Press Release

Sales of domestic cosmetics products last month jumped sharply in major department stores, which have been foreign makeup products` exclusive marketplaces and supported by consumers` preference for the past three decades.

Amore Pacific Corp., the nation`s largest cosmetics maker, had its best performance in January at Lotte Department Store Co.`s Myeongdong headquarters, with makeup sales of 250 billion won ($210 million), a Lotte official said.

`Amore Pacific is one of the two domestic brands along with LG Household & Health Care out of 30 cosmetics brands in the store,` he said.

`Foreign cosmetics companies have never failed to miss the top position since the establishment of the department store in 1979.`

Furthermore, foreign cosmetics goods have increased their market shares despite higher prices, from 6.2 percent in 1998 to 14.5 percent last year, the official noted.

LG Household & Health Care . also had an outstanding performance nationwide as its sales increased 50 percent last month while other foreign goods, such as Chanel or Christian Dior, raised their sales by 5 percent to 15 percent, an official at LG Household and Health Care said.

`Cosmetics products have been evolving from brand images into corrective and functioning goods,` the official said.

`Local cosmetics companies have focused on research and development to meet customers` needs for the last five years and it finally worked.`

Meanwhile, foreign makeup companies based in Korea are ready to counteract in order to secure their positions in the five trillion won market.

L`Oreal Korea said France-based L`Oreal Group included Korea in the 10 most lucrative markets in the world. The company also set up its fourth product test center three years ago in Korea.

Procter and Gamble Korea also hired a local model for its makeup advertisements and commercials to appeal to local consumers` sentiments, an official said.

by Cho Min-geun  <celine54@joongang.co.kr>