THE STAKES in the US
The leading player in the Korean beauty market is expanding its reach in the US with
new products, new distribution and big plans.
Tom Branna • Editorial Director
WITH NEW products, a new president and new distribu- tion plans, AmorePacific is taking a new direction in the US—one that company executives insist will double sales in the US and Canada in just three years.
“Our mission is to accelerate sales growth,” explained Bradley
Horowitz who, in June, was named president and chief executive
officer of AmorePacific US. Earlier this year, he joined the company as chief operating officer.
AmorePacific’s global sales topped $2.3 billion last year, making it one of the biggest players in the beauty industry, but the
company’s presence in the US and Canada is on a less grand
scale. Last year, sales in the US and Canada totaled $15 million. Horowitz expects to change all that—and rather quickly.
AmorePacific products are available in select Bergdorf Goodman,
Nordstrom, Neiman Marcus and Sephora retail stores, as well
as AmorePacific Beauty Gallery and Spa in New York City, but
Horowitz wants more. The distribution plan is“narrow and deep,”
and should provide plenty of room for AmorePacific to grow.
After all, there are 230 Nordstrom stores in the US, 40 Neiman
Marcus stores and over 300 Sephora stores in North America.
“Where our products are available today, we are doing great,”
insisted Horowitz. “We are one of the fastest-growing brands at
Neiman Marcus, where our growth rate is nearly 20% and our
growth rate in Sephora is over 50%. Our business is very healthy;
the customer is responding. Now we have to tell our product
story more often to more people.”
Horowitz isn’t new to the competitive US beauty business. He
has more than 20 years of strategic, sales, marketing and man-
agement experience in the industry. Prior to joining AmorePacific,
Horowitz was founder and CEO of BJH Consulting, where he
served as an executive consultant for several of the beauty indus-
try’s leading cosmetic and fragrance companies, including Oscar
de la Renta, Coty Beauty, Beauté Prestige International and VMV
Hypoallergenics. Before that, he held a variety of marketing and
sales positions throughout the cosmetics industry, including
serving as senior VP-sales for the Designer Fragrance Division of
L’Oreal USA, and senior VP-marketing for Clarins USA, Inc.
A Strong Lineup
AmorePacific’s product story begins at one of the largest research
and development centers in Asia. There, the company has developed novel means to extract Epigallocatechin Gallate (EGCG)
from green tea and stabilize the material in cosmetics through a
patented process. EGCG, an antioxidant polyphenol flavonoid,
is the key ingredient in AmorePacific’s Time Response Cream,
which retails for more than $400, yet has a loyal following with
consumers. The cream promises to restore collagen production to
minimize appearance of fine lines, wrinkles and sagging; stimulate hyaluronic acid production for increased moisture levels;
minimize excess sebum; regulate melanin and stimulate skin’s
own antioxidant production. According to clinical test results
conducted by AmorePacific, skin roughness started to decrease
after 2 weeks and it was constantly and significantly decreased
through 8 weeks. Facial skin elasticity increased 10% after 5
weeks and it was maintained through 8 weeks.
AmorePacific is taking the EGCG story even further this
year with the launch of Advanced Time Response Intensive Skin
Time Response Skin Renewal Crème is one of
AmorePacific’s best-selling products in the US.