California-based Davi Luxury Brand is launching a new prestige skin line in the Asia Pacific market, starting with the fast-paced and innovative South Korea market, with further plans to expand in North America.
The company has entered a ten-year exclusive licensing agreement with South Korean company LG Household and Health Care (LGHH) that will see the skin care line marketed and distributed in the country under the Davi, Davi Napa and Davi Skin brand names.
The new line has been developed as a collaborative project between the two companies, and combines patented technologies that have been developed by each company separately.
Tapping into one of the largest beauty companies in Asia
"LGHH has helped us cultivate our brand within the Asia Pacific region and has been instrumental in launching the DAVI® brand in Seoul, South Korea, one of the most educated, sophisticated and growing luxury markets in the world,” said Parrish Medley, president and CEO of Davi Luxury Brand.
“As one of the largest beauty and cosmetics companies in Asia and worldwide, LGHH has successfully expanded its portfolio of brands through its unparalleled commitment to quality and excellence in nurturing and developing brands while introducing innovative products that appeal to a sophisticated consumer base."
The companies have stated that the formulation of the product line has incorporated advanced technologies belonging to LGHH, together with Davi’s exclusive Meritage Blend and the patented Phytosphere technology – Phyto-Meritage, that Davi already incorporated into several of its product lines.
The license agreement states that LGHH has the right to commercialize Davi branded women’s and men’s skin care lines, both in South Korea and throughout the Asia Pacific region.
Right to develop retail throughout Asia Pacific
The license also includes the right to develop retail outlets and other commercial ventures that use the Davi brand names to support the business throughout the Asia Pacific region, where Davi already has a 60% share of its business footprint.
The agreement has already led to the opening of four new Davi retail stores in Seoul, South Korea during the third quarter of 2013, which are all dedicated to the skin care and cosmetic brands mentioned in the deal.
The agreement is also expected to lead to further retail expansion throughout South Korea during the course of 2014, with additional branded stores also expected to be launched in other Asia Pacific markets, including Japan, China, Hong Kong and Singapore.
Further plans will target the North American market retail market, also in 2014, with Davi branded products expected to be rolled out in luxury department stores throughout the region.