Jaahn Group-Jaahn, MP Hangang Blueprint Unveiled... "Profit Turnaround Through Business Structure Change and New Ventures"

[Asia Economy Reporter Hyunseok Yoo] Jaan Group-Jaan Consortium (hereinafter referred to as Jaan Group Consortium) announced on the 18th that the due diligence for the acquisition of MP Hangang is progressing smoothly and that it will achieve a turnaround to profitability through future business structure changes and new businesses.

The Jaan Group Consortium plans to restructure MP Hangang's existing sales structure, which mainly occurs through domestic offline distribution, by utilizing the online cosmetic platform 'SelectOn Cosmetic' owned by Jaan Group. Additionally, the product portfolio, which is mainly concentrated on color cosmetics, especially in the eye makeup sector, will be expanded to include basic cosmetics, hair, and body care, and the price range will be diversified from masstige to luxury and premium.

Furthermore, leveraging MP Hangang's excellent product planning and packaging capabilities, the consortium plans to launch a new business that provides everything from new product planning to branding, packaging, manufacturing, and production by receiving orders from global brands in addition to its own brands.

A representative of the Jaan Group Consortium said, "More than 90% of MP Hangang's sales in the third quarter of last year occurred domestically, with about 60% coming from H&B stores," adding, "Through Jaan Group's strengths in 'online and mobile platform distribution' and 'overseas exports utilizing a global network,' we expect to significantly increase MP Hangang's relatively sluggish online sales and overseas export proportions."

He continued, "Jaan Group has experience in the fashion sector of shifting its revenue structure, which was mainly offline in the mid-2010s, to an online and mobile platform-based structure, achieving not only increased sales but also an operating profit margin of up to 30%. By combining the excellent cosmetic brands owned by MP Hangang with the 'SelectOn Cosmetic' platform owned by Jaan Group, meaningful results will be demonstrated," he added.

Meanwhile, Jaan Group has been accelerating its entry into the global cosmetic market, starting with the opening of the offline select store 'SelectOn Beauty Select Shop' in Shinjuku, Tokyo, Japan, in 2019, which sells K-beauty and global beauty brand products. This year, it is preparing to launch the SelectOn Cosmetic online and mobile platform in Japan.

A Jaan Group representative said, "Brands owned by MP Hangang such as Lilybyred, Kiss Me, and Canmake already have high recognition in the demanding domestic color cosmetics sector due to their excellent product quality," adding, "As the status of K-beauty in the global market continues to rise, if we utilize the global network owned by Jaan Group, MP Hangang's brand products will also be sufficiently competitive in overseas markets."

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