Australian online health and beauty purchases surge 51 per cent; TULA probiotic skincare – the latest beauty acquisition for L Catterton; Douglas buys Grupo Bodybell to extend dominance in Europe; and Amazon moves in on the world's fastest growing beauty market.
Australian online health and beauty purchases surge 51 per cent
Over the past four years, the number of Australians buying something online in an average four week period has surged from 7 million to 8.7 million reports Roy Morgan Research. Online sales in all categories have spiked strongly. Beauty and health have been major beneficiaries of the upward curve with online sales rising 51 per cent since 2013.
Entertainment and leisure lead the pack with 3.9 million Aussies forking out for a treat or two every four weeks, followed by fashion (2.3 million), food and beverages (2.1 million) and reading material, mainly books (2 million). Beauty and health attract the wallets of 1.07 million buyers in an average four week period – up from 713,000 in 2013.
According to Roy Morgan Research industry communications director Norman Morris: "The data is unequivocal: Australians can't get enough of shopping online. In any given four week period, more and more of us are purchasing products as diverse as clothing, food, reading matter, health and beauty products, furniture, and electronics on the Internet".
Amazon's entry into the Australian market should deepen the online habit further, notes the researcher. Over 540,000 Australians currently make purchases from the US e-commerce giant in the average four week period.
TULA probiotic skincare – the latest beauty acquisition for L Catterton
L Catterton, the largest consumer-focused private equity firm in the world, has a strong track record in beauty investments. A partnership between Catterton, Groupe Arnault and LVMH, the world's largest luxury goods group and owner of Sephora, has invested in StriVectin, Bliss, K-Beauty star Clio Professional, Cover FX, Frederic Fekkai and more. The cashed-up colossus has acquired a major stake in TULA, a premium skincare brand based on probiotics.
TULA was founded three years ago by Ken Landis, co-founder of Bobbi Brown, gastroenterologist Dr Roshini Raj and tech guru Dan Reich. With the growing popularity of probiotic-based skincare, the brand has enjoyed explosive growth on Beauty iQ, QVC's multi platform network targeting beauty mavens. TULA incorporates probiotics across its entire range to make the skin more resistant to environmental damage and ageing, and the brand has been featured in the cream of US publications from Harper's Bazaar to Allure and Vanity Fair.
L Catterton is getting in on the ground floor of the probiotic skincare boom. "We see tremendous opportunity to accelerate TULA's growth by capitalising on its innovative formulations, strong relationship with QVC, distinctive digital-first positioning and talented management", says L Catterton Growth Fund co-managing director Jon Owsley. Check out www.tula.com.
Douglas buys Grupo Bodybell to extend dominance in Europe
We recently reported that CVC Capital Partners was rumoured to be forming a partnership to buy The Body Shop from L'Oréal. Two years ago, the private equity giant and former owner of ACP magazines acquired Douglas, the largest selective beauty retailer in Europe, for a multi-billion dollar figure. While the beauty world holds its breath over The Body Shop deal, Douglas has bought Spanish perfumery chain Grupo Bodybell.
With more than 200 stores, the Madrid-based group is a market leader in Spain. Germany-based Douglas has 1700 stores in 19 European countries with annual sales of 2.7 billion euros ($AU3.77 billion). The dominant European prestige beauty force already has 57 of its own stores in Spain and the acquisition of Grupo Bodybell will make it the leading player in Spain, the fifth largest beauty market in Europe after Germany, France, the UK and Italy.
It's a very strategic buy. "Strengthening our market position in Spain is a decisive move forward in becoming number one or a strong number two in every market we serve", says Douglas CEO Isabelle Parize.
Amazon moves in on the world's fastest growing beauty market
The e-commerce behemoth has topped a bid of $US800 million from Emaar Malls of Dubai to snap up Middle Eastern online retailer Souq.com. The Gulf-centred Souq pioneered e-commerce in the Middle East and operates in Egypt, Kuwait, the United Arab Emirates and Saudi Arabia. Over the past few months, the company has been working with Goldman Sachs to flush out prospective buyers.
The acquisition boosts Amazon's global ambitions. Souq.com offers more than 1.5 million products, including beauty. The MEA (Middle East and Africa) region is the world's fastest-growing beauty market with annual sales of $US25.4 billion in 2016. As China's e-commerce market matures, local giant Alibaba and Amazon have been eyeing other regions to increase growth. The MEA is a plum target with a highly wealthy upper class, a rising middle class and an insatiable appetite for beauty products and perfumes.
Snippets from the wires
- Liliane Bettencourt, the L'Oréal heiress whose family own 33 per cent of the French multinational, has again been proclaimed the world's richest woman in Forbes annual list of the billionaires with a personal fortune of $US40.7 billion.
- H&M's first quarter profit dipped 3 per cent to $US277.8 billion. Slower sales in core markets such as Europe and the US and heavy discounting were the main culprits. The Swedish fast fashion retailer has announced it will launch a new brand called Arket, a classic lineup for men, women and children.
- A DIY approach to self-care and health management was the norm for most of the world's population up until the mid-20th century. The practice is back big time, says US researcher IRI. In the age of "Dr Google", taking charge of your health has become a consumer lifestyle choice and a huge industry worth $US400 billion.
- No wonder acquiring shaving start-ups like The Dollar Shave Club has become a strong MO for the world's leading multinationals. The global shavers market (male and female) is forecast to reach $US70.24 billion by 2024 – up from $US46.38 billion in 2015.
- In spite of fad diets that ban "the staff of life", more Australians than ever are eating bread. Not only is the nation scoffing $4.7 billion worth of bread a year, the number of Australians buying bread on a weekly basis has risen from 10.5 million to 11 million over the past year says Roy Morgan Research.
