UCO and its affiliates will acquire 100% of the equity of THELIAN, the agency operator of ELIXIR and Curel. After acquisition, UCO will have a 10-15% market share in the Chinese beauty e-commerce agency services market.
On December 7, the National Anti-monopoly Bureau issued a public notice of the summary case of operator concentration regarding “Acquisition of Equity Interest in Shanghai THELIAN Shangyue Internet Technology Company”.
According to the content of the public announcement, Hangzhou UCO Cosmetics Co., Ltd. (hereinafter referred to as “Yoke”) and its affiliates signed a transaction agreement with the existing shareholders of Shanghai THELIAN Shangyue Internet Technology Company (hereinafter referred to as “THELIAN”) on November 11, 2021. Under the agreement, UCO and its affiliates will acquire 100% of the equity interest (the “Proposed Transaction”) in THELIAN. Following the Proposed Transaction, THELIAN will be under the sole control of UCO.
According to public information, UCO, founded in July 2012, is a Chinese beauty brand service provider that provides services to beauty brand partners through its agency operations, including providing online store operations, customer service, fulfill after-sales services. Its partners include over 40 beauty brands, including Estee Lauder, Clinique, L’Occitane, VICHY, La Roche Posay and so on. Its operating platforms cover Tmall, Taobao, Vipshop, Jingdong and other e-commerce platforms. It is reported that UCO has passed the hearing of the Hong Kong Stock Exchange in June this year and will be listed on the Main Board of the Hong Kong Stock Exchange.
THELIAN was founded in 2005 and transformed into an e-commerce company focusing on brand network operation in 2009. Through various service models such as B2C direct marketing, B2B2C cross-channel business and agency distribution, it provides one-stop e-commerce services such as e-commerce strategy, creative design and live operation for brands, diversifies retail solutions for well-known cosmetic brands on various e-commerce platforms mainly Tmall and assists enterprises in brand communication.
According to the official website of THELIAN, the official Tmall flagship stores of many brands, including Curel, ELIXIR, Cetaphil, Biore and Charlotte Tilbury, are operated by THELIAN.
According to the National Anti-monopoly Bureau, UCO’s market share in China’s beauty e-commerce services market reaches 5-10%. Its market share in China will reach 10-15% after the acquisition of THELIAN. The acquisition will increase the market share, which may also be UCO’s response to the rise of new MCN agencies and brand agencies.