GGV, Orchid Asia invest in China’s Beauty Plus

This latest capital injection will be used for brand building, working capital and business expansion, according to a statement. The nine-year-old beauty firm sells its products both online and via chain stores such as Watsons. It aims to work towards an IPO by expanding its distribution channels and establishing its brand overseas.

Orchid Asia operates offices in Hong Kong, Shenzhen, Shanghai, Beijing and Guangzhou. It focuses on investing in expanding domestic enterprises in high barrier entry businesses in the consumer services and products sector, as well as the outsourced manufacturing and services sector.

Between 2001 and 2011, China's skincare and cosmetics market expanded by 17%, while sales of luxury products alone increased by 22.35%, according to Mirae Asset Global Investments.

Last month, L Capital Asia invested in Guangdong Marubi Biological Technology Stock, becoming the second-largest shareholder in the cosmetics company. As growth slows in China's consumer sector, the PE firm has identified cosmetics as a segment with the qualities to withstand the broader trend.

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• Topics
• Greater China
• Consumer
• Expansion
• China
• Growth capital
• e-commerce
• Consumer
• GGV Capital
• Orchid Asia Group Management