As consumers continue their thirst for K-Beauty products, Beiersdorf has acquired a significant stake in Seoul-based LYCL Inc., thus becoming the second largest shareholder of the skincare and tech start-up. This investment out of Beiersdorf’s venture fits with the global brand manufacturer’s C.A.R.E.+ strategy “to win in skincare and drive consumer centricity through digitalization.” In addition, it further strengthens Beiersdorf’s footprint in Korea and the region. LYCL has access to more than 1.2 million consumers. Based on their insights, the company has implemented “a disruptive data-driven innovation process” to develop and market skincare products under the unpa.Cosmetics brand.
 
Dessi Temperley, chief financial officer of Beiersdorf, said: “We see great potential in LYCL’s disruptive business model and its high degree of digital consumer connection... The digital innovation capabilities and strong consumer centricity of LYCL have resulted in triple-digit growth rates over recent years, and we believe the business model is geographically scalable.” 
 
LYCL Inc. is a Korean skincare and tech startup established in 2013. The company combines three different business models: unpa.me, a review and content platform for K-Beauty products, palett.me, an influencer network platform, and unpa.Cosmetics, the startup’s own skincare brand. According to the brand, this setup leads to a fast development of data-driven, consumer-centric and highly innovative skincare products. LYCL Inc. already has a strong footprint in South Korea with the majority of product sales generated through a direct-to-consumer (DTC) business model via LYCL’s own website.
 
 
PHOTO: LYCL develops and markets skincare products under the unpa.Cosmetics brand.

Beiersdorf ranked No. 8 on Beauty Packaging's list of Top 20 Global Beauty Companies. See the compelete list here.