American Cosmetic Brand “The Creme Shop” Is Acquired By LG!

Recently, LG Life announced to acquire the American cosmetics brand The Crème Shop for US$120 million (approximately RMB 777 million), holding a 65% stake. The acquisition agreement also includes the right to purchase the remaining 35% of The Créme Shop after five years. This is LG Health’s largest investment and acquisition in nearly two years, following the 192.3 billion won acquisition of Physio Gel’s Asian and North American business rights in 2020.

It is reported that The Crème Shop was founded by two Korean-Americans, Theresa and Lawrence Kim. It is a popular affordable cosmetic brand for the “MZ generation” in the US, especially young millennials. , Disney and other cartoon images are jointly designed, covering basic skin care products, makeup accessories, etc. The price is less than 100 yuan.

For LG, The Créme Shop brand represents the American “MZ generation”‘s attention to K-Beauty, a brand that fits the local aesthetic and has a huge fan base despite the challenges of the coronavirus lockdown and global supply The chain crisis, but The Crème Shop has maintained a performance growth of more than 30% in the past three years. In addition, in terms of channels, the brand adheres to the multi-channel distribution model and maintains in-depth cooperation with well-known retail channels such as Ulta, CVS, Macy’s, and Urban Outfitters.

How to become a beauty brand popular with young people? I believe this is the direction that many brands are thinking about.

As far as we are concerned, in terms of products, the quality and price must be within a reasonable range; in terms of product style, the color matching must conform to the image of young people. Because they are the main force of consumption.

This is an eternal question with no absolute answer. I believe we will also be one of the beauty brands that young people like.