Goodai Global's mergers and acquisitions (M&A) activities in the K-beauty market are unstoppable. Led by CEO Cheon Joo-hyeok, the company dreams of becoming 'the L'Oreal of Korea' and is changing the landscape of the beauty industry with aggressive brand acquisitions.
However, concerns have been raised due to rapid expansion. Continuous M&A is increasing the borrowing fund, and in the fast-changing beauty sector, it is uncertain whether the acquired brands can maintain sustained competitiveness.
According to related industry sources on the 30th, Goodai Global has recently been selected as the preferred negotiating partner for acquiring Serin Company, the operator of the toner brand known as Dokdo Toner. The scale of the transaction is approximately 600 billion won, and they participated by forming a consortium with Company K.
Over the past year, Goodai Global has strengthened its presence by acquiring three beauty brands: Tirtir, Lakakosmetic, and Craiver Corporation. With the addition of Serin Company, industry observers speculate that Goodai Global's sales this year may surpass 1 trillion won. Last year, Goodai Global's consolidated operating profit was 249.6 billion won, which puts it on par with major cosmetics companies Amorepacific Corporation (233.5 billion won) and LG H&H (247.6 billion won).
Goodai Global is a company founded by CEO Cheon Joo-hyeok in 2015, who was engaged in cosmetics distribution. The brand Josen Beauty, which was first acquired in 2019, began gaining popularity, particularly on Amazon in the U.S., scaling its presence. As K-beauty's popularity spread, this brand quickly settled in the online and offline markets in the U.S., with revenue skyrocketing from just 100 million won in 2020 to over 320 billion won in 2024.
Building on this success, Goodai Global has embarked on extensive M&A, acquiring brands with global distribution power. This is interpreted as an effort to create a beauty platform through a 'multi-brand strategy' that goes beyond mere expansion. In an environment where consumer tastes are diversifying and distribution channels are becoming more fragmented, the judgment is that it is challenging to sustain growth with just one brand.
In this regard, Goodai Global is incorporating a variety of brands in areas such as color cosmetics, skincare, and functional products into its portfolio, simultaneously enhancing its negotiation power in distribution and investment attractiveness. It is essentially introducing an 'aggregator' model, where multiple small independent brands are acquired and operated under one corporate platform. In the global cosmetics industry, L'Oreal has been expanding its market dominance in this manner.
Many agree that Goodai Global is the first to deploy such a strategy in the K-beauty industry. The Korean cosmetics industry has seen a cycle where single brands succeed according to trends only to quickly fade away. Indeed, the road shop model brands that led the K-beauty boom in the mid-2010s rapidly declined after failing to expand globally. Goodai Global is attempting to break free from single-brand dependency, diversify risks, and secure growth momentum through synergy among brands.
This distinguishes it from existing domestic cosmetics giants. While companies like Amorepacific Corporation, LG H&H, and Aekyung Industrial hold numerous brands, most of these are in-house developed and launched brands. In contrast, Goodai Global is acquiring already successful independent brands from outside, integrating them into one platform while maintaining the character and identity of each brand. Recently, it has even streamlined its internal organization by hiring key personnel from Kolmar Korea, an ODM (Original Design Manufacturer).
However, concerns regarding rapid expansion have also been raised. Goodai Global's repayment of short-term borrowings increased from 900 million won in 2023 to 36 billion won in 2024. There are also questions about the sustainability of the acquired brands. An industry insider noted, "Goodai Global's strategy is an experiment that goes beyond the single brand-centric K-beauty model," saying that it remains to be seen whether they can continue to invest in acquired brands and strengthen their foothold in the global market.