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Tag: Stylenanda

  • L’Oreal Asia Pacific sales reported soars

    L’Oreal Asia Pacific sales reported soars

    L’Oreal Asia Pacific sales soared by a staggering 24.1 per cent on a like-for-like basis last year. Asia was the beauty behemoth’s fastest-growing market with all divisions of the business winning market share from rivals in the region. “The dynamism of Chinese consumers, combined with the good performance of premium brands and rapid growth in several other Southeast Asian markets as well as in travel retail, were the [region’s] main growth drivers,” the company said in an earnings statement.

    Singles Day in the fourth quarter especially boosted sales in China, along with the acquisition of Stylenanda in June.

    L’Oreal Asia Pacific sales, driven by China, overtook L’Oreal’s North America business, with sales exceeding €7 billion.

    Globally, L’Oreal achieved sales of €26.9 billion (US$30.3 billion) last year, an improvement of 7.1 per cent on a like-for-like basis and 8 per cent at constant exchange rates. Net profit reached €3.89 billion euros, an increase of 8.8 per cent.

    L’Oreal’s chairman and CEO Jean-Paul Agon said the results represented the company’s best year of growth since 2007, achieved in a beauty market which had “accelerated significantly” last year.

    All divisions achieved growth, with the standouts being L’Oreal Luxe and Active Cosmetics, which both recorded double-digit sales increases. In the Luxe division, the larger brands led the way, with Lancome sales crossing the €3 billion threshold. The Active Cosmetics division achieved its highest growth for more than 10 years.

    Consumer products sales, led by L’Oreal Paris and Maybelline New York, achieved solid growth and professional products a “modest increase” thanks to a significant acceleration in the final quarter, the company said.

    A growing investment in e-commerce is paying off, with sales online up 40.6 per cent last year, now accounting for 11 per cent of group sales.

    And travel retail broke the €2 billion barrier, increasing by 27.1 per cent.

    L’Oreal reported its gross margin increased significantly and, even after strong investments in research, innovation, and business drivers, its operating margin set a new record at 18.3 per cent of sales.

  • L’Oréal completes its Stylenanda takeover

    L’Oréal completes its Stylenanda takeover

    French cosmetics giant L’Oréal has completed its takeover of Korean fashion and makeup company Stylenanda just 50 days after it first announced that it would acquire 100 percent of the company.

    L’Oreal said on June 19 that it will operate Stylenanda separately from L’Oreal Korea’s four existing divisions.

    L’Oreal explained that it intends to encourage the creativity of Stylenanda’s fashion business and its makeup brand 3CE.

    Stylenanda’s new CEO will be Shin Ji-eun, 37, a general manager at L’Oreal Korea. Shin joined L’Oreal Korea in 2004, has worked various positions within the company in both Korea and France, and most recently worked as the general manager of marketing operations in Indonesia, one of the key emerging markets to the company.

    Kim So-hee, 35, the founder and former CEO of Stylenanda, will serve as its chief creative executive. “Kim will continue to contribute to the success of Stylenanda by providing major input in both the fashion and makeup divisions of the brand, “ said a L’Oreal official.

    L’Oréal did not disclose the exact amount it paid to take over 100 percent of the fashion brand, but considering that Stylenanda originally planned to sell 70 percent of its shares for 400 billion won (US$361 million), industry sources estimate the company was sold for between 570 billion won and 600 billion won.

    L’Oréal’s focus in acquiring Stylenanda was its makeup brand 3CE. Although Stylenanda started out as a clothing business in 2004, ever since it launched 3CE in 2009, makeup has propelled the brand’s growth. 3CE is popular both domestically and in China and Southeast Asia, and makeup products now account for 70 percent of Stylenanda’s total sales. L’Oréal believes that it can effectively target Asian markets, including China, using 3CE.

    Unilever bought Carver Korea, which owns the Korean cosmetics brand AHC, for 3 trillion won last year for a similar reason. L’Oreal, which has been criticized for its relatively poor competitiveness in makeup relative to skincare, is planning to solidify its position in color cosmetics through 3CE.

    The beauty industry has high expectations for growth in the Asian cosmetics market. The Asian makeup market is expected to account for more than 30 percent of the global makeup market in the future, and the Chinese market, particularly, has huge growth potential.

    According to Euromonitor, a global market research provider, the Chinese color cosmetics market is expected to reach 6.6 billion dollars in 2020. Between 2013 and 2016, its average annual growth was 11.3 percent, higher than the global color cosmetics market average of 6 percent.

    L’Oréal anticipates that if it sells 3CE products through its current distribution networks, it will be able to increase its influence in Asia as well as the North American and European markets.

    L’Oréal’s also hopes the acquisition will help boost its brand image, as 3CE’s main customer base is Asian millennials.

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  • Affinity Equity to bid on Stylenanda

    Affinity Equity to bid on Stylenanda

    Hong Kong’s Affinity Equity Partners has joined a bidding scramble for Korean budget fashion and cosmetics brand Stylenanda.

    Also in the race are LVMH-backed L Catterton, L’Oreal and Shiseido, with the bid worth up to KW500 billion (US$467 million), insiders say.

    Parent company Nanda has received letters of intent from potential bidders, including a local department-store chain, to sell a stake of up to 70 per cent.

    Launched in 2005, Stylenanda saw its sales soar to KW170 billion last year. While it started as a fashion brand, it has lately been focusing more on its cosmetics business. Now more than half of its sales come from its budget cosmetics brand 3CE.

    For its fashion business, the firm is focusing more on upscale boutique shops.

    CEO Kim So-hee, who owns the company outright, in 2016 sought to sell a sizeable portion along with management rights. There were negotiations with such candidates as Hyundai Department Store and TPG, but these collapsed.

    Meanwhile, L Catterton has been buying stakes in Korean companies in recent years, including US$80 million in YG Entertainment, $50 million in cosmetics maker Clio, and US$230 million in eyewear brand Gentle Monster.

    Affinity has also been buying into Korean firms. In August it bought plastic container company Lock&Lock for KW629.3 billion.

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  • Korean fashion retailer Stylenanda opens a flagship store in Harajuku

    Korean fashion retailer Stylenanda opens a flagship store in Harajuku

    It is noticeable that online fashion shopping brands perform well in Japan, after China. Global women’s brand “Stylenanda” opened its first flagship store in Harajuku in the center of Japanese fashion. In the early morning of the opening day, a long line of Japanese customers were waiting  for the store to open.

    On May 11, day before the opening ceremony, various events were held for the press. Ruriko Kojima, the most popular Japanese entertainer, attended the event to celebrate the opening. The store also offered a catering service and allowed customers to take pictures with models, hence making the place popular.

    “Stylenanda” released a 3CE Tokyo Edition design and a limited  edition bag featuring unique graphics; both can be seen exclusively  in the Harajuku flagship store. Limited edition “Lucky Box” is also available for customers.

    Stylenanda, which already had success in Korea and China, is growing every year, such as it is now responsible for trendy fashion and beauty for women.

    Stylenanda is an online shopping women’s apparel brand launched in Korea in 2005. Based on its online popularity, it opened its first flagship store in Hongdae and entered the department store for the first time as an online shopping mall brand. Since it opened in Lotte Department Store in 2012, it has recorded annual sales of more than 800 million won, and was ranked No.1 in the Chinese consumer preference brand of Lotte Department Store in 2014.

    Thanks to its international success, the company is rapidly expanding by opening stores in China, Hong Kong and Singapore, thus strengthening its presence as a global brand.

    In the same way, a few companies have been recognized as ‘Korean fast fashion brands‘ and now grow quickly by reflecting fashion trends and only selling a small quantity of products in various designs.

    Already opening a first store in the Isetan Shinjuku Department Store last year, Stylenanda hopes that the Harajuku flagship store will seduce and catch attention.