The world’s biggest cosmetics company confirmed that it had signed a definitive agreement to acquire the Los Angeles business, which has managed to grow the business by tapping into a younger consumer audience thanks in part to the help of successful social media campaigning.
“NYX is a dynamic company that has done a tremendous job of harnessing the power of social media, digital marketing and multi-channel distribution” said Frédéric Rozé, President and CEO of L’Oréal USA.
Brand has grown by tapping into a young, social media savvy consumer
NYX Cosmetics was established in 1999 by entrepreneur Toni Ko who had set about launching a brand that was of high quality, on-trend and reasonably priced.
This philosophy, combined with the successful adoption of social media marketing techniques to connect with its younger consumer target base in later years helped the business to expand particularly rapidly during the course of the past five years.
This has culminated in a massive sales increase in 2013, when the company reported that revenues increased by 46% to reach $72m, compared to what the business achieved in 2012.
NYX revenues have exploded since 2012
NYX says that the revenue growth has continued into this year, with most recent figures suggesting that the revenue growth for the 12 months ending May 31st was up by 57%, at $93m.
The company’s range includes the latest shades, special occasion makeup, and what is described as ‘cult’ lines that include The Curve eyeliner and its Butter lip gloss.
NYX will remain operating out of its Los Angeles headquarters and will retain the current management structure and team, while becoming a part of the L’Oréal consumer products division.
L’Oréal acquisitions in 2014
L’Oréal has continued to focus its acquisition trail in Asia so far this year. Back in January it announced the acquisition of China beauty mask brand Magic Holdings, a decision it announced just weeks after confirming that it was pulling its Garnier brand from that market.
The company says it is now going to concentrate on growing its Maybelline brand in the China market, having struggled to get a footing with the Garnier brand in an increasingly competitive beauty market.
Then in February, L’Oréal announced that it was buying two Shiseido beauty brands – Carita and Decléor – for a total of €227m, with combined revenues of €100m, mainly in Europe.