Beiersdorf has acquired a significant stake in Seoul-based Lycl Inc., thus becoming the second-largest shareholder of the rapidly growing skincare and tech start-up.
WHO: Lycl Inc.is a Korean skincare and tech start-up established in 2013. The company combines three different business models: unpa.me, a review and content platform for K-Beauty products, palett.me, an influencer network platform, and unpa.Cosmetics, the start-up’s own skincare brand. Lycl already has a strong footprint in South Korea with the majority of product sales generated through a direct-to-consumer business model via the brand's own website.
Beiersdorf AG is a leading provider of innovative, high-quality skincare products and has over 135 years of experience in this market segment. Its product portfolio comprises strong, international leading skin and body care brands including Nivea, Eucerin, Hansaplast/Elastoplast, La Prairie, Labello, Aquaphor, Florena, 8×4, Hidrofugal, atrix, Slek.
WHY: This business structure fosters speed to market of data-driven, consumer-centric and highly innovative skincare products. Venture investment in disruptive business models is in line with Beiersdorf’s C.A.R.E.+ strategy, but this deal also further strengthens Beiersdorf’s footprint in Korea and the region.
IN THEIR OWN WORDS: “We see great potential in Lycl’s disruptive business model and its high degree of digital consumer connection,” Dessi Temperley, Chief Financial Officer of Beiersdorf, said in a statement. With its two beauty platforms, Lycl already has access to more than 1.2 million consumers. Based on their insights, the company has implemented a disruptive data-driven innovation process to develop and market skincare products under the “unpa.Cosmetics” brand. “The digital innovation capabilities and strong consumer centricity of LYCL have resulted in triple-digit growth rates over recent years, and we believe the business model is geographically scalable,” Temperley added.
Endrik Hasemann, General Manager, Beiersdorf South Korea, sees the investment into Lycl also as a proof of concept: “The decision to launch the NIVEA accelerator in Korea as part of our global venturing activities was made based on the belief that the Korean ecosystem is a frontrunner regarding beauty and tech trends. We strongly believe in the future success of LYCL, and we are looking forward to driving excellent consumer experiences and skincare innovations to the next level together.”
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