Clio secured a new growth engine in the overseas cosmetics market by acquiring a local vendor company in Japan.
On the 19th, Clio announced that it acquired 100% of the shares of two companies, the Japanese cosmetics retailer ‘Duwon’ and the cosmetics import agency ‘Kiwami,’ for 930 million yen (approximately 8.3 billion KRW).
Duwon has been a key vendor supplying Clio’s color cosmetics brands to the Japanese market since 2013, starting with the Peripera brand. It is a strategic partner that contributed to Clio’s rapid establishment and growth in Japan. Duwon possesses strong sales know-how in offline wholesale and retail distribution channels, making it a crucial foothold for Clio’s resurgence in the Japanese market.
Clio plans to formally establish Clio Japan and improve the efficiency of its business structure in Japan to not only expand sales but also enhance profitability in the mid to long term. Based on its differentiated competitiveness as the number one color cosmetics brand in domestic H&B store channels, Clio will strengthen VMD (Visual Merchandising) in Japan’s offline channels. The company intends to focus on expanding its presence through timely new product launches and marketing campaigns that reflect local consumer demand.
Yoon Seong-hoon, Vice President of Clio, said, "Japan ranks third in the global cosmetics market size and is a strategic hub for Asian beauty as well as an important market to cultivate global beauty standards."
He added, "Since early this year, Clio has been preparing to establish a Japanese corporation, closely communicating with local partners and aligning strategies across distribution channels to accelerate growth."
In 2023, Clio recorded its highest-ever sales of 330.6 billion KRW. By streamlining distribution channels and expanding the proportion of basic sales, the company continued to improve profitability, achieving an operating profit of 33.8 billion KRW, an 89% increase.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
