LVMH and Catterton form world's largest consumer-focused investment firm, Mintel taps key personal care packaging trends for 2016, Aussies prefer tap & go to cash, and top beauty mentions in NZ print media.
LVMH and Catterton form world's largest consumer-focused investment firm
2015 was a major year for buy-outs and takeovers in beauty and personal care. We may have seen nothing yet. Private equity firm Catterton Partners made news recently with its US$933 million purchase of Steiner Leisure, owner of Bliss and Elemis, and is also the parent company of StriVectin. Its aggressive buyout strategies are not uncharted territory to LVMH, either. The world's largest luxury goods group, with a perfume and cosmetic portfolio including Guerlain, Givenchy, Acqua di Parma and Sephora, has been investing through Catterton since 1998.
In a move that extends the global reach of both parties, the multinationals have formed a new company called L Catterton with a target to invest in major consumer categories, including perfumes and cosmetics. LVMH and Groupe Arnault, helmed by the Chairman and CEO of both - Bernard Arnault - will own 40 per cent of L Catterton and 60 per cent will be owned by partners in Catterton Partners. The new firm will be headed by J. Michael Chu and Scott A. Dahnke with headquarters in Connecticut and London. The big picture aim is to grow assets to US$12 billion to become the largest global consumer-focused investment firm, covering all major regions from North America to Europe, Asia and South America. Corporate code for - we have huge acquisition plans.
Mintel taps key personal care packaging trends for 2016
Packaging is the so-called silent salesperson. The first thing that excites consumer interest in a new product by making it stand out on shelf. If a brand makes a slip-up in the appearance and messaging of its packaging, even the best product can be an epic fail. Leading researcher Mintel has pinpointed the six key beauty and personal care packaging trends we will be seeing more of this year.
. Going Digital: Digital printing has mainly been used for limited editions and personalisation says Mintel. This year it will shift to mainstream as much for economic and speed-to-market benefits as its ability to attract consumers visually and emotionally.
. Clean Packs: It's a rare shopper who doesn't read the info on the pack these days. Time is limited, though, says Mintel and consumers want the facts not unwanted clutter which doesn't help them make buying decisions. Clean labelling and plain language/communication on packaging will be vital to increased sales.
. Green Packaging Plus: Consumers are not ready to pay more for "green"packaging says Mintel. But when price and quality are similar, customers have a clear preference for eco or alternative use packaging. Even the major mass brands have sustainabilty targets nowadays and no one in the beauty and personal care industries can afford to be perceived as contributing to excessive landfill.
. Size Matters: With more singletons and couples in the population, 2016 will be a tipping point when brands must get their act together and deliver a full range of sizes that consumers consider as the right ones for their needs. The personal care version of the old joke - What's the definition of eternity? Two people and a ham - is increasingly not cutting any ice for brands that only offer family-size products in an age of decreasing brand loyalty.
. Welcome to the Mobil-Ution: Tech predictions can be a thorny area. Just as many bite the dust as come true. But Mintel is backing mobile-engaged packaging with features such as BLE ( bluetooth low- energy) as "the new front line in the battle to win consumers hearts, minds and wallets".
. Flexible Future: Flexible packaging, notably pouches, have long been considered a bit downmarket. Not anymore. Just as tubes came back with a vengeance because of new digital printing and material technologies, Mintel are predicting a resurgence in pouches. According to the researcher- "Truly innovative brands are looking to the next generation of rigid/flexible hybrids that offer functional and environmental benefits alongside great shelf presence".
Aussies prefer tap & go to cash
Eight years ago when contactless payment cards were introduced to Australia, many people were terrified of fraud. The early ads didn't help by showing people running and even somersaulting past terminals as they forked out a small fortune in seconds. According to a study by Galaxy Research commissioned by MasterCard, Australians have now applied the nation's classic "no worries" approach to one of the fastest adopted payment technologies worldwide.
Australia now has 625,000 contactless payment terminals nationwide. Movie theatres, fast food outlets, convenience stores, bars and restaurants are among the most favoured venues for tap and go purchases. As far as the beauty industry is involved, so are pharmacies. Nearly 40 percent of cosmetic purchases in Australia are impulse buys which is why pharmacies charge big money for beauty brands to cluster around their cash registers.
Over 66 per cent of those surveyed preferred tap and go for transactions under $100 instead of going to the bother of entering a PIN and 64 per cent preferred the method over cash. Speed and convenience aren't the only benefits. The vast majority of Australians (82 per cent) rightly believe they are more likely to be reimbursed for unauthorised payments on a credit or debit card.
Not that there's a great deal to worry about. Australian Card Data says that fraud relating to contactless payments accounts for less than 2 per cent of total credit card fraud in spite of the huge increase in the technology's use. Shoppers in WA are most in love with their tap and go plastic with 72 per cent preferring the method, folllowed by NSW (67 per cent), Victoria and Tasmania (both at 66 per cent).
Top beauty mentions in NZ print media
Kiwi beauty editors love their nails when it comes to spreading the word about the latest make-up launches reports analyst My Market Insight. In 2015, the collective eye makeup category scored the most editorial mentions in New Zealand print media but nail polish was the top single sector with 1200 mentions throughout the year. essie grabbed top ranking, followed by OPI.
Lipstick took out the number two spot with leading the pack in NZ print media, followed by L'Oreal Paris with the Colour Riche franchise and Revlon's Ultra HD and Super Lustrous lipsticks. Eyeshadow secured the number three spot in makeup editorial. Foundation also received a lot of - ahem - coverage, thanks to a year-long rollout of groundbreaking products. The most featured release was Clinique Beyond Perfecting Foundation + Concealer. Other prestige newcomers such as YSL Beaute Fusion Ink Foundation and Lancome Miracle Cushion got a lot of editorial love, too.
Mascara was as popular a topic as ever, rounding out the top five makeup products across the Ditch. Star performers included: Benefit Roller Lash, Little Black Primer and L'Oreal Paris Miss Manga Mega Volume.
In anticipation of the party season, New Zealand women were exhorted to spend up big on looking younger. The most advertised beauty product in New Zealand print media for the month of November was L'Oréal Paris Revitalift Filler Revolumising Serum with a four week ad spend of $NZ53,700.
Snippets from the wires
. India's luxury goods market is poised to surpass $US18.3 billion this year says Assocham. Luxury beauty products have been star performers reports the researcher, averaging 28 per cent growth over the past three years. A majority of the high income earners surveyed purchase perfumes and cosmetics during overseas trips.
. Tax problems have long been associated with Italian fashion designers, including Dolce & Gabbana, Giorgio Armani, Miuccia Prada and Roberto Cavalli. French tax authorities have targeted Karl Lagerfeld for not declaring $US21.6 million over the past six years for freelance work outside his Chanel and Fendi "daytime jobs". The funds under scrutiny mainly come from the iconic designer's collaborations with and Melissa shoes and hotel design projects.
. Colour cosmetic sales in the UK jumped seven per cent in 2015 to reach close to AUD$1.7 billion reports Nielsen. The researcher attributes the upsurge to the popularity of selfies as sales of concealers, eyebrow make-up and lip product soared. On a more pragmatic note, Helen Beddow, Nielsen Senior Health and Beauty Client Manager, gives some of the credit to video tutorials and vloggers. While the UK's respected The Grocer magazine fingers innovation as a key driver of last year's growth.
. Way back in 2010, US sales of P&G's Olay skincare brand reached US$1 billion. Since then revenues have slumped over 20 percent to US$769 million. That's still a spectacular performance but the power brand wants to claw back its glory days. P&G will eliminate one sixth of the current lineup and introduce dedicated display boxes in mass retailers in the US in a bid to attract new fans.
. Macy's is planning a sell-off of sorts. The largest US department store is looking for "interested parties" to buy major stakes in its leading flagship properties in San Francisco, Chicago, Minneapolis and Manhattan's West 34th Street landmark.
