K-beauty startup B2Link has acquired BCC Korea, a leading distributor of Korean cosmetics in the US. The latest deal now makes B2Link the largest K-beauty distributor in the US and is expected to provide a stable platform for revenue following a drop in sales from China — previously making up 80% of the market.
Despite recent political issues that have soured relations between China and Korea, B2Link posted revenue of 23 billion won (USD $20.1m) in the first half of this year. In addition to this, the company has worked with major retailers in Southeast Asia since 2015, and from 2016 has expanded into the US through well-known companies such as Costco, Barney’s, Jet.com and Sephora.
Meanwhile, BCC Korea recorded 15 billion won in sales last year and has been the largest distributor or K-beauty products in the US. The company has been in the number one spot on Amazon for industry over the past six years, and B2Link says that it will maintain BCC Korea’s management and work closely with its existing US network to create synergy between the businesses.
By combining revenue of the two companies, B2Link expects to eventually make annual sales of 100 billion won ($87.6m). “We’re lucky to have met a good partner that can enter the wider global market with us,” says B2Link CEO Nate Lee. “With this acquisition, we will begin initiatives to continue leading in the industry.”
