Asos is reportedly eyeing a potential takeover of two major online beauty platforms in a bid to further expand into diversified markets.
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.