Estée Lauder Buys Stake in Korean Company
In line with the American beauty conglomerate’s announcement in 2014 of plans to embrace South Korea’s trends and technology, Estée Lauder has bought a stake in Korean company Have & Be Co. Ltd, owner of high-growth skincare brand Dr. Jart+.
In order to compete with Korea in the global skincare market, Estée Lauder CEO Fabrizio Freda suggested last year that tapping Korean innovations and exporting them around the world was a necessary step in reaffirming the company’s ranking and reversing declining sales.
The deal, which will complete by December 2015, is the company’s next step in aligning with the innovation, hype and exotic allure of Korean beauty. Estée Lauder’s Clinique was the first brand to bring Korean formulas to Western markets in the form of BB and CC creams, and earlier this year South Korean model and it girl Irene Kim was signed as Estée Lauder’s global beauty contributor.
Do The Right Thing, another skincare brand in the Korean’s company’s portfolio, is also of interest to Estée Lauder for its high-performance products and standout urban contemporary packaging. Bringing the brand to Western shores, and adapting its technology for men’s skincare brands could also impact the male grooming market, which, in comparison to its female counterpart, has shown sluggish development.
For more on Korean skincare innovations, as well as its cutesy packaging inspiration and the influencers helping it spread, see The Korean Beauty Boom.