On January 5, USHOPAL, a leading Chinese luxury beauty and retail group, announced that it has invested an undisclosed amount in a luxury fragrance brand.
This is U-Shopple’s first equity investment in a domestic brand. The company has previously acquired British skin care brand Argentum and French fragrance brand Juliette Has a Gun.
Guo Lu, founder and CEO of USHOPAL, said the Documents solidified his belief.China has created brands that can enter the world stage. ”
“Documents is one of the few Chinese brands that can compete with global high-end brands in these aspects.”Mr. Guo said.
special brand
Over the years, C-beauty brands like Perfect Diary, Yue Sai, and Florasis have made several attempts, but none have come close to becoming a global powerhouse.
According to Allie Rooke, founder of Clean Beauty Asia and a leading expert on the Chinese market, Documents “Different from others”And it appears it has what it takes to become a global force.
“When L’Oréal invested in Documents, everyone thought the brand had the potential to go global. And compared to many C-beauty brands in the past, Documents There’s something different about the aesthetic, it’s really a brand-driven brand.”Luke said.
“They’re very disciplined in how they package everything and the aesthetics of their stores. They’ve opened 10 stores in two years, so 10 are independent stores. The average basket size is about 200. USD, which is huge for a Chinese brand. It also has a very high repurchase rate and conversion rate.”
Since launching the brand in 2021, the brand has expanded from fragrance to body care and home care. We have also expanded into the jewelry and fashion fields.
“We’re building this whole lifestyle brand and becoming more than just a fragrance.” Luke said.
The right partnership?
In the company’s press statement regarding the acquisition, Guo said: “We are actively looking for great Chinese high-end beauty brands.”
Luke believes the company sees this brand as an opportunity to take the C-Beauty brand to the rest of the world.
She added that she wouldn’t be surprised if USHOPAL moves to acquire the brand soon.
It remains to be seen whether USHOPAL is the right partner to support Documents on this global journey.
The company has a track record of working with international brands such as Chantecaille, RMK and Aveeno.
However, Luke pointed out that while the company may have the network, it doesn’t necessarily have the right expertise.
“An acquisition from L’Oréal would be much better for Doc.”