Colour cosmetics market in Australia and New Zealand soars to $US1.4 billion; Puig on track for annual revenues of $2.9 billion; L'Oréal to develop global mass market spa brand; and LVMH To reunite Parfums Christian Dior with fashion arm in $US13 billion deal.
Colour cosmetics market in Australia and New Zealand soars to $US1.4 billion
ANZ – Australia and New Zealand – is the world's smallest colour cosmetics market, but punches well above its weight on a per capita basis reports Euromonitor International. According to the researcher, combined sales of makeup in both countries reached $US1.4 billion in 2016.
The popularity of selfies and apps are two of the most obvious reasons behind the worldwide increase in makeup sales. But the four most powerful factors spurring growth are – "fundamental consumer interest in the category", the rise of ethical/organic makeup brands, multifunctional products, and continued investment in brands – big and small – to ensure that the makeup sector remains dynamic at all price levels.
Euromonitor International divided the world into seven regions for its latest report, breaking out Australia and New Zealand figures unlike other data collectors. When you consider the vastly larger populations in the other regions, ANZ is a very lucrative market indeed.
- Asia/Pacific - $US17.1 billion
- North America - $US16.9 billion
- Western Europe - $US12.8 billion
- Latin America - $US6 billion
- Middle East & Africa - $US3.8 billion
- Eastern Europe - $US2.8 Billion
- ANZ ( Australasia) - $US1.4 billion
Puig on track for annual revenues of $2.9 billion
Puig is on a roll. The fast-growing Spanish fashion and fragrance company recently signed new agreements in Australia, New Zealand and Colombia. Last year's expansion strategy highlights included the acquisitions of minority stakes in US-based EB Florals and Granado, Brazil's oldest pharmacy brand.
Net revenues for the major fragrance licensee and owner of Penhaligon's and L'Artisan Parfumeur grew 9 per cent in 2016 to 1.79 billion euros $AU2.6 billion. Puig expects the strong performance to continue as it targets global sales of 2 billion euros ($AU2.9 billion) by the end of this year. A hike of 33 per cent from 2015 sales figures.
Over 85 per cent of Puig's sales come from outside Spain – 41 per cent in the EU and North America and 44 per cent in Asia/Pacific and South America. Bullet performers over the past year have included the first master brand from Prada – L'Homme and La Femme – Luna by Nina Ricci, Good Girl by Carolina Herrera and the Jean Paul Gaultier stable. Penhaligon's also did well, opening six new stores in the US to add to its tally of 16 in the UK, six in Asia and two in Paris.
L'Oréal to develop global mass market spa brand
Last July L'Oréal bought Societe des Thermes de Saint-Gervais-les-Bains and the license to Saint-Gervais Mont Blanc skincare. In spite of the lengthy names, the brand is one of the smallest to be acquired by the French giant. With an annual turnover of 3 million euros ($AU4.36 million), L'Oréal's CEO Jean-Paul Agon trumpeted the "tremendous potential"of the 100% pure thermal spring water products.
The dermo-cosmetic face and body skincare lineup, boosted by Alpine herbs, seemed a natural addition to L'Oréal's Active Cosmetics Division alongside La Roche-Posay and Vichy. But it obviously had to be marketed differently to avoid cannibalising La Roche-Posay, whose products are also based on pure spring water.
L'Oréal has no intention of developing a large-scale spa business, says Agon. But Saint-Gervais Mont Blanc will be developed as a global mass-market spa brand with affordable price points. One of 11 premium mineral springs in France, Mont Blanc is the highest mountain in the French Alps and shares a monicker with the German luxury maker of pens, watches and jewellery. "Mont Blanc is like the Eiffel Tower, it is known by consumers around the world", notes Agon.
LVMH to reunite Parfums Christian Dior with fashion arm in $US13 billion deal
Global sales of Christian Dior leathergoods, couture and ready-to-wear fashions, jewellery and shoes have doubled over the past five years to 2 billion euros ($AU2.91 billion) through a worldwide network of 198 stores. Bernard Arnault, the chairman of both LVMH and Dior Couture, is already a major shareholder of the French super brand's beauty and fashion businesses.
In a "simplified public offer", the Arnault Family Group will acquire the remaining 26 per cent shareholding in Christian Dior. LVMH will acquire Christian Dior Couture to take full control of the prestige house, reuniting the fragrance and beauty and fashion divisions. By making Christian Dior a wholly-owned subsidiary in a deal worth $US13 billion, the world's largest luxury goods group is poised "to harness its high growth potential". Shares in both companies soared on the news - LVMH by 4.9 per cent and Chrsitian Dior by 13 per cent.
Snippets from the wires
- When Sephora signed a deal with JC Penney, the value Middle America department store, in 2006, many predicted it might be short-lived. Eleven years later, the partnership is still going gangbusters. JC Penney will add 70 more Sephora concept stores to its network by year's end, taking the number to 650 overall. In addition, 32 Sephora formats in "power" locations will be expanded by up to 50 per cent.
- Global retail development is booming. More than 12.5 million square metres of "shopping" were added to the world's retail footprint in 2016, reports CBRE – a jump of 11.4 percent on 2015. Australia added 680,000 square metres last year and the redevelopment of Chadstone in Melbourne propelled the Victorian capital into the top 10 "most active" retail markets in the Asia/Pacific region, which accounted for 80 per cent of global growth. The only non-Chinese city in the top rankings.
- Over 10,000 American consumers cast their votes in this year's CPG awards. The five top placegetters in the beauty and personal care category were – Pantene Expert Pro-V Intense Hydration Shampoo and Conditioner, L'Oréal Paris Pure Clay Mask, L'Oréal paris Voluminous Mascara Primer and Burt's Bees Lipstick.
- According to the UK Cards Association, the four countries with the highest annual online spend per household are – the UK ($US5900), Norway ($US5400), the US ($US4500) and Australia ($US4000).
