National Beauty Group, Jinny Corp. Dissolve Strategic Alliance
Lakewood, California-based National Beauty Group and Doraville, Georgia-based Jinny Corp. announced on Oct. 25 that the two companies have mutually agreed to dissolve their long-term, strategic alliance.
The alliance, which centered around distribution, was originally announced just before Cosmoprof North America 2012 this past July, but included ongoing collaboration in technology, best practices and business know-how. (See the September 2012 issue of Beauty Store Business, page 64, "National Beauty Announces Strategic Alliance With Jinny.")
Officials at both companies say that this newest agreement dissolves the previously announced Barbara's Jinny Beauty Distributors—an entity formed to provide a one-stop shop of general- and multicultural-markets, open-line inventory for beauty supplies.
Under the terms of the original agreement, Jinny—the large distributor of multicultural beauty products—was to become a significant supplier to the new entity, especially given its vast general-merchandise selection.
The new business had the potential to transform how the U.S. beauty-supplies sector's supply chain currently operates, according to some in the beauty industry.
This dissolution will now allow each company to refocus its respective effort and resources, note officials.
Markets and opportunities are continuing to change dramatically, and both companies have been separately expanding into adjacent segments, add officials.
Specifically, National Beauty Group is revitalizing its Barbara's Beauty OTC business with new brands, is developing new KB Beauty Supply stores, and is preparing to launch an exclusive line, states Jim Fisher, National Beauty Group CEO.
Jinny is now expanding its multicultural distribution into Africa, according to Eddie Jhin, Jinny Corp. president.
“Today’s market conditions require us to pursue these expanded opportunities”, explains Fisher. "And while we believe we could have achieved great things together, at this time it’s in both our best interests that we focus our efforts on other opportunities unique to our respective companies that will deliver greater benefits to both our companies."
[Image courtesy of Barbara's Jinny Beauty Distributors]