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The $2.5 billion Aesop deal that shocked the internet.

By Maggie Sugar

April 04, 2023

The beauty industry has always been a highly competitive and dynamic space, with constant innovations and trends shaping the landscape. The deal sent shockwaves through the business world and sparked discussions about the consolidation of the beauty industry and the impact it has on smaller, independent brands.

Aesop, founded in Melbourne in 1987 by Dennis Paphitis, has gained a loyal following of skincare enthusiasts around the world. The brand’s focus on plant-based, high-quality ingredients, minimalist design, and sleek packaging has made it a cult favourite among consumers, not to mention to us eczema prone babes. With over 300 stores worldwide, Aesop’s success has been driven by its unique positioning and strong brand equity.

The acquisition of Aesop by L’Oreal was seen as a strategic move for the French company to strengthen its presence in the luxury skincare segment. L’Oreal already had a formidable portfolio of brands, including Lancôme, Shop NYX Professional Makeup“>NYX Professional Makeup, and more, but the addition of the Australian luxury cosmetics brand was a significant expansion into the high-end skincare market. The Australian luxury cosmetics brands’ reputation for quality and innovation is believed to complement L’Oreal’s existing portfolio and will help to fill a gap in the company’s offerings.