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- Cellmid subsidiary, Advangen International, has entered into an initial three-year distribution agreement with K2B
- This agreement is for the sale of its Evolis anti-aging hair care and hair loss products in the Republic of Korea
- In Korea, roughly 20 per cent of men and 10 per cent of women experience hair loss
- In 2017 the Korean hair loss market was estimated to be USD$3.69 billion
Advangen International, has entered into an exclusive agreement with K2B Co. This agreement is for the distribution of its Évolis anti-aging hair care and hair loss products in the Korea.
This agreement is a major step towards delivering Cellmid’s Asian expansion plans with the product expected to launch in Q4 FY2020 following registration with the Korean Ministry of Food and Drug Safety.
While the initial term of the agreement will be three years both companies have the opportunity to extend it for another two years, subject to meeting minim order requirements.
Speaking of these minimum order requirements it will begin in the first year and is expected to increase over the next two years.
K2B will primarily use television shopping and e-commerce for the sale of Évolis products which is consistent with Cellmid’s objective to increase its direct to consumer business and customer base globally.
Evolis is a range of TGA (therapeutic goods administration) listed hair growth products and was created after Cellmid CEO Maria Halasz was affected by hair loss and thinning.
While searching for solutions to combat hair loss she encountered technology based on the blocking protein, FGF5, which possess cell survival activities.
In Korea, the extensiveness of significant hair loss in the population is estimated to affect around 20 per cent of men and 10 per cent of women.
This percentage increases significantly in the older population and surprisingly around younger men.
As well as this, Korean millennials are placing increasing value on appearances and are sophisticated consumers of premium quality imported products, such as those from Australia.
According to K2B research, in 2017 the Korean hair-loss market was USD$3.69 billion and it’s expected to only go up. It is also expecting the Évolis sales to grow exponentially in the first three years once the product is launched.
“We are excited to have the opportunity to launch Evolis in Korea,” K2B President Mr Kim said.
“Our research into the hair loss and anti-aging hair care segment and our understanding of the television shopping channels places us in a strong position to create a substantial market for the Évolis products in Korea.”
