P&G acquires online beauty startup
Procter and Gamble is making a move into the direct-to-consumer beauty space with its first acquisition in eight years.
P&G has acquired Native, a startup that specializes in natural personal care products, for $100 million.
The deal will help P&G broaden its portfolio, which includes Secret, Old Spice and Gillette, reach a growing segment of consumers who want products that are free from certain ingredients or full of natural ones, P&G chief brand officer Marc Pritchard told CNBC on Wednesday.
"(Native) really hits a great sweet spot for us," he said. "And it's online, so it's a business model that allows us to really get into more of a direct-to-consumer relationship, which is kind of where things are going."
P&G said Native's direct-to-consumer model is one of the factors contributing to its decision to buy the brand. Similar concepts in razors from competitors like Harry's and Dollar Shave Club have cost P&G's Gillette brand market share in the category.