South Korean cosmetics manufacturer LG Household & Health Care Co. will acquire hince, a Korean color make-up brand popular in Japan, in a move to bolster its performance in the neighboring country.

LG Household & Health Care announced Tuesday that it signed an agreement to acquire a 75 percent stake in Viva Wave, the owner of hince, for 42.5 billion won ($32 million).

Launched in 2019, the color cosmetics brand emphasizes a “mood” concept, focusing on natural color palettes.

It has garnered a dedicated following, particularly among young people who seek to express their unique styles. Products like the Second Skin Foundation and True Dimension Radiance Balm have gained popularity.

The brand boasts an impressive social media presence with 212,000 followers in Korea and 83,000 in Japan on Instagram.

This has contributed to its growth, with its products being sold through various channels, including its online shop, as well as CJ Olive Young and H&B stores.

As of last year, hince reported about 21.8 billion won in revenue, with an even split between domestic and international sales.

The majority of its overseas sales come from Japan. In terms of operating losses, it narrowed by about 40 percent compared to the previous year, with 1.6 billion won in losses based on last year’s figures.

With this acquisition, LG Household & Health Care aims to strengthen its portfolio of color cosmetics and expand its customer base among young consumers.

The company plans to leverage the product planning capabilities of hince and incorporate them into its own color cosmetics brand development.

It also seeks to capture young customers in Korea and overseas, with the expectation that when these customers have greater purchasing power, LG Household & Health Care can secure business opportunities in the premium skincare and other high-value cosmetics segments.

Japan, the world’s third-largest beauty market, is known for its strong domestic beauty brands, making it a challenging market for foreign brands to penetrate.

Korean cosmetics, such as lip balms and tint products, have recently gained immense popularity in Asia, particularly in Japan.

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]