AmorePacific, L Catterton ShrugAmorePacific, L Catterton ShrugOff China’s Korean Culture BanOff China’s Korean Culture BanAmorePacific said it “remains committed to Chinese customers”AmorePacific said it “remains committed to Chinese customers”while L Catterton sees the ban as a short-term situation.while L Catterton sees the ban as a short-term situation.

BEAUTY INDUSTRY NEWS / BEAUTY FEATURES

By Crystal Taiwith contributions from Amanda Kaiser on November 23, 2016

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P R I VA C Y P O L I C YP R I VA C Y P O L I C Y

China’s apparent ban of South Korean celebrity endorsements

and cultural exports poses a risk to Korean companies’ business

in the country but both AmorePacific and L Catterton Asia seem

to be taking the news in stride.

AmorePacific, Korea’s largest cosmetics conglomerate, relies

heavily on Korean celebrities to promote its brands in Korea and

China. An AmorePacific spokeswoman said that she is not aware

of any change in marketing strategies for China and the

company released a statement saying that it “remains

committed to Chinese customers”.

Etude House, part of AmorePacific’s portfolio, has partnered

with many celebrities over the years. The brand currently

features posters and advertisements with K-pop singer Krystal

from girl group f(x). Another AmorePacific brand LaNeige

almost exclusively promotes itself through photos and

advertisements with top drama actress Song Hye-kyo.

L Catterton, the LVMH Moët Hennessy Louis Vuitton-backed

fund formerly known as L Capital, holds stakes in South Korea’s

YG Entertainment and Clio Cosmetics. Ravi Thakran, chairman

and managing partner of the fund, said he sees the supposed

ban, which China has yet to officially acknowledge exists, as a

short-term issue.

“In the mid term, we are positive on their future growth within

Korean as well as overseas as consumers continue to show a

healthy appetite for Korean entertainment and cosmetics,” he

said. “We hope the two countries can resolve this issue soon and

further build a mutually beneficial relationship to bring

prosperity to the region.”

YG Entertainment, a talent management company with a

portfolio of stars including rapper Psy, has seen its share price

tank this week. On Thursday, its shares were down 3 percent in

early afternoon trade. AmorePacific’s shares were down about 2

percent.

Over the past decade, thanks to the popularity of the “K-wave,”

kpop stars, actors and models have arguably become even more

popular than local celebrities in China. Observers are divided

over how much the ban could affect the sales of Korean products

in the country.

“When the [culture ban] policies come fully in effect, a drop in

imported Korean products is inevitable,” said Angelito Tan,

chief executive of RTG Consulting Group in China.

“Many Korean products get the bulk of their exposure to

Chinese consumers via K-wave products, TV shows, movies,

music videos… For example, BB cream became popular among

many Chinese only after [the Korean drama] ‘My Love From the

Star’ became a hit in China,” he said.

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