- Fosun officially acquires WEI Beauty, a US-based Chinese herbal skincare brand to create a leading premium C-Beauty brand
- Release Time: Mar 27, 2020
On March 27, the Cosmetics Group of Fosun announced its official acquisition of WEI Beauty, a US-based company whose Traditional Chinese Medicine (TCM) skincare products offer a modern interpretation of herbal blends with Western technology. The acquisition includes three modern TCM skincare brands under WEI Beauty: WEI, WEI TO GO and WEIEAST. Capitalizing on the growth potential of China’s beauty sector, Fosun has endeavored to lead the premium cosmetics market. Fosun will hold 68% stakes in WEI Beauty upon completion of the acquisition.
(WEI Bee Venom Anti-Wrinkle Cream Mask)
“WEI Beauty was founded in Pennsylvania of the United States in the 1990s. The brand was inspired by the rich traditions of Chinese culture and medicine. “Where there is balance, there is beauty”. Based on this approach to life, the company provided a ground-breaking line of herbal skincare products that optimized the benefits of precious herbal ingredients through modern science. Such products are easier on the eye and closer to the heart of modern consumers.”
Ms. Wei Yang Brian, founder of Wei Beauty, was born in Hubei of China to a TCM family. She has been inculcated with the TCM culture since childhood. After earning her Bachelor of Science degree from the College of Science of Wuhan University, she further studied computer science at Drexel University in Philadelphia on a full scholarship and earned her master’s degree in science. Impressed by the medical community around her, Ms. Yang has long dreamed of demonstrating the greatness of TCM to the global audience through modern science. In the 1990s, she founded her own skincare brand in the United States and has always committed to promoting the TCM culture and its core principles and bringing beauty to women in all parts of the world. Within merely a decade, the brand built itself into an international skincare giant, selling products in the United States, United Kingdom, Germany, Australia, New Zealand, Russia, Mainland China, and the Hong Kong Special Administrative Region, among others. Ms. Yang taught herself basic chemistry and TCM theories, and then researched and developed efficacious skincare products that integrate the power of Chinese herbal remedies with Western formula technology. After two decades of strenuous research, she successfully developed a range of skin care products which have passed stringent experimental verification and are widely acclaimed worldwide. Her passion for TCM and Chinese culture has become the soul of WEI Beauty. She hopes to show the power of TCM through every bottle of her products and to convey the core principles of TCM culture – balance is beauty.
WEI Beauty produces skincare products that are sold in more than 11 countries and regions, including the United States, Germany, and China, where they are available in high-end multi-brand retailers such as Sephora, SpaceNK, Joycebeauty. The brand was launched in the Chinese market in 2013, witnessing steady and dramatic sales growth in Sephora China since then. A cult favorite among young Chinese consumers, WEI products enjoy a high reputation on the market. WEI Beauty’s sales in China exceeded RMB 200 million in 2019. The brand will ramp up its efforts in the Chinese market by continuously launching new products and expanding distribution channels. The goal is to quintuple its sales in China to more than RMB 1 billion in five years.
(WEI Products on Sephora Shelves)
China’s e-commerce channels and domestic consumer demand have grown quickly in recent years, making China the second largest and fastest growing beauty market in the world, where upscale brands surpass mid-range ones with an expected annual growth rate of 20-30 percent. It is expected that China's beauty market would be a major driver for the future growth of international brands, and the market size may exceed RMB 1 trillion.
In the meantime, more and more Chinese consumers have begun to pursue natural or even herbal skincare products as their knowledge of skincare products piles up. Adhering to the concept of balanced skincare, WEI Beauty integrates natural Chinese herbal formula with modern laboratory technology to restore the skin’s natural balance and use herbal ingredients to repair the skin naturally.
European, American, Japanese, and Korean brands from the global high-end beauty markets have dominated the luxury cosmetic market in China. Shiseido is the representative example of Japanese beauty (J-Beauty), and Sulwhasoo and Whoo are representative examples of Korean beauty (K-Beauty). China will certainly have its own high-end Chinese-beauty (C-Beauty) brands if it keeps upgrading its R&D technology and supply chain system and developing its brands.
(Ms. Yang, the founder of WEI Beauty, personally selects herbs and participates in product development)
From the very beginning, WEI Beauty has positioned itself as a provider of skincare products produced with Chinese herbal ingredients integrating advanced Western science and technology, winning the recognition of consumers in overseas market. WEI Beauty has the potential to become a leading global popular high-end C-Beauty skincare brand in the future.
Chinese domestic cosmetics brands usually have a competitive edge over their overseas competitors due to their highly responsive supply chains. As early as 2001, WEI Beauty set up factories in China and began to directly market and sell products to consumers. This business mode enabled the company to satisfy the extraordinarily high production and quality requirements of premium brands while better serving its distribution channels. WEI facilities are GMPC certified and combine the use of world class equipment of highest quality with a scientific operation process to ensure high quality and continuous innovation of products. WEI Beauty has been widely acclaimed for catering to the distribution channels’ demand for multiple small lots on a seasonal basis. This business mode has created a good foundation for prompt response to volatile market demand and potential marketing upgrades.
(WEI Beauty facilities in China)
After acquiring the Israeli national treasure skincare brand AHAVA in 2016, the Cosmetics Group of Fosun set up a highly competent local team for Chinese beauty brands with particularly rich experience in e-commerce and online marketing. The team will help WEI Beauty heighten its efforts in brand marketing and e-commerce sales, increase brand investment and quickly raise brand awareness.
(WEI Royal Ming limited edition set)
Cosmetics are high value-added products aimed at the high end of the market. After the brand built its product strength and supply chain, brand marketing will give a critical impetus to its continuous growth. In particular, it is vital to keep communicating the core values of WEI Beauty to win the recognition and trust of consumers, and even to create its own brand symbol which will become the crucial moat that protects the brand from competitors.
“Ms. Wei Yang Brian WEI Beauty founder:
“I have always been aspiring and striving to create a high-end beauty brand based on TCM and Chinese culture. I founded WEI Beauty with my mission in mind. After two decades of toiling on my own, I was lucky enough to get to know Fosun, a conglomerate headed by Mr. Guo Guangchang. Deeply rooted in China, Fosun strives to bring “health, happiness, and wealth” to each family in the world. This great vision has deeply touched me, and I am convinced that with our joint efforts, WEI Beauty will surely have its unique place on the world stage.”
“Mr. Guo Guangchang, Chairman of Fosun International:
“Fosun, a family consumption-oriented industry group driven by science and innovation, is committed to making families worldwide happier. The acquisition of WEI Beauty will improve Fosun’s positioning in the cosmetics field and help introduce better quality products to the market that perfectly meet the needs of Chinese consumers.” ”
“Mr. Huang Zhen, Fosun global partner and Chairman of Fosun’s Cosmetics Group:
“The beauty industry is currently on the rise in China. The past decade has witnessed the rapid growth of international beauty brands in China, which has greatly raised Chinese consumers’ consumption awareness of beauty products. As Chinese local talents grow and its supply chains mature, a competitive Oriental brand favored by Chinese consumers over Western alternatives will certainly be launched in the market as Chinese consumers become more rational in their consumption. Thanks to its effective market positioning and rich brand heritage, WEI Beauty is widely recognized and acclaimed by Chinese consumers. I believe that WEI Beauty will become a leading C-Beauty brand in the coming years.” ”