3CE, 'Style Nanda', in L'Oreal Paris
The first-generation Korean online shopping mall, Style Nanda, was sold to global cosmetics company L'Oreal. This is the first time that L'Oreal has acquired Korean Beauty brand.
L'Oreal announced on May 3 that it will acquire 100% stake in Nanda, a lifestyle make-up and fashion company established by Kim So-hee (35) in 2004.
"We are confident that this transaction will be a breakthrough for NANDA," said Kim Soh-hee. "We expect StyleNANDA to become a global brand leading the beauty trend, based on the solid support of L'OREAL and global platform. "He said.
Instead of selling all of his shares to L'Oreal, Kim will remain in Style Nanda and take on the chief creative officer (CCO).
"With the acquisition of Style Nanda, L'Oreal Korea will further strengthen its position in the accessible makeup market." "We are pleased to welcome the Korean beauty brand for the first time in the group, I am very proud to be able to show them around the world. "
L'Oreal plans to expand its 3CE sales globally. The acquisition process is expected to be completed within two months of customary regulatory approval.
Kim, who previously held 100% stake, sold only 70% of his stake and sold all of it, though it was said to hold the remaining stake. The sale price of 70% was estimated to be around 400 billion won, but the specific amount of the contract was unknown.
L'Oreal seems to have taken over the growth potential of 3CE, which is currently the number one color cosmetics brand in China. According to Euromonitor, China's color cosmetics market is expected to grow at least $ 5.9 billion in 2019, up 74% from 2014.
Earlier, in July 2015, L'Oreal signed an MOU for the construction of a factory in Yichang Tianmu, China, the largest color cosmetics production base in the Asia-Pacific region in Hubei Province in July 2015. So, L'Oreal invested more than 200 million yuan here, but it took place in the style nude of the first place in color cosmetics.
'Style Nanda' started in 2005 as an online fashion shopping mall that bought Dongdaemun clothing in 2005, when Kim Soo-hee was 22 years old and became a representative shopping mall in Korea. However, operating profit was lower than initial sales.
Nanda's hit business area is a beauty. Kim Soh-hee has made great success by launching his own makeup brand, Three Concept Eyes (hereinafter 3CE) in 2009. 3CE has grown to more than 70% of its sales, which is more than 100 billion won in annual sales.
Nanda, which operates businesses in Korea and Japan, currently employs 400 people and generated sales of € 127 million (about 163.6 billion won) in 2017. The company also expanded its business to overseas markets including Hong Kong, Singapore, Malaysia, and Thailand.
Style Nanda has become a popular brand among the Millennials of Korea and China. Style Nanda's distribution channels range from e-commerce, specialty retailers, department stores and duty-free stores to style-only stores.