In a strategic move to deepen its foothold in the flourishing Chinese beauty market, Estée Lauder, the esteemed American cosmetics giant, has recently acquired a minority stake in the emerging Chinese fragrance brand, Melt Season. Facilitated through its venture arm, New Incubation Ventures, this milestone investment follows Estée Lauder’s successful entry into the Chinese beauty landscape with a prior minority investment in the skincare and makeup brand, Code Mint, in September.
While the financial specifics of the deal remain confidential, this venture marks Estée Lauder’s inaugural investment in a Chinese perfume brand. The timing is strategic, given China’s anticipated ascent as the world’s second-largest fine fragrance market within the next two years, closely trailing the United States. In parallel, L’Oréal China made waves in 2022 with a minority investment in the Chinese fragrance brand, Documents.
Founded in 2020 by the visionary Lishi Ni, Melt Season is a premium label specializing in personalized scents. The brand had previously secured initial funding in 2020 from One Capital, followed by a successful second round in 2022 from Breeze Capital.
This investment comes against the backdrop of Estée Lauder’s ongoing financial landscape. In the first quarter of fiscal year 2024, the company faced a 10% decline in revenue, totaling $3.52 billion. Estée Lauder attributes these challenges to anticipated pressures in travel retail activities in Asia and increasing headwinds due to a slower-than-expected recovery in mainland China’s prestige products. Despite these hurdles, Estée Lauder’s strategic investment in Melt Season underscores a bold commitment to navigating and capitalizing on dynamic shifts in the global beauty market.
Explore the allure of Melt Season fragrances and witness Estée Lauder’s visionary investment in the future of Chinese perfumery. Stay ahead in the beauty landscape with Estée Lauder’s strategic moves.
