美容美髮Business News

Deciem Inc. Canadian-based, multi-brand company has been sold a majority stake to Estee Lauder for $1 billion. Bringing Estee Lauder’s total investment in Deciem Beauty Group Inc up from 29% to 76%.Founded in 2013 with a goal to raise transparency in the beauty industry, the company’s portfolio includes six brands; The Ordinary is its largest brand followed by NIOD. Estee Lauder was particularly interested in brands like The Ordinary and sited the company’s “hero products”, desirable innovation and digital as well as a consumer-first approach as instrumental to its success.

The Ordinary retails from $3.95 to $28.90 with a vast majority of its retail products costing under $10. In addition to it’s budget friendly pricing, one of The Ordinary’s biggest marketing drivers is word of mouth. The Ordinary’s products have high levels of trusted ingredients and clear percentages which they highlight through simple and scientific packaging design. This packaging is designed to appeal to the new consumer called “skintellectuals” – consumers who know exactly what to put on their skin, what formulas do and in which products to find these ingredients.  The brand’s top-selling product is the Niacinamide 10% + Zinc 1%, a skin blemish serum, for $5.90. According to the company, one product sells every second globally.

Becoming a key part of the Estee Lauder family of brands will open a new world to The Ordinary and its parent company Deciem. Importantly Estee Lauder’s resources will allow The Ordinary access to Lauder’s impressive resources, especially a global distribution and supply chain. Deciem’s net sales and earnings are expected to have a negligible impact on Estée Lauder’s fiscal year 2021 consolidated results, according to the release. The acquisition is expected to close in the quarter ending June 30. As The Ordinary continues to scale, Deciem hopes to return to the heart of the company’s mission as an incubator of innovative new beauty brands.

 

Source：https://www.forbes.com/?sh=3d99dbdb2254