Hong Kong billionaire plans Korea cosmetics push in China
The grandson of Hong Kong’s billionaire tycoon Cheng Yu-tung, who founded Chow Tai Fook Enterprise, will use his company’s extensive retail network in mainland China to help boost domestic sales of Korean cosmetic products.
Adrian Cheng, 37-year-old scion of the world’s largest jewellery retailer, disclosed the plan to the Korea Herald, during a media interview in May.
In 2015, Cheng invested 18 billion won ($16 million) into Korean firm It’s Skin. The transaction took place via the group’s subsidiary New World Development Company - a property developer and department store operator, where Cheng serves as executive vice chairman.
Cheng discussed his plan for It's Skin - and its best-selling snail cream - hypothetically as the Korean firm is still awaiting approval from the Chinese Food and Drug Administration for direct sales in the mainland. However, snail creams are already available at online shopping malls in China.
Cheng told the newspaper New World Development plans to open mini display shops of It’s Skin across Chow Tai Fook jewellery outlets in Chongqing and Guangzhou in May.
Helping boost sales of the cream online, Chinese consumers will be able to test the products and order them through the mobile application of Hoko Mall.
Making foreign entry into the market easier, the Chinese government recently reduced tariffs on skincare imports from 50% to 11.9% on items priced higher than 100 yuan ($15.45).
It’s Skin is Korea's No.4 cosmetics maker under Hanbul Cosmetics.
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