AmorePacific agrees with Alibaba to develop and release Tmall cosmetic products for Chinese consumers
SEOUL, AJU - South Korea's top cosmetics maker, AmorePacific, agreed with China's Alibaba Group to cooperate on the development and distribution of cosmetic products specialized in the Chinese market, based on cooperation through the market-research division of Tmall, a Chinese-language website for business-to-consumer online retail.
Alibaba's Tmall is a platform for Chinese and international businesses to sell brand name goods, and its market research division, Tmall Innovation Center (TMIC), uses consumer insights gleaned from Alibaba's vast ecosystem of e-commerce and media sites to help brands develop, design and market new products specifically to Chinese consumers.
In a deal signed on Thursday in Seoul, the two companies agreed to launch the AmorePacific X TMIC Innovation Plant. AmorePacific will receive data for product development and marketing strategies targeting Chinese consumers through TMIC.
"Amore Pacific wants to respond to the rapidly changing Chinese digital market through innovative products developed with TMIC and plans to raise its digital business capabilities to the next level through diverse cooperation such as developing products that lead trends and content to appeal to Chinese customers," said AmorePacific CEO Ahn Sae-hong.
Liu Bo, general manager of Alibaba's marketing platform business said TMIC would provide a variety of data and perspectives on the Chinese market. South Korean beauty products are popular in China and Southeast Asia thanks to Hallyu (Korean cultural wave).
Trade data showed that South Korea's cosmetics exports stood at $6.3 billion in 2018. Demands are growing in Southeast Asia. In a policy conference on Thursday, the Ministry of Health and Welfare called for extensive investment in research and development and concerted marketing efforts to enhance South Korea's market share in the global cosmetics industry.