Fashion
South Korean beauty maker Tonymoly says it’ll increase its funding in China after a market debut subsequent month, to faucet deeper into the fast-growing magnificence market.
Tonymoly, Korea’s seventh-largest beauty model by 2014 gross sales, has posted double-digit progress since its institution in 2006 and has about 1800 outlets in 20 nations, together with Hong Kong, the US and Russia.
Buoyed by strong gross sales, Tonymoly China is getting ready for its debut on July 10, pledging to broaden funding in China driving the ‘Okay-beauty growth’.
“China has an enormous progress potential. We’ll maximise the expansion potential by immediately getting into the Chinese language market, which has turn out to be the corporate’s second home market,” CFO Hong Hyun-ki stated in a briefing.
“We’ll construct factories in China to supply quite a lot of beauty manufacturers and open model outlets throughout the nation utilizing the fund from the general public providing.”
Tonymoly logged 305.2 billion gained (US$275.four million) in gross sales final yr, with 11.four per cent coming from obligation free outlets and shops in Myeongdong, which closely depend on Chinese language shoppers.
Tonymoly has provided to promote its shares between 26,400 gained and 30,200 gained per share, which might increase between 77.6 billion gained and 88.eight billion.
A rising variety of Korean beauty companies are eyeing the worldwide market because the home market has turn into saturated and progress has been slowed resulting from fierce competitors and rising advertising prices.
Whereas native companies discover it more durable to enter European and American markets, they’ve gained big reputation amongst Chinese language shoppers who love Okay-pop stars and are wanting to mimic their types.
China’s cosmetics market is the world’s third-biggest market value $26 billion a yr, international market researcher Euromonitor stated, anticipating it should develop eight per cent annually from now to 2017.
