Corporate Logo(source: apgroup.com)
Corporate Logo(source: lghnh.com)
With K-beauty gaining traction worldwide, major South Korean cosmetics companies are scaling back their domestic operations while accelerating overseas expansion. According to industry sources on May 7, domestic sales of Amorepacific (090430) and LG Household & Health Care (051900) in the first quarter of 2025 either saw modest gains or slight declines compared to the same period last year.
Amorepacific’s domestic revenue rose by just 2.4%, while overseas sales grew significantly by 40.5%, led by robust performance in the Americas. The company posted 577.3 billion won in domestic revenue and 473 billion won overseas. In terms of operating profit, domestic operations saw a marginal increase of 0.6% (49.4 billion won), while overseas profit surged by 120.5% to 69.6 billion won.
The trend of overseas growth has become more pronounced in recent years. In 2021, domestic sales growth far outpaced overseas performance, rising 13.6% compared to a 3.3% increase abroad. However, by 2023, domestic sales had fallen 14.4%, while overseas revenue decreased by only 5.5%. Last year, domestic sales declined 2.4%, while overseas sales rose 20.6%.
Amorepacific’s domestic sales share has continued to shrink amid the company's increased focus on international markets, particularly in the Americas—falling from 60.2% in 2023 to 55.5% last year, and further to 54.1% in the first quarter of 2025.
LG Household & Health Care’s first-quarter revenue declined 1.8% year-on-year, driven mainly by weak domestic performance. Domestic revenue fell 4.3% to 1.1619 trillion won, while overseas sales increased 4.2% to 536 billion won. Overall operating profit dropped 5.7%.
While regional operating profit figures were not disclosed, analysts noted that with domestic sales accounting for nearly 70% of total revenue, underper-formance in the local market likely weighed heavily on earnings. Overseas results showed more resilience, with sales in Japan increasing 23.2% and North America rising 3.1%, though sales in China declined by 4.1%.
In response to sluggish domestic demand, both Amorepacific and LG Household & Health Care are entering the ultra-low-cost segment. This shift comes as high-quality, affordable products from indie brands attract more consumers, while premium brands—traditionally the primary revenue drivers—struggle amid economic headwinds.
Amorepacific launched eight value-priced products under “MIMO by Mamonde,” a sub-brand of Mamonde, through discount retailer Daiso in September last year. The brand sold 1 million units within four months and surpassed 2 million cumulative sales as of last month. In February, Amorepacific introduced “Play 101,” an Etude-exclusive line for Daiso.
An Amorepacific official explained, “In line with our principle of ‘going where the customer is,’ we are actively targeting the ultra-low-cost market. By entering Daiso, the leading player in this space, we aim to gather experience and data to support broader market expansion.”
LG Household & Health Care is also broadening its reach in the discount market. In July of last year, it launched “Carezone Plus,” a Daiso-exclusive line under the Carezone brand, followed by “CNP by Odd-T.D” in September, “TFS” in February, and “Code Glocolor” in March.
On April 18, the company partnered with Emart to introduce a new skincare line under the “Beyond” brand, called “Glow:Up by Beyond.” Eight products were launched, each priced at 4,950 won. By the end of April, all eight products ranked within the top 11 best-selling skincare items at Emart, with several products selling out. The brand even occupied the top six spots, reflecting strong consumer response.
LG Household & Health Care plans to continue expanding its ultra-low-cost product lineup through discount retail channels. An industry insider remarked, “The growth potential of the ultra-low-cost cosmetics segment is steadily increasing. While these products may not become core profit drivers due to their lower price points, they are expected to serve as effective entry-level offerings to attract new customer bases.”
*[KOSPI]Amorepacific(090430) is a cosmetics manufacturing specialist with brands such as Sulwhasoo, Hera, Ryo, Mise-en-scène, and Happy Bath. The market capitalization is 7.335 trillion won(as of May 2, 2025, closing price).
[KOSPI]LG Household & Health Care(051900) focuses on manufacturing and selling cosmetics, household goods, and beverages, and its representative brands include 'The History of Whoo', 'SU:M37˚', 'O HUI', 'belif', and 'CNP'. The market capitalization is 5.256 trillion won(as of May 2, 2025, closing price).
Corporate Logo(source: apgroup.com)
Corporate Logo(source: lghnh.com)
With K-beauty gaining traction worldwide, major South Korean cosmetics companies are scaling back their domestic operations while accelerating overseas expansion. According to industry sources on May 7, domestic sales of Amorepacific (090430) and LG Household & Health Care (051900) in the first quarter of 2025 either saw modest gains or slight declines compared to the same period last year.
Amorepacific’s domestic revenue rose by just 2.4%, while overseas sales grew significantly by 40.5%, led by robust performance in the Americas. The company posted 577.3 billion won in domestic revenue and 473 billion won overseas. In terms of operating profit, domestic operations saw a marginal increase of 0.6% (49.4 billion won), while overseas profit surged by 120.5% to 69.6 billion won.
The trend of overseas growth has become more pronounced in recent years. In 2021, domestic sales growth far outpaced overseas performance, rising 13.6% compared to a 3.3% increase abroad. However, by 2023, domestic sales had fallen 14.4%, while overseas revenue decreased by only 5.5%. Last year, domestic sales declined 2.4%, while overseas sales rose 20.6%.
Amorepacific’s domestic sales share has continued to shrink amid the company's increased focus on international markets, particularly in the Americas—falling from 60.2% in 2023 to 55.5% last year, and further to 54.1% in the first quarter of 2025.
LG Household & Health Care’s first-quarter revenue declined 1.8% year-on-year, driven mainly by weak domestic performance. Domestic revenue fell 4.3% to 1.1619 trillion won, while overseas sales increased 4.2% to 536 billion won. Overall operating profit dropped 5.7%.
While regional operating profit figures were not disclosed, analysts noted that with domestic sales accounting for nearly 70% of total revenue, underper-formance in the local market likely weighed heavily on earnings. Overseas results showed more resilience, with sales in Japan increasing 23.2% and North America rising 3.1%, though sales in China declined by 4.1%.
In response to sluggish domestic demand, both Amorepacific and LG Household & Health Care are entering the ultra-low-cost segment. This shift comes as high-quality, affordable products from indie brands attract more consumers, while premium brands—traditionally the primary revenue drivers—struggle amid economic headwinds.
Amorepacific launched eight value-priced products under “MIMO by Mamonde,” a sub-brand of Mamonde, through discount retailer Daiso in September last year. The brand sold 1 million units within four months and surpassed 2 million cumulative sales as of last month. In February, Amorepacific introduced “Play 101,” an Etude-exclusive line for Daiso.
An Amorepacific official explained, “In line with our principle of ‘going where the customer is,’ we are actively targeting the ultra-low-cost market. By entering Daiso, the leading player in this space, we aim to gather experience and data to support broader market expansion.”
LG Household & Health Care is also broadening its reach in the discount market. In July of last year, it launched “Carezone Plus,” a Daiso-exclusive line under the Carezone brand, followed by “CNP by Odd-T.D” in September, “TFS” in February, and “Code Glocolor” in March.
On April 18, the company partnered with Emart to introduce a new skincare line under the “Beyond” brand, called “Glow:Up by Beyond.” Eight products were launched, each priced at 4,950 won. By the end of April, all eight products ranked within the top 11 best-selling skincare items at Emart, with several products selling out. The brand even occupied the top six spots, reflecting strong consumer response.
LG Household & Health Care plans to continue expanding its ultra-low-cost product lineup through discount retail channels. An industry insider remarked, “The growth potential of the ultra-low-cost cosmetics segment is steadily increasing. While these products may not become core profit drivers due to their lower price points, they are expected to serve as effective entry-level offerings to attract new customer bases.”
*[KOSPI]Amorepacific(090430) is a cosmetics manufacturing specialist with brands such as Sulwhasoo, Hera, Ryo, Mise-en-scène, and Happy Bath. The market capitalization is 7.335 trillion won(as of May 2, 2025, closing price).
[KOSPI]LG Household & Health Care(051900) focuses on manufacturing and selling cosmetics, household goods, and beverages, and its representative brands include 'The History of Whoo', 'SU:M37˚', 'O HUI', 'belif', and 'CNP'. The market capitalization is 5.256 trillion won(as of May 2, 2025, closing price).