lady
Corporate sales fell 5% last year, while fragrance sales were off
3.5%. Still, Puig maintains that it increased its market share in the
global prestige fragrance sector to more than 6%. Furthermore,
more than 50% of revenues are derived from products that did not
exist five years ago.
Last year, fragrances represented 83% of net revenues. Cosmetics and personal care, with brands such as Payot and Maja and
the distribution of Tresemmé in Spain and Portugal, generated 12%
Although fragrance sales slipped last year, Paco Rabanne
recorded a 20% increase in sales, thanks to the success of 1 Million,
which debuted in 2008. According to Puig, 1 Million is the second
most popular men’s fragrance worldwide, excluding the U.S.,
where this line has not yet been launched. The brand plans to
launch Lady Million this September.
Another strong performer in the perfumery sector is Ricci Ricci
by Nina Ricci, which reached the top 10 in the French market during the holiday selling season. Other successful launches included
CH Men by Carolina Herrera, which enabled the brand to consolidate its leadership in Latin America and maintain its global market share, and l’Eau Ambrée by Prada.