I wonder how this will fare!
YG Entertainment (YGE) has announced that they will be releasing a new cosmetic line for the Chinese market, featuring medium to high-priced products.
On August 7th, the Financial Supervisory Service confirmed YGE’s statement of its 50 billion KRW bond investment plan towards Coson, a cosmetics manufacturing and sales company. Due to this little investment, Coson’s stock-price elevated quickly on the same day.
Mizon‘s CEO, Lee Dong-gun, bought Coson back in October of last year, and put some efforts in transforming it into a cosmetics company. Lee’s prior experience includes being a researcher at Amore Pacific, a Korea-based company for beauty and skincare products.
The relationship between YGE and Mizon has been dated all the way back to 2007, when BIGBANG became the faces for Mizon’s cosmetic manufacturer Nei-on‘s BB BUD brand. It has been reported that YGE has been receiving help from Coson in regards to its grand step into the cosmetic industry.
A representative from YGE gave the following statement:
We discussed our cosmetic launch with many companies, but we decided that Coson can foster our brand.
As Coson has recently been working on a factory in Osan (Kyeonggi province) as well as securing their own research facility, they will be able to turn their attention to product development.
YGE will be targeting women in their 20′s, preparing to launch this cosmetic line as early as the beginning of next year. Their main goal is to look towards the Chinese market, which takes up a whopping 20% of South Korea’s cosmetic export.
How will YGE compete with other brands? By coming up with a refreshing new concept: they’ll be going into the boundaries of makeup for clubbing.
However, not all is bright for the ending of this story: many Korean stars have failed in pursuing cosmetics. One memorable experience is Kwon Sang-woo, who tried to launch a brand, Natural Tears, but, unfortunately, he pulled the plug on the Daegu store after 6 months. This shows that having prowress in the industry doesn’t equal success in cosmetics.
The same representative added:
The quality of Coson is guaranteed because the products are made by people from Amore Pacific. We will be participating in every level starting from product development stage, to launch a product that sets itself apart from other existing cosmetic companies.
SOURCE: YG Life
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