FRANCE. The L’Oréal group has signed an agreement to acquire the Chinese make-up and skincare brand Yue-Sai, further strengthening its position in the Chinese market. The news comes hot on the heels of L’Oréal’s acquisition of the mass-market Chinese skincare brand Mininurse (The Moodie Report.com, 16 December 2003).
Founded in 1992 by Yue-Sai Kan – a household name in China – Yue-Sai, which has been owned by Coty since 1996, achieved sales approaching €38 million in 2003. The brand enjoys a strong market position, and is sold in 800 department stores located in 240 of China’s largest cities.
“After Mininurse at the end of last year, this new acquisition confirms our determination to step up the pace of our growth on this strategic market,” commented L’Oréal chairman and chief executive Lindsay Owen-Jones.
L’Oréal China general manager Paolo Gasparrini added: “Yue-Sai, a symbolic brand for the Chinese woman of today, will naturally slot into L’Oréal’s portfolio”¦ The brand strengthens the group’s leadership in make-up and facial skincare. The group’s technological input will enable Yue-Sai to win new market share.”
The acquisition also includes a manufacturing plant in Shanghai, which will increase the group’s production capacities.
The completion of the deal remains subject to a certain number of conditions in China, and primarily to the agreement of the Chinese authorities.
L’Oréal has been operating on the Chinese market since 1997, achieving sales of €159 million in 2003, representing like-for-like growth of 69.3%.