L'Oréal's target of one billion new consumers edges closer
And most of them will come from China revealed L'Oréal Paris Chairman and CEO Jean-Paul Agon at a press conference in Shanghai recently. "Chinese consumers are at the heart of LÓréal's focus and energies," he announced. "A potential 250 million new Chinese consumers will be using L'Oréal's products within the next 10 to 15 years, making China the number one contributor to our ambition of winning one billion new consumers and to our strategy of universalisation."
We won't have to wait that long to see China become L'Oréal's leading purchaser by nationality said Agon. That goal will be reached next year or 2015 at the very latest. Luxury brands will be a major focus andYves Saint Laurentwill open its first boutique in Shanghai next month. China is already the world's second largest market for prestige beauty after the US. And L'Oréal believes that the future has only just begun for its premium skincare brand, Lancôme, which only has 170 counters in China, in contrast to 2000 in the US. "The scope for growth is huge," notes Agon.
The travel retail sector is shaping up as another goldmine for L'Oréal and accounted for 17% of the global sales of the L'Oréal Luxe division in 2012 - $1.17 billion. The multinational regards the sector as "a sixth continent" with a current "population" of 4.8 billion, rising to 11 billion by 2030. Within six years, predicts L'Oréal, worldwide travel retail will be a $US100 billion business - up from $US49 billion in 2012. Better yet, more than 30% of total duty-free and travel retail sales are cosmetics and fragrances. China is already number one in beauty spend in travel retail.
According to Nicolas Hieronimus, L'Óréal Luxe President, of Lancôme 25 top doors worldwide, 13 are in travel retail. And the prestige skincare brand's number one door is DFS Galleria Sun Plaza in Hong Kong, where 1.2 Lancôme products are sold every minute.
The other top nationalities in travel retail beauty spending are: Russia, South Korea and Brazil. Fragrance remains the number one buy - 50% of purchases - but skincare is the fastest growing category.
Best new ingredient of the year
The finalists for the 2013 in-cosmetics Innovation Zone Ingredient Award clearly show which way skincare is heading. The winner and two runners-up will be announced in Paris on Tuesday and more than half the contenders are based on botanical active and plant stem cell technology.
Lipocire A SG - a texturising agent based on palm and palm kernel oil from Gattefosse
Myr'tílla - a botanical active rich in polyphenols to treat redness and micro-circulation from BERKEM
Neodermyl - sourced from bio-renewable energy to increase collagen and elastin production from Induchem
Sweetone -a botanical active from Schizandra berries which evens skin tone and treats imperfections from Laboratoires Expanscience
Elix-IR - a breakthrough botanical that acts on photo-ageing from Lucas Meyer Cosmetics
Phytenso - a naturally-based hair straightener from Lucas Meyer Cosmetics
PhytoCellTec Symphytum - a stem cell extract based on the comfrey plant from Mibelle Biochemistry
Apolluskin - an anti-pollution active derived from dandelions from SILAB
Esculane - a marine active that fights dandruff from BiotechMarine
SymHair Force 1631 - an anti-hair loss active based on micro-algae from Symrise
Solaveil Sensation - which improves the slip of sunscreen from Croda Europe
Sensiva PA 30 - increases emollience and antimicrobial protection from Schulke & Mayr
MandarinClear -an active that boosts skin luminosity from Ichimaru Pharcos.
Worlee Micromer C70/61 and 63 - two film-forming polymers developed for use in water-based nail polish from Worlee Chemie
JUVEFOXO - Yes, a peptide that makes you look younger by minimising DNA damage and increasing cell longevity from Lipotec. Although "fox"could mean something else in Spanish.
US FiFi finalists revealed
The Jasmine Awards are a major highlight of the week and a finalists breakfast for the 2013 US FiFi Awards, hosted by The Good Wife's Christine Baranski, will be held on Friday to reveal the top five finalists in each category. Many of the entrants in the popular categories for men and women are US-only releases but the major contenders from the luxury and prestige categories have resonance in Australia and many have been major hits on this side of the Pacific, too. The final judging will be announced on June 12th.
Fragrance of the Year: Women's Luxury
Annick Goutal Nuit Etoilee
Bond No 9 Central Park West
Coco Noir - Chanel
Gucci Premiere
L'Ambre des Merveilles - Hermes
Jivago Rose Gold
Miss Dior Le Parfum
Fragrance of the Year: Women's Prestige
Coach Poppy Blossom
Dahlia Noir - Givenchy
Dolce & Gabbana Pour Femme
La Petite Robe Noire - Guerlain
MARCHESA Parfim dÉxtase - Sephora
Midnight Fleur - Nest
The Art of Beauty - Leonard Lauder donates billion-dollar art collection
In addition to being the Chairman Emeritus of , Leonard Lauder is one of the world's foremost art collectors. Now aged 80, he has donated his entire Cubist collection, acquired over nearly 40 years, to The Metropolitan Museum of Art in New York. The 78 major works - including 33 by Picasso, 17 by Braque and 14 each by Leger and Gris - will go on show in the last quarter of 2014.
Snippets from the wires
- Few nations think more highly of the earning power of cosmetics than France. Jean Paufique, founder of SILAB who produce some of the world's most effective active ingredients used in the global skincare industry, has been awarded the Croix de la Legion d' Honneur for "his commitment to the service of France."
- is poised to release a flanker to DOT. Simply called Honey, the new fruity/floral will debut in August and the key notes are: pear, fruit punch, orange blossom, honey, vanilla and peach nectar.
- 2012 was a boom year for beauty acquisitions and Kline & Co predicts more of the same this year. The researcher believes that L'Óréal will make another major acquisition and brands "ripe for acquisition" include Yes To, Dermalogica, men's grooming stalwart Anthony Brands and US haircare company Vogue International.
- finally cut its ties with Inter Parfums last month. Beaute Prestige International, Shiseido's fragrance manufacturing and distribution arm, has been appointed the exclusive distributor of the Brit brand's cosmetics and fragrance in the US, France, Spain, European travel retail and selected countries in Asia/Pacific.
- Body wash hasn't triumphed completely. estimate that 40% of men are still soap bar "loyalists". To meet the demand, the multinational has launched Old Spice soaps in three fragrances - Fiji, Sport and Swagger.
- Melania (wife of The Donald) Trump has launched a new caviar skincare range exclusively through Lord & Taylor stores in the US. The five product lineup, called Melania Caviar Complexe C6, includes a serum, day moisturiser, night cream, cleansing balm and exfoliating peel. Prices range from $US50 to $US150.
- Global ad spend increased 3.2% in 2012 reports Nielsen. All regions except Europe increased ad spending last year.
- Donald J. Loftus, North American President and CEO of P&G Prestige for 10 years, has been appointed President of Parlux (Paris Hilton, Jessica Simpson, Rihanna fragrances etc) and executive vice-president of Perfumania (the major US fragrance distributor).
- , which launched its first powder "rouge" in 1868, is celebrating its 150th anniversary with the release of the brand's first cream blush. Available in four shades, the ultra-light cream turns to a powdery finish on the skin.