[THE INVESTOR] Cosmeceutical firm Gowoonsesang announced on July 25 that it has sold 51 percent stake in its skin care brand Dr.G to Switzerland-based retail giant Migros Group’s beauty arm Mibelle.
“There will not be any changes in Dr.G’s management. This deal can be considered as a partnership with Migros Group,” a Gowoonsesang spokesperson told The Investor.
Dr.G is the main brand of Gowoonsesang, the world’s 2nd largest medical skin care group, developed by founder and CEO Ahn Gun-young in 1999.
The brand does not have any flagship stores and is mainly distributed through health and beauty stores like Olive Young and Boots. It has recently expanded overseas in markets such as Hong Kong through drugstores like Sasa and also launched in China and the US.
According to industry sources, the European firm decided to acquire majority stake due to Dr.G’s increasing presence in the Chinese market.
The company’s sales last year reached 28.7 billion won (US$25.45 million), while posting 2.1 billion won operating profit with more than half of its sales coming from overseas market.
Gowoonsesang aims to tap into European markets with the Migros Group.
“We think that we can make synergies with Mibelle and also enter European countries since Migros is the biggest retailer in Switzerland,” the spokesperson added.
By Song Seung-hyun (firstname.lastname@example.org)