On October 13, Amorepacific announced its strategic business partnership with travel retailer CDFG (China Duty Free Group), the largest travel retailer in China.
The high growth potential of the Chinese travel retail industry has been fueled by authorities support and strong domestic demand despite the COVID-19 crisis. This has subsequently driven Amorepacific to build a partnership with CDFG, ranked top in the global travel retail sales in the 1st half of 2020, with the aim of moving ahead in the global travel retail industry.
Through this partnership, Amorepacific and CDFG agreed to △ enhance strategic partnership for local operation in Hainan and △ drive their mutual growth for new stores and the expansion of new brands. Both companies also agreed to △ support each other's growth in the rapidly changing market with enhanced investment into marketing and digital transformation for a differentiated customer experience and △ thereby build a sustainable and healthy retail business ecosystem.
In particular, Amorepacific and CDFG focus on the Hainan travel retail market, which is now recovering quickly with triple-digit sales growth. They decided to enhance digital communication content, provide extensive support for marketing and products, and develop a workforce exclusively for the Hainan market to improve satisfaction of travel retail customers.
The partnership ceremony took place online with Amorepacific President Ahn Sae-hong, CDFG President Charles Chen, CDFG Vice President Zhao Feng, David Park, Senior Vice President of Amorepacific Global Travel Retail Division and Terry Chua, Vice President of CDFG, Central Merchandising Division in attendance.
"Amorepacific is keenly observing the rapidly changing travel retail market and lifestyle of travel retail customers all around the world," said Amorepacific President Ahn Sae-hong. "Thus, it is responding in both online and offline retail channels to provide the best quality service and product. This partnership with leading global travel retailer CDFG will help us better understand Chinese customers, boost synergy between both companies and raise our brand awareness in the Chinese travel retail market with strong growth potential."
"We are delighted to enter into our strategic partnership with Korea no.1 beauty company Amorepacific. We are pathfinders in the Chinese travel retail industry and in particular, through close cooperation with Amorepacific over the past 10 years for Hainan tourism and economic development, we have grown into the largest travel retailer in China and a leader in the global travel retail industry. We are looking forward to continuing our strong partnership with Amorepacific for better customer experience in the field of beauty and lifestyle." said CDFG President Charles Chen.
Amorepacific, the top beauty company in South Korea has strengthened its presence in the travel retail market with the opening of its main brands including Sulwhasoo, LANEIGE and innisfree in over 440 global travel retail channels. CDFG, China's largest travel retailer is the state-owned company authorized by the Chinese government to operate duty free business not only in China but also in other countries, and it is one of the most rapidly growing global travel retailers. Since the opening of LANEIGE shop in CDFG in 2010, Amorepacific and CDFG have maintained a strong cooperative relationship. Currently, four brands of Amorepacific - Sulwhasoo, LANEIGE, innisfree and primera are running over 80 stores through CDFG's retail network.