South Korean beauty and cosmetics giant AmorePacific Corporation’s net income plunged 76.2% in the fourth quarter compared to the same period in 2016 on the back of falling Chinese tourist numbers.
Established in 1945, AmorePacific operates several brands including Sulwhasoo, Laneige, Mamonde, Etude House, Innisfree, etc. Renowned as the “top leader” in the field of South Korean cosmetics, it counts LG Household & Health Care Corporation as its closest competitor.
A lady tries AmorePacific cosmetics in Seoul, South Korea. (Photo: Xinhua)
According to company figures, net income reached only 17.3 billion won (around 100 million yuan) during October to December, 2017. In contrast, net income for the same period in 2016 was 73 billion won (around 433 million yuan).
During 2017, the total net income of AmorePacific reached 489.6 billion won (2.89 billion yuan), a fall of 39.7% compared to 2016.
With the fall in income, AmorePacific has yielded the top position in South Korean cosmetics to LG Household & Health Care Corporation.
The company thinks sales have declined due to fewer Chinese tourists visiting South Korea.
Statistics released by Korea National Tourism Organization on January 22 shows that 13.34 million foreign tourists visited South Korea, a decreased of 22.7% from 2016. Chinese tourists at 4.17 million saw a decline of 48.3%.
AmorePacific says it will expand overseas markets in 2018 to improve sales. Etude House is going to establish branches in Kuwait and Dubai. Its sub-brand HERA will step into Singapore in April.
(Compiled by Lu Fangzhu)