AmorePacific Clinches Quality Management Award
- Striving to uphold its management ideals of serving humanity, respect for humans, creating future

AmorePacific Corp.(President Suh Kyung-bae) won the Quality Management Award at the 30th National Quality Management Convention held at COEX in southern Seoul on Nov.19.
Set up in 1945, the company, the largest cosmetics maker in the country, has been striving to uphold its management ideals of serving humanity, respect for humans and creating future in a bid to realize the dream for human beauty and health.
The cosmetics industry has been struggling these days confronted with stiff competition from its foreign rivals and domestic economic slump, but AmorePacific early this year declared its long-term goal to become a leading global total care provider of beauty and health by 2015. These efforts helped the company to win the coveted award. Every one at the company will take it as an encouragement to make efforts to make the company a leading global firm providing goods and services that its customers want. The company will do its best to provide a high value to its customers to contribute to their healthy and beautiful lives.
AmorePacific has been engaged in various reform activities geared to quality management including building integrated ISO system, 6 sigma activities,process innovation activity centered around customers, production reform activity, TCR activity, customer satisfaction activity, and ethical management practice. The company has an ambitious plan to be a top firm in the world by supplanting its shortfalls while strengthening its strong suits.
In 1993, AmorePacific declared unlimited responsibility for customers in terms of its quality, environment, and service. In the middle of the '90s, the company went through a drastic restructuring cutting the number of its affiliates from 24 to just nine to focus on the businesses related to beauty and health.
In the first stage of the TCR activity, all company employees worked on cutting costs under the Total Cost Reduction(TCR) activity and its second stage activity, the Total Creative Revolution has been promoted. Cost savings to the company under these efforts amounted to 28.5 billion won in 2002 and 28.3 billion won in 2003.
The Customer Satisfaction Management reform was built on a mission to make changes a step before customers and unlimited responsibility to customers, all centered around customers to boost customer loyalty for the company's products.
The company declared the ethical management in 2003 aware of the societal change for fair and transparent society, not only strictly observe rules and regulations, but also moral and good examples to build a higher customer trust relation.
AmorePacific has been trying to digitalize its operations since 2000 under the slogan, "Digital Dream Company." Production, distribution, and businesses have been integrated under SCMcentering around customers' reform process activity. Since 2002, the company has been working on turning itself into a customer-oriented firm under the Enterprise Resources Planning by building its infrastructure.
Master 21 production reform drive is designed to secure global competitive edge through the quality assurance drive, among others, with the purpose of building a virtual factory. The company adopted the 6 Sigma Campaign in 2002 to beef up its nucleus capability to be ready for competition with its global rivals.
AmorePacific, under its management strategy focused on customers and speedy coping with market changes, recorded 16.8 percent operating profit per year in the past three years. Its market share expanded from 27.3 percent in 2001 to 32.1 percent this year. The company has been able to reduce its production cost by 3.5 percent in 2003.
Thanks to the managerial reform drive, the internal organization has become more flexible with invisible section walls removed in the company for smoother inter-office cooperation and communication. The company has been able to build a production system to cope with environmental changes and customer demand as a base for its jump to become a global enterprise. The company has been able to beef up its quality strength and boost its international corporate image in the process.
Under its long-term vision of achieving "Total Beauty," the company will develop 10 mega brands to become one of the 10 best cosmetics firms in the world with total sales revenue of $4 billion including 30 percent coming from sales abroad. In the area of health business, the company plans to develop 3 mega brands to become a leading firm in the world in the area with sales reaching 1 trillion won, making up 20 percent of its total sales revenue.
Capitalized at 51 billion won, AmorePacific recorded a total sale of 1,119.8 billion won last year and projects to register 1,166.5 billion won this year. It has four plants in the country, while its overseas operation includes three plants, one in France and two in China. nw