Preemptive Investment in Small and Medium Beauty Brands
Binau Gains Global Competitiveness with Strength in Skincare and Color Cosmetics
"We Will Nurture Binau as the Next APR"
On April 29, CJ OnStyle announced that it had invested 3 billion KRW in Binau, a K-beauty brand well known for its skincare line Numbersin and makeup brand Pui. The company stated that its strategy is to foster Binau into a leading K-beauty company by leveraging its expertise in nurturing small and medium-sized beauty brands and its track record of direct brand investments.
CJ OnStyle recently disclosed that it had acquired existing shares of Binau for 3 billion KRW. The company valued Binau at over 900 billion KRW. CJ OnStyle explained that it focused on Binau's planning capabilities, which enabled both its basic and color cosmetics brands to scale, as well as its competitiveness in global expansion.
These are new products from Numbersin, a skincare brand, and Pui, a makeup brand, both invested in by CJ OnStyle. (Photo by CJ OnStyle)
Founded in 2018, Binau surpassed 100 billion KRW in sales within just five years, led by its skincare brand Numbersin and makeup brand Pui. Last year, Binau recorded sales of 266.4 billion KRW, more than doubling from the previous year. Operating profit soared to 75 billion KRW, a 3.1-fold increase year-on-year, and the operating margin reached 28.2%, demonstrating strong profitability.
Binau has expanded into major global markets, including the United States, Japan, and Taiwan, where it has also gained significant popularity. This year, the company aims for sales of over 450 billion KRW and plans to increase the proportion of overseas sales?which currently account for about one-third of total sales?to more than half. In September last year, Binau selected Samsung Securities as its IPO lead manager and is preparing for a listing next year.
Going forward, CJ OnStyle plans to support the global expansion of K-beauty distribution channels. Previously, in September last year, CJ OnStyle partnered with Amazon Global Selling Korea to support the successful entry of its beauty brands into Amazon, providing comprehensive assistance in sales and marketing. CJ OnStyle also plans to serve as the exclusive launch channel for new Binau products through joint planning and development.
The decision to invest in Binau was also influenced by CJ OnStyle's successful investment in the beauty tech company APR. As part of its efforts to nurture small and medium-sized beauty brands, CJ OnStyle invested 2 billion KRW in APR, the operator of the home beauty device brand Medicube, in June 2023. That same year, Medicube achieved sales growth of over 470% exclusively on CJ OnStyle, becoming the top home beauty device brand. At the beginning of last year, APR went public on the KOSPI market, becoming the first KOSPI-listed company of the year and successfully entering the stock market.
A CJ OnStyle representative stated, "Binau is drawing attention as the next trillion-won K-beauty contender following APR. Through support such as joint product planning and expanding our mobile live commerce channel, we will help nurture Binau into the next APR in both domestic and international markets."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
