JD Sports enters the beauty arena by investing in the hair care brand Hairburst. The social media favorite brand is expected to acquire more online businesses following the JD investment.
The sports high street chain made its first foray into the beauty market. Hairburst is popular on Instagram, with more than 800,000 followers, which helps to sell its products. Its range includes chewy hair supplements, shampoo, and styling products. As the rise of online platforms transforms the cosmetics industry, JD Sports will help the beauty brand acquire a selection of bolt-on businesses.
Peter Cowgill from the sports company expresses that they "are pleased to have made this initial acquisition in the beauty sector and have been impressed by the capabilities of the management team."
Sports Brand Cosmetic Investments
JD Sports Invests in the Hair Care Brand Hairburst
Trend Themes
1. Beauty Brand Diversification - As JD Sports invests in the hair care brand Hairburst, there are opportunities for other sports brands to branch out to other types of consumer goods beyond the traditional sports equipment and apparel market.
2. Social Media Marketing in Personal Care - With Hairburst's success on Instagram, there could be a rise in personal care brands using social media to sell their products, offering opportunities for digital marketing and advertising companies.
3. Online Acquisitions in Cosmetics - As the beauty industry moves online, JD Sport's investment in Hairburst highlights the potential for more acquisitions of online cosmetic businesses to curb online competition, offering opportunities for mergers and acquisitions consultants.
Industry Implications
1. Sports Retail - As JD Sports diversifies by investing in Hairburst, other sports retail businesses could investigate investing in complementary consumer products to diversify their offerings.
2. Personal Care - Hairburst's popularity on social media shows that there is potential for online personal care brands, and there is an increased opportunity for investment in the Personal care niche.
3. E-commerce - As more beauty products move online, there is the opportunity for e-commerce platforms to provide a personalized approach to help brands stand out in a crowded market.