Too cool for school sets up JV in China

Published : Sept 7, 2016 - 10:58 Updated : Sept 7, 2016 - 17:10

[THE INVESTOR] South Korean cosmetics firm Too cool for school has signed an agreement with Chinese fashion enterprise Harson to establish a joint venture on Aug. 26, according to news reports on Sept. 7.

The 6-year old beauty brand has invested US$6 million and owns 60 percent stake in the JV named Shanghai too cool Cosmetics, which will distribute and sell the South Korean cosmetics in China. The JV will last 10 years with neither party allowed to sell its stake, and Harson will not be able to enter the cosmetics business on its own.

The cosmetics company posted 4.6 billion won (US$4.21 million) operating profit and 35 billion won sales in 2015, and by promoting unique designs, has expanded to six countries including China, Thailand and Indonesia.

Harson is a public company listed on Shanghai Stock Exchange with annual revenue of around 300 to 400 billion won over the past few years.

By Hwang You-mee (glamazon@heraldcorp.com)