Alibaba International Digital Business Group (AIDC), a subsidiary of Chinese retail giant Alibaba, has agreed to acquire a minority stake in Vietnamese cosmetics and beauty chain Hasaki.。

Hasaki is backed by a Vietnam fund owned by Hong Kong-based private equity firm Excelsior Capital Asia, and the financial advisor for the deal will be Ho Chi Minh City-based Koru Capital.。

Hiep Dinh, founder and CEO of Hasaki, said: "We are delighted to have AIDC as our investor and despite the challenging macro environment, this transaction is a strong testament to Hasaki's business model and team capabilities.。"

Founded in 2016, the beauty and personal care retail chain now operates more than 140 stores and clinics in Vietnam.。In addition to physical stores, Hasaki also operates an online retail platform that includes a website, mobile app, and in-store (where a retailer rents some of its retail space for use by another company and operates another independent store).。

As of November 2023, the company's user base had expanded to 3.8 million members and nearly 750,000 monthly shoppers.。The company said it aims to capture at least 35% of the local market share by 2027.。

Hasaki said the beauty and personal care industry is one of the fastest growing consumer sectors in Vietnam, with a total market size of US $2.2 billion and an annual growth rate of 7%.。Currently, the segment is in a phase of transformation - institutional retailers are replacing traditional individual sellers and small stores.。

Beauty Box is another cosmetics chain backed by local private equity, with Mekong Capital investing in the company in 2021.。Meanwhile, L Catterton-backed Indonesian beauty and personal care e-commerce company Social Bella also entered the Vietnamese market a year ago.。

In March this year, Alibaba Group adjusted its organizational structure and split the group into six business units, and AIDC was formally established at that time.。

After the adjustment, AIDC operates Alibaba, the largest integrated international online wholesale market in China..com, and other overseas commercial retail businesses, including Lazada, AliExpress, Trendyol and Daraz。

For AIDC's business operations, Alibaba disclosed in its earnings report that AIDC's revenue increased 53% year-on-year to 33% in the quarter..600 million dollars。

During the earnings call, Alibaba said that there is huge growth potential in the international market in the next few years, and the group will expand its investment in selected high-potential regional markets to seize and take advantage of the current highly identified growth opportunities.。

In addition, in Vietnam, Alibaba has invested in The CrownX, an integrated retail platform owned by local conglomerate Masan Group.。In 2021, Alibaba and BPEA EQT formed a consortium to acquire The CrownX 5 for a total cash price of $400 million..5% of the shares。