Henkel front-runner in P&G sell-off, Gucci Westman exits Revlon, France remains world's number one beauty exporter, and US Fragrance Foundation names award finalists.
Henkel front-runner in P&G sell-off
The multinational giant has been working with Goldman Sachs for the first quarter on the potential sale of the Wella brand. More than 50% of the brand's US$2.8 billion annual sales revenues come from hair salons, a sector which has no synergy with P&G's main business. Insiders say that Henkel, the owner of Schwarzkopf, is the front-runner. The German giant bought three US haircare brands over the past year and has a war chest of US$4.5 billion available for buy-outs.
P&G has also sent out sales documents in a search for potential bidders for some of its cosmetic and fragrance brands. Names on the multinational's hit-list of possible purchasers include Revlon, Unilever, Coty and Kao Corp reports Bloomberg. COVERGIRL and Max Factor, in particular, have faced the heat from the increased popularity of niche brands say analysts. CoverGirl's slice of the US market has slumped from 10.8% to 8.7% over the past five years says Euromonitor.
P&G recently sold off Rochas to Inter Parfums and the rest of its fragrance portfolio is losing market share. Even though the stable brings in US$2.5 billion in global sales and includes flagship licenses such as Hugo Boss, Dolce & Gabbana and Gucci, the future looks tricky. During an analysts meeting late last year, P&G CEO Alan Lafley pointed out that the fragrance division performed better when there were only three to four brands rather than twenty.
As we reported, , the maker of electric shavers and toothbrushes, could be a candidate for the block. The combined sales of the P&G sell-off, whether brands are sold individually or collectively, could bring in as much as US$19 billion.
Gucci Westman exits Revlon
Star make-up artist Gucci Westman will lay down her brushes for Revlon this week. As the brand's global artistic director for the past seven years, she helped Revlon carve out a more fashion-forward positioning against increased competition from brands like and Urban Decay. Product innovation was also a key job parameter and Westman's biggest legacy at Revlon is Skinlights, the best-selling luminisers that go head-to-head with their luxe counterparts.
Westman's trend-setting runway looks extended Revlon's appeal to younger customers and she was also a driving force behind the brand's seasonal colour stories. There's no word yet of her next move beyond an enigmatic sign-off - "This was a great chapter in my career, and I am excited for all that's ahead".
France remains world's number one beauty exporter
The South Korean government announced last year that exporting cosmetics would become a national priority. But the fast-moving trend leader has a long way to go to catch France. French beauty exports climbed 4% in 2014 to 8.9 billion euros ($12.45 billion), the country's second biggest net export sector behind aeronautics and aviation ($33 billion) and ahead of the food industry at $9.06 billion.
France retained its position as the world's number exporter of cosmetics with a 15.9% share of the global market, followed by the US (10.8%) and Germany (10.7%). The EU is the major market for French beauty and cosmetic products - 48.2% of exports - followed by Asia at 16.9 per cent. But Asia is the fastest-growing market, lead by China, spiking 11.7% last year. French beauty exports to the Middle East and the US rose 7.1% and 7.6%, respectively, but sales were down in Russia and South America.
US Fragrance Foundation names award finalists
Other countries may trumpet their fragrance gongs but the US Fragrance Foundation Awards, like the Oscars, are the cream of the crop. The winners will be announced on June 17th but here are some of the contenders for the major awards.
- Men's Prestige Fragrance of the Year - Man in Black, Dior Homme Eau for Men, Drakkar Essence, Givenchy Gentlemen Only Intense, Nuit d'Issey, Mankind by Kenneth Cole, for Men, Invictus, Perry Ellis Cobalt and Vince Camuto Homme.
- Women's Prestige Fragrance of the Year - Amore Vince Camuto, Anna Sui La Nuit de Boheme EDT and EDP, Daisy Dream, Giorgio Armani Si EDP, Givenchy Dahlia Divin, Indigo EDP, Josie by Josie Natori, Miss Dior Blooming Bouquet, Narciso EDP from , Viva La Juicy Gold Couture by and Wood Sage & Sea Salt.
- Fragrance of the Year - Women's Luxury - Acqua di Parma Rosa Nobile, Bottega Veneta Knot, Dolce EDP, Gucci Premiere EDT, Jean Patou Joy Forever, Cartier La Panthere, My EDP, Pharrell Williams Girl, Velvet Orchid and Viktor & Rolf Bonbon.
- Fragrance Hall of Fame - Boss Bottled, Bulgari Eau Parfumee Au The Vert, Dirt from Demeter, Donna Karan Cashmere Mist, Dior J'Adore, Amazing Grace, Ralph Lauren Romance, Lancôme Tresor and Victoria's Secret Heavenly.
Snippets from the wires
- Many hair and makeup brands claim a Hollywood connection. But VO5, which is celebrating its 60th anniversary, is hoping for its own star on the Hollywood Walk of Fame in recognition of its starring role in crafting movie hairstyles over the decades. Founded in 1955 by a Culver City chemist called Alberto, the brand has launched a petition on its Facebook page.
- The advent of package holidays in Europe in the 1970s has resulted in a potentially deadly legacy reports Cancer Research UK. Men and women over 65 are around seven times more likely to develop malignant melanoma in contrast to 40 years ago. Over 13,000 people are diagnosed with malignant melanoma each year in the UK, making it the fifth most common cancer in Britain.
- The 23rd French FiFi Awards offered 16 major awards. The three big winners at last week's gala event - scoring two gongs each - were Valentino Uomo by , Black Opium by Yves Saint Laurent and L' Homme Ideal by Guerlain.
- Ace Metrix, a US TV and video advertising analytics company, has fingered the top performing beauty ads in the US. Almay's ads with Carrie Underwood lead the field, followed by the Rejuvenate Every hair ad from Herbal Essences and Always rated third for its Super Bowl ad - #LikeAGirl.
Image: Jo Malone London Wood Sage & Sea Salt fragrance.
