Asos is reportedly eyeing a potential takeover of two major online beauty platforms in a bid to further expand into diversified markets.
According to Sky News, the online retail giant is considering the move after Feelunique and Cult Beauty were put on the market by their present owners.
Sources told Sky that a formal bid from the group for either business “remained an uncertain prospect, and that it was only expected to pursue one – if either – of the two targets”, however.
Sky added that a purchase of either platform would be in line with Asos’s interest in expanding its presence in the beauty market after face and body product sales soared by a “record” 114% in its latest half-year results.
Insiders reportedly said that several groups in the online beauty sector, including THG Holdings, parent of The Hut Group, and German-based rival Zalando, are also expected to consider offers for both Cult Beauty and Feelunique.
Feelunique previously revealed a period of “strong” trading during its golden quarter, with sales soaring by 39% to £28m in the 12 weeks ended 3 January 2021.
This growth was attributed to ongoing investments in its e-commerce platform, alongside “soaring” marketplace demand, with active customers up by 41% to more than 1.3 million at the end of the period.
It comes as demand for skincare, haircare and fragrance increased “significantly”, according to the group, with sales of retinol-based products rising by 145% and sales of dermatologist-approved skincare up by 174%.
Asos has been contacted for comment.