The retailer has acquired a 23% equity interest in Ovation, which develops cosmetic products, for approximately US $55.8 million.
The move is another step forward in the Chinese flash sales site’s move into the cosmetics sector, following its recent acquisition of beauty e-retailer, Lefeng.
“With Ovation as a strategic partner, we are well positioned to expand full-force into the booming cosmetics segment in China and fortify our competitive advantages, as we capitalize on our synergies to build out this sophisticated and comprehensive cosmetics offering,” the brand stated.
Vipshop’s move into cosmetics looks to capitalize on increasing consumer focus on e-commerce in the region, and suggests China may be turning away from the market’s traditional mainstay, premium brands, toward lower priced beauty.