Core Insights - Amorepacific is introducing new brands to enhance its presence in the Chinese market, particularly in response to the declining momentum of its existing brands like Innisfree and Etude House [1] - The company has launched its skincare brand AESTURA, targeting the sensitive skin segment, with a primary focus on online sales in China [1] - The sensitive skin care market in China is experiencing significant growth, with a projected market capacity exceeding 30 billion yuan by 2024 [3] Company Developments - Amorepacific reported a consolidated sales revenue of 1.16 trillion KRW in its recent quarterly report, marking a 15.7% year-on-year increase, with overseas sales growing by 40.5% to 473 billion KRW [3] - The company appointed Taeho Park as the new president of Amorepacific China in April 2024, who has over 24 years of experience within the group [3] - Under Park's leadership, Amorepacific has implemented new market strategies, including the introduction of the high-end skincare brand AP in Shanghai [3] Industry Context - Other international beauty brands are expanding their market share, while Amorepacific's established brands lack appeal to younger consumers in China [4] - Industry experts suggest that introducing new brands is a preferred strategy for companies to attract the new generation of consumers in the competitive Chinese market [4]

Core Viewpoint - The article discusses the decline of Korean cosmetics in the Chinese market and their resurgence in the U.S. market, highlighting the factors contributing to these trends. Group 1: Decline in Chinese Market - Korean cosmetics, once popular in China due to hit dramas and celebrity endorsements, have seen a significant decline, with Amorepacific reporting a 30% year-on-year drop in sales in the Greater China region [1] - In 2021, China accounted for 53% of Korea's cosmetics exports, but this figure is projected to drop to around 25% by 2024, with the U.S. market showing the largest growth, nearing 20% of total exports [1] Group 2: Resurgence in U.S. Market - Korean cosmetics are making a comeback in the U.S. market, aided by the popularity of the 10-step skincare routine and the influence of social media platforms like TikTok and Instagram [2][6] - Amorepacific has initiated brand revitalization efforts, including rebranding its high-end skincare line Sulwhasoo and hiring well-known celebrities as brand ambassadors, leading to double-digit sales growth for brands like Laneige [3][5] - The introduction of a wider range of product shades to cater to diverse skin tones has significantly boosted sales, as seen with the brand Tirtir, which expanded from 3 to 40 shades [5] Group 3: Market Dynamics and Consumer Behavior - The influence of K-culture, including K-dramas and K-pop, continues to drive consumer interest in Korean cosmetics in the U.S. market [7] - The absence of tariffs on most Korean cosmetics due to the U.S.-Korea Free Trade Agreement has made these products more competitively priced compared to local brands [7] - The "lipstick effect" suggests that consumers are more willing to try affordable and innovative Korean cosmetics during economic downturns [7] Group 4: Distribution and Marketing Strategies - Korean brands are increasingly focusing on offline retail experiences, signing long-term leases in key locations to attract local consumers [8] - Initiatives like the opening of Olive Young stores in the U.S. aim to enhance consumer exposure to Korean beauty products [10] Group 5: Challenges Ahead - Korean cosmetics companies face challenges such as stricter U.S. FDA regulations and potential tariff impacts due to changing political climates [11]