Hansome Enters Cosmetics Business "Targeting Premium Market"

[Asia Economy Reporter Yujin Cho] The prestigious fashion house Hansome is entering the cosmetics business. Based on patented cosmetic manufacturing technology secured through the acquisition of shares in a cosmeceutical (functional cosmetics with medicinal ingredients) specialized company, Hansome plans to launch a ‘premium skincare’ brand early next year that matches the high-end brand identity of Hansome.

Hansome, a fashion specialist company affiliated with Hyundai Department Store Group, announced on the 11th that it will enter the cosmetics business by acquiring 51% of the shares of Cleanzen Cosmeceutical (hereafter Cleanzen), a functional cosmetics specialist company.

Cleanzen, whose shares were acquired, is a company jointly established by Clean Dermatology in Cheongdam-dong, Gangnam-gu, Seoul, and Progen, a new drug development specialist company. It possesses know-how in developing high-functional cosmetics effective for whitening, wrinkles, and elasticity.

Hansome’s entry into the cosmetics business aims to diversify its business structure, which has been concentrated on the existing fashion business, while securing new growth engines. This is the first time since its founding in 1987 that Hansome has ventured into a different business sector beyond fashion.

In particular, the focus on the premium skincare market within the cosmetics sector reflects a strategic move to extend the high-end image Hansome has built through operating premium fashion brands such as Time and Mine into the cosmetics business as well.

A company official stated, “Fashion and cosmetics businesses share core competitive factors such as differentiated product development capabilities that lead trends and advanced product manufacturing know-how, making it easy to leverage Hansome’s accumulated ‘premium brand cultivation capabilities.’ Especially, owning premium cosmetics core distribution channels such as Hyundai Department Store and Hyundai Department Store Duty Free allows us to expect maximized synergy.”

Hansome plans to collaborate with Clean Dermatology and Progen, major shareholders of Cleanzen, on cosmetic manufacturing patented technology and raw material supply systems to develop and produce cosmetics.

To target the premium skincare market, Hansome plans to utilize the patented technology of the pharmaceutical substance Super EGF held by Progen in cosmetic manufacturing. EGF, discovered by Dr. Stanley Cohen in the United States and awarded the Nobel Prize in Medicine, is a protein substance with excellent skin regeneration effects. The Super EGF that Hansome will use in cosmetics significantly enhances skin absorption compared to existing EGF effects. Additionally, Hansome will receive supplies of high-quality antibody fusion technology raw materials produced by Genexine, a new drug specialized development company.

Hansome’s first skincare brand is scheduled to launch early next year, with plans to expand the product line to include color cosmetics and perfumes in the future. In particular, the company intends to infuse Hansome’s sophisticated and trendy ‘high-end fashion DNA’ throughout the entire cosmetics business, from brand naming to product and package design development.

A Hansome official said, “The domestic premium skincare market, valued at 1.5 trillion KRW, is an emerging market with high future growth potential, growing more than 10% annually, but there is currently no domestic brand that can represent cosmeceuticals. We expect that by applying the ‘high-end image’ Hansome has built through the fashion business to the cosmetics business, brand differentiation will be possible.”

Hansome’s premium skincare brand, scheduled to launch early next year, will first be sold at major department store outlets such as Hyundai Department Store Apgujeong Main Store, Trade Center Store, and Yeouido Store (tentative name), and will later expand sales channels to online and duty-free stores.

A Hansome official added, “We are currently pursuing collaborations with various domestic and overseas companies to additionally secure raw materials and specialized technologies, which are key elements of the cosmetics business. We plan to establish differentiated business competitiveness by proactively applying new bio technologies.”

This content was produced with the assistance of AI translation services.