Financial focus: Coty, Yatsen, L’Occitane and more feature in our latest beauty business and finance update
1 – K-beauty’s evolution: Cosmetics showed highest export growth for Korean SMEs in past 10 years
South Korean cosmetic products from SMEs and start-ups have chalked up the biggest growth in exports in the past decade and is now the second-largest category, according to a new report from trade chiefs.
The report said that the cumulative value of cosmetics exported by small and medium-sized enterprises (SMEs) increased by 1,278% from U$320m to U$4.39bn between October 2010 to October 2021.
In the last 10 years, cosmetics exports climbed 60 places to be the second-largest SME export in 2021, surpassing other major exports including processed food, vehicles, semiconductor manufacturing equipment and pharmaceuticals.
The Minister of SMEs and Startups said cosmetics soared on the back of “the global attention of Hallyu and K-beauty”.
2 – Double the Plum: Offline expansion will help vegan beauty brand capture larger share of the Indian market
Vegan beauty brand Plum is aiming to at least double its reach in the next eight to nine months following the launch of its first standalone retail store.
Established in 2013, Plum is a direct-to-consumer vegan beauty brand from India that offers skin care, hair care, body care, and make-up products.
The company expanded into the offline space in 2017 and today is available through over 10,000 third-party retailers.
In October, the company announced that it was unveiling its first standalone store in Mumbai as part of its plans to further strengthen its position as an omnichannel business.
3 – Doubling down in China: Coty aiming to more than double sales over the next three years
US beauty major Coty is aiming to more than double its sales in China by tapping into opportunities with prestige beauty and e-commerce.
Compared to its rivals, the firm behind Covergirl and Max Factor is relatively new in China, only establishing a subsidiary in 2016. Today, China only accounts for 4% of Coty’s total revenue.
“Although Coty has been around since 1904, I remind you that we are still young in China,” said Guilhem Souche, managing director of Coty China.
In the last fiscal year, total sales in China increased by 31% and in the first quarter of the 2022 fiscal year, China saw growth of nearly 50%.
4 – Next stage of growth? The firm behind Perfect Diary refocusing efforts on skin care as make-up wanes
Yatsen Holdings, the firm behind popular make-up brand Perfect Diary, is channelling its efforts and resources into skin care, where it believes will be key to the firm's future growth.
Founded in 2016, the Chinese cosmetics unicorn is one of the most successful beauty brands from China. The company's flagship brand, Perfect Diary, claims to be one of the top make-up brands in China in terms of online retail sales value.
However, the firm has been hampered what it has observed to be the softening of the colour cosmetics category amid the deceleration of general consumer spending in China.
“This extended into the Singles Day promotion period between November 1 and November 11, during which colour cosmetics sales on Tmall fell by low-single digit compared to the prior year,” said Huang Jinfeng, founder, CEO, and chairman of the company.
5 – L’Occitane H1: China sales rise 23% on the back of new launches such as Osmanthus fragrance
L’Occitane International has recorded sales growth of 23% in China during the first half of its 2022 fiscal year aided by investments and new launches of core brand L’Occitane en Provence.
L’Occitane en Provence is the core brand of L’Occitane International, which also owns brand such as ELEMIS, Melvita, and Erborian.
The flagship brand accounted for 77% of total net sales in the first half, contributing 87% of the company’s overall growth during this period.
During this period, the company said it invested heavily into L’Occitane en Provence’s business in China, which is the brand’s largest market to date.