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Tag: tonymoly

  • Korea’s brand Tonymoly inked partnership with Moschino

    Korea’s brand Tonymoly inked partnership with Moschino

    Italian fashion design house Moschino has released a collaboration with South Korean cosmetics brand Tonymoly on a collection of makeup and skincare products. The collection includes a cosmetics line and a few skincare items in sleek black, white, gold and rainbow packaging. The full range will be available from Tonymoly’s US web store throughout December.

    Moschino also collaborated on a reportedly fast-selling fashion line with H&M earlier this year. South Korean cosmetics brand Tonymoly sees the US as a key market in its plan to accelerate international growth.

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  • Korean cosmetics firms suffer losses in Q3

    Korean cosmetics firms suffer losses in Q3

    Korea’s mid-sized cosmetics companies suffered losses in the third quarter of this year as they struggled to reorganize their business structures in the face of tough competition at home, industry sources said Sunday. Able C&C, which operates budget cosmetics brand Missha, swung into the red in the July-September period, posting a net loss of 9.4 billion won ($8.3 million), it said.

    Its sales dropped 12.1 percent to 73.1 billion won and operating income swung to a loss of 13.2 billion won. The company said fierce competition in the country’s cosmetics industry, combined with its heavy investment in research and development of new products, led to the poor earnings results.

    Tonymoly reported a net loss of 3.5 billion won, with 800 million won in operating losses on a consolidated basis during the cited period, according to the company.

    Korea’s mid-sized beauty firms’ profitability deteriorated following a diplomatic row between Seoul and Beijing last year, which led to a sharp drop in the number of tourists coming to Korea. Industry watchers said the expansion of online and duty-free channels has hurt the mid-sized companies, which rely heavily on offline stores. Last month, Skinfood was placed under a Seoul court’s receivership after the company said that it is having temporary difficulty securing liquidity due to excessive debt.

    “We are making efforts to improve our profitability and strengthen our online business,” an official from Nature Republic said.

    Nature Republic reduced the number of its stores to 680 by the first half of this year from 770 in 2015. The company reported 58.8 billion won in sales and 300 million won in operating income in the third quarter of this year.

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  • K-beauty eyes Middle East

    K-beauty eyes Middle East

    The political tension between Seoul and Beijing has eased after a summit between the two leaders during the APEC Summit, but K-beauty companies are diversifying their overseas operations instead of returning to the Chinese market.

    Supermarket chain E-mart said  that it has signed a franchise deal with Saudi Arabia’s largest retailer Fawaz Alhokair. Under the contract, E-mart is set to sell its cosmetic brand Sentence at Fawaz Alhokair shopping malls.

    Fawaz Alhokair operates 21 shopping malls in Saudi Arabia, and E-mart said it will open one Sentence store in the Riyadh and Jeddah malls by March. Another four more stores are expected to be opened by the end of 2018.

    The nation’s largest cosmetic company AmorePacific also plans to open its first Middle Eastern store in the United Arab Emirates in January while preparing to open others in Saudi Arabia and Kuwait.

    AmorePacific signed a partnership deal with the Middle East’s largest retailer Alshaya Group.

    LG Household & Healthcare has already entered the Middle Eastern market. It now operates more than 60 The Face Shop stores in Saudi Arabia while another K-beauty brand Tonymoly has opened five stores in the country, including two in Jeddah and one in Riyadh.

    Market researchers say their surging interest in the Middle East is attributed to the market’s growth potential.

    London-based consultancy Euro Monitor said the Middle East cosmetic market was worth 19.5 trillion won (US$18 billion) in 2015 but is expected to reach 39.1 trillion won by 2020. The figure is double the average growth rate of the world’s cosmetic market.

    Likewise, Korean cosmetic firms’ exports to the market have soared.

    According to KOTRA, Korean firms exported only 150 million won worth of cosmetic products to the Middle East in 2008. The figure, however, jumped to 40.1 billion won last year, a 265-fold increase over eight years.

    “The cosmetics market in Saudi Arabia has grown 10 percent a year on average for the last decade. This is one of the most rapidly growing cosmetic markets in the world,” an E-mart official said.

    “Korean cosmetic products are expected to enjoy good sales there thanks to booming Hallyu popularity.”

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