Global cosmetics giants push deeper into personal care with niche brand acquisitions, eye e-commerce
- Analysts say there is a trend among big beauty firms to consolidate numerous brands under their wings and move away from a single-brand model
Hong Kong-listed luxury cosmetics brand L’Occitane International’s US$900 million acquisition of premium British skincare brand Elemis points to the industry’s growing interest in niche premium brands and the e-commerce segment as an increasing chunk of purchases shift online, according to market analysts.
“Elemis has a strong reputation in anti-ageing and a strong heritage as a professional premium spa brand, along with a credible range of more functional hi-tech products,” said Pascal Martin, partner at OC&C Strategy Consultants.
He said that Elemis complements L’Occitane’s offerings and also brings with it a strong R&D base.
Mariana Kou Chung-yin, head of China education and Hong Kong consumer research at CLSA, said that she had noticed a trend among big cosmetics companies to consolidate numerous brands under their wings and move away from a mono-brand model.
“This trend is a result of the rise of e-commerce in recent years, which allows beauty groups to leverage the omni-channel distribution channels and drive more sales,” she said.
L’Occitane’s chairman Reinold Geiger said in a statement on Sunday announcing Elemis’ purchase from Steiner Leisure that this was the company’s largest acquisition since listing and a major step forward in building a group of premium beauty brands.
