Elisabeth King reports on P&G considering a Wella sale, Inter Parfums on track for US$500 million sales in 2015, Australia's love affair with tatts continues, and Pantone nominates Marsala as 2015 colour of the year.
P&G Considers Wella Sale
Three months ago, the world's largest consumer products company announced it would shed up to 100 slow-growth brands to concentrate on the 80 power brands which pull in the lion's share of its profits and sales. Last month, P&G sold its Duracell battery business to Berkshire Hathaway Inc, owned by multi-billionaire Warren Buffett. That was just the beginning.
P&G is already working with Goldman Sachs to sell off the Wella haircare business - whole or in parts. Valued at US$7 billion, Wella has been part of the P&G portfolio since 2003. Prospective buyers include German giant Henkel, owners of Schwarzkopf, who were interested in Wella before the P&G buy-out, and Unilever. P&G rapidly expanded its haircare business in the early Noughties, with the purchases of Wella and Clairol in 2001 for US$4.95 billion.
Wella isn't the only major brand that could be looking for a new home. P&G is also rumoured to be considering its options for Braun, acquired in the US$57 billion purchase of Gillette. Analysts say that the multinational is also looking to divest part of its prestige fragrance portfolio.
Inter Parfums on track for US$500 million sales in 2015
Inter Parfums suffered a significant drop in sales when Burberry took its fragrance and cosmetics license in-house in 2013. But the perfume-maker is finding its feet again and is on track to achieve US$500 million in sales in 2015. That's a conservative estimate says Russell Greenberg, Executive Vice President and CFO, following the white-hot performance of its three largest brands - Jimmy Choo, Montblanc and Lanvin - in 2014.
Chairman Jean Madar expects the strong growth to continue, backed by new marketing initiatives and launches. Jimmy Choo Man, the brand's first men's fragrance, has performed very well in major markets. But there's plenty in the pipeline, starting with Inter Parfums first men's and women's scents from Hong-Kong-based luxury retailer, Shanghai Tang, which now boasts 24 stores worldwide. Slated for launch in the first quarter, hopes are high - especially in global travel retail where Chinese shoppers hold the number one ranking.
Inter Parfums men's fragrance portfolio will be expanded with newbies from Lanvin, Montblanc and Balmain. For the ladies, the major launches next year will be Montblanc's first women's fragrance and new juices from Van Cleef & Arpels, Oscar de la Renta, Anna Sui, bebe and Boucheron. According to Greenberg: "We enter 2015 well-positioned for continued growth given our aggressive launch plans for the majority of our brands".
Australia's love affair with tatts continues
Visiting LA Ink star, Kat Von D, will be pleased to hear that the tattoo industry in Australia is booming. According to IBISWorld, technological advances and increased social acceptance are expected to fuel growth of 4 per cent a year through to 2020. New inks have made removal easier for those who have the names of long departed lovers inscribed on their limbs or torsos. Tattoo removal techniques have also become quicker and easier, reducing the public's perception that a tatt is for life.
Approximately 34% of Australians aged between 18 and 25 have at least one tattoo says the researcher. While 40% of Australians aged between 26 and 40 have been inked. Over the past five years, the market has grown by 20% overall reveals IBISWorld.
Pantone nominates Marsala as 2015 colour of the year
Radiant Orchid, the 2014 colour of the year from the world's foremost colour authority, needed a bit of explanation. But there's no mistaking the shade of Marsala, the deep red hue derived from one of Italy's most famous fortified wines. The earthy colour was much in evidence at the Spring 2015 runway shows and darker wine tones have been upping their presence in makeup for the past few years because of their compatibility with the flawless complexion trend.
Marsala is an appealing and sophisticated shade that's flattering against all skin tones says Leatrice Eiseman, Executive Director of the Pantone Color Institute. "Much like the fortified wine that gives Marsala its name, this tasteful hue embodies the satisfactory richness of a fulfilling meal, while its grounding red-brown roots emanate a sophisticated, natural earthiness. This hearty, yet stylish tone is universally appealing and translates easily to fashion, beauty, industrial design, home furnishings and interiors". Beauty translation: there's no danger of looking like the Evil Queen from Snow White.
Snippets from the wires
- Aussie fake tan brands should be targeting the male market in the UK. New research from Mintel reveals that 27% of British males aged 16 to 24 have used fake tan - only 2% less than their female counterparts of the same age. The craze for a bronzed body doesn't stop there says the researcher. Over 20% have indulged in a salon spray tan and 12% have used a gradual tanner. The British self-tan market is worth $112 million.
- Nivea is the first brand that springs to mind at the mention of CoQ10. But according to a Grand View Research study, the co-enzyme is one of the fastest-growing anti-ageing actives worldwide. Manufactured all over the world, the North American market accounted for over half the global market last year. But Brazil, Russia, India and China will fuel the bulk of the growth going forward. Used in sunscreens and anti-ageing skincare, the global market for CoQ10 is expected to reach US$849.5 million over the next five years - triple the volume of 10 years ago.
- According to Victoria's Secret Model, Lindsay Ellingson, her friends call her "The Walking Sephora" because of her make-up obsession. The 30 year old US beauty is planning to claw back a lot of the money she has spent over the years by launching her own cosmetics line on QVC. Called Wander Beauty, it will debut on the shopping channel in April.
- The celebrity stable at Parlux Fragrances includes Jay-Z, Rihanna and Jessica Simpson. So it's the perfect home for Sean "Diddy" Combs new fragrance. The music mogul, worth US$700 million, hasn't released a major fragrance since the self-referenced I Am King in 2009. Created by Estee Lauder, the sexy juice won a US Fragrance Foundation FiFi Award. The newbie is as yet unnamed and will launch in April.
- In a bid to transition to a full lifestyle brand, Coach is poised to buy US shoe brand Stuart Weitzman, valued at between US$600 and US$700 million. But the luxury leathergoods brand faces keen competition from footwear group Brown Shoe Company, makers of Naturalizer, Dr Scholl's, Via Spiga, Sam Edelman, Franco Sarto and Fergie Footwear.
