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September 13, 2019

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AMOREPACIFIC reshaping the face of beauty in China

Source: Shanghai Daily | 08:18 UTC+8 September 13, 2019 | Print Edition

Asia’s leading cosmetics enterprise AMOREPACIFIC will further accelerate its digital transformation to meet rising consumer demand in the Chinese market.

AMOREPACIFIC Group and Alibaba Group signed a global strategic cooperation agreement on September 11 to further deepen the cooperation and provide high-quality products to Chinese customers. The company also set up a work place named A2 Hangzhou Camp, about 2.4 kilometers from the Alibaba Group Corporate Campus in Hangzhou.

The cooperation will focus on key areas including new products incubation, new retail marketing, consumer insight management and overseas market expansion. It will combine advantages of Alibaba’s resources and experience in digital transformation, consumer operations business, big data, new product launches, new retail and AMOREPACIFIC’s leading strength in the cosmetics sector.

A2 Hangzhou Camp will be a part of the strategic cooperation. Working closely with Alibaba’s Tmall Innovation Center, the camp aims to further speed up new product launches as well as conduct market research on the latest industry trends, consumer preferences and demand for big data analysis.

The camp will become a bridge for communication between the two groups. AMOREPACIFIC will integrate digitalization into its full life cycle management in new product research and development, consumer insight and marketing.

AMOREPACIFIC China president Charles Kao and Alibaba Group general manager of Tmall’s Fast-moving Consumer Goods Division Mike Hu both attended the signing ceremony in Hangzhou. Kao said that “China’s beauty and cosmetics market is developing rapidly. Consumers’ expectations of online marketing and product innovation are gradually increasing. It is a pleasure to work with Alibaba to explore opportunities in the Chinese market and provide consumers more suitable products with the use of big data.

“In order to truly grasp the development opportunities in the Chinese beauty market, AMOREPACIFIC China must not only focus on the present, but also on future innovation in the field of data asset management, organizational structure and operational thoughts.”

Hu said that AMOREPACIFIC and Tmall have cooperated closely. The signing cooperation agreement and establishment of A2 Hangzhou Camp shows that the cooperation between both parties has entered a new stage.

“We will continue to work jointly to further innovate and provide better products and experiences to consumers.”

AMOREPACIFIC and Alibaba will jointly set up an internal information cloud system, which provides strong support for internal digitalization and information management. In addition, some overseas brands will enter the Chinese market and pick e-commerce platforms including Tmall to debut new products.

The two companies will also combine its online and offline resources to benefit consumers through setting up smart retail stores. With the smart retail store and live-streaming on Taobao, the relationship between brand and consumer will get much closer.

In 2018, innisfree and Tmall jointly opened a new retail concept store in Hangzhou, setting a record for the number of people entering a store in one day.

AMOREPACIFIC has a close and lasting partnership with Alibaba. The cooperation with Tmall started from 2012 with LANEIGE as one of the first premium beauty brands to be launched on Tmall platform.

So far, all the 10 beauty brands of AMOREPACIFIC China have been already operating a Tmall flagship store.

During the 618 mid-year shopping festival this year, total sales volume on Tmall for the AMOREPACIFIC Group’s products jumped nearly 70 percent year on year. In addition, sales of Sulwhasoo products topped the Korean beauty brands during the “Super Brand Day” campaign on August 29, almost tripling.

“We need to learn consumer behavior and motivation and these put a higher priority on the acquisition and analysis of big data,” Kao said. “We look forward to working with Alibaba to tap the value of big data and transform that into deeper consumer insight and realize digitalization in the full life cycle of research and development, production and marketing.”

Since its foundation in 1945 in South Korea, AMOREPACIFIC is today a global company with over 20 cosmetics, personal care and health care brands. Among these are the immensely popular global brands Sulwhasoo, LANEIGE , Mamonde, ETUDE HOUSE, and innisfree.

AMOREPACIFIC entered China in 1992. Over the past 27 years, AMOREPACIFIC has achieved sustainable development in the Chinese market with a diversified product strategy and innovative products.

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