On February 1, Henkel announced that it had signed an agreement with Procter & Gamble to acquire the Sassoon vs Sassoon brand and related hair care businesses in Greater China, for an undisclosed amount.
As a well-known hair brand, Sassoon features a salon-inspired image in the retail market. In the Chinese market, Sassoon has been cultivating for 27 years. In the hearts of Chinese consumers, in addition to the product image of professional cinemas, Sassoon also means that the row of highly recognizable open-shelf burgundy shampoos in supermarkets is the enlightenment of a generation of "fashionable hairstyles".
Together with Schwarzkopf and Shiseido, Sassoon will strengthen Henkel's leading position in the high-end hairdressing market.
At the beginning of 2023, Henkel launched a new organizational structure divided into two business units: Adhesive Technologies and Consumer Brands, which was formed by the merger of the Laundry & Home Care business unit and the Beauty Care business unit.
According to the third quarter 2023 report, the Consumer Brands business unit achieved organic sales of 8A significant increase of 9%. Among them, the retail line business achieved double-digit sales growth, mainly due to the increase in sales of styling and toiletry; The Professional line achieved very strong organic sales growth.
As one of the world's top three beauty salon companies, Henkel offers a broad portfolio of products for professional hairstylists, including treatment, styling, coloring and perming brands such as Schwarzkopf Professional, Polyflor, Ipze and Authentic Beauty Concept.
Henkel CEO Carsten Knobel said that in the future, Henkel will focus its consumer brand portfolio strictly on brands and products with high margins and strong growth.
Sassoon is undoubtedly a perfect fit for Henkel.
The unique positioning of the Sassoon brand is to offer a professional solution to the trendy and self-conscious young consumer, with a portfolio focused on the high-end hair care segment, including shampoos, conditioners, as well as styling and care products. According to official data, in the Chinese market alone, the Sassoon brand will achieve more than 200 million euros (about 15.5 yuan) in fiscal year 2023500 million yuan).
We are excited about the opportunity to add this strong brand to our portfolio. It is fully in line with our strategic focus to expand our footprint in the hairdressing sector beyond our existing specialist and retail brands. Wolfgang K Nig, Executive Vice President of Henkel's Consumer Brands business unit, said.
For more than 140 years, Henkel has been revolutionizing the consumer goods market, and the hair business is always aiming for the best targets.
Up to now, Henkel owns a number of hair care brands (color fix, styling), many of which were acquired, such as Henkel's most famous hair care brand Schwarzkopf (Schwarzkopf), which was acquired in 1995. The most recent major acquisition was in July 2022, when Henkel completed the acquisition of Shiseido's professional hairdressing business, including the core brands Sublimic and Primience under the licensed brand Shiseido Professional, further enhancing its market position in the professional hairdressing business in Japan and China.
2024 marks the 32nd year of Henkel's consumer brand presence in China. China is one of Henkel's important strategic markets and plays a vital role in Henkel's regional and global presence.
According to Zhong Jingwei, who is currently the vice president of Henkel's consumer brand business unit in Greater China, due to different geographical environments, consumer demand will also change accordingly, and if they want to integrate into the local market as soon as possible, "local for local" has become a practical issue for multinational companies to consider.
Just last month, Henkel Inaugurated its Asia R&D Center for Consumer Products in Shanghai. Based on consumer habits and insights across 11 markets in Asia, the center will facilitate flexible product innovation. With an investment of approximately RMB100 million, the center will serve as the largest R&D center for Henkel Consumer brands in Asia, attract top scientific talent, strengthen Henkel's local R&D capabilities in the Hair & Laundry and Home Care business categories, and further push Henkel's consumer products to the forefront of the industry.
The acquisition of Sassoon will further strengthen the presence of Henkel's consumer brands in the hair care market in Greater China.
D**id Tung, President of Henkel's Consumer Brands business in Asia, said: "Henkel Consumer Brands already has a strong presence in Asia and is well positioned for further expansion in the region. This acquisition not only expands our reach, but also underscores our long-term commitment to this dynamic market." Together, we will redefine the Asian aesthetic of the future. ”
As an important part of Henkel's strategic framework for purposeful growth, we are making targeted acquisitions to aggressively shape and strengthen our business portfolio. This transaction will take Henkel's consumer brand business in China to the next level and provide us with the opportunity to further scale our core business in this attractive and growing market." Carsten Knobel said.