Australia set to become world's sixth largest mobile ad market, Sequentials Brands buys majority stake in Jessica Simpson's celeb label, Advent put major stake in Douglas Perfumery on the block, and cushion products set to explode.
Australia set to become world's 6th largest mobile ad market
Global mobile ad spending is set to soar to US$100 billion by next year reports eMarketer. A 400% increase from 2013, the researcher predicts even this huge figure is poised to double through to 2019 to account for 25% of all media ad spending worldwide.
The US market is a clear number one with mobile ad spending set to climb to US$40.2 billion by next year, followed by second-ranking China at US$22.1 billion. The top five markets will remain the same - the US, China, the UK, Japan and Germany - says eMarketer. But Australia, currently the eighth largest market, will leap-frog South Korea and Canada in 2018 to become the world's sixth largest mobile ad market with a spend of US$3.847 billion - well ahead of France, Brazil, Italy, Indonesia and Russia. A phenomenal growth spurt from the estimated 2015 total of US$1.364 billion.
Other stats worth noting is that by the end of next year, 25% of the world's 2 billion smartphone users will live in China. Barely a year later, mobile ad spending is set to double desktop ad spending notes eMarketer.
Sequentials Brands buys majority stake in Jessica Simpson's celeb label
International retail deals have been thin on the ground in the first quarter. An accusation that couldn't be leveled at Sequential Brands over the past two years. The NYC-based brand management and licensing company has snapped up the Franklin Mint brand name and Galaxy Brand Holdings, the owner of Linens 'n Things and And1, the basketball athletic shoe company, and also owns the Justin Timberlake Rast brand.
Other celeb brands may have nose-dived but Jessica Simpson's signature range of shoes, fashions and accessories pulls in more than US$1 billion a year in sales. The 10 year old signature label is across 30 product categories and is stocked in key US department stores such as Macy's, Nordstrom and Dillard's.
The deal marks Sequential's largest purchase of a major stake - just over 50% - in a single brand but falls well shy of the US$260 million it paid for Galaxy Brand Holdings. Ms Simpson will retain a big chunk of her namesake brand and remain closely involved in design development. Most of the brand's sales are in the US but Sequential plans to expand to oveseas markets and launch an e-commerce platform.
Advent put major stake in Douglas Perfumery on the block
In 2012 Advent International acquired 80% of Douglas Perfumery, Europe's market leader in perfume and cosmetics, for US$1.7 billion. The US private equity firm which manages assets of US$24.3 billion announced its intention of launching an IPO a couple of months back. It's still a major option but the company has now appointed JP Morgan and Goldman Sachs to explore other avenues, including a sale to a major beauty industry or retail multinational.
The first Douglas perfumery opened in Hamburg in 1910 and the company operates in 18 countries. The German chain acquired Nocibe, the second largest retailer of perfume in France, in late 2013, adding a further 625 stores to its 1900 chain with annual sales of 3.2 billion euros ( $4.58 billion).
Cushion products set to explode
Lancôme launched its new foundation product, Miracle Cushion, to the media recently. Like BB creams, the cushion format received a major leg-up in the sizzling South Korean market. First launched in 2008 by Iope, one of 30 cosmetic brands owned by local giant, Amore Pacific, cushion compacts now account for 40% of the foundation market in South Korea.
Basically, a liquid foundation with the product soaked in a sponge, there are three major reasons for its startling popularity. Firstly, its multi-functional. Layering isn't optional, it's actively encouraged. The more product you put on your skin, the more dewy coverage is achieved. Cushion products also feel ultra-light and are tailor-made for the no-makeup look and can be re-touched throughout the day.
After a slow start because of limited distribution, Iope's pioneering product really hit the big time in South Korea through a major shopping channel. Five years later, Iope overtook Sulwhasoo ( also owned by Amore Pacific) as the number one facial makeup brand in the country. The parent company also launched cushion compacts in two more of its brands, Hera and Lirikos, and a men's cushion compact in early 2014.
The popularity of cushion products has also soared in Hong Kong, Singapore and China. Lancôme isn't the first Western brand to release a version of this ingenious product but it's certainly the biggest. IT Cosmetics and Australia's own Mirenesse were first-to-market with a cushion delivery foundation.
Snippets from the wires
- The Yoox/ Amazon tussle for Net-A- Porter we reported last week was quickly resolved. The Italian online giant agreed to buy a major stake in the British online luxury retailer for US$775 million. Richemont, Net-A-Porter's parent company, will retain a 50% stake in the the newly combined company to be called The Yoox Net-A-Porter Group, now the largest online luxury goods retailer in the world.
- Facial hair for men has become a year-round - not a seasonal - option. Global launches of beard and moustache grooming products rose from 11% in 2011 to 42% in 2014 reports Datamonior.
- The US prestige fragrance market grew 2% last year says the NPD Group. The top five launches of 2014 in the US were: Dolce & Gabbana Dolce, Giorgio Armani Si, Daisy Dream, Invictus for Men and Endless Euphoria.
- has announced it will develop a multi-million global innovation centre in Yokohama. The facility will open in 2018 and focus on international sales growth, marketing and R&D.
- The multi-talented Marion Cotillard is adding another string to her crowded professional bow - jewellery designer. The Oscar-winning French actress will create the first "green" collection for Chopard. The new range marks the first time the luxury Swiss jeweller has ventured into coloured stones, mainly ethically-sourced opals from South Australia.
- L'Oreal USA, the seventh largest advertiser in the US with an annual spend of US$2.3 billion, has launched a review of its entire media activities. A follow-on move from the recent announcement that the French multinational would explore its approach to its entire global digital ad spend.
