As mentioned by Elisabeth King earlier this week, LVMH recently signalled there is no end in sight to the South Korean beauty boom, acquiring a minority stake in Clio Cosmetics for $US50 million.
This is the second major investment made by western companies into South Korean beauty businesses – Goldman Sachs and Bain Capital Private Equity have just acquired a controlling stake in specialty cosmetics firm Carver Korea in a deal that values that company at around $US675 million.
It’s a continuation on a theme for South Korea – the country’s Custom Service reported last year that cosmetics exports have reached an all-time high, jumping from $US1.9 billion in 2014 to $US2.64 billion today.
BOF broke the news, commenting that the West’s obsession with South Korean beauty looks only set to grow: “Indeed, the French luxury conglomerate’s move will come as little surprise to those closely watching the Korean beauty sector, which is renowned for creating trends and product innovations years ahead of their western counterparts.
"From introducing unusual ingredients like snail mucus and bee venom to the market, to developing new application techniques like sheet masks and cushion compacts, Korean beauty companies have been at the forefront of beauty innovation for years, driven in part by the expectations of sophisticated local customers.”
