Welcome back to Skin by TBS.
Here's something LVMH didn't say outright but the numbers reveal: Sephora is now their beauty powerhouse, growing at 7% while the legacy Perfumes & Cosmetics division crawls at 2%. The retail experience is beating the product itself—and that's not just a LVMH story, it's the future.
This week also marks critical power shifts across regions. L'Oréal just made its first-ever investment in a Chinese beauty company, valuing C-beauty group Chando at unicorn status. South Korea's government is backing K-beauty's expansion into Southeast Asia and Japan (read: diversifying away from US tariff risks). And Coty's strategic review puts its entire $400M Brazil business on the table—creating a massive vacuum in Latin America.
Watch where the smart money moves, who's betting on Asia's rebound, and which markets are becoming the new battlegrounds.
Plus: I’m speaking at the SAMB Beauty Industry Conference in November so sign up now to get a breakdown on global beauty markets.
Here's what matters this week.
Warm wishes,
Deepa
What Matters Right Now
LVMH's Real Growth Engine Isn't Luxury—It's Sephora
1 big thing: LVMH's Q3 results reveal Sephora crushing the company's legacy beauty business—7% quarterly growth versus Perfumes & Cosmetics' 2%.
Why it matters: Sephora is winning by rewriting the retail playbook. It's not just selling products; it's a global launchpad defined by brand curation and experiential retail. LVMH’s leadership itself contrasts Sephora's destination status—where half the brands are exclusive—against transactional platforms like Amazon. The results confirm a clear shift in LVMH's growth engine: momentum is now coming from markets with strong local demand, like the US and a rebounding Asia, rather than from tourism-heavy regions like Europe. Asia, in particular, is re-emerging as the critical region driving future growth, with demand from Chinese consumers showing a "noticeable improvement". (More).
Strategic Moves
L’Oréal Backs Chinese C-Beauty Group Chando:
What’s happening: L’Oréal’s venture capital fund, BOLD, has made its first-ever investment in a Chinese beauty company, taking a minority stake in the C-beauty group Chando. The deal, reportedly worth 700 million RMB, values Chando at "unicorn" status (over $1 billion).
Why it matters: This move is a major validation of C-beauty's rising power. It’s a powerful acknowledgment that homegrown Chinese brands, with their deep R&D and digital-first DTC models, are no longer just acquisition targets but formidable players that are reshaping the Asian market from within (More).
South Korea Launches K-Beauty Challenge to Target Southeast Asia & Japan
What's happening: South Korea's Ministry of SMEs and Startups has launched the "2025 K-Beauty Creator Challenge," a government-backed project to boost small K-beauty brands globally. After focusing only on the US last year, the program is now expanding to target Japan and Southeast Asia specifically.
Why it matters: This isn't just a contest; it's a direct government response to export diversification needs, likely fueled by US tariff uncertainties. The strategy is to find promising K-beauty SMEs (including inner beauty and devices) and connect them with global platforms like Amazon and top creators to build brand power in these key Asian markets (More).
Coty's $1.6B Strategic Review Moves Forward: Coty's major strategic review, announced at the beginning of the month, continues to be a dominant story. The review is focused on its $1.2B mass color cosmetics business (CoverGirl, Rimmel) and, crucially, its $400M "distinct Brazil business". The company is exploring all options, including partnerships or a full divestiture, to strengthen its balance sheet. This creates a massive potential power vacuum in Latin America (More).
Brand Intel
My Haire: Dubai-born textured haircare brand announced its official expansion into Africa with the launch of its signature Haire Textures Collection which has premium, ethically sourced extensions for the full spectrum of Afro-textured hair, from 3B curls to 4C kinks. Available in Nigeria from Oct 2025.
Formula H: India’s first neuro-cosmetic skincare for men was launched by Cocky and the key is Kannabia Sense™, an active ingredient derived from Cannabis sativa stem cells, that activates your brain’s pleasure areas, just like Oxytocin.
Shopping Heroes
Editor-approved guides & latest launches.
Editor Approved Guides:
Scalp & Hair:
indē wild: The Ayurvedic powered Shampoo & conditioner now out and suitable for all hair types, including low porosity hair.
Skincare:
Eighth Day: The Ultra-Rich Intensive Moisturizer hydrates skin at a cellular level using multiple weights of hyaluronic acid and a Peptide-rich Plasma, suitable for dry and mature skin or those experiencing facial volume loss related to GLP-1 treatment.
Beauty of Joseon: The K-Beauty brand's new Revive Under Eye Patch delivers cooling hydration via a pearlized essence.
Dr. Althea: The Aqua Marine Jelly Mist is a K-Beauty hydrating mist formulated with sea water and triple hyaluronic acid to leave skin looking fresh and radiant while promoting collagen.
Kelly Zhang x Mount Lai: The Lift & Prep Holiday Set includes a creamy-gel primer with calming botanicals.
Makeup:
Kulfi: Be My Date Lassi Lips Duo combines a pre-existing shade with a new limited-edition colour, Date, inspired by Indian sweet treats.
REFY: The Satin Liquid Lipstick Pen has a nourishing formula featuring hydrating oils and six nude shades perfect for darker skin tones.
Huda Beauty: The Easy Bake Duo Setting Powders includes The Pink Pumpkin duo with two new shades specifically designed for deep to rich skin tones.
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