The firm, owned by trading company Li & Fung, boasts over 40 logistics centres across the region, giving it the capacity to service over 30,000 retail outlets and health institutions with its supply chain.
Its clients reportedly include international FMCG market-leaders P&G and and Unilever, and according to the Asia Nikkei media outlet, its parent company has started negotiations for the sale with a third party.
The news platform notes that papers submitted to Hong Kong Exchanges and Clearing indicated the deal, if it goes ahead, will be in the region of USD 400 million.
According to various commentators, including Bloomberg, the sale is still in preliminary stages, with Li & Fung said to be still considering all avenues for the future of its beauty wholesale business.
The move to offload the company comes at a time when online platforms are rising to dominance when it comes to wholesale retail for beauty.
Just this month, LA-based Landing International announced the launch of its new B2B online platform called Marketplace, which allows brands to source niche beauty products and suppliers. The platform’s initial collection is from Asia, specifically Korea.
CEO Sarah Chung says the new retail space will allow beauty buyers access to innovative brands and encourage differentiation in the marketplace.
“The current process for beauty buying has not kept up with the pace of consumer awareness and demand for new products. Consumers are driving demand for brands not readily available in their favorite stores,” she explains.
“Our goal is to be the most efficient and enjoyable sales platform for retailers and brands to connect and transact.”
Indeed, some major online retail marketplaces within Asia, including iStyle in China, are reportedly looking to expand their cross-border e-commerce, including investing in wholesale avenues, according to China Business News.