Amorepacific: Global Roadmap Jaeyong Song Professor, Graduate School of Business, Seoul National University
[email protected] Hyejun Kim Master’s candidate, College of Business Administration, Seoul National University
[email protected] Written in 2010.6.30. 1 Amorepacific: Global Roadmap If we want to grow faster, we have to grow outside the Korean market.1 - Kyung-Bae Suh, CEO Announcing Vision 2015, Kyung-Bae Suh, CEO of Amorepacific, declared his ambition to make the company one of the top 10 beauty companies in the world by 2015. The year 2015 will be the 70th anniversary for the company since its establishment. The founder, Sung- Whan Suh, built the largest cosmetic company in the country out of a small camellia oil store, and his son and current CEO, Kyung-Bae Suh, succeeded and elevated the company to a much bigger firm that generates annual sales of 1.5 trillion KRW (2009) only in the cosmetics business. But he was looking even further. Under the slogan Asian Beauty Creator, he had ambitions of making the company as highly acknowledged as global cosmetics companies such as L’Oreal and P&G. Throughout its history, Amorepacific has seen a steady growth in the domestic market. Its sales almost tripled from 690 billion KRW in 1997 to 1.8 trillion KRW in 2009. (Exhibit 1 Sales trend for the last 5 years) The achievement was attributed to the firm’s organic growth over 10% every year, supported by the consistent investment in its brand and technology. But the growth was certain to be limited when bounded in the domestic market.