Korean cosmetic maker Clio signs $68m deal with LVMH
SOUTH Korean cosmetics firm Clio has secured US$50 million (S$68 million) in investment from the world's largest luxury brand group LVMH Moet Hennessy Louis Vuitton, boosting plans to expand into overseas markets.
LVMH-owned private equity fund L Capital Asia and Clio signed an agreement on the investment in Singapore on July 22, the latter said yesterday.
With the newly secured capital, Clio is looking to drive up its presence in China and new markets in South-east Asia.
The company, which currently operates some 90 Clio brand stores in South Korea, opened its first outlet in China in May.
It plans to operate 40 more stores in China by the end of this year and expand its sales routes in China as well as South-east Asia.
Founded in 1993, Clio owns three brands that mainly target women in their 20s and 30s - Clio, Peripera and Goodal.
They are sold via drug stores, brand shops, online shopping malls and home shopping channels.
Last year, Clio's sales surged to 107 billion won (S$128 million) along with an operating profit of 22.5 billion won.
It had been boosted by the sales of a brow makeup product which appeared on hit local TV drama series The Producers last year.
Alongside Clio, other South Korean cosmetic makers have also been attracting foreign capital lately.
In October, Estee Lauder Companies became a major shareholder of Have & Be Co, parent company of Seoul-based skincare brand Dr Jart for an undisclosed sum.
Last week, Goldman Sachs and Bain Capital Private Equity took over Carver Korea - which owns skincare brand A.H.C. - for 520 billion won.
THE KOREA HERALD/
ASIA NEWS NETWORK