Jumei buys stake in Korea's 'Its Skin'

By Michelle Yeomans

- Last updated on GMT

Source: VogueFemme.com
Source: VogueFemme.com

Related tags Cosmetics Korea China

Jumei, China's leading online beauty retailer has acquired a minority stake in Korean prestige brand It'S SKIN, which has become extremely popular with Chinese consumers.

Demand for Korean beauty products in China has grown rapidly over the past few years.

According to Jumei CEO Leo Ou Chen, with an extensive portfolio of prestige products, It'S SKIN is an ideal partner for the retailer to collaborate with.

"As we build Jumei into the largest cross border e-commerce platform in China,​ It'S SKIN will [also] greatly benefit from the growing size and scale of our platform​," he says.

The online beauty retail behemoth has mushroomed since its founding in 2012. The firm is now on track to earn a profit of $100m off sales of $1.3bn in 2013.

However, it has been reportedly fighting off competition from the likes of VIPshop for its' reputation as China's leading online cosmetics retailer, of late.

Korean beauty demand

Chinese online consumers are increasingly eager to purchase Korean cosmetics, with tie-ins with K-pop bands being used as marketing tools by brands such as Nature Republic.

As domestic markets inch closer to saturation, numerous brands have really started to recognize their own R&D and manufacturing capabilities, which is transforming how “Made in Korea” products are viewed. 

According to JKH Wang, president of packaging supplier FS Korea, domestic products are increasingly being viewed as being of higher quality, sophisticated and environmentally friendly.

Full-service concepts

According to Wang, full service strategies are “a key issue”​ for many Korean companies looking to gain traction for their products overseas.

"I think innovation is the growth key driver of beauty industries, so to have some advantages in full service, cooperation is important​," he tells organisers.

"That means, not only develop innovative products of our own, but cooperate with experts in formulation and packaging, which is a necessity. With full service, we can increase our business but there are also some drawbacks like on the suppliers’ side who take all the responsibility, including the investment​," he adds.

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