COVID-19 Impact on Amorepacific, H2 2020 Update

Summary

COVID-19 Impact on Amorepacific, H2 2020 Update key findings as of August 24th, 2020 based on market analysis and brand diversification by industry and geography.

Like all fast-moving consumer goods, Amorepacific Corporation will face significant upheavals as a result of the COVID-19 outbreak. The company needs to revise its measures to reduce the loss of brand sales. Although its brand sales are decreasing, it is showing a strong determination at this moment to support front-line health workers by providing them with shampoo and conditioner. Overall, the company has some key strengths that allows it to perform effectively and will help it to compete with other major producers during difficult times.

Scope

• Amorepacific's limited geographic spread will add to the difficulties in countering the impact of COVID-19 on its sales
• Amorepacific's sales are heavily reliant on countries showing signs of recovery from the impact of COVID-19
• The impact of COVID-19 is inevitable as Amorepacific's sales are dominated by a single region, which is affected by the pandemic
• Amorepacific's skincare business is expected to see a relatively high impact from the pandemic
• High dependency on Asia, which is one the worst effected regions will act as a breaker in sales growth for Amorepacific

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