Elisabeth King reports on the economic value of New York Fashion Week, Oscar goodie bags doubling in value, Rodan + Fields in sales talks, and Lancôme's 80th birthday celebrations.
Economic value of New York Fashion Week close to US$900 million
Last week, beauty editors were blasted by emails from beauty and hair brands trumpeting their involvement with some of the biggest names in fashion at New York Fashion Week. But even the US government has engaged in a bit of PR by releasing a report detailing the event's huge economic clout. New York Congresswoman, Carolyn Maloney, a founding member of the Congressional Apparel Manufacturing and Fashion Business Caucus, collaborated with the New York City Economic Development Corp, to estimate that the two NYFW events - September and February - generate US$887 million, including US$547 million in direct visitor spending.
That's more money than events with much wider appeal such as the US Tennis Open (US$700 million), the Super Bowl ($US$500 million) and the New York City Marathon (US$340 million).
We're not talking about the usual airy-fairy economic estimates based on media coverage. More than 900 fashion companies have a HQ in New York, generating US$2 billion in tax revenues. Over 180,000, including 16,000 manufacturing jobs, earn combined annual wages of US$11 billion.
Oscar goodie bags double in value
Every nominee wants to win, if only to avoid the tight little smile of disappointment beamed to million of viewers worldwide. But at least those who miss out at the 87th Academy Awards will go home with more than their counterparts last year. The 2014 goodie bags were worth US$88,000 but Distinctive Assets, the company in charge of curating the consolation "prizes", has filled them with US$150,000 of products and experiences.
And there's certainly something for all Hollywood tastes:
- Custom piece of furniture from EF+ Facto - US$25,000
- A year of Silvercar rentals - US$20,000
- A session with the founder of Enigma Life to analyse dreams and check out the finer details of a personal horoscope - US$20,000
- Rocky Mountaineer luxury train trip through the Canadian Rockies - US$14, 584
- A complete lifestyle makeover from Reset Yourself - US$14,239
- 10,000 meal donation of Halo Natural Pet Food to the animal shelter of the nominee's choice - US$6270
- Couple's "Love Shot" from Dr Charles "Vampire Facelift" Runels, comprising an "orgasm shot"and penis rejuvenation injection - $US5000
- A limited edition, signed print from artist Gunner Fox - US$5000
- Ventura Lipo-Light liposuction and fat reduction package - $4068
- A three night stay at Villa Armena in Tuscany - US$1500
- A Broken Bones bicycle -US$1000
- Customised candy and dessert buffet from Candy Vixen - US$800
- Haze Vaporizer - US$249.99
- Afterglow Pulse Vibrator - US$250
- Rouge Maple Syrup package - US$250
Rodan + Fields in potential sales talks
Dr Katie Rodan and Dr Kathy Fields, the dermatologists who developed , are serial entrepreneurs. They founded their own brand, Rodan + Fields, in 2002 and within a year came calling with a buy-out offer. The brand did well in department stores but the dynamic duo felt that their deep-acting skincare would do better in the direct selling channel.
Chairman Amnon Rodan bought back the company from Estée Lauder in 2008. An inspired strategy that saw company sales skyrocket from US$20 million in 2010 to US$200 million by 2013.
Buoyed by its success in the US market, Rodan + Fields wish to expand further in international markets. The company has hired the investment arm of Wells Fargo bank to explore potential options, including a sale. According to The Wall Street Journal, a sell-off to a multinational or equity investment company could net up to US$800 million
Lancôme kicks off 80th birthday celebrations
Armand Petitjean founded Lancôme on February 21st 1935. Last Friday, the prestige French brand released a short film called Ceci n'est pas une rose - a take on Magritte's famous painting - Ceci n'est pas une pomme - This is not an apple.
There is a surrealist link in the Thomas Tyman-directed film. Lancôme General Manager, Francoise Lehmann describes the effort as more of a feel-good movie than a brand film. She's right. Using traditional animation techniques, each segment unfolds like a paper theatre. The attention to detail is very impressive. The shoot lasted over 30 hours and the 50 "elements" took 200 hours to hand-cut before being assembled on an 800 square metre set.
But the real action kicks off on March 8th - International Women's Day. Lancôme will release a coffee table book to be sold on counter, alongside limited edition sets of iconic Lancôme products. Three original colours of L'Absolu Rouge lipsticks will be available exclusively online as part of the digital celebrations.
In July, during haute couture week, Lancôme will host a spectacular party in Paris. Ambassadresses past, present and future will mix it with the directors, photographers and makeup artists who have crafted the Lancôme image over the decades.
Over the past year or so, Lancôme has launched luxury skincare products such as L'Extrait Regenerating Ultimate Elixir. But the end of the year will ramp up the super-deluxe trend with the launch of a jewelled version of La Vie Est Belle Absolu Parfum and a plush re-mix of Les Jumeles lipsticks, first premiered in 1958.
Snippets from the wires
- Luxury and cosmetics sales are slowing in China but Vipshop posted a massive upsurge in sales for 2014. China's leading online discount retailer for cosmetics saw total revenues grow 122.4% to US$3.77 billion. CEO Eric Shen credits increased purchasing on mobiles and flash sales for the strong result.
- EX1 Cosmetics has become the number one selling makeup product for The Hut Group, Europe's largest online beauty retailer. The Brit brand, founded by Farah Naz, specialises in foundations for olive skin tones. The products are made in Italy and EX1 recently partnered with Amazon UK to extend its reach.
- Byredo, stocked by Mecca Cosmetica in Australia, is a darling of global niche perfumery. The brand is launching a trio of hair perfumes based on best-selling juices - Gypsy Water, Bal d'Afrique and Blanche - in March.
- Caron Paris, responsible for such perfume legends as Narcisse Noir, Infini and Fleur de Rocaille, is the second oldest French perfume house. Founded in 1904, it's one of the few fragrance companies with an in-house "nose"- Richard Fraysse - whose perfumery cred is impeccable. His grandfather created Yardley's English Lavender and his father was the genius behind Lanvin Arpege. In a bid to capture some of the fast-growing US luxury and niche fragrance market, Caron has teamed with the Miami-based distributor, Paris Perfumes Inc.
- Amway, with US$5.6 billion in annual sales, was the number one direct seller of personal care and cosmetics for 2014 with 9.1% of the global market. ranked second with an 8.6% market share, followed by Herbalife (4.7%), Natura, the Brazilian giant, (3.5%) and (3.4%)
Image: Fashion Magazine.
Carousel image: Washington Post.
