The acquisition will allow the brand from Asia a dominant position in the new region, where Tarte’s sales have grown consistently since it launched its operations in 1999, stating it now has a solid position in the cosmetics and skin care industry.
With the move, Kosé demonstrates that global expansion is a two-way street, following a string of western brands’ recent Asia-focussed expansions.
Expansion from both sides
Tarte offers a strong choice for a targeted expansion into US market, as the North American region is the base of the substantial majority of the brand’s sales.
Kosé is keen to concentrate on global growth; it “is now starting to increase the pace of becoming a more global organization by entering countries where the company does not yet have a presence,” the company stated.
“Acquiring a well-known North American brand gives KOSÉ a new source of growth outside Japan that is expected to contribute to achieving the goals of the Medium-Term Management Plan.”
The company’s expansion into the US follows a string of comparable moves for global growth by fellow cosmetics giants, who are conversely looking to expand from the west into the Asia-Pacific region.
French brand L’Occitane continues to expand in China, having opened its third store in the Macau area at the end of last year, and beauty brand Amway recently announced its plans for further expansion into the Asia pacific region generally.
Asia’s brands asserting themselves home and away
Kosé move heralds a similar confidence among Asian brands looking to globalize; not undeserved following the enormous international growth of BB and CC multifunctional products.
To complement this international expansion and keeping up with brands moving in from the west, Asian brands are also strengthening their positions within their own domestic markets too.
Fellow Japanese beauty brand Shiseido held a corporate launch this week in Mumbai, to formally acknowledge the establishment of its wholly-owned subsidiary in India, which participates in its deliberate strategy for growth in the region.
Tarte, which is particularly popular among women in their 20s and 30s, places an emphasis on naturally-derived ingredients.
This sustainability focus makes it a well-suited addition for the ecologically conscious Kosé, which describes itself as committed to “ensuring the quality of its products depends on preserving the global environment and especially on tackling environmental issues.”