South Koreaâs leading cosmetics maker Amorepacific Corp. is accelerating efforts to bring manufacturing to the US as Donald Trumpâs tariff blitz threatens to upend the companyâs reliance on its major manufacturing hubs in Asia.
The urgency comes as the South Korean cosmetic giant currently relies heavily on China and South Korea for production, making it vulnerable to Trumpâs reciprocal duties on major trading partners. The US has slapped import tax totalling 145 percent on Chinese shipments in an escalating tit-for-tat trade war.
Amorepacific is discussing contingency plans with US clients as it seeks to respond to Trumpâs levies on China, Seunghwan Kim, chief executive, said in an interview with Bloomberg TV. The company is also planning to invest in logistics and module manufacturing facilities in the US in the next three to five years, to cash in on the fast growth in the US market, Kim added.
âFor the actual production facility weâre thinking about 5 to 10 years, but with the recent changes and trends, Iâm thinking that maybe we need to step it up a little bit,â Kim said, adding the companyâs longer term vision and commitment to the US market remains unchanged despite the short term volatility.
Itâs the latest sign of how Trumpâs trade agenda is disrupting companiesâ manufacturing plans and wreaking havoc the supply chains they have relied on for years. The US manufacturing would also help Amorepacificâs efforts to capture the more affordable products segment in America, a category the company sees more growth opportunities.
The planned move also underscores the shift underway in the global beauty industry, as companies pivot to the US, which is the worldâs biggest cosmetics market, to offset Chinaâs slumping consumption.
Amorepacificâs purchase of COSRX Inc. in October 2023 helped propel the companyâs North American sales more than five times to 525.6 billion won ($362 million) in 2024 from 2021. That boom is widely attributed to the K-culture wave, which refers to the rising global popularity of Korean pop culture, entertainment, music, TV dramas and movies.
South Koreaâs cosmetic products have also been made popular by viral beauty content from influencers on Meta Platformsâ Instagram, ByteDanceâs TikTok and Alphabet Incâs Youtube, which has helped turn Amorepacificâs snail essence as the top ranked facial serum on Amazon.com.
The companyâs skin care brands are one of the top selling products for premium segments at Sephora and on online channels such as Amazon, Kim said, adding that the goal is to diversify its product lineup in the US from luxury skincare to affordable products.
âWeâre evolving into a mainstream presence, not just a short-term fad,â Kim said. âOf course, success depends on execution, but we believe this isnât just a peak moment â thereâs substantial potential for continued growth as a mainstream player.â
By Shery Ahn and Sohee Kim
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