[Edaily Marketin LEE GEON-EOM Reporter] ABLE C&C(078520)is establishing a subsidiary in the Netherlands to serve as the control tower for its European operations. Following the establishment of its UK subsidiary, the company is setting up a central hub covering all of Europe, and observers say it is stepping up its efforts to diversify its overseas business.

According to an exclusive report by E-Daily on the 19th, ABLE C&C is moving forward with plans to establish a headquarters for its European operations in the Netherlands. After signaling its entry into the European market by establishing a UK subsidiary in the first quarter of this year, the company has reportedly finalized plans to set up a control tower in the Netherlands to oversee its operations across the entire continent. ABLE C&C boasts a brand portfolio ranging from skincare to color cosmetics, traditional Korean medicine, and derma care, including Misha, A’Pieu, Chogongjin, and Celapi.

The Dutch subsidiary will be responsible for overseeing business strategies and distribution network expansion across Europe, including the UK. The Netherlands is regarded as a gateway for global companies entering Europe and an ideal location for establishing regional headquarters, thanks to its excellent logistics infrastructure, multilingual workforce, and business-friendly regulatory environment. With major ports such as Amsterdam and Rotterdam serving as hubs, the country offers excellent logistics access to the entire European continent, making it a region where the European headquarters of multinational corporations are concentrated.

ABLE C&C’s decision to choose the Netherlands is rooted in the nature of the beauty industry. Given that consumer trends vary by country, and since the industry’s characteristics—such as a wide variety of products and rapid delivery—directly translate into sales, supply chain management (SCM) and inventory operational efficiency are considered key competitive advantages.

In fact, ABLE C&C’s consolidated inventory assets stood at 53.8 billion won at the end of the first half of this year, a 41% increase from 38.1 billion won at the end of last year. As sales overseas—including in Europe—have grown, so too has the burden of inventory. The Netherlands headquarters is expected to play a pivotal role in reducing this inventory management burden and enhancing SCM efficiency across Europe.

The establishment of this control tower in the Netherlands is expected to gain further momentum in tandem with ABLE C&C’s strong growth in European performance. In the second quarter of this year, ABLE C&C’s European sales surged 48% year-over-year, reaching an all-time high. The share of overseas sales in total company revenue also expanded to 75%.

This trend aligns with the structural realignment of the K-Beauty export market. According to the Samjung KPMG Economic Research Institute, the share of exports to China fell sharply to 24.5% in 2024 from 42.4% in 2018. During the same period, the share of exports to the U.S. expanded from 8.6% to 18.6%, while that to Europe grew from 6.6% to 13.9%.

According to data from the Ministry of Food and Drug Safety, the United States was the largest export destination last year, recording $2.2 billion in exports and surpassing China—which totaled only $2.0 billion—for the first time. Amid this trend of reduced reliance on China and the emergence of the U.S. and Europe as new export hubs, ABLE C&C’s establishment of a base in the Netherlands is seen as a move to prepare for direct entry into the European market.

ABLE C&C’s consolidated revenue for the first half of this year was 126.6 billion won, a 7.4% increase from 117.8 billion won in the same period last year. Operating profit for the same period was 19.8 billion won, up 68.7% from 11.7 billion won in the prior-year period. Based on standalone financial statements, the export share reached 69.8% in the first half of this year, significantly exceeding last year’s full-year figure of 53.6% and the 2024 full-year figure of 50.3%, indicating a clear trend toward increasing reliance on overseas sales.

The newly established UK subsidiary successfully settled in early, recording 900 million won in revenue during the first half of this year. Having successfully penetrated major local online and offline distribution channels—including TikTok Shop, Boots, and Superdrug—ABLE C&C plans to aggressively pursue diversification of its product lineup, with a focus on skincare, using its Dutch headquarters as a base.

ABLE C&C currently operates local subsidiaries in Japan, the U.S., and China, and has a presence in approximately 42,000 stores across 56 countries. Among these, the U.S. subsidiary recorded sales of 26.8 billion won in the first half of this year, accounting for the largest share among the company’s overseas subsidiaries. In Europe as well, the company plans to transition from a distributor-centered distribution system to a subsidiary-led direct entry model, applying the successful experience it has accumulated in the U.S.

Shin Yu-jeong, CEO of ABLE C&C, emphasized, “We plan to establish our Dutch subsidiary as a key hub for systematically managing the European market and accelerating business expansion.” She added, “Based on our understanding of the local market, we will strengthen cooperation with major distribution networks and actively identify business opportunities in each country to expand the growth foundation for our core brands, such as Missha and A’pieu, across Europe.”