Düsseldorf, Frankfurt Entrepreneur Marcus Asam not only successfully steered the online cosmetics retailer Asambeauty through the pandemic, for him the time was downright an economic stimulus program. And one of his co-owners now apparently wants to use this favorable time to sell his share for a good price.
According to financial circles, advertising marketer Ströer, who owns a good half of the company, has commissioned the investment bank JP Morgan to examine options for the company, which is valued at EUR 350 to 400 million. This was confirmed to the Handelsblatt by several people familiar with the matter. Asambeauty expects an operating result (Ebitda) of around 25 million euros for next year and could be valued 14 to 16 times including debts.
Online retailers such as Zalando and Sephora, who were interested in the perfume retailer Flaconi put up for sale by Pro Sieben at the beginning of the year, are considered possible buyers. A deal, however, never came off. Ströer and JP Morgan declined to comment. When asked, Marcus Asam also said: “Unfortunately, I cannot make any statements about possible sales intentions by my co-partner Ströer.”
The past months of the pandemic have at least made the company’s potential clear: Asambeauty was not only spared delivery bottlenecks – the company even had an enormous need for new employees during the pandemic. The number of employees is growing and growing – in the meantime it has almost doubled compared to the previous year, to around 500.
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Asam’s recipe for success: its digital shopping platform. He has more than compensated for his sales losses in stationary business due to lockdowns and unsettled customers.
Teleshopping for Generation Z
Last year, Asambeauty was one of the first companies in the industry to implement the “live stream shopping” trend from Asia for the European market. With this approach, new cosmetic products are presented, explained and tested during a live broadcast on the Internet. The streams can also be viewed on the company’s own website via integrated software.
In the meantime, potential buyers can ask specific or application-related questions, which employees answer verbally or in chat. At the same time, customers can share their own experiences and give each other tips in the community.
For Asam, live streams via Instagram and Co. are now part of everyday business. “We are now broadcasting several times a week with our own team of employees, TV presenters and well-known influencers,” says the son of the founding couple Erich and Ingrid Asam. The CEO himself also occasionally takes part and reports on new products.
It is clear that the digital approach has given the company an advantage: “Our brand world can be better experienced for our customers and we can provide additional buying impulses,” says Asam. Because during the live stream, customers can put the product shown directly into their shopping cart.
E-commerce is booming in the corona lockdown. However, during this time, customers could not pick up the products and test them. And what exactly make-up or lipstick looks like on the skin is often decisive for the purchase decision.
Although the products cannot be touched when shopping online, customers can ask other users about their experiences. Asambeauty thus played the strong demand in the area of e-commerce into the cards – also because they have been selling their products via teleshopping for more than 20 years and have already gained experience with this type of sale.
E-commerce continues to grow
Internet trading brings enormous sales potential for companies on the European market. For many, the Internet is now the most important sales channel – including Asambeauty. Despite major investments in areas such as IT, marketing and infrastructure, the beauty company was able to keep profitability in the double-digit percentage range. Last year the company generated record sales of 106.3 million euros.
Sales increased by around 27 percent compared to the previous year. Asambeauty was even able to grow in stationary retail, which contributes 20 percent of total sales. For the coming year, the company even expects sales growth of 30 percent.
The pandemic has also taught Asam’s company a lot with regard to staff management. “Before that I probably couldn’t have imagined sending almost the entire workforce to the home office overnight,” said the CEO. Asam has now opted for a permanent hybrid working model with desk sharing and mobile working. In coordination with the manager and their team, his employees choose when to work mobile and when to work in the office.
The hiring of numerous new employees also took getting used to in the pandemic. “Recruiting and onboarding had to take place mostly digitally, which of course was a change,” says Asam.
Nonetheless, further hires are planned, because the entrepreneur wants to continue promoting the business internationally. “For example, we founded subsidiaries in the USA and China in 2021 and set up our own teams on site,” says Asam. In China, they rely on third-party platforms such as the Tmall online shop operated by the Alibaba Group. Asambeauty also wants to gain a foothold in Poland this year. The company is represented in around 60 countries.
“Only sustainable corporate management is future-proof”
In addition to expanding online business and internationalization, the company also has clear goals in the area of sustainability: from environmentally friendly packaging to green electricity for production and cooperation with the climate compensation agency Climate Partner to expanding social commitment.
In terms of packaging, for example, Asambeauty is increasing the proportion of recycled plastic and increasingly using alternatives such as glass. The CEO has a clear opinion: “Only sustainable corporate management is sustainable.” Since the topic is becoming increasingly important for consumers, further improvements are being planned. Asambeauty plans to add refill bags and refill cups to its range at the beginning of next year. The company is also planning its own certified natural cosmetics line. This is what customers want above all.
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