Recently, the German daily chemical giant announced on its official website that it would acquire the luxury beauty brand shantika. The valuation of the company is between us $590 million and US $690 million (about RMB 3.76 billion-4.4 billion). The transaction is expected to be completed in the first quarter of 2022.
When it comes to shantika alone, many people may not know this brand, but many men should have seen this lavender and tubular product in girls’ makeup bags.
Due to its high price, this isolation cream has unexpectedly become popular on Faye Wong’s dressing table. It is known as “Hermes” in the isolation industry. It has been planted by many girl fans, and also brought this niche French luxury brand into China.
quadruple the 4-month valuation
It is reported that shantika originated from France was founded by Sylvie Chantecaille and Sylvie shantika in 1997.
Ms. Sylvie Chantecaille was born in an art house in South France and married a wealthy winery owner. In the 1970s, she was awarded the title of Leonard Lauder Qingmi, the owner of the American Estee Lauder group. She has been at the helm of developing the prescrlptlves brand for 15 years.
This qualification made the Chantecaille brand popular in Hollywood and New York social circles in the United States in 1997. It is said that the production process of Chantecaille is very expensive. With the carefully developed “may rose water” as the base water of all products, the refreshing rose fragrance can call for inner happiness.
As a high luxury brand, shantika’s products are priced at 500-5000 yuan, and the ingredients used are 71-100% natural ingredients. Its star single product rose water has been rated as one of the 100 most popular skin care products in history by beauty companies.
The Hermes in the isolation industry previously introduced by fund Jun is priced at 830 yuan (before discount), and the monthly sales in tmall flagship store can exceed 400.
Photo source: Chantecaille tmall global flagship store
It is reported that shantika is a typical family group. Its founder Sylvie chantaille has more than 30 years of experience in the beauty industry and once took the helm in developing the Prescriptives brand at Estee Lauder; The company’s chief financial manager is Sylvie’s husband Olivier Chantecaille.
Sylvie’s daughter Olivia is the current creative director of shantika. At present, she has started to develop many creative series of shantika. At the same time, Olivia also plays an important role in company advertising, social media, etc; Alex, the other daughter, is the vice president of sales of shantika, responsible for formulating, planning and implementing brand sales and promotion strategies; His son Philippe loves art and photography and is mainly responsible for media affairs such as shantika brand image.
In August this year, it was reported that the luxury beauty brand shantika chantaille has hired the American financial services company Jefferies group to look for potential transactions.
It was reported at that time that shantika was valued at about US $120 million (about 776 million yuan). P & G, Unilever and several investment institutions showed their intention to bid.
Never thought, just four months later, the valuation soared to between $590 million and $690 million, more than fivefold.
hand in hand with German daily chemical giant
deeply cultivate the Chinese market
In August 2018, shantika entered the Chinese market for the first time and opened the official sales channel in the form of tmall’s overseas flagship store. Subsequently, Shanti cartoon settled in Bonnie & Clyde (hereinafter referred to as “B & C”) to open the offline channel.
Although it has only been three years since entering the Chinese market, shantika has noticed the potential of the Chinese market and regarded it as an important chip to find potential partners.
“In the past five years, we have experienced explosive growth, and a considerable number of Chinese consumers have fallen in love with us,” shantika said in an email to women’s daily
A source also told women’s Daily that shantika’s sales performance is back on track, partly due to the rapid growth of the Chinese market.
In fact, looking at tmall’s sales data, we should know how strong China’s consumption power is. This year’s double eleven data show that the sweet lady diamond class mask (price 1700 yuan) GMV increased by 110%, the new isolation (price 830 yuan) GMV increased by 551%, and the search index grew 200% over the same period.
Although the competition in China’s high-end beauty market is not as fierce as that in the middle and low-end market, shantika, who wants to expand its market share, will face the mystery of sea blue, La Mer, Helena HR and other high-end brands that have long been deeply rooted in the Chinese market relying on the group’s resources.
Shantika said in tmall’s overseas flagship store that all skin care products do not contain animal ingredients and are never tested by animals. This enterprise standard is contrary to China’s previous relevant cosmetics inspection requirements.
However, there has been good news recently that imported ordinary cosmetics may be exempted from animal testing in China. In particular, France has become the first country in the EU to reach an “animal free test for cosmetics” with China. According to the statement issued by the French Federation of beauty enterprises, through the qualification certification platform of the French national drug safety administration, French cosmetics manufacturers can be exempted from animal tests when exporting ordinary cosmetics to China.
This provides favorable conditions for shantika to increase investment in China. In December this year, shantika settled in SKP select beauty, a high-end shopping mall in Xi’an, which is also the first department store of the brand in China.
Previously, shantika only opened three offline experience counters in Shanghai Jing’an Kerry Center, industrial Swire Huihe and K11; In June this year, Bonnie & Clyde’s duty-free shop in China Service Shanghai was settled. This is one of the few offline channels of shantika in China.
It can be seen that the offline sales channels of shantika in China are quite limited, which is why it is eager to sell to a good “mother-in-law”, which can help it quickly open the Chinese market.
who’s Beiersdorf?
Before the shantika incident, fund Jun, like everyone else, did not know who Beiersdorf was. He went to the official website and found that his brand Nivea is a household name.
In addition, research skin care Eucerin and luxury skin care La Prairie are also under his family.
Before the outbreak of covid-19, Bayer Stoff, a German personal care product manufacturer with brands such as Nivea and La Prairie, experienced several difficult years of operation, and fell all the way after the outbreak of covid-19.
This has also led to the poor performance of Beiersdorf’s stock in the past three years. At present, the stock price is still at the level of early 2019.
The shares of competitors L’Oreal (or France) and Estee Lauder (EL) rose 120% and 188% respectively in the same period.
Vincent warnery began to serve as CEO of Beiersdorf in May 2021. Previously, he worked in L’Oreal. Under his leadership, the skin care products business, including Eucerin and Aquaphor, has made new progress.
Wernery led byersdorf to expand its coverage in the global market and develop new products. The sales of all brands of the company achieved double-digit growth in the first half of 2021.
Martin deboo, an analyst at Jefferies, said that wernery could make Nivea, a popular brand that accounts for nearly 70% of the group’s sales, more upscale.
The addition of shantika seems to be an important step for Beiersdorf from home to the world’s luxury brand.
(China Fund News)
