AmorePacific expands presence in North America with Tata Harper acquisition

AmorePacific has acquired U.S. natural luxury skincare firm Tata Harper to lower its dependence on the Chinese market and expand its business in North America, the company said Friday. It said it bought a 100 percent stake in Natural Alchemy, operator of Tata Harper, for 168.1 billion won ($123.36 million).

It is the company's second-largest acquisition deal after COSRX, which AmorePacific purchased for 180 billion won last October. It is also the first time in 11 years that AmorePacific has acquired more than 50 percent of a cosmetics company, since buying French niche perfume firm Goutal in 2011.

The Korean company has been focusing on introducing its own cosmetics brands in North America through local retail channels both online and offline. It has decided to diversify its business portfolio to beef up its brand power in the United States.

This is due to the lockdown of Chinese cities like Shanghai and Beijing, which has negatively affected AmorePacific's revenues there. In the second quarter of this year, the Korean cosmetics company suffered a year-on-year 59 percent sales decrease in the neighboring country. Its revenue coming from the Chinese duty free market also plunged 45 percent in the same period after the country closed down Hainan Island, the largest duty free market for AmorePacific in China.

Meanwhile, its sales in the North American market showed 35 billion won in the second quarter this year, up by 66 percent year-on-year. AmorePacific said its business expansion of subsidiary brands such as Innisfree, Sulwhasoo and Laneige at Sephora stores has played a key role.

However, the Korean cosmetics giant said it will not disclose information about Tata Harper's sales due to company policy.

"Tata Harper establishes a solid fandom among its customers in the North American market. The brand's products are sold at over 800 stores there including Net-A-Porter and Cult Beauty online and Sephora and Neiman Marcus offline. We expect to create synergy between our subsidiary cosmetic brands and Tata Harper based on its aggressive marketing activities," an AmorePacific official said.

https://www.koreatimes.co.kr/www/tech/2022/09/419_335492.html