South Korea's LG H&H Co. announced on Tuesday that it has signed an agreement to acquire a 75% stake in Vivawave, which owns the domestic premium makeup brand "Hince," for 42.5 billion won ($31.5 million).
Launched in 2019, Hince is a makeup brand with a mood concept that highlights natural colors. It has cultivated a strong following among young consumers born between the early 1980s and the early 2000s who value their unique styles. Hince has 212,000 followers on Instagram in South Korea and 83,000 followers in Japan.
The company's sales revenue, as of last year, was 21.8 billion won ($16.2 million), with a 50% share from both domestic and international markets. Most of the international sales come from Japan.
LG H&H plans to strengthen its makeup portfolio with the latest acquisition and solidify its customer base among young consumers. It also aims to accelerate its market presence, particularly in Japan, the world's third-largest beauty market, leveraging Hince's strong brand recognition.
According to global market research firm Euromonitor, the global makeup market is expected to grow at an annual rate of 8%, reaching $95 billion by 2027, up from $64.5 billion in 2020.