Amore Store, a contactless beauty outlet at Lotte Department Store Cheongnangni Outlet, offers AR makeup experience service in which customers can confirm whether clothes are suitable.

Amorepacific has been struggling with sagging sales, affected by China’s retaliation against the installation of U.S. Terminal High Attitude Area Defense in Korea, and the latest spread of the COVID-19 pandemic.

Korea’s No. 1 cosmetics company opted for digital transformation as a way of overcoming the crisis. To this end, Amorepacific has established partnerships with juggernauts such as Naver, the 11th Avenue and Musinsa Store.

Amorepacific has adopted a strategy to join forces with the digital industry juggernauts to transform itself in a nimble fashion.

Amorepacific Group agreed to raise a 10 billion won fund with Musinsa Store, the nation’s No. 1 online fashion shopping mall, the former said on Aug. 6.

The purpose of the fund aims at exploring, investing and nurturing promising fashion and beauty companies.

Amorepacific and Musinsa each agreed to invest 4.9 billion won and 5 billion won, respectively, while 100 million won will be shouldered by Musinsa Partners.

Musinsa Partners, an investment subsidiary of Musinsa, will be in charge of the management of the fund. The fund plans to invest not only in fashion and beauty companies but also multi-channel network (MCN) companies, consumer services and digital commerce.

MCN specializes in nurturing YouTubers and planning and developing content. Amorepacific and Musinsa agreed to invest in the MCN segment.

Amorepacific plans to focus investments on promising fashion and beauty companies.

While delivering his New Year’s message, Amorepacific Chairman Suh Kyung-bae stressed companywide digital transformation.

He called for spearheading paradigm shift into digital, predicting that only companies, communicating with consumers via omni-channels beyond online and off-line boundaries, will survive.

Amorepacific Group is taking a more aggressive stand to achieve digital transformation.

In May, brands such as Hera have released products exclusively for Kakao Talk’s gift section. In June, the cosmetics company agreed to collaborate with Naver in online and off-line logistics sectors and develop brands.

Amorepacific launched “Innisfree Project,” a sole online exclusive brand of Coopang. In July, the cosmetics company and 11th Street agreed to implement joint digital projects such as live commerce to attract young consumers who buy products while watching live broadcastings.

Amorepacific’s overseas market exploration speeds away. The cosmetics company began to sell Sulwhasoo, its flagship brand, on an Indian online channel in cooperation with Indian distribution company Nykaa.

On Aug. 5, Amorepacifc launched two brands, including Mamonde, on the U.S. Amazon website. Amorepacifc’s aggressive digital transformation mode has paid off: Online sales surged 80 percent and 60 percent, respectively, compared to a year ago.

Amorepacific plans to increase online sales by more than 50 percent in H2, compared to the same period last year.

Amorepacific displayed its ‘Tailored 3D Mask’ in the Innovation Award Honoree showcase in Venetian Ballroom, CES Tech West. Amorepacific’s innovative technologies such as Tailored 3D Mask and ‘LED flexible patch’ enjoyed popularity at CES 2020 held in Las Vegas in early 2020. (Photos: Amorepacific)