The global cosmetics corporation L'Oréal Group has decided to phase out the brand "Vivid Draw" after acquiring Gowoonsesang Cosmetics. This is interpreted as a strategy to strengthen makeup brands that align with L'Oréal while supporting its main brand "Dr. G."
According to a report by ChosunBiz on the 29th, Gowoonsesang Cosmetics is reviewing the termination of operations for the brand Vivid Draw. Vivid Draw is a vegan specialty brand launched by Gowoonsesang Cosmetics in 2022, 19 years after Dr. G.
The following year, they strengthened marketing and expanded the product lineup, focusing on nurturing the brand. However, there was instability in operations, such as personnel departures and the transfer of the independently operated Vivid Draw to the online sales department. Last year, they also entered platforms like Musinsa Beauty Festa and Amazon in the United States.
Gowoonsesang Cosmetics is a company founded in 2003 by dermatologist Dr. Ahn Geon-young. In December of last year, L'Oréal signed a contract to acquire the Swiss distribution group Migros and its subsidiary, Gowoonsesang Cosmetics.
Gowoonsesang Cosmetics is planning an office remodel to welcome its new family member, L'Oréal. To this end, employees of Dr. G are expected to start remote work from the end of this month until mid-next month. Initially, rumors of a "July restructuring" circulated, but instead of restructuring, it was decided to carry out an organizational reorganization.
Gowoonsesang Cosmetics recorded sales of 150 billion to 198.4 billion won from 2019 to 2023, continuing its growth trend with sales of 226 billion won last year.
However, the core brand Dr. G accounts for about 90% of total sales, indicating high dependency. There have been assessments that the launch of Vivid Draw did not bring about a significant change in the revenue structure, and it was judged that the growth of the vegan market was slowing, as some vegan brand sales decreased, leading to the decision to phase out the Vivid Draw brand.
One official noted, "After being acquired by L'Oréal, we will be phasing out Vivid Draw and are also planning to release many new products for Dr. G," adding, "This is a measure to concentrate resources on Dr. G, a brand already recognized in the market."
Gowoonsesang Cosmetics launched the makeup brand "Heals" and the dermacosmetic brand "Lab It" in March of last year. They also established a mid- to long-term strategy of expanding to 10 brands within 10 years, but it remains uncertain whether L'Oréal will maintain that goal.
Gowoonsesang Cosmetics said, "Nothing has been officially decided," but added, "We are at the stage of reviewing product potential."