SINGAPORE: MediaCorp on Monday (Sep 28) announced a media-for-equity deal with French skincare firm Crème Simon.
The deal - the first of its kind for the Singapore media company - will see MediaCorp provide advertising to Crème Simon for one year in exchange for an undisclosed stake in the firm.
The 155-year-old heritage skincare brand plans to use the advertising space and airtime - across MediaCorp's range of print, online, TV, radio and out-of-home platforms - to reach out to Singapore consumers.
As for MediaCorp, the media-for-equity investment model is seen as an effective way to optimise advertising inventory and participate in entrepreneurial ventures with potentially strong returns.
Said Mr Guillaume Sachet, MediaCorp’s Head of Strategic Planning: "This is a new business model that we're launching in the market, and we intend to build a pipeline and have many more.
"As a matter of fact, we're looking for two prongs. The first one is companies, like Crème Simon, which we think have a strong potential for return, as well as help us better understand the women's segment, which is an important part of our strategy this year. The other one will be more of the digital media start-ups, where it's a bit more strategic in terms of understanding new business models."
Crème Simon was relaunched by a private equity fund and private investors in 2015, and is now headquartered in Singapore.
"Crème Simon (products) are free of alcohol, silicon, parabens and oil, and are actually specially formulated for the different climate conditions,” said Ms Felicia Soh, Managing Director for Crème Simon. “In fact, our skincare range - specially formulated for the hot and humid climate here - has been doing very well here in Singapore."