Traditional Clothing Companies Across The Border Cosmetics Industry Jointly Create A New Breakthrough

China

There are a large number of physical stores resources, Korean cosmetics enterprises have a lot of consumers' favorite cosmetics, and the cooperation between them is complementary.

The consumer market has a bright future and active layout of industrial capital. China's cosmetics industry is ushering in the most competitive market environment.

This is mainly because, in addition to Shanghai Jahwa and other traditional cosmetics listed companies, as well as Qingdao Jin Wang and other comprehensive pformation of the cosmetics industry listed companies, Chinese cosmetics

It is attracting more and more listed companies focusing on clothing, medicine and other fields, and the deep involvement of industrial capital.

In the afternoon of September 7th, the Too Cool for School company of Korea cosmetics company (hereinafter referred to as "TCFS") announced that in August 27th, it had formally signed a contract with Hasen, a Chinese clothing company, and set up a new joint venture, Shanghai Hyun ho International Trade Co., Ltd. to fully take over TCFS's operation in China's online and offline markets.

It is understood that the newly established joint venture Shanghai Hyun ho registered capital of 10 million U.S. dollars, of which TCFS invested 6 million U.S. dollars in cash, accounting for 60% of shares, Hasen shares accounted for 40%.

Founded in 2010, TCFS is a famous Korean cosmetics brand.

In just six years, TCFS has been sold in 11 countries and regions around the world, and has an independent brand store in 6 countries including Korea, China, Thailand, Indonesia, France and Japan.

Among them, there are 36 brand stores in Korea, and 52 other brand stores in 5 other countries.

In 2015, TCFS achieved sales of 34 billion 990 million won, about 206 million yuan, and operating profit of 4 billion 600 million won, or about 28 million 80 thousand yuan.

According to Hasen shares issued in the first half of 2016 earnings data show that in the first half of this year, Hasen shares operating income of 866 million yuan, operating profit of 53 million 430 thousand yuan.

This is certainly not the only case in which Chinese garment enterprises cross border and multinational enter the cosmetics industry.

Since the end of last year, many Chinese garment enterprises have entered the cosmetics market through mergers and acquisitions or joint ventures with Korean cosmetics companies.

For example, in December 15, 2015, the Chinese women's wear brand shares announced that it would spend 330 million yuan to acquire 10% stake in L&P Cosmetic, a Korean cosmetics company.

L&P is the fastest growing well-known cosmetic company in South Korea in recent years, and owns many cosmetic brands including Mediheal (Mei Di Hui, China, also known as "Rose"), T.P.O, Mediental, Labocare and so on.

In the 1-9 months of 2015, L&P's total revenue reached 688 million 430 thousand yuan, and its net profit was 193 million 600 thousand yuan.

In addition, not long ago, another famous clothing company in China, Semir group, announced the launch of cross-border business cooperation with It S SKIN, a well-known Korean cosmetics manufacturer.

In July 21st, Semir group formally signed a cooperation agreement with It 'S SKIN, CO sponsored the establishment of a new company called Semir It' S SKIN limited, relying on 7500 terminal outlets of Semir group to sell related cosmetics produced in Han fo Chinese factory.

For Chinese clothing enterprises, though they are all over the country,

The Internet, however, is not easy to cross border cosmetics without product development capability and endorsement without brand. This is also the main reason for its cooperation with Korean cosmetics companies with a wide range of consumer fans.

In fact, in February of this year, Lv Yixiong, founder and CEO of the US company, issued a document in WeChat's circle of friends, saying that the men's brand or my company will start business cooperation with a well-known local men's wear brand and enter the 4000 stores next to the whole country for sale.

Although there is no latest progress in this matter, the physical stores resources of garment enterprises have become another potential channel in the eyes of cosmetics companies.