THE WHAT? Beiersdorf’s venture fund has acquired a ‘significant’ stake in Seoul-based LYCL, to become the K-beauty brand’s second largest shareholder.
THE DETAILS With its two beauty platforms, LYCL already has access to more than 1.2 million consumers. Based on their insights, the company has implemented a disruptive data-driven innovation process to develop and market skin care products under the unpa.Cosmetics brand.
“We see great potential in LYCL’s disruptive business model and its high degree of digital consumer connection,” Dessi Temperley, Chief Financial Officer of Beiersdorf said. “The digital innovation capabilities and strong consumer centricity of LYCL have resulted in triple-digit growth rates over recent years, and we believe the business model is geographically scalable.”
Endrik Hasemann, General Manager Beiersdorf South Korea, sees the investment into LYCL also as a proof of concept, “The decision to launch the NIVEA accelerator in Korea as part of our global venturing activities was made based on the belief that the Korean ecosystem is a frontrunner regarding beauty and tech trends. We strongly believe in the future success of LYCL, and we are looking forward to driving excellent consumer experiences and skin care innovations to the next level together.”
THE WHY? The investment is a natural fit with the manufacturer of Nivea’s C.A.R.E.+ strategy to win in skin care and drive consumer centricity through digitalization as well as further strengthening Beiersdorf’s footprint in Korea and Asia.