Aug 24: Elisabeth King reports on this week's business news

Dior turns Sauvage with Johnny Depp, a growth spurt for European natural and organic market, Riley Keough fronts campaign for luxury vintage scent and spa giant in billion dollar acquisition.

Dior turns Sauvage with Johnny Depp
Dior has been so secretive about its new fragrance for men, billed as its first for 10 years, that I doubted the early rumours that the newbie would be a riff of Eau Sauvage. Launching in Australia this week - six days before the US roll-out - Dior Sauvage - is an updated version of the iconic bestseller. 

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It's easy to see why. Eau Sauvage, created by legendary perfumer Edmond Roudnitska, will celebrate its 50th anniversary next year. Fresh and citrusy with a distinctive woody base, the gorgeous juice famously reminds women of "rich men and clean sheets" and easily ranks as one of the gold standard men's fragrances of the 20th century. There's been several relaunches over the past half century and it's been a top five male juice in France since its debut in 1966. 

For Dior Sauvage, perfumer Francois Demachy revisited the original scent to create "a contemporised Dior fougere". Translation: bergamot, lavender, patchouli and vetiver have been joined by Sichuan and pink peppers and geranium in the main for a crispy, clean juice with more complexity and spicy overtones. Or, as the press release puts it -"a brother to Eau Sauvage". 

The ad campaign features Johnny Depp escaping to a desert - California's Joshua Tree National Park - in a vintage Dodge Challenger to the strains of a Ry Cooder soundtrack. Will Dior Sauvage blitz expectations like recent global blockbusters  for men such as Paco Rabanne One  Million and Invictus? It's got a good chance by reeling in the existing fans of Eau Sauvage and appealing to a younger crowd who may not have heard of the original. As we noted when Dior tapped Johnny Depp as the face of the new Dior fragrance, the 51 year old has a lot of pull among the men who know how old he is and the younger ones who think he is still very relevant. Now we know that's exactly why he was chosen. 

Growth spurt for European natural and organic market 
The European beauty market was hit hard by the GFC and Eurozone crisis. But nearly every Australian natural and organic brand has plans to expand its business in Europe, often using the UK as a springboard before reaching out to Germany - the largest natural personal care market in Europe. High hopes that are justified according to a new report from Research and Markets. The researcher estimates that the European natural and organic market will boom by a CAGR of 9.5 per cent over the next five years. 

Key established players are , L'Oreal through , French giant Yves Rocher, Swedish direct seller Oriflame and Swiss multinational Weleda. Hair, the second largest category in the market after skincare, is  growing strongly as European consumers look for natural formulas to treat common concerns such as dandruff, split ends, hair fallout and damage. Similar to the US and Australian markets, natural babycare products are also a strong driver in Europe. 

Riley Keough fronts campaign for luxury vintage scent
As we reported last week, a division of Korean giant Samsung has bought the rights to Paul Poiret, the creator of the world's first designer perfume. Schiaparelli, another rival of Coco Chanel, is on the comeback trail, initially as a couture fashion brand before moving into ready-to-wear and a global re-launch of Shocking, the fragrance that once duked it out with Chanel No 5. Carven, Balmain, Balenciaga and other vintage labels have also successfully returned to fashion and fragrance form. 

It's a trend that will continue to boom on both sides of the Atlantic. Parlux, who own Perfumania, the largest fragrance retailer in the US, and make a who's who of celebrity fragrances such as Rihanna, Jay-Z, Paris Hilton, Sofia Vergara and Ivanka Trump, are re-launching the 1960s fragrance - Norman Norell New York. The company has hired Riley Keough, the granddaughter of Elvis Presley, as the face and the photographer on the project is Michael Avedon, the grandson of legendary fashion snapper Richard Avedon. 

Norman Norell revolutionised American ready-to-wear and dressed some of the most stylish women of the 20th century, including Marilyn Monroe, Jackie Kennedy and Lauren Bacall. Michelle Obama wore a vintage Norell gown to the White House Christmas party in 2010. His signature fragrance debuted in 1968 as "the utmost in luxury fragrance".

The rejuvenated scent is a modern green floral with each bottle boasting 200 jasmine petals. The core collection comprises an EDP, a body oil and a body cream. Like with Caviar Spectaculaire, Parlux has teamed with French crystal house Baccarat for a limited edition version in a hand-crafted botle. The fragrance will launch first at the end of the month in Bergdorf Goodman and then in Neiman Marcus nationwide. Check out both websites. 

Spa giant in billion dollar acquisition
Steiner Leisure, the parent company of spa brands ,  and Mandara, dates back to 1901. For much of its history the company has been a leader in quality hair and skincare in the UK, gaining Royal warrants from Queen Mary, the present Queen's grandmother, and the Queen Mother. The largest operator of on-board spas for some of the world's biggest cruise lines, Steiner has also become a global beauty provider on land through department stores such as Nordstrom and Harvey Nichols and five star hotels. 

Private equity company Catterton has acquired Steiner Leisure for US$925 million (AUD$1.26 billion). The firm has a strong track record in beauty, wellness and luxury with investments in Frederic Fekkai, Core Power Yoga and Baccarat crystal. Professional skincare brands are increasingly becoming targets for major multinationals with the Unilever acquisition of Dermalogica one of the most recent. A strategy which will gain in strength as women worldwide look for more potent solutions to anti-ageing and superior skin care. 

Snippets from the wires

  • Henkel, the maker of Schwarzkopf haircare, has posted a 14 per cent increase in core profit for the second quarter of 2015. Strong double digit growth in China balanced lower demand in the US. 
  • Just as the colour of the packaging is the number one reason people buy everyday personal care products, a great scent is the factor that most influences women to buy skincare reveals the Brand Passion Report from NetBase. The two year global study also identified the other key purchasing behaviour triggers - natural-looking, good moisturising benefits, value and anti-ageing. 
  • Some beauty trends are flash-in-the-pan but others cause significant sales increases. Accordingto Mintel, the contouring technique championed by Kim Kardashian has led to a 12 per cent uptick in blush and bronzer sales in the UK in the past year. Concealers and primers have benefited from the "no makeup look"with British women buying 6 and 5 per cent more of the camouflaging items. 
  • Dr Organic, the British natural brand founded in 2008, is sold on several leading websites in Australia. NBTY Inc has bought the award-winning brand for an undisclosed price. Formerly known as Nature's Bounty, NBTY boasts a US$3 billion annual turnover in vitamins, supplements and sports nutrition and has bought the Brit brand to to accelerate its entry into mass market skincare and beauty, starting in the US. 
  • Mobile advertising showed the biggest growth globally last year according to Global Mobile Advertising Revenue 2014. The US is way out in front with 44.9 per cent of global mobile ad revenue reaching US$14 billion. Asia-Pacific has a 36.5 per cent market share for a total of US$12 billion. Europe accounts for 16.6 per cent or US$5 billion. The Middle East and Africa scored 1.2 per cent of revenues at US$379 million, followed by South America with 0.8 per cent or US$239 million. 

Newsletter image: Instagram.com/rileykeough/