On December 23, L’Oréal Groupe announced its plans to acquire Gowoonsesang Cosmetics Co., Ltd., a subsidiary of the Swiss retail giant Migros. This acquisition prominently features the renowned Korean skincare label Dr.G, which was established in 2003 by dermatologist Dr. Gun Young Ahn and is headquartered in Seoul.
Strategic Move into K-Beauty
Once the deal is finalized, Dr.G will become part of L’Oréal Groupe’s Consumer Products Division (CPD). L’Oréal, a leader in the cosmetics industry, sees this move as a way to tap into the soaring global interest in K-Beauty. Their goal is to develop skincare products that combine scientific formulation with accessibility for consumers everywhere.
Dr.G has gained significant traction as a skincare brand in South Korea and is actively expanding throughout Asia, with strong prospects for global presence. The brand is recognized for its ingredient-focused approach, with standout offerings like the R.E.D Blemish Clear Soothing Cream. Dr.G employs a robust sales strategy, reaching consumers through both major online channels and physical stores. As a result, it consistently ranks among the top three players in the mass market and dermocosmetic segments.
Executive Insights
Alexis Perakis-Valat, the Global President of L’Oréal’s Consumer Products Division, shared his enthusiasm about bringing Dr.G into the fold. He remarked that the brand’s dermatologist-backed and effective products complement L’Oréal’s existing skincare offerings perfectly. For years, L’Oréal has monitored Dr.G’s success, and now, they are poised to support its growth in South Korea and beyond, all while championing Korean skincare principles on a global scale.
Founder Dr. Gun Young Ahn expressed his excitement about the transition to L’Oréal, calling it a significant milestone in their quest to expand their mission internationally.
Future Prospects
Samuel du Retail, President of L’Oréal Korea, emphasized the importance of this acquisition in the context of their previous success with 3CE. He noted that Dr.G, founded by a Korean dermatologist, is rooted in the belief that everyone deserves healthy skin, further strengthening L’Oréal’s ties to the Korean beauty market and expanding K-Beauty’s influence worldwide.
The acquisition process is expected to conclude in the upcoming months, pending the usual regulatory approvals and other standard conditions.
Last year, Migros outlined its strategy to streamline operations and invested over eight billion Swiss francs to enhance its supermarket offerings, leading to decisions to divest various associated businesses, including the Mibelle Group, known for its cosmetics and household products.
Peter Müller, the CEO of the Mibelle Group, expressed optimism about finding a suitable buyer, believing that new ownership could drive ongoing growth. Migros plans to disclose the identity of Mibelle’s new owner in the first quarter of 2025.
Source: Premiumbeautynews.com