Chinese beauty retailer Harmay raises $200 million in new funding
The up-and-coming Beijing-based beauty retailer secured $200 million in recent Series C and D rounds led by QY Capital and General Allantic, BoF has learned.
Harmay started life nearly a decade ago as a well-organized online beauty store on Alibaba’s Taobao platform, but has become a rival to Sephora in the Chinese market in recent years due to its unique aesthetic approach and its niche brand offering.
It currently has nine physical stores in its network and plans to expand to Wuhan, Shenzhen and Guangzhou this year. Harmay also acquired American makeup brand Kevyn Aucoin from Manzanita Capital last November.
According to data from market research provider Euromonitor International, China’s beauty market (the combined value of its color cosmetics and skincare markets) was worth $51 billion in 2020, with an annual growth rate of (CAGR) of 11.18% expected until 2025, when its total value will reach $86.7 billion.
Multi-brand offline beauty retail has become an intense battleground in recent years and investment has been pouring into the industry. KK Group, the parent company of Harmay’s main peer and rival, Colorist, raised about $1.8 billion in 2021, while fellow player Wow Color raised 500 million yuan ($78.81 million). dollars) over the same period.
Sephora’s Chinese rivals ready for battle
After 16 years in mainland China, LVMH’s Sephora faces serious competition as local multi-brand players jostle for a bigger share of the country’s $51 billion beauty market.