Shinsegae to acquire cosmetics brand Amuse for $51.6 million

Industry

Shinsegae to acquire cosmetics brand Amuse for $51.6 million

Published: 02 Aug. 2024, 18:09 Updated: 02 Aug. 2024, 18:14

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

Shinsegae International, a fashion arm of the retail giant Shinsegae, will acquire a 100 percent stake in popular cosmetics brand Amuse for 71.3 billion won ($51.6 million). [SHINSEGAE INTERTANIONAL]

Shinsegae International, a fashion arm of Korean retail giant Shinsegae, will acquire a 100 percent stake in the Naver-owned cosmetic brand Amuse for 71.3 billion won ($51.6 million).

The K-beauty brand is best known for using girl group IVE’s Jang Won-young as its brand ambassador and frequently appears on Olive Young's cosmetics stand.

The cosmetics brand is currently owned by Snow, a subsidiary of Naver, which holds a 77.6 percent stake, followed by 22.4 percent owned by other shareholders.

Shinsegae International explained on Friday that the acquisition of Amuse will help the company “diversify its cosmetics business portfolio” that primarily focuses on “luxury and premium markets,” while also appealing more to the global market.

Shinsegae International's cosmetics lineup currently includes Diptyque, Byredo and Santa Maria Novella, most of which are premium brands.

Amuse has been gaining popularity among younger demographics in and outside of Korea. The brand’s official Instagram account surpassed 300,000 followers. Amuse also hosted a pop-up store in Shibuya, Tokyo last year.

Shinsegae International will give Amuse autonomy in its management to sustain its brand identity and aims to grow the brand by diversifying its retail channels.

“We will also expand [Amuse] to the Southeast Asian, Middle East and European markets and solidify its status as a leader in K-beauty,” the company said Friday.

Shinsegae International, a fashion arm of the retail giant Shinsegae, will acquire a 100 percent stake in popular cosmetics brand Amuse for 7.13 billion won ($51.6 million). [SHINSEGAE INTERTANIONAL]

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]