Elisabeth King reports on the top 20 global beauty companies for 2014, Gwyneth Paltrow's Goop in major debt, the first large scale study on safety of Botox, fillers and energy devices, and Mintel taps anti-pollution claims as a major trend for 2015.
Top 20 global beauty companies for 2014
With most beauty companies currently releasing quarterly figures, the results are in for the major players who ruled the beauty roost for fiscal 2014. For multinationals who also operate in other retail categories, the below figures are solely for their beauty sales. There's no big change from 2013 but sales were up across the board.
- L’Oréal - US$31.6 billion. The Consumer Products Division accounted for 51% of sales, followed by L’Oréal Luxe at 27.5% and the professional ranges at 14%.
- Unilever - US$24.9 billion
- P&G - US$20 billion
- Estée Lauder - US$10.9 billion
- Johnson & Johnson - US$7.6 billion
- Shiseido - US$7.4 billion
- Avon - US$7.3 billion
- Beiersdorf - US$7 billion
- Kao - US$5.4 billion
- LVMH - US$5.1 billion
- Henkel - US$4.7 billion
- Coty - US$4.6 billion
- Mary Kay - US$3.5 billion
- L Brands ( Victoria's Secret, Bath & Bodyworks) - US$3.3 billion
- Natura, the Brazilian giant - US$3.3 billion
- Yves Rocher - US$3 billion
- Amway - US$2.6 billion
- Amore Pacific, the South Korean multinational - US$2.4 billion
- Chanel - US$2.3 billion
- Oriflame - the Swedish direct seller - US$1.9 billion
Gwyneth Paltrow's Goop in major debt
If Gwyneth Paltrow's lifestyle website can't make it, there's not much chance of success for anyone trying to emulate the Oscar-winning actress. Launched in 2008, Goop has spawned dozens of copycats following a similar content formula of pets, kids, recipes, snippets of wisdom and personal insights on fashion and beauty. According to RadarOnline.com, though, there are plenty of financial negatives to put the brakes on the life's positives philosophy of the site.
A debt of US$1,626,295 for starters, due for payment next year, and an increase on the US$1,155,330 of the previous year. There is hope, though. The company has moved from London to LA, following Gwyneth's much-publicised split from husband Chris Martin. Lisa Gersh, formerly of Martha Stewart Living, is the new CEO and the former finance director left in July.
Shareholder funds have nose-dived but Goop's move to e-commerce could be a lifesaver. Gwyneth and all involved are optimistic, of course, and an uplift in subscribers would be a big help. In spite of her global fame, Goop only has 150,000 subscribers, reports Business Week.
First large scale study on safety of Botox, fillers and energy devices
Key in side effects and the names of the most popular minimally invasive cosmetic procedures and millions of sites pop up, complete with a laundry list of downsides and a storm of complaints. Maybe there's a risk if you go to less qualified practitioners, as is the case in the UK where hairdressers are allowed to administer the needles. But not in Australia where the law specifies that only doctors and trained professionals can offer the de-aging treatments reveals a new US study from Northwestern University Feinberg School of Medicine.
The report analysed more than 20,000 procedures across the US, administered by doctors and dermatologists, and is the first large-scale, multi-city study in the world. Previous studies in the US and Europe have been small. Minor effects such as bruising, redness or bumpiness go away of their own accord and affect only 1% of patients. Adverse reactions are slightly higher for fillers - at .52 percent - because they are more invasive than Botox or Dysport injections says lead author Murad Alam, professor of dermatology at Northwestern University Feinberg School of Medicine.
"The message for patients is that if you are looking at getting one of these procedures, you are not indulging in something drastic or high risk," he notes. "The take home is these procedures are very safe and can be mixed and matched to give the individual a significant cosmetic benefit, rather than getting one big cosmetic prcedure that might be risky".
Mintel taps anti-pollution claims as major trend for 2015
A few months ago we reported on the rise of skincare products with anti-pollution claims. But we've seen nothing yet says Mintel. The Asia/Pacific region (APAC), led by China, is the global hotspot of the phenomenon reports the researcher. From 2011 to 2013, new launches of soap and bath products boasting anti-pollution claims rose 63%, followed by haircare - a spike of 61% - and skincare- up 46 per cent.
But the trend is growing globally, says Mintel, as European and American women identify pollution as having a major impact on their looks. In the two years between 2011 and 2013, there was a 10% rise in the number of worldwide beauty launches carrying an anti-pollution claim - an uptick of 60% in new soaps and bath products, a 31% rise in haircare launches and a 22% uplift in skincare.
Skincare has a lower growth than the cleansing and hair categories but is the category leader with 3.7% of total skincare launches in 2013 featuring anti-pollution technology. Eye care is also part of of the fast-growing mix, with 7.2% of new eye products launched worldwide in 2014 to date carrying anti-pollution claims.
According to Richard Cope, Senior Trends Consultant at Mintel: "In 2015, pollution will become a key media focus. The cosmetics industry in particular has been awakening consumers to the immediate, visible, personal effects of pollution".
Snippets from the wires
- No wonder L’Oréal bought Sayuki Custom Cosmetics for its personalised foundation technology. Market researcher Canadean estimates that global demand for personalised skincare and makeup will spike to US$12.2 billion over the next five years.
- According to the new report - Global Skincare: Consumer Behavior/Regimes and Market Report 2015 - by Diagonal Reports, "doctor" brands are on the wane. Says senior analyst, Jacqueline Clarke: "The concept of the "doctor" brand has become very diffuse and no longer has the drawing power it had when the first generation of doctor-developed brands was launched".
- M.A.C like to push the envelope when it comes to collaborators for capsule collections. In a bid to appeal to Asian markets, the Lauder-owned brand has teamed with Bao Bao Wan. A tiny fashion icon who splits her time between Beijing, Paris, London and Hong Kong, she's a real renaissance woman - a socialite, jewellery designer, artist and pop philosopher. The nine SKU lineup debuts in February and takes its cue from gemstones, mainly pearls and gold.