YG Entertainment Launches “Clubbing” Cosmetics for Women in their 20’s

[머니투데이 김건우 기자] YG Entertainment (YGE) will be launching a cosmetic line of medium and high priced cosmetics targeting the Chinese market.

According to the Financial Supervisory Service on August 7, YGE confirmed its KRW 50 billion convertible bond investment plan in a cosmetics manufacturing and sales company Coson. On the same day, the stock-price fluctuation limit of Coson jumped when the trade opened.

Coson, since bought out by a cosmetic brand Mizon’s CEO Lee Dong-gun last October, tried to transform itself into a cosmetic company. CEO Lee was a researcher at Amore Pacific in the past.

The start of YGE and Mizon’s relationship goes back to 2007 when YG’s artist BIGBANG became a model for BB BUD, which was a brand made by Mizon’s cosmetic manufacturer Nei-on. It is said that the entertainment agency has been receiving advice from Coson in preparation to launch a cosmetic business.

Related personnel from YGE explained, “We discussed our cosmetic launch with many companies, but we decided that Coson can foster our brand.” Coson is currently building a factory in Osan, Kyeonggi province, and because the company secured its own research center, it will be able to focus on product development.

YGE will launch the medium and high priced cosmetic line targeted at women in their 20’s as early as the beginning of next year. The agency’s tactic is to target the Chinese market, which accounts for 20% of South Korea’s cosmetic export.

YGE will secure competitiveness by differentiating themselves from other existing cosmetic brands. For instance, they are materializing the idea by coming up with a new and fresh concept, like creating a cosmetic line that is suited for going clubbing.

The cosmetic industry shows concern as many Korean Wave stars including Kwon Sang-woo failed in this particular field. In December 2009, Kwon Sang-woo launched a brand called ‘Natural Tears’, but he had to pullout the store in Daegu after 6 months. Consumers who base their purchases on the quality of the product would not buy cosmetics simply because a Korean Wave star launched it.

The related personnel from YGE further explained, “The quality of Coson is guaranteed because the products are made by people from Amore Pacific. We will be participating in every level starting from product development stage, to launch a product that sets itself apart from other existing cosmetic companies.”

Source: YG-Life