South Korean Cosmetic Company AmorePacific Ranks 28th On Forbes’ List Of World’s 100 Most Innovative Companies In 2015
AmorePacific has become one the leading cosmetic companies in South Korea, having ranked 28th on Forbes' list of the World's 100 most innovative companies in 2015. Founded in 2006, the cosmetic company started by "selling camellia hair oil made in a traditional Korean kitchen," Kentucky.com noted on Wednesday.
AmorePacific debuted at number 28 on Forbes' list of the World's 100 most innovative companies in 2015 after the company's share price increased rapidly last year.
Founder Suh Sung Whan initially named his business "Taepyeongyang," which means Pacific Ocean, "a name that came from Suh Sung Whan's early ambitions to take the company beyond the Pacific and create a strong foothold overseas," Forbes noted on August 19.
The cosmetic company is currently headed by Suh Sung Whan's second son, Suh Kyung Bae, who is the second wealthiest individual in South Korea next to Lee Kun Hee of Samsung.
"There are two types of innovation," said Suh Kyung Bae. "One is fast following the great products in the world. The other is the process of slow learning through tests and runs.
He went on, "The second type of innovation is important. Innovation can't be accomplished through one or two super stars."
The chief executive of AmorePacific revealed that "his father gave him difficult jobs at the company, such as assigning him to the worst-performing sales team and making him responsible for chasing payments from customers that were habitually late with paying their bills."
He added that the experience has taught him humility, as well as the importance of any job. Suh Kyung Bae also said that "the biggest lesson he has learned from years of doing business in Asia is that "we don't know anything."
"Because we don't know, we need to do research. Because we don't know, we should be curious. Because we don't know, we should respect local people," he said.
Early this year, the company expected to boost its sales in China of up to 30 percent this year after their plans of launching more outlets in the country.
"China is geographically close and it has a very big population," Suh Kyung Bae says.
He added that "the company recognized the importance of Asia's rising middle class 15 years ago, and this is still one of [company's] main drivers."
On the other hand, Forbes wrote on their website that they are using "Innovation Premium" in coming up with their annual list of the world's 100 most innovative companies. Also, a company needs "seven years of public financial data and $10 billion in market cap," to qualify.
