This Sell-side Due Diligence (Vendor DD) project evaluated the target company’s competitive position in the skincare market and outlined concrete strategies for sustainable growth and global expansion. Through comprehensive market analysis, core capability assessments, and long-term business planning, we identified avenues to maximize enterprise value.
1. Skincare Market Analysis and Emerging Trends
Domestic and Global Market Potential
The domestic skincare market is projected to grow at a CAGR of 3.2% from 2023 to 2028, while the global market is set to expand at a CAGR of 6% over the same period, reaching USD 233.1 billion. Key growth drivers include a post-pandemic rise in demand for functional, ingredient-focused products. This dynamic, combined with the expansion of domestic online platforms (e.g., Olive Young, Coupang) and increasing global interest in K-beauty, presents substantial opportunity.
Consumer and Channel Transformations
Within the domestic offline market, Olive Young’s experience-driven retail model is solidifying its position, fueling steady growth. Success in domestic offline channels has in turn catalyzed expansion into global e-commerce platforms and cross-border sales, underscoring the importance of diversifying go-to-market channels.
2. The Target Company’s Core Competitive Advantages
Efficient Operating Model and Strong Brand Equity
The target company consistently launches popular products centered on low-irritation, naturally sourced ingredients. Its above-average profit margins reflect exceptional operational efficiency and brand strength.
- Agile Product Development and Launch: A rapid, streamlined development process allows for swift response to market trends, minimizing losses from unsuccessful launches.
- Diversified Product Portfolio: By introducing new brands beyond its original flagship line, the company has reduced dependence on any single product.
- Multi-Channel Reach: Beyond domestic platforms like Olive Young and Coupang, the company has secured listings in U.S. offline channels like Costco, accelerating global market penetration.
3. Mid- to Long-Term Growth Strategies
1) Domestic Market Share Expansion
The company plans to further increase skincare sales share within Olive Young and strengthen its online presence via platforms like Coupang, ensuring a stable domestic revenue base.
2) Global Expansion
- North America and Europe: By directly operating on Amazon and forming partnerships with major distributors, the company is well-positioned for international growth.
- Re-Entry into Asia: The firm aims to rebuild brand equity in China through new partnerships and will launch initiatives to penetrate the Japanese market.
3) Enhancing Sustainable Growth Capabilities
- R&D Investment: By developing differentiated raw materials and expanding product lines, the company will deliver high-value offerings tailored to evolving consumer needs.
- Digitally Enabled Operations: Upgraded internal management systems will leverage data-driven insights to maximize operational efficiency.
The target company stands poised for sustainable growth through heightened global competitiveness, innovative product development, and diversified channel strategies.
- Balanced Global Sales Mix: Increasing international sales underscores the company’s global potential.
- Elevated Brand Equity: Consistent hit products and efficient marketing reinforce its leadership position in the industry.
This project sets a strategic foundation for the target company’s leap into a global “Holistic Beauty” brand, reflecting a pivotal milestone in its growth trajectory.
This Sell-side Due Diligence (Vendor DD) project evaluated the target company’s competitive position in the skincare market and outlined concrete strategies for sustainable growth and global expansion. Through comprehensive market analysis, core capability assessments, and long-term business planning, we identified avenues to maximize enterprise value.
1. Skincare Market Analysis and Emerging Trends
Domestic and Global Market Potential
The domestic skincare market is projected to grow at a CAGR of 3.2% from 2023 to 2028, while the global market is set to expand at a CAGR of 6% over the same period, reaching USD 233.1 billion. Key growth drivers include a post-pandemic rise in demand for functional, ingredient-focused products. This dynamic, combined with the expansion of domestic online platforms (e.g., Olive Young, Coupang) and increasing global interest in K-beauty, presents substantial opportunity.
Consumer and Channel Transformations
Within the domestic offline market, Olive Young’s experience-driven retail model is solidifying its position, fueling steady growth. Success in domestic offline channels has in turn catalyzed expansion into global e-commerce platforms and cross-border sales, underscoring the importance of diversifying go-to-market channels.
2. The Target Company’s Core Competitive Advantages
Efficient Operating Model and Strong Brand Equity
The target company consistently launches popular products centered on low-irritation, naturally sourced ingredients. Its above-average profit margins reflect exceptional operational efficiency and brand strength.
3. Mid- to Long-Term Growth Strategies
1) Domestic Market Share Expansion
The company plans to further increase skincare sales share within Olive Young and strengthen its online presence via platforms like Coupang, ensuring a stable domestic revenue base.
2) Global Expansion
3) Enhancing Sustainable Growth Capabilities
The target company stands poised for sustainable growth through heightened global competitiveness, innovative product development, and diversified channel strategies.
This project sets a strategic foundation for the target company’s leap into a global “Holistic Beauty” brand, reflecting a pivotal milestone in its growth trajectory.