AmorePacific eyes gain in China market share

HONG KONG (Yonhap News) ― AmorePacific Corp., South Korea’s No. 1 cosmetics manufacturer, will likely see its share of the Chinese market rise this year from a year ago, company officials said Tuesday.

The market share is expected to rise to 2 percent in 2011 from 1.6 percent last year, the officials said, adding that the 0.4 percentage point rise in a year is quite an advancement for a cosmetics firm in China.

They attributed the rise to growing confidence among the Chinese consumers in South Korean cosmetics products.

In mid-March, the company opened the first shop for its high-end Sulwhasoo products in Beijing Parkson Department Store, which was followed by the second shop in Beijing Shinkong Place Department Store and the third shop in Shanghai Parkson Department Store.

It now has five stores that are specialized in the premium brand across China.

AmorePacific stands as the No. 14 cosmetics company in China, with its 2010 sales in China rising 22 percent on-year to 1.43 trillion won ($1.27 billion).

With huge growth potential, the Chinese cosmetics market is coveted by foreign makers. Some market watchers predict the market will reach 110 billion yuan ($17.3 billion) by 2015.

Global cosmetics companies, such as Procter & Gamble Co. and the L’Oreal Group, which have strong footholds in the mid-range to high-end segments, are currently leading the market.