L'Oreal accelerates affordability; Nike studies Adidas' recovery plan; Luckin Coffee opens five stores in succession in Hong Kong | Brand Weekly Report
Organized by He Zhexin
Big News
L'Oreal Acquires Korean Skincare Brand Dr G for Approximately $100, Accelerating Its Affordable Product Line
In response to the sluggish Chinese market, L'Oreal hopes to continue launching more mass-market brands, and this thinking is also reflected in its acquisition strategy.
Last week, L'Oreal announced the purchase of Gowoonsesang Cosmetics from Swiss retailer Migros, which includes the Korean skincare brand Dr.G. The amount of the transaction was not disclosed.
Dr.G was founded by Korean dermatologist Ahn Gun Yong. The products provide "clinical-grade" solutions for problems including dryness, dullness, rosacea, sun damage, and sensitive skin. The product prices are mostly between $15 and $30. Currently, Dr.G has not entered the mainland market.
L'Oreal said in a statement that Dr.G will meet the growing demand for K-beauty and effective and affordable skincare products, and added that the brand's business in the Pan-Asian region is growing and has global growth potential.
L'Oreal's previous acquisition dates back to 2023, when the French cosmetics giant spent $2.5 billion to acquire Aesop from Brazilian cosmetics group Natura Co, setting the highest record for an acquisition in the company's history.
The North Asia region, including China, has experienced a decline for two consecutive quarters, with a 6.5% drop in the third quarter. L'Oreal Group CEO Nicolas Hieronimus described L'Oreal's performance in the Chinese market as "unexpectedly turbulent" in a media interview.
"There are 400 million Chinese people who can afford our products," said Hieronimus. "We have only reached 100 million people. Next, L'Oreal must penetrate into third- and fourth-tier cities through both online and offline methods, and we have made a plan for this."
He also mentioned that brands such as SkinCeuticals, YSL Beauty, Prada Beauty, and Cerave have performed well in China in the past period. Excluding L'Oreal's performance in the domestic Chinese market and the Asian travel retail market, the company's sales growth so far would exceed 8%.
Learning from Adidas, Nike's New Boss Formulates a Recovery Plan
Nike's strategy for emerging from the pain period seems so familiar.
Last week, the world's largest sneaker seller Nike announced quarterly sales of $12.4 billion as of November, an 8% decrease compared to the same period last year. However, this performance is still better than the 9% decline expected by analysts.
It is worth noting that this is the debut conference call of Nike's new CEO, Elloit Hill. The veteran of Nike said that the plan currently formulated for recovery may continue to affect short-term performance, but it is beneficial for the company in the long term. Hill's recovery plan includes:
1. Return to the sports field and increase the number of professional products.
2. Reduce reliance on trendy shoes, especially the three product lines of Air Force 1, Jordan 1, and Dunks;
3. Reduce inventory, a process that is estimated to take several quarters, reduce discount magnitude, and increase the proportion of full-price sales;
4. Rebalance direct sales and distribution, and adopt localized research and development and sales in various regions;
5. Reattach importance to brand marketing and reduce the expenditure on performance marketing.
During the Paris Olympics, many people were impressed by Nike's new advertising slogan, which is also part of this brand's return to the sports field. This year, Nike recalled many former senior executives who had left the company due to the company's aggressive strategic shift in the past four years.
It is worth noting that another sports giant, Adidas, has implemented almost the same policy in the past two years. The only difference is that Adidas' retreat in the trendy shoe market is not voluntary, but due to the failed cooperation with YE.
Not long ago at the FN Footwear Awards, known as the "Oscars of Footwear", Adidas global executive Bjørn Gulde was awarded the Person of the Year. When receiving the award, this Adidas hero teased Nike, the old rival: They were here last year, but they are not this year.
Marketing Matters
Nike Announces Jackson Wang as a Global Partner of Jordan Brand and Nike
Nike's endorser family welcomes a new face. Nike recently announced that Jackson Wang will be a global partner of Nike and Jordan Brand. Nike stated in the announcement that the cooperation between the two helps the brand "unlock various possibilities from sports to fashion, art, and culture."
From the perspective of the transformation policy formulated by Nike's new CEO for the brand, Jackson Wang also meets the brand's expectations for future endorsers. Jackson Wang was a fencing athlete, transformed into a trendy artist in South Korea, and continued his acting career after returning to China. He also founded his personal brand, TEAM WANG. Jackson Wang is also one of the few Chinese artists with international influence. He has 32.83 million fans on Instagram, ranking first among Chinese celebrities.
Jackson Wang
New Arrivals, Brands
The New Season of Uniqlo X JW Anderson Is Available
On December 19, Uniqlo released the 2025 Spring/Summer collection in collaboration with JW Anderson and confirmed that the series will be officially launched on January 10. This will also be the first designer series to be released by Uniqlo in 2025.
JW Anderson is the personal brand of Jonathan Anderson, the creative director of the luxury brand LOEWE. Anderson won the "Designer of the Year" at the British Fashion Awards for the second consecutive year in 2024.
Like the previous JWA collaboration series, this collaboration series still has a strong college style. Uniqlo introduced this collaboration on its official website as "redefining the Preppy college style". Preppy can be called noble college style or preppy style in Chinese. It became popular in the United States in the 20th century. Baseball jackets, plaid skirts, pleated skirts, and loose sweatshirts are key items. The outfits of the main characters in the American TV series Gossip Girl can be regarded as Preppy Style.
According to Ideal Life Laboratory, the entire series has been previewed on Uniqlo's official website and Tmall flagship store. The domestic product lineup includes 6 women's clothing items, 10 men's clothing items, and 4 accessories, and the prices are still affordable: the cheapest socks are $4, hats, ties, and drawstring bags are $22, T-shirts and Polo shirts range from $19 to $37, and the most expensive is the $75 college jacket.
What’s More
Luckin Coffee Opens Five Stores in Hong Kong
Luckin Coffee officially enters the Hong Kong market. Five stores were opened on December 28, all located in prime locations in Hong Kong, Kowloon, and the New Territories, including De Fu Dao Zhong in Sheung Wan, Miramar Shopping Centre in Tsim Sha Tsui, Metro City Plaza in Tseung Kwan O, The Argyle in Mong Kok, and Sha Tin Centre. It is understood that for the first time Hong Kong consumers download the Luckin Coffee APP, they can receive discounts, including a $2.4 newcomer exclusive gift, a $2.4 Hong Kong store gift, and a 52% discount coupon for all drinks. Previously, Manner Coffee, Cotti Coffee, Heytea, and Bawangchaji have all opened stores in Hong Kong, and the prices are also higher than those in the mainland.
Tiffany & Co. Closes Its Kunming Jingge Department Store, Exiting the Yunnan Market
Luxury brands continue to contract their business in China. The jewelry brand Tiffany & Co. sent a message to customers on Saturday, announcing the closure of its boutique at Kunming Jingge Department Store, which is the brand's only store in Kunming and Yunnan. According to the statistics of the brand's official website in China, including the Kunming store, the brand currently operates 45 stores in China. According to local retail observations, in September, the brand was accused of closing half of the flagship store at Hong Kong Center in Shanghai, and at the same time, it requested the landlord, Lai Fung Holdings under Lai Sun Group in Hong Kong, to reduce the rent.
Rumor Has It That Laneige Will Withdraw from the Mainland Market
The withdrawal of Japanese and Korean beauty products from the Chinese market is still ongoing. Recently, it is rumored that Laneige, a brand of the Korean beauty group AmorePacific, will withdraw from the Chinese market. In response to the rumors, the group's official response stated that the Laneige brand is optimizing and adjusting some offline channels, not withdrawing from the Chinese market. In the future, it will actively explore new offline channels and build a new model that integrates multiple online and offline channels. In recent years, Laneige has become popular rapidly in the European and American markets through social media marketing, and its star products, such as the sleeping mask and the lip sleeping mask, are quite popular among young consumer groups.
Semir Clothing Says Its Brands Have Entered WeChat Mini Store
Brands are widely responding to the "Send Gifts" function launched by WeChat Mini Store last week. Semir recently stated on the interactive platform that its brands, including Semir and Balabala, have entered WeChat Mini Store. Consumers can search for the brand name on the WeChat platform and click to enter the mini store. The "Send Gifts" function launched by WeChat Mini Store for gray-scale testing recently has attracted widespread attention in the market. Except for jewelry and education and training categories, products with an original price of no more than $1,400 will default to support the "Send Gifts" function.
(Reference materials: Ideal Life Laboratory, Local Retail Observation, Ladymax, Hypebeast, WWD, etc.)