South Korean cosmetics maker It’s Skin says it will merge with its parent, Hanbul Cosmetics, in a bid to strengthen its brand presence globally, especially in China.
It’s Skin will absorb Hanbul’s research and development centre as well as production units in Korea and China, including a plant being built in Huzhou.
After the merger, the companies will change the brand name to It’s Hanbul. Hanbul was the largest shareholder of It’s Skin, holding a 50.73 per cent stake.
It’s Skin CEO Yoo Geun-Jik says It’s Hanbul will transform into a comprehensive cosmetics company covering all aspects of R&D, manufacturing, marketing and sales.
He says the company will intensify its focus on China, one of the world’s largest markets for beauty products. Its operating profit and stock price plunged last year, hit by geopolitical tensions between South Korea and China.
It’s Skin reported this month that its operating profit last year dropped 34.4 per cent year-on-year to 73.3 billion won (US$64.1 million), while its sales fell 13.6 per cent to 267.3 billion won.
To offset the losses this year, the company plans to produce and market in China to match rapid changes in consumer tastes there.