Globon wins exclusive contract with ACN
The agreement
Globon, which has signed an exclusive agreement with the US-based company, plans to start selling its premium range from the end of March 2017.
ACN, which specialises in the direct selling of telecommunications, energy and home and business services, intends to distribute Globon’s cosmetics lines in various key markets within Asia including South Korea and Japan.
As part of the agreement, ACN then plans to sell the cosmetics products in both US and Europe following the roll-out in Asia.
In other news relating to the cosmetics manufacturer, Reuters announced that South Korean GK Asset reduced its stake in the company from 7.7% to 4.1% after selling 1 million of its shares.
Korean appeal
Korean trends including K beauty and K Pop have grown significantly in recent years, with colour cosmetics proving popular with consumers both on home soil and overseas.
With AmorePacific and LG Household and Health Care leading the Korean brands overseas, the country’s cosmetics are still heavily led by domestic manufacturers. Korean beauty makers account for four out of the five top positions in beauty and personal care, accounting for the segment’s 52% share in 2015.
However, its impact is being felt in other key geographical markets as the visual appeal and concepts of K beauty attract international interest.
Nicole Fall, founder of Asian Consumer Intelligence reiterated that this appeal comes from the country’s brands and trend embracing “fun and feminine packaging” that include “cute characters, animal symbols and semiotics to convey a sense of novelty”.
Communication partnerships
Marketing becomes a core component of large cosmetics firms entering and succeeding in new markets and so multinationals including Amway and Nu Skin have formed partnerships to directly sell their products overseas.
Since 2015, Amway has also collaborated with Microsoft to bring digital services to its physical outlets.
Amway revealed its model in India: "This instore digital platform will be seamlessly linked to the company website that will allow distributors to click and pick either at the store or in their homes," said Anshu Budhraja, CEO, Amway India at the time.
