Director of AMOREPACIFIC New Growth BU, Shim Jae-wan - AMORE STORIES - ENGLISH
#SPECIAL INTERVIEW
2015.03.05
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Director of AMOREPACIFIC New Growth BU, Shim Jae-wan

SPECIAL
INTERVIEW

Special interview with members of the board aims to share the leadership's vision and promote seamless global communication

"Carve our way to achieving our vision!"

Director of AMOREPACIFIC New Growth BU,
Shim Jae-wan


Columbus set sail on the first voyage to the New World in 1492. Fast forward to 1994 and the world saw the launch of the world's first online shopping mall: Amazon. The world has witnessed many such epoch-making revolutions in the times between and since – but none could ever have happened if it were not for the strong belief, determination and challenging spirit of the people that made it happen. There is one business unit that is working harder than ever today to make AMOREPACIFIC a new market category in its own right. That is the New Growth BU. In this issue of News Square, we will learn about the vision and goals of AMOREPACIFIC Group through a special interview with Shim Jae-wan, Director of AMOREPACIFIC New Growth BU.

Shim underlines the need for all AMOREPACIFIC Group members to keep up with the times and continue to grasp the challenges that lay ahead with the spirit of creativity and innovation. Here we introduce Shim Jae-wan and find out about his work to discover and foster new growth engines as a means of gearing up for the future.
Q. Hello, Mr. Shim. It is nice to meet you via News Square. Please, give us a brief overview of what the New Growth BU does.
First of all, the New Growth BU manages three brands – LIRIKOS, VERITE and MakeON, and three distribution channels – digital, TR (Travel Retail) and LIRIKOS (door-to-door sales). The online shopping mall, TV home shopping and duty free shop channels, in particular, are expanding their reach across the global market. We are also engaging in various innovative attempts and activities to build up a differentiated business model in the door-to-door sales channel.

Q. We heard that you have been busy travelling overseas from the beginning of the year to develop new sectors. What markets and channels does the New Growth BU view as high potential?
We think the same as all members of AMOREPACIFIC Group – that China and the ASEAN region are particularly worthy of notice. As you all know, the number of people travelling abroad from China and ASEAN region is increasing with the increase in disposable incomes seen there. This growth is really driving the boom in the duty-free market, known in the trade as the sixth continent. I recently visited duty free shops at Singapore Changi Airport. Though our stores were in better locations than before, there was still much left to be desired. I realized that we have the opportunity now to grow bigger in the global market if we work even harder.

The digital channel is growing fast in China and the ASEAN region not only because of the obvious advances being made in digital technologies, but also because there are certain limits around how far companies can penetrate into China and the islands of the ASEAN region with offline stores. I hope that our brands make full use of the digital channel to get closer than ever before to global customers.

Q. You were rushed practically off your feet last year with work. What significant achievements did you make in your work and what strategy is the New Growth BU working on this year?
The New Growth BU alone cannot take the credit for achievements made last year. Good quality products combined with an agile strategy to position us in line with dominant trends together give us a remarkable power in the market. The prestige of AMOREPACIFIC has soared along with the enhanced value of brands such as Sulwhasoo, LANEIGE and HERA and the implementation of solid business strategies that have helped support the creation of widespread synergies. HERA has marked particularly strong growth thanks to the success of the Cushion type of makeup product in the Korean duty-free market. The boom in Cushion sales that started in the digital channel was seen across both on and offline channels.

One of our most important goals this year is to provide customers with a better shopping experience at duty-free shops. Each year, we see a great increase in the number of tourists to Korea, particularly Chinese tourists. This year, more than 8 million Chinese tourists are expected to come to Korea. Yet, the number of duty-free shops is limited, which means that we are unable to provide enough places for customers to experience our brands. We must improve VMD at stores and raise the level of customer service. At the same time, we need to enhance public relations on routes through which Chinese tourists travel in order to increase brand value in the large duty-free markets of Asia. Success here will really help to globalize the Cushion.

Q. We would like to hear more about the career path that you used to walk before becoming Director of the New Growth BU. Please share with us the most memorable and meaningful moment in the 20 years of working for AMOREPACIFIC.
In 1993, I joined the AMOREPACIFIC Group Distribution Department and, in the years since, I have experienced many different sales channels. I was placed in positions in which I had to manage new distribution channels such as ARITAUM sales planning, the drug store sales team, home shopping sales team and online business unit, rather than more conventional channels. I still remember the excitement of jumping into a new market, as well as the passion and great determination to succeed that I felt upon becoming responsible for fostering new distribution channels and brands at the New Growth BU.

The most memorable moment is the year 2010 when I was made the head of the home shopping sales team. We exceeded 100 billion won in sales for the first time ever since opening the home shopping channel in 1998. It was a symbolic event. The question mark that had been hanging over the entire home shopping channel had turned into a big exclamation mark, with a ringing endorsement of this channel's sales. This experience laid the foundation for us to discover new channels such as the digital channel and promote our remarkable Cushion to customers.

Q. Your job must be stressful at times due to the demand it places on your work to always stay alert to ever-changing market conditions. Do you have any special stress reliever?
For me, the best stress relief is to simply talk with my colleagues. When I talk with others at work, it helps me find new answers to issues I had been pondering. I very often find that I get great insight from the creative, distinctive ideas of our young, new members. In many cases, mixing my own ideas with those of others opens my eyes to things that I would not be able to see on my own. Having a heart-to-heart talk with seniors and juniors is such a comforting thing and I'd like to encourage you all to do so.

Q. What kind of leader do you want to be?
We live in a fast-paced world. And I think the most important quality a leader can have within such an environment is to be receptive to change itself. Leaders must quickly grasp rapidly changing market trends to go in the right direction. What this means is that leaders must have the ability to grasp changes and trends as well as have the courage to take on the challenges such trends present. I hope to become a leader that keeps up with trends and continually challenges myself.

Q. Let's wrap up the interview with what you think are the most important points of Our Values.
For me, the most important value is 'Challenge.' I'd like to encourage all members of AMOREPACIFIC Group to be brave and do what you believe is right. It is said that there are at least three major chances in everyone's life. But, the point is, not everyone can seize the chance when it comes. Most people hesitate out of misguided fear of failure – which leads them to lose their chance. We need to have the courage to always seize the chance. We can do this only when we overcome the fear of failure and act according to our belief. I myself have faced tough choices in the past. But, whenever I saw a chance, I took courage and pressed on. Of course, I did fail a few times. But the failures took me one step closer to success. I hope that every one of you has the courage to act according to your judgment when you think you're right. There is no failure without challenge, but neither is there a success.


Experience changes in the duty-free market: - Duty free malls in Changi Airport, Singapore and Haitang Bay, China
Don't miss the duty free malls in Changi Airport, Singapore and Haitang Bay situated in Hainan Island, China. Though not travel destinations in themselves, they are places that I'd like you to drop in and look around at whenever you have the chance. AMOREPACIFIC Group has stores in both malls, you see. And both malls are state of the art and as glamorous as Incheon International Airport Duty Free Mall. Haitang Bay Duty Free Mall is the largest duty free shopping center in the world. If you get the chance to visit China and Singapore, look around the duty free malls there and see for yourself how much the duty-free market has changed

Varied, ever-changing Southeast Asia: - large cities in Southeast Asia (Vietnam, Thailand and the Philippines)
If you are planning an overseas trip, I'd like to recommend you to take a tour of the large cities in Southeast Asia. Southeast Asia is growing fast and major hubs such as Hanoi in Vietnam, Bangkok in Thailand and Manila in the Philippines look different each year. This is said to be Asia's century. On your tour of these cities, you will surely learn a lot more from Southeast Asia, which is a place of dynamic change, than from the advanced, yet stable regions such as Europe. Insights that you gain while touring Southeast Asia will be a valuable asset in your career at AMOREPACIFIC Group.

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