South Korea’s cosmetics maker CLIO, which seeks to get listed on the Seoul bourse next month, will target China’s growing color makeup market, the firm said on Oct. 24.
“Cosmetics are now regarded as a tool to express ‘myself’ departing from its traditional role of protecting skin. The trend is remarkably strong among Chinese youngsters,” CLIO’s chief executive Han Hyun-ok said during a press conference in Seoul.
On the back of K-beauty boom, CLIO has been expanding its foothold in several countries including the US, Japan, Australia, Singapore and other Northeast Asian markets.
By raising funds from its planned initial public offering on the KOSDAQ market in November, the company will increase the number of outlets in China to 30.
“Chinese young consumers are enthusiastic about color cosmetics but there is no company that specializes in this sector in China,” said Yoon Sung-hoon, CLIO’s managing director.
The company’s flagship products are focused on eye and lip makeup segment including eyeliner, eyeshadow and lipstick.
The Chinese skincare and cosmetics market is forecast to grow at an average annual rate of 12.8 percent from 2016 to 2019, significantly outpacing the global average of 6 percent, according to the Hong Kong Trade Development Council.
As a part of its plan to expand overseas, CLIO also secured US$50 million investment from the world’s largest luxury brand group LVMH Moet Hennessy Louis Vuitton in July.
CLIO which has grown at a compound annual growth rate of 78.5 percent in sales during the period 2013-2015, expects that its share price would be 36,400 won (US$32.16) to 41,000 won, giving it a market capitalization of 700 billion won.
It will gauge demand for the share sale on Oct. 25-26.
By Park Han-na (firstname.lastname@example.org