Avon inks deal with Kenzo, Coty to review global creative and digital accounts, senior management re-shuffle at Estée Lauder, and Australian online fashion and beauty purchases soar.
Avon inks deal with Kenzo
Flower By Kenzo, launched in 2000, has been a global bestseller ever since, spawning a production line of 15 flankers. The Japanese master founded his namesake fashion house in Paris in 1970, and has long been the poster boy for the modern East Meets West mindset.
Back in the day, few could have foreseen the meteoric rise of Asia, not just Japan, as a global fashion and beauty powerhouse. Avon has teamed with designers before, notably Hervé Léger, but has never signed an agreement with one who has built up such a formidable fragrance business. In addition to the 16 Flower juices, Kenzo has released a total of 98 fragrances.
The new collection of fragrances will be called LIFE By Kenzo. The common thread will centre on the belief - Live Life Beautifully. Later this year, the first two scents for men and women will make their debut. Avon is also collaborating with Kenzo on a capsule fashion collection slated to launch at the same time.
Coty to review global creative and digital accounts
In the lead-up to taking on the 40-plus brands acquired from P&G, Coty is reviewing the global creative and digital accounts for its cosmetics division. The process will be headed by Roth Observatory, the leading international marketing consultancy, with a major presence in 10 global cities, including New York, Los Angeles, London, Tokyo and Hamburg.
Last year, Coty appointed ZenithOptimedia as its global media planning and buying agency. But in Australia HM Communications retained the $15 million local account. As the multinational prepares to become a US$10 billion business, COVERGIRLand Max Factor will join the present Coty cosmetics portfolio, including Rimmel London, Sally Hansen and . With such lucrative accounts up for grabs there will be some fierce fighting from agencies worldwide.
Senior management re-shuffle at Estée Lauder
The Estée Lauder Companies have always placed a premium on acquiring the best talent. As the multinational gears up for another year of growth across its top-performing pillar brands, there's been a changing of the guard at head office in New York.
Stephane de la Faverie, general manager of Lancôme Australia from 2004 to 2006, has switched from Darphin and Origins to take up the position of Global Brand President, , from July 1st. The dynamic Frenchman was a big part of Lancome's growth in Australia, working with the widely respected Anne Radmacher, now Global Vice President, Lux, at Unilever.
Peter Jueptner will replace Ivan Fernandez, the long-serving president, Europe, the Middle East and Africa (EMEA) from September 1st. Estée Lauder has been a pioneer in global corporate citizenship and environmental initiatives. Nancy Mahon has been appointed senior vice president, global corporate citizenship and sustainability. While Maria Cristina Gonzalez will assume the role of senior vice president, global public affairs, from July 1st.
According to executive chairman William Lauder: "The distinguishing pillars of The Estée Lauder Companies have always been our incredible brand portfolio and our outstanding talent. These appointments are a reflection of the best-in-class leaders that continue to fuel the company's long-term success".
Australian online fashion and beauty purchases soar, reports Nielsen
There's been a major shift in the preferences of Australian online shoppers over the past six months, reveals Nielsen's annual Australian Connected Consumers Report. For the first time, fashion, shoes and accessories have knocked travel from its number one perch - with sales rising 14 per cent over the period to 46 per cent of total online purchases.
Cosmetics, perfume and skincare also ranked in the top four categories, as sales rose 5 per cent from 16 to 21 per cent in the six month timeframe. Other major sectors experiencing strong growth were concert/event/movie purchases - up 7 per cent from 18 per cent to 24 percent - and food/grocery (including takeway and fast food) - up 8 per cent from 16 per cent to 24 per cent of purchases.
According to Nielsen, nearly all online Australians buy online at one time or another, with 25 per cent purchasing items at least once a week. What hasn't changed is that most of us go shopping on the Internet after work, with the major peak time occurring between 6pm and 10pm.
Snippets from the wires
- Burberry posted a drop in sales in its second half trading update. Beauty was the exception with wholesale revenues climbing 11 per cent, spurred by the launch of the new men's fragrance, Mr Burberry.
- Puig, the Spanish perfume giant, counts Jean Paul Gaultier, Paco Rabanne, Nina Ricci, Valentino and Prada among its key fragrance brands. Overall sales increased 9 per cent in 2015 to AUD$2.39 billion, but profits declined 28 per cent to AUD$183.65 million. The company remains upbeat and expects revenues to hit 2 billion euros (AUD$2.91 billion) in 2017.
- In 2014, Leslie Blodgett became the first female recipient of Women's Wear Daily's Visionary of the Year Award. For over 20 years, she was the guiding force behind the success of Bare Escentuals as chair and CEO. She is relinquishing her advisory role with the brand this week, but will retain a relationship with parent company as a member of the newly created Shiseido Americas Creative Center.
- Overall revenues at LVMH, the world's largest luxury goods group, jumped 4 per cent in the first quarter of the year to US$9.7 billion. The Perfumes and Cosmetics division had an even more successful start to the year with growth of 9 per cent to 1.2 billion euros (AUD$1.75 billion). Poison Girl, the new fragrance release from Dior, exceeded expectations and stalwarts such as Dior's J'adore and Miss Dior continued their longstanding success.