L’Oreal acquires South Korea’s Dr.G in skincare deal with Migros
In this article (5)
French cosmetics giant L’Oreal said on Monday it had agreed to buy Gowoonsesang Cosmetics, which includes South Korean skincare brand Dr.G., from Swiss retailer Migros.
The Korean beauty market is dominated by local brands known for being among the world’s most innovative, and increasingly popular overseas as part of a trend for ‘K-Beauty’.
Dr.G will meet rising demand for K-Beauty and effective yet affordable skincare, L’Oreal said in a statement, adding that it has a growing pan-Asian presence and global growth potential.
“We have been following the brand and its success for many years and we look forward to accelerating its growth in South Korea and the rest of the world,” said Alexis Perakis-Valat, global president of L’Oréal’s consumer products division.
Reuters reported on Friday that L’Oreal and Migros were in final talks on a deal. Migros announced a strategic review of its Mibelle cosmetics group in February, saying it wanted to find a new home for the owner of Gowoonsesang and other brands.
L’Oreal did not give a valuation for the deal, which comes amid a slowdown in China, previously one of the fastest-growing beauty markets.
Questions & Answers
Q.Which company is L'Oreal acquiring to add the Dr.G skincare brand to its portfolio?
Which company is L'Oreal acquiring to add the Dr.G skincare brand to its portfolio?
L'Oreal is acquiring Gowoonsesang Cosmetics, the company that owns the South Korean skincare brand Dr.G. This purchase was made from the Swiss retailer Migros.
Q.Why is L'Oreal interested in the South Korean skincare brand Dr.G?
Why is L'Oreal interested in the South Korean skincare brand Dr.G?
L'Oreal stated that Dr.G will help meet increasing demand for K-Beauty and effective, affordable skincare. The company sees potential for both pan-Asian presence and global growth for the brand.
Q.From whom is L'Oreal buying Gowoonsesang Cosmetics?
From whom is L'Oreal buying Gowoonsesang Cosmetics?
L'Oreal is purchasing Gowoonsesang Cosmetics, which includes the Dr.G brand, from the Swiss retailer Migros. Migros had announced a strategic review of its Mibelle cosmetics group earlier in the year.
Q.What was Migros's previous intention regarding its Mibelle cosmetics group?
What was Migros's previous intention regarding its Mibelle cosmetics group?
Migros had announced a strategic review of its Mibelle cosmetics group in February. It stated an intention to find a new owner for Gowoonsesang and other brands within that group.
Reader pulse
Is L'Oreal's Dr.G acquisition a smart move?
18,166 votes so far