Sulwhasoo

Table of Contents

Executive Summary 3

I. Introduction 4

2.1 Background 4

2.2 Financials 4

2.3 Product Lines 5

2.4 Sulwhasoo 6

2.5 Rationale for Expansion 7

3.1 Global Trends 7

3.2 Demand for Natural Ingredients 8

3.3 Growing Demand for Anti-Aging Products 8

3.4 Increased Demand for Men’s Skin Care 9

3.5 Justification to venture into Asian markets 10

IV. Expansion into Asia 10

4.1 Taiwan’s Potential 11

4.2 Thailand’s Potential 11

V. Taiwan 12

5.1 Introduction to Taiwan 12

5.2 Political Environment 12

5.3 Economic Environment 13

5.4 Social Environment 14

5.5 Financial Environment 15

5.6 Business Opportunities 16

5.7 Risk Assessment 16

VI. Thailand 17

6.1 Introduction to Thailand 17

6.2 Political Environment 17

6.3 Economic Environment 18

6.4 Social Environment 19

6.5 Financial Environment 20

6.6 Business opportunities 21

6.7 Risk Assessment 22

VII. Country Analysis 23

VIII. Entry Mode 25

IX. Implementation Plans 26

X. Exit Strategy 28

Appendix 29

Appendix 1A 29

Appendix 1B 29

Appendix 1C 30

Appendix 1D 30

Appendix 2A 31

Appendix 2B 31

Appendix 2C 32

Executive Summary

Sulwhasoo is a leading South Korean skin care and cosmetics brand that exemplifies the concept of oriental beauty with ginseng as its main ingredients. It operates as a subsidiary under parent company, AmorePacific, which leads the South Korean skincare and cosmetics industry with a market share of 23.6% in 2010 (New Zealand Trade & Enterprise, 2012). Over the years, Sulwhasoo has been aggressively expanding its operations beyond South Korea, and currently has physical presence in China, Hong Kong, the USA, and Singapore. Given AmorePacific’s strong financial position and Sulwhasoo robust sales growth of 12% in 2011 (Ng, 2012), we believe that Sulwhasoo has the capability to further its expansion in Asia. This expansion plan is also in line with Sulwhasoo corporate goal of becoming global luxury brand that...