YG shoots for the moon with inaugural cosmetics range

Published: 9-Oct-2014

YG Entertainment provides more details of its move into the cosmetics market

YG Entertainment, a South Korean management agency representing Psy and other top K-pop stars, has provided more details of its move into the cosmetics market to capitalise on the growing popularity of Korean beauty products among Chinese tourists.

The company’s cosmetics brand will be called ‘Moonshot’ and will be launched mid-October. YG plans to open a flagship store in Seoul and an online shopping mall this month. The brand name was inspired by the 1969 Apollo 11 moon landing. According to YG, both Apollo and their brand ‘turned dreams into reality’.

At launch, Moonshot will be a colour cosmetics brand with about 208 items, centred on foundation and eye make-up. Coson, a Korean trading firm that began making cosmetics in 2012, will manufacture Moonshot products. YG Entertainment formed a partnership with Coson last year, and bought a 6.32% stake in the company for KRW5bn.To sell Moonshot directly to Chinese consumers, YG has a Hong Kong joint venture with a Chinese cosmetics firm.

YG say they are trying to offer beauty products that are different from those produced by others and will target women, mostly in their 20s and 30s in Korea and in China. YG's latest move is part of strategy to diversify its business portfolio. In September, the firm establish a joint venture ‘Natural Nine’ with Samsung’s Cheil Industries, to launch the ‘NONAGON’ fashion brand.

YG has also attracted a KRW61bn investment from L Capital, LVMH’s private equity fund, to support its new ventures.

YG Entertainment was founded by Yang Hyun-suk, a former pop singer, and represents many of Korea’s top singers. The success of Korean cosmetics in Asia owes much to the popularity of Korean singers and entertainers, which makes YG’s move a natural development for the company.

David Kilburn, Tokyo

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