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Owner of Budget Makeup Brand Perfect Diary to Pretty Up Portfolio With Premium U.K. Skincare Line


The proprietor of Chinese language price range make-up model Excellent Diary will spruce up its portfolio by buying 35-year-old British skincare line Eve Lom.

Guangzhou-based Yatsen Holding Ltd. dedicated to purchasing the high-end cosmetics firm from its present proprietor Manzanita Capital Ltd. for an undisclosed sum, the companies stated in a joint statement Tuesday. They stated they are going to finalize the deal within the coming weeks.

Manzanita Capital, a London-based funding firm centered on premium cosmetics, will proceed to carry a minority stake in Eve Lom as a “strategic companion,” Yatsen stated, with out elaborating on the character of the partnership.

The deal will see Eve Lom be part of the 4 different make-up manufacturers underneath the corporate — Excellent Diary, skincare manufacturers Abby’s Selection and Galenic, in addition to nail polish model Little Ondine — and assist Yatsen faucet into higher-end magnificence markets, the assertion stated. Yatsen developed Excellent Diary and Abby’s Selection in-house, and bought Little Ondine in 2019.

Final October, Yatsen acquired skincare model Galenic from French pharmaceutical and dermo-cosmetic group Pierre Fabre in an try to strengthen its analysis and growth capabilities and bolster innovation.

Eve Lom has earned a “loyal following pushed by its hero merchandise,” Yatsen CEO Jinfeng Huang stated within the assertion, including that the model has had “resilient gross sales and profitability” through the pandemic.

Excellent Diary, which courts youthful shoppers with cut-price cosmetics marketed by social media stars, quickly expanded since its 2017 founding to grow to be China’s second hottest cosmetics-maker with a 2.7% market share by September 2019.

The 25-year-old Eve Lom has largely aimed on the North American, European and Asian markets, with its premium skincare line led by its signature facial cleanser. A 200 milliliter (6.7 fluid ounces) tub of cleanser prices round $120.

Eve Lom’s product lineup will proceed to be managed by its present growth workforce, Yatsen instructed Caixin. Yatsen will provide it with assets to spice up its advertising, portfolio growth, shopper providers and provide chains.

Manzanita Managing Accomplice Andras Szirtes stated within the assertion that Yatsen’s roots in Asia and e-commerce capabilities will assist speed up Eve Lom’s enterprise development.

Yatsen has focused on social media advertising for Excellent Diary, particularly using the Alibaba-backed lifestyle-focused social media platform Xiaohongshu. It has splurged on signing influential customers, often called “key opinion leaders,” to endorse its merchandise.

Excellent Diary has additionally more and more constructed up its offline presence, establishing some 200 bodily shops throughout 90 cities as of September, in response to its prospectus.

Yatsen swung to a internet lack of 1.2 billion yuan ($185 million) within the first 9 months of 2020, from a internet revenue of 29.1 million yuan a yr earlier, regardless of its revenues leaping 73% to three.27 billion yuan over the identical interval, because the pandemic-induced lockdown measures pressured retailer closures and hamstrung on-line gross sales development.

Excellent Diary contributed 99.2% of Yatsen’s income in 2018 and 97.7% in 2019, in response to its prospectus. However as Yatsen has added extra manufacturers to its lineup, Excellent Diary contributed lower than 80% within the first 9 months final yr.

Yatsen was the primary Chinese language beauty company to checklist within the U.S. after a $617 million initial public offering in November in New York.

Contact reporter Anniek Bao (yunxinbao@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

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