Major companies have their eyes on brands that have emerged through the use of SNS who have caught the attention of the millennials. Brands expected to be acquired in the future include makeup artist Pat McGrath 's brand PAT McGRATH LABS who received investment funds of $US 60 million from French investment company, EURAZEO BRANDS July this year along with ZARA’s cosmetics brand, "Winky Lux", and singer Rihanna’s crazy popular, Fenty Beauty and so on.
Even in Asia acquisitions are being made left and right. South Korea’s NANDA was acquired this year in May by L'Oréal caused quite a stir. NANDA was created in 2004 by founder and CEO So Hee Kim who was 22 at the time. The brand launched its original makeup line, 3CE Concept Eyes and L'Oréal had been keeping tabs during its boom in China. In fact, 3CE is also popular in Japan; opening counters in Isetan and Hankyu Umeda and is considered as one of the leading Korean cosmetic brands alongside with ETUDE HOUSE and innisfree which is owned by AMOREPACIFIC. 3CE who’s shouldering well over 70% of the sales (last year's sales of 127 million euros, about 16.5 billion yen *), surpasses NANDA's main online fashion business retail brand, STYLENANDA is not an understatement.
Japanese companies are actively expanding and strengthening in overseas markets. IStyle which runs @ cosme (at cosme) first set foot onto Korean soil in June, opening @ cosme J Beauty Park at the Shilla Duty Free Shop Seoul head office. Skincare brand, POLA who focuses on whitening products, is enjoying its popularity in China. New counters have opened in department stores in Beijing, Hangzhou, Hong Kong and Shanghai in April, strengthening in the Greater China region. SUQQU also gathering a large army of tremendous support in China and has expanded in to UK department store, Selfridges. IPSA has also begun to take measures in raising its brand awareness, such as appointing its first ambassador in China.
KOSÉ's "DECORTÉ" renewed its counter in the recently renewed beauty floor expansion of Saks Fifth Avenue New York in May. In addition, KOSÉ rebuilt its branding within the young generation by renewing skin care brand, Awake this year which is the sister brand of Tarte cosmetics striking the North American market. KOSÉ also established a research facility in Lyon, France in July last year and is actively working in Europe towards its product release of DECORTÉ in Italy.
Shiseido and L'Oréal are slowly acquiring IT ventures and the wave of digitization is also inevitable in the beauty industry. In the future, it will become indispensable in understanding the younger generation’s marketing and digitization optimally by using M&A and to develop new conglomerates beyond the traditional frameworks to develop globally.
* 1 dollar = 111 yen conversion, 1 euro = 130 yen conversion (as of July 24)