Launched in 2002 as the first eco-friendly brand from AmorePacific, South Korea’s biggest cosmetics company, Innisfree, enjoyed spectacular growth until recently.
Billed as Korea’s number one skincare brand, Innisfree initially expanded rapidly across Asia from 2012 to 2016, notably in China. Western markets were next on the hit list and the brand entered the US in 2017, followed by Australia in 2018 and Canada in 2019.
Innisfree currently has 12 stores in Australia – six in NSW, five in Victoria and one in Queensland and has an exclusive partnership with leading e-tailer, Adore Beauty.
But AmorePacific says that the brand has been heavily affected by the growth of e-commerce over the past four years.
The Chinese market has also faltered. Following its debut in China in 2012, Innisfree’s network expanded to 600 stores. Last year, AmorePacific closed 140 stores and is on track to shutter 170 more by the end of this year.
In a foretaste of things to come in the North American market, Innisfree entered Sephora in the US in September 2019, claiming that the agreement was its first global distribution partnership with another beauty retailer.
AmorePacific will complete the closure of its Innisfree standalone stores in the US and Canada this week, but will continue selling the brand’s products through Sephora in the region.
E-commerce will become a major focus in the future, instead of Innisfree’s previous bricks-and-mortar expansion strategy. AmorePacific’s global e-commerce division also has agreements with Amazon and Shopee and the multinational plans to increase its overall sales in China from 40 per cent to 50 per cent and boost its business in Europe.