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Why global giants’ K-beauty acquisitions struggled, and Dr. Jart+ may be sold back

An analysis piece says a string of once-celebrated K-beauty acquisitions by global groups has underdelivered.

Deals mentioned

  • Unilever → AHC (Carver Korea): €2.27B (about $2.7B) in 2017, a landmark deal at the time
  • Estée Lauder → Dr. Jart+
  • L'Oréal, and ​Puig → 3CE and Dr.G are also named

What went wrong (per the article)

  1. Weak Chinese demand: the China sales that justified many deals faded
  2. Rigid multinational practices: a poor fit for brands whose edge was fast launches and fast marketing

And a twist: The Founders, the company behind Anua, is exploring buying Dr. Jart+, which Estée Lauder has put up for sale. A Korean indie-born company could end up buying back a Korean brand from a global giant.

A question to chew on Can a K-beauty brand keep its speed and culture inside a big group? If you know acquisitions that did work, what was different?

Source: KED Global — K-beauty M&A trap: Unilever, Estée Lauder, L’Oréal struggle after popular Korean brand acquisitions

#MergersAndAcquisitions #DrJart #Anua #KBeauty

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