MILAN, July 8 (Class Editori) - A decisive move in the Far East by Intercos, the main Italian cosmetics group, with a turnover worth 752 million in 2019, which was founded in 1972 by Dario Ferrari, the chairman. The group from Agrate Brianza (Milan) has acquired 50% of the JV Shinsagae Intercos Korea Inc. from Shinsegae International, by winning 100% control of the company.
In line with the strategy of further investing in Korea, Intercos will focus on this country, in which has been active since 2015 thanks to the JV with Shinsegae, as a strategic Asian hub, with the aim of better exploiting the important synergies with the rest of the group. Intercos Korea will become the R&D reference center in Asia and the excellence center for Foundations, Hybrids and Skincare at a global level.
"Today we start a new phase in Korea, where Intercos, as independent player, will be able to fully exploit the important synergies with the rest of the group and further invest in this market, which represents a strategic hub for Asia", as Ferrari has explained, "we are very happy to continue our collaboration with such a prestigious player as Shinsegae, and we believe that this choice will allow both companies to focus on the respective core businesses, in order to seize all the market's opportunities."
The Shinsagae Intercos Korea joint venture, founded in 2015, allowed Intercos to enter the Korean market and place itself successfully, by fostering a rapid growth of the cosmetics production activities at a local level. For Shinsagae, the partnership played a strategic role in reinforcing its positioning and the innovative capacity of its own cosmetics brands. With the acquisition by Intercos of 100% of the JV, both companies will focus on their core businesses in order to develop the potential of their markets of reference.
"The partnership with Intercos has been a significant opportunity to increase our cosmetics business. In the future, Shinsegae would like to focus on the further development of its brands and invest in new brands", as Gilhan Lee - CEO of Shinseage International Inc.- has stated.
In 2019, the financial year was closed with a profit amounting at more than 43 million and an increase by 3% in turnover; improvements in the three giant Eastern markets have been recorded, where the group works on different distribution channels, namely South Korea, China and India.
As for both the colour cosmetics and skincare, which are the two main areas of Intercos core business, Asia represents the area with the highest growth worldwide.
In particular, in the skincare segment, Asia is the more relevant geographic area concerning the contributionto the total market value, with an average annual growth by about 6% in the five-year period 2013-2018, with a slight increase up to 7% until 2023.
In order to benefit from this growing trend, Ferrari has been developing for a long time the strategy of entering the big Indian and Chinese markets, which are very promising but protected by strong import duties for western people, by producing and distributing from one of the countries with particular agreements, which is South Korea indeed.
"Our idea is to let our products arrive from South Korea and China, where Intercos owns factories, in order to be competitive in India on prices", as Ferrari had explained to MF International. "We are working also on direct investments, we will understand soon if choosing a joint venture, an acquisition or, as more likely, building our production base by starting from scratch", as Ferrari had revealed.
(Source:Class Editori)
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