CVC Capital buys owner of Eylure and Dr Teal's; 3INA to open four more Australian locations; Aussies predicted to spend $25 million more on eBay in June; and innovative ingredients and clinical results driving global spa growth.
CVC Capital buys owner of Eylure and Dr Teal's
Private equity firm CVC Capital Partners, the former owner of ACP Magazines, broke the European record for fundraising last week to add $US18 billion to its acquisition war chest. Two years ago, the major investor bought Douglas, Europe's largest perfumery chain, and has also indicated interest in acquiring The Body Shop. With a network of 23 offices worldwide, including Australia, CVC Capital currently manages $US65 billion in assets.
Following its acquisition of an 80 per cent stake in Swiss luxury watchmaker Breitling in April, CVC has acquired PDC Brands from fellow private equity player Yellow Wood Partners. Founded in 1981, PDC is one of the fastest-growing beauty and wellness companies in the world, with a product stable stretching across mass, drugstore, grocery and specialty retailers throughout the US, the UK and Australia and over 60 other markets. Major brands in PDC's portfolio include false eyelash leader Eylure, bath products, the Cantu ethnic haircare brand and Body Fantasies. Terms of the deal were not disclosed.
3INA to open four more Australian locations
The recipe for success is simple – professional European makeup at affordable price points. 3INA, pronounced mina, was founded in the UK in 2016 by seasoned entrepreneurs, Pablo Rivera and Mark Eve. With more than 450 SKUs across six categories and new items hitting the shelves on a monthly basis, expansion has been stratospheric. Within four months of its first store in London, 3INA had opened up shop in Athens, Milan and Melbourne with two stores in Melbourne Central and Southland. An e-commerce deal with ASOS.com also fast-tracked the bottom line.
Melbourne remains the springboard for 3INA's Australian network. The company is currently hiring for new outlets in Highpoint and Watergardens shopping centres and the Youth Departments in Myer stores in Chadstone and Northland. The core target market is Millennials and digital platforms have been central to fueling 3INA's marketing and sales strategies.
The company also has stores in Malta, India, Belarus and South Africa. Over the next year, 3INA will extend its reach to Malaysia, Singapore, Indonesia and Thailand as part of its three year plan to expand to 300 stores worldwide. The company has assembled an executive dream team to achieve its goal – Helen McGee (ex-Net-A-Porter) is head of marketing, Cesar Perez Luna (ex-Sephora) is head of business development and Cristina Cobo Becerra (ex-Kiko Milano) will oversee product development.
Aussies predicted to spend $25 million more on eBay in June
Feeling the chill? The thought has eBay rubbing its corporate hands. According to the e-commerce giant, Australians buy more online in winter in a new trend dubbed "buy-bernation". In a YouGov survey, eBay's sales in June have surged 28 per cent over the past five years and the company is expecting to ring up $25 million more by the end of the month than it did over the same period in 2016.
No prizes for guessing that people like to stay home when temperatures drop to single digits. But the game changer is the increased popularity of mobile apps which allows them to order food, stream movies, find a partner and just buy more stuff without leaving the house.
End of financial year sales have always been strong, says Megan English, eBay spokesperson and trend tracker. "But it's going to be important to deliver deals and savings that are contextual to winter and pop culture moments, not just those items that traditionally perform well when discounted".
Unsurprisingly, feathering their nests is tops the shopping list for many consumers when the mercury drops, reveals YouGov. Over 39 per cent of those surveyed bought home furnishings and decor items online and 31 per cent kept themselves entertained in their cribs with home entertainment systems, media and technology purchases. Before the end of the month, predicts eBay, Aussies will have spent 19 million hours on its website, as 63 per cent of respondents confirmed that they preferred to stay inside more during winter.
Innovative ingredients and clinical results driving global spa growth
The US spa industry alone is predicted to reach $US20 billion over the next three years, says the International Spa Association (ISPA). But although relaxing and pampering are still in high demand, today's global spa industry is driven by new technology and innovative ingredients. Last year, L’Oréal-owned SkinCeuticals became the market leader in the US professional skincare sector – worth $US1 billion a year – reports the Kline Group. A pole position that is spurring the French multinational to promote the brand more strongly in key international markets, including Australia.
Spa clients are looking for high quality products, with clinically proven results, says Annet King, vice-president of global education for Elemis. "It's now a given that professional brands inspired by spas will have a high percentage of active ingredients and/or cosmeceuticals".
Sustainability and organic products that offer visible results are also very much top-of-mind because of the broadening of the concept of wellness to include fitness, diet, skincare, body work and more. Estee Lauder-owned Aveda launched its Tulasara certified organic range last year. In Australia, Endota Spa with 95 locations, is the largest day spa chain. Similar to the general skincare market, there is also a strong trend to going back to traditional ingredients such as clays, seaweeds and other sustainably sourced oldies-but-goodies re-tweaked by the latest advances in green chemistry.
Snippets from the wires
- During her fragrance "career" which lasted from 2007 to 2013, Mariah Carey's monicker graced 12 perfumes, including the debut juice simply called M. The diva more recently partnered with M.A.C Cosmetics for a capsule collection last year. If the rumour mill is correct, she is thinking about launching her own makeup line. The spark that ignited the whispers was a sighting of Mariah and her manager Stella Bulochnikov checking out retail space in Beverly Hills.
- Prestige beauty sales in the US continued to climb in the first quarter of the year to $US4 billion – a jump of 4 per cent. But the fastest-growing fragrance segment was home scents. Sales of candles, diffusers, room sprays and more jumped 16 per cent over the period, reports the NPD Group.
- Dr PawPaw, the UK's first pawpaw balm, is a Johnny-come-lately compared to Australia's iconic 111-year old Lucas Papaw Ointment. The Brit brand was founded in 2011 and has announced milestone sales of one million tubes worldwide. Key markets are the UK, the US, Italy, France, Poland, South Africa and the Middle East.
- More than 80 per cent of countries around the world still allow animal testing, says Cruelty Free International. The organisation has partnered with the Body Shop to lobby the UN to enact a global ban on animal testing on finished cosmetics and cosmetic ingredients.
