Shinsegae International acquired a 100% stake in luxury skincare brand Swiss Perfection, laying the foundation for Shinsegae International to grow as a global beauty powerhouse.
WHO: Founded in 1998, Swiss Perfection is a luxury skincare brand from Switzerland. The products contain the brand’s proprietary anti-aging technology, Cellular Active IRISA. The brand is well established in high-end spa facilities, hotels, and personal clinics in Europe, Asia, and the Middle East.
Shinsegae International began as a high-end fashion business under Shinsegae Department Store before launching the cosmetics business in 2012 after acquiring local beauty brand Vidi Vici. The cosmetics business posted revenue of 62.7 billion won in 2017, which surged to 368 billion won in 2019.
Shinsegae Department Store is a retail giant in Korea, with operations including large retail franchise E-Mart, hotel business including 5-star hotel Westin, and the Shinsegae Duty-Free store among others.
IN THEIR OWN WORDS: “Luxury cosmetics market is attractive as it boasts an average of 5% annual growth. This acquisition will allow us to tap into the high-end skincare market which is seeing fast growth,” a source at Shinsegae International said.
Shinsegae International Cosmetics division head Gil-Han Lee said: “The takeover will lay the foundation for Shinsegae International to grow as a global beauty powerhouse. We will continue to increase investments in brands by aggressively looking for acquisitions of domestic and overseas labels with high growth potential.”
“It is optimistic to see that Chinese millennials prefer luxury cosmetics. We plan to grow as a global cosmetics company with Swiss Perfection at the forefront,” Lee added.
- Shinsegae International Co., Ltd. has acquired a 100% stake in Swiss Perfection.
- Financial details of the deal have not been divulged but it is estimated to be worth billions of won.
- Shinsegae International plans to increase its revenue by transitioning Swiss Perfection’s distribution model from wholesale to B2C as well as opening shops in major department stores and duty-free stores both locally and globally. It also plans to tap into China within three years.
- Shinsegae International also plans to leverage Swiss Perfection’s global distribution network to speed up the overseas expansion of its own beauty brands such as Vidi Vici and Yunjac.
- Shinsagae International Inc. recently announced the divestiture of the joint venture Shinsagae Intercos Korea Inc., selling its stake to the Intercos Group.
Photo: via Swiss Perfection