THE WHAT? AmorePacific’s Etude House has reported a record profit for the first quarter of the current financial year as its diversification strategy and store optimisation program pays off, according to a report published by The Korea Times.
THE DETAILS The brand saw operating profit hits KRW5.3 billion in the first three months of the year, a marked change from the KRW5 billion reported for the previous 12 months.
The brand has reduced its store count to just 67 and brokered a distribution agreement with popular Korean health and beauty store, CJ Olive Young.
THE WHY? A spokesperson for AmorePacific told The Korea Times, “Etude House focused mainly on expanding its offline business until 2016. However, after its business in China was hit by geopolitical issues and the COVID-19 pandemic broke out, the brand decided to cut down the number of stores and strengthen its online business. We always had confidence in our products, so it was just a matter of time before Etude House would witness a rebound.”
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