Recently, The global cosmetics corporation L’Oreal Group is leaning towards removing the name of ‘Gowoonsesang Cosmetics,’ which was acquired last year, and incorporating only the functional cosmetics brand ‘Dr.G.’ The move comes less than a year after L’Oréal completed its acquisition of Gowoonsesang Cosmetics, a subsidiary of Swiss retailer Migros, in March. With this change, the company will operate under the simplified name L’Oréal Korea–Dr.G, dropping the longer “L’Oréal–Gowoonsesang Cosmetics–Dr.G” branding.
As part of the overhaul, Gowoonsesang Cosmetics has announced it will shut down its other brands, including Vividraw and Heals, and cease development of additional planned lines. Vividraw, launched in 2021 as a playful and affordable color cosmetics brand aimed at younger consumers, will be phased out due to intense market competition. Client support for stock management and sales promotion of the discontinued brands will continue until the end of the year.
According to report, some industry source said ‘It appears that the business will be developed solely through existing Dr.G products,’ adding, ‘I understand that there are no plans for new products or brands next year.’
Employees are also experiencing changes. Gowoonsesang Cosmetics has been regarded as having good welfare in the cosmetics industry, implementing policies such as working from home twice a week, a two-hour lunch break on Wednesdays, and overseas workshops for employees. However, it has been reported that changes in welfare systems, such as the discontinuation of remote work once the ongoing office remodeling is completed, are on the horizon.
The decision underscores L’Oréal’s strategy of strengthening Dr.G as its key K-beauty brand. Dr.G, known for its dermatological skin care positioning, marks L’Oréal’s second major acquisition in the Korean beauty space, following makeup brand 3CE.
