F&F Co., a South Korean retailer of Western brands such as Major League Baseball (MLB), has been rapidly penetrating China's cosmetics market, which it hopes will give it new growth momentum.
Since the launch of MLB Beauty in China in September of last year, it has been sharply expanding its online presence through Alibaba’s Tmall, social media platform Weibo and other online marketplaces.
It promotes itself as a high-street brand as it has done for its fashion business in China, selling lipstick, perfume and cushion foundation.
F&F has carried the license for MLB clothes since 1997 and led the South Korean market of licensed brands.
Since its spin-off from F&F Holdings Co. and relisting on the Korea Exchange in 2021, it has accelerated its penetration into China and built a significant presence there.
Its strong performance in China’s clothing market is behind its push into cosmetics and entertainment spaces. Its foray into the entertainment market earlier this year has grabbed the attention of its fashion industry rivals.
MLB's cushion foundation sells for $23, with a 50-milliliter bottle of its perfume priced at $83.
Despite its modest prices, it is trying to create a premium image to appeal to luxury-loving Chinese shoppers. Its cushion foundation has a leather case with the MLB logo, evoking the image of Chanel’s decorative patterns.
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F&F hopes its cosmetics business in China will benefit from the brand awareness of MLB clothes, hats and sneakers.
Its apparel business has flourished in China, where its sales were estimated at 1.2 trillion won ($915 million) in 2022.
The number of MLB outlets in China, managed by F&F, has exceeded 800, a 60% increase from 500 in January 2022.
It will continue to focus on China by boosting online sales.
F&F Chairman Kim Chang-soo has set his eyes on the cosmetics market and established his wholly owned F&CO, the company behind Banila Co.
His son Seung Beom Drake Kim, F&F’s chief technology officer, also leads F&CO as its chief operating officer.
F&CO reported a 28.1% increase to 117 billion won in sales in 2021 from the year previous. It swung to an operating profit of 15.3 billion won in 2021 versus a 1.5 billion loss in 2020.
It derived 64% of its sales from Asia in 2021.
Write to Jeong-Cheol Bae at bjc@hankyung.com
Yeonhee Kim edited this article.
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