L’Oréal acquires K-beauty brand Dr. G amid fueled global demand
L’Oréal Groupe has signed an agreement to acquire Korean skin care company Gowoonsesang Cosmetics, a subsidiary of the Swiss retail group Migros. The acquisition will add Gowoonsesang’s premium brand Dr. G to L’Oreal’s portfolio and is expected to be finalized in the next few months after regulatory approvals.
L’Oréal says Dr. G’s appeal is grounded largely in the products’ scientifically developed formulas and affordability. The brand offers ingredient-led skin care products suitable for sensitive skin and is touted as one of South Korea’s top three mass market and dermocosmetic skin care brands.
“We believe that becoming part of L’Oréal will serve as a significant turning point in the global realization of our mission,” says Dr. Gun Young Ahn, dermatologist and founder of Gowoonsesang Cosmetics.
A market fusion
Alexis Perakis-Valat, global president of L’Oréal’s Consumer Products Division, says that L’Oréal has been interested in Dr. G for years. It is the second Korean beauty brand that L’Oréal adds to its portfolio, after the 2018 acquisition of 3CE. The move aligns with an uptick in Western demand for Korean skin care products — a flame which is largely fanned by social media.
Trends like TikTok and Instagram’s “glass skin” sheds light on Asian skin care practices and has garnered enough attention to warrant some warnings from dermatologic experts.
L’Oréal says Dr. G’s appeal is grounded largely in the products’ scientifically developed formulas and affordability.
According to Market Defense, a marketing consultancy based in the US, these online trends also drive awareness and traffic for K-beauty brands on Amazon. Searches with the hashtag #kbeautymakeup were up 85% year-over-year on TikTok. Major companies are tapping into this demand, leading to multiple partnerships and global expansions.
In its beauty trend predictions for the new year, consumer trend predictor Spate said K-beauty would continue to influence skin care and makeup trends. K-beauty has solidified its place in the cosmetics sector in recent years and according to predictions: a decline is unlikely.
