PARIS – Puig has signed a joint-venture agreement with Luxasia, the leading prestige omnichannel beauty distribution and retail company in Asia.
Financial terms of the deal were not disclosed.
The joint venture starts operations on Feb. 1 and involves select Southeast Asian markets, including Singapore and Malaysia, fragrance and fashion company Puig said in a statement Tuesday morning.
Privately held, Singapore-based Luxasia manages a portfolio of 120 beauty brands in the region, including Beiersdorf, Burberry, Clarins, Estée Lauder, Hermès, Decléor, Gatineau and Payot.
As reported, company founder Patrick Chong was succeeded as chief executive officer last April by Wolfgang Baier. At the time, Chong said: “Scale, speed and execution will be the key to Luxasia’s success in the future.”
Barcelona-based, family-owned Puig has also been gunning for growth. Its target for 2017 includes reaching sales of 2 billion euros, or $2.13 billion at current exchange. In 2015, the company’s revenues came in at 1.65 billion euros, or $1.83 billion at average exchange for the 12-month period.
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The fast-growing Asian beauty market – where competition today is already rife – is key to any beauty players’ development plans. But international brands are currently less favored there than local labels.
Puig’s recent acquisition strategy has included buying niche brands such as L’Artisan Parfumeur and Penhaligon’s. In late September 2016, for instance, Puig took a minority stake in Granado, the Brazilian high-end beauty maker and retailer.
Puig’s linking up with Luxasia is part of a growing trend of beauty companies taking a more hands-on approach to their consumers’ buying experience – especially in the digital realm.
As reported, in early January, Coty Inc. bought a 60 percent stake in the beauty company Younique for $600 million. The concern creates and sells makeup and skin-care products through peer-to-peer social selling. It’s a process that combines Younique’s sales force with the company’s technology platform, which specializes in mobile-first e-commerce. It is essentially, a virtual Tupperware party but for Younique’s products.