The Hut Group buys Christophe Robin; Daigou-focused AuMake acquires rival for $14.2 million; beauty giants rank high on Deloitte's largest luxury goods companies list; and Unilever scoops up supplement startup Olly and posts solid Q1 growth.
The Hut Group buys Christophe Robin
Celebrity colourist, Christophe Robin, established his eponymous luxury haircare brand in 1999 and has worked on some of the most famous heads in the world, including Elle McPherson, Vanessa Paradis and the legendary Catherine Deneuve. The charming Frenchman visited Australia late last year to launch his new temporary hair colour gels and the brand is sold through David Jones, Adore Beauty, Sephora and RY.com.au. Available in 35 countries, global sales have increased 40 per cent annually over the past three years and the naturally-based range offers 70 products over 10 ranges.
UK-based The Hut Group (THG) has made a series of high profile acquisitions since 2016, including Illamasqua, ESPA and Eyeko. Annual sales exceed AUD$1.3 billion and THG is now Europe's largest online retailer of premium beauty products. To extend its reach into the natural and haircare categories, THG has acquired Christophe Robin for an undisclosed sum. According to Matthew Moulding, CEO of The Hut Group, the company will leverage its global e-commerce platform, THG Ingenuity, to expand the iconic brand to new customers and regional markets.
Daigou-focused AuMake acquires rival for $14.2 million
AuMake, the nine year old retail business selling to daigous (Chinese personal shoppers), doubled its revenues in 2018 to $21.4 million. Two other major moves last year included an inaugural trade show in Sydney and a lucrative deal with JD.com, one of China's two leading e-commerce giants. AuMake became JD.com's exclusive retail store partner in Australia and New Zealand with an initial sales target of $2 million a month.
AuMake has expanded its trans-Tasman store network to 25 with the acquisition of Broadway, the Chinese tourist retailer, for $14.2 million. The buyout further increases AuMake's clout in cross-border retail between China and Australia and New Zealand. Broadway was founded 20 years ago and has strong relationships with tourist operators in Australia and China. The company distributes and sells similar products to AuMake – skincare, cosmetics, health supplements, infant formula and wool.
This acquisition is transformative for AuMake and is a turning point in our evolution, says CEO Keong Chan. "The dynamic combination of AuMake and Broadway will create the leading brand in the cross border and Chinese tour group markets, which we estimate to be worth over $4.5 billion in Australia and New Zealand".
Beauty giants rank high on Deloitte's largest luxury goods companies list
Deloitte's annual ranking of the world's largest luxury goods companies – The Global Powers of Luxury Goods Report – rubberstamps the global popularity of the finer things of life. The combined revenues of the top 100 luxury goods companies reached US$247 billion in 2017 – up from US$217 billion in 2016. Over 76 per cent of the companies in the report reported sales growth, with close to 50 per cent boasting double-digit increases.
Pure play beauty companies and multinational fashion players with major fragrance and cosmetic divisions and licenses filled five out of the top 10 rankings by sales turnover. Two of the fastest-growing luxury companies also came from the beauty industry – Coty Luxury and Shiseido. Kosé Corporation, another of Japan's big four beauty titans, also made the Deloitte's list for the first time.
- LVMH (Christian Dior, Guerlain, Fenty Beauty etc)
- Estée Lauder
- Richemont (major watch brands such as Jaeger-LeCoultre and Cartier and fashion brands Chloe and Azzedine Alaia)
- Kering (Gucci, Bottega Veneta, Balenciaga etc)
- Luxottica Group (owner of OPSM in Australia, Sunglass Hut and major designer eyewear licenses such as Prada and Tiffany)
- Chanel
- L'Oréal Luxe
- The Swatch Group (in addition to the Swatch brand also owns Omega, Tissot, Longines and Harry Winston, the red carpet jeweller)
- Chow Tai Fook Jewellery Group ( Hong Kong-based empire of jewellers, hotels, property developments and investor in The Star Entertainment Group in Australia)
- PVH Corp (owns Van Heusen, Calvin Klein, Tommy Hilfiger and other major fashion brands)
Unilever scoops up supplement startup Olly and posts solid Q1 growth
Nutritional supplements have become a multi-billion global industry and the category is growing at breakneck speed worldwide, particularly in China. Unilever has inked a deal to buy San Francisco-based Olly Vitamins. Founded in 2014, the company specialises in gummy vitamins, supplements, protein powders and snack bars that help to beautify the skin, promote sleep, reduce stress and boost energy.
Enhancing good looks on the outside beefed up Unilever's bottom line in Q1 2019. Overall sales grew 3.1 per cent over the period to 12.4 billion euros (AUD$19.48 billion). The beauty and personal care division, the multinational's largest unit, also increased revenues by 3.1 per cent to 5.2 billion euros (AUD$8.17 billion), fueled by skincare and deodorants.
Hair and skin cleansing "grew modestly". But double-digit growth was delivered by the Dollar Shave Club and the prestige division, including Dermalogica, Murad, REN and Hourglass. Global power brands Dove, Ponds, Sunsilk and Rexona also performed well thanks to innovative new launches.
Snippets from the Wires
- Ethique, one of New Zealand's fastest-growing lifestyle brands, is the world's first zero plastic and zero waste personal care brand. The company's product lineup consists solely of bars – 41 in total – covering shampoos, moisturisers and shaving creams. Now sold in 400 Priceline stores nationwide, Ethique is also sold in Taiwan, Hong Kong, Singapore and the US. The brand has just entered Japan and will launch in the UK mid-year. Over 1000 pharmacies in Germany, Poland, Hungary and the Czech Republic will come on board in the second half and by year's end 500 more stores in Singapore, Malaysia, Taiwan and Hong Kong will offer Ethique products to their customers.
- TPR Holdings, the New York-based investor in consumer products brands, owns and distributes Cargo Cosmetics, Freeze 24/7 and ZIRH men's skincare. The company bought Diana Vreeland perfumes in late 2018 and have rolled out the brand in 18 international markets. Sold through Mecca in Australia, the luxury fragrances named after the legendary editor-in-chief of US Vogue, turned over US$10 million last year. TPR has announced it will substantially grow the brand further over the next three to five years. In the works are two new non-fragrance SKUs and a perfume exclusive to the Russian market.
- In a new survey by Wearisma and CEW France, two Australian brands have made the top 20 indie beauty brands most mentioned by French influencers in the last quarter of 2018. Nude by Nature achieved a number 15 ranking and Bali Body scored the number 18 slot.
