Mekong backs Vietnam cosmetics retailer
Mekong Capital has invested in HSV Group, Vietnam’s largest cosmetics retailer with a network of 105 self-operated stores.
The investment comes from Mekong Enterprise Fund IV, the firm’s fourth flagship fund, which closed earlier this year at $246 million, doubling the size of its predecessor. It primarily takes significant minority stakes of 40-45%. Other portfolio companies include water purifier and electrical appliances maker Mutosi Group and chocolate brand Marou.
HSV was established in 2005 as the exclusive local distributor of The Face Shop, which is owned by Korea’s LG Group. The company has since developed its own beauty lines and expanded into sportswear, becoming an exclusive distributor for Reebok and a non-exclusive distributor for Adidas.
Its first multi-brand cosmetics store – known as Beauty Box – opened in 2018. There is a strong emphasis on customer experience, achieved by blending retail and entertainment. Stores offer a range of activities such as make-up trials and consultations with beauty experts.
There are now 11 Beauty Box outlets across three cities, Hanoi, Hai Phong, and Ho Chi Minh City, that stock more than 7,000 products from 70 brands. HSV also has 69 The Face Shop outlets and seven Club Clio stores, plus six under Adidas and seven under Reebok.
Mekong will help the company enlarge its store network and brand portfolio, while strengthening the corporate culture and enhancing leadership capabilities. It is a familiar consumer sector thesis, executed by the private equity firm in investments such as mobile phone retailer Mobile World, restaurant chains Golden Gate and Pizza 4P’s, and pharmacy chain Pharmacity.
“HSV Group will reinvent what’s possible in the world of customer experience and employee experience, providing a robust foundation for growth of their retail network and customer engagement, and setting the new standard for retail in Vietnam,” said Chris Freund, a partner at Mekong, in a statement.
More on Southeast Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.