Amazon is expanding its presence in Japan’s cosmetics market by partnering with Istyle, the owner and operator of the @Cosme stores. Istyle will offer beauty products from a “wide range of brands and diverse categories” on Amazon’s e-commerce site in Japan. In addition, Istyle will provide their members with the latest on beauty products and sell cosmetics from a variety of brands on Amazon’s site, tentatively called @Cosme Shopping.
SEE ALSO: Lotte Duty Free launches vegan cosmetics range online
Amazon will receive USD 18.7 million worth of convertible bonds and USD 86.3 million in warrants from the Japanese retailer. A conversion of the bonds to shares would give Amazon a stake of about 36 percent.
Besides issuing convertible bonds to Mitsui & Co, Istyle plans to issue another USD 11.2 million to support its overseas business and domestic retail operations.
In Tokyo’s Harajusku district, Istyle opened a brick-and-mortar store to merge online and offline sales. In addition to drug stores and department stores, Amazon may also be able to boost its presence in the cosmetics market through this partnership.
The company plans to position its cosmetics business as one of its key growth areas. It plans on “broadening access to Istyle’s customers and manufacturers,” according to a spokesperson. Through its sales network, the company plans to offer Japanese-made cosmetics overseas.
SEE ALSO: Cartier partners with Amazon to fight against counterfeit goods
In addition to its partnership with Amazon, the company also plans to acquire the cosmetics specialty store chain Tokyo Komachi, which operates four stores in large commercial facilities – Lazona Kawasaki, Lalaport Toyosu, Lalaport Yokohama, and Aeon Urawa Misono. The deal is expected to close by the end of next month.