ShowroomPrivé acquires BeautéPrivée
Ricocheting off its announcement of its excellent 2016 results, ShowroomPrivé is officialising its past agreement for the acquisition of the cosmetics specialist BeautéPrivée. The acquisition is aimed at consolidating the company’s beauty business, which is worth 10% of the site’s sales and has shown considerable growth.
Frédéric Bille and Xavier Chauvin, who founded BeautéPrivée in 2007 after occupying leading roles at large groups in the cosmetics sector, are to stay at the company. The structure has already proved profitable and the company reported a growth of 40% in sales for its 2016 results, for a 20 million euro revenue. ShowroomPrivé plans to accelerate this growth via its all-important online traffic.
“It’s still a modest business, but with real expertise in the sector behind it,” co-CEO David Dayan explained to FashionNetwork. “BeautéPrivée is better adapted than us to sell beauty products. We will put in place synergetic strategies to allow it to expand and thus to better sell beauty products, by becoming more specialised than it is currently.”
The acquisition comes after ShowroomPrivé’s announcement of a 21.9% rise in sales, or 540 million euros, in 2016. The event sales portal is targeting a revenue of 690 to 720 million in 2017, and has set a goal of 1.1 billion before 2020. The beauty and cosmetics sectors should contribute particularly to this progression.
“This acquisition will allow us to build closer relationships with the large international beauty groups with a tool suited to their needs,” continued Dayan. “Thanks to BeautéPrivée, we will be able to have serious discussions with groups such as L’Oréal, LVMH, Clarins and others, who are already working with BeautéPrivée to some extent, but who require very large volumes to truly invest in the event sales sector,” he concluded.
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