French beauty exports to Australia reach $289.5 million; Henkel goes vegan to revitalise beauty sales; major changes in global shopping trends; and P&G teams with Humane Society to fight animal testing worldwide.
French beauty exports to Australia reach $289.5 million
Exports of French fragrances and cosmetic products soared 6.3 per cent in 2018 to a record 14.5 billion euros (AUD$23.55 billion). The French domestic market has been flatlining for some time, so galloping sales in other regions have become a lifesaver. Sales to China shot up 22.7 percent to lift the APAC region to 3 billion euros (AUD$4.77 billion) – accounting for 20 per cent of total French fragrance and cosmetic exports.
Beauty and fragrance exports to Australia rose to 182 million euros (AUD$289.5 million), which was just behind entire regions in Africa. North Africa and sub-Saharan Africa with millions more people than Australia both achieved sales of 196 million euros (AUD$311.75 million).
The number one regional market for French beauty exports is the European Union, led by Germany and the UK, where total sales rose 4.5 per cent to 6.6 billion euros (AUD$10.49 billion).
The North American market also performed strongly with an increase of 6.8 per cent to 1.8 billion euros (AUD$2.86 billion). The Middle Eastern market dipped slightly to 927 million euros (AUD$1.47 billion), but was still well ahead of South America at 535 million euros (AUD$850.69 million). Personal care products and fragrances make up the lion's share of French perfume and beauty exports at 45 per cent and 22 per cent, respectively.
Henkel goes vegan to revitalise beauty sales
Henkel, the maker of Schwarzkopf haircare, has lagged behind forward-looking rivals such as Procter & Gamble in recent years. The German multinational's beauty and personal care business contracted 0.7 per cent in 2018 as other major industry players expanded their natural offerings. Unilever has launched Love, Beauty and Planet, its first from-scratch brand in 20 years, which is poised to hit shelves in Australia. While L'Oréal scooped up German naturals company, Logocos Naturkosmetik, and has recently launched the Garnier Organic range in Europe.
Henkel has not been sitting idle and launched a new brand called Nature Box late last year in Europe and the US. The 22 SKU lineup of 11 haircare and body products is formulated with 100 per cent coconut, avocado, apricot, almond and macadamia nut oils and is free from the usual suspect nasties.
Last week, Henkel announced further initiatives in the natural beauty space, starting with a global rollout of Nature Box. The company also revealed it would launch a professional vegan haircare brand called Authentic Beauty Concept and OnlyLove, a free-from hair colourant. Schauma, a popular haircare range sold in Europe, will also be re-formulated as vegan.
Major changes in global shopping trends
Retailers worldwide wait with bated breath for the release of the annual global consumer report from iVend Retail, the omnichannel retail management company that operates in 85 countries. The 2019 Global Shopping Trends: Essential Insights for Retailers survey shines the spotlight on the latest developments in tech platforms and behaviours.
The mobile juggernaut rolls on, says the data tracker, with 86.2 per cent of global shoppers using smartphones while in store to research products. An even higher percentage – 92.9 per cent – use mobiles to research products and services before heading to a store. The "I don't know, I only work here part-time" excuse from store staff when they can't tell you where to find what you are looking for doesn't wash anymore. Over 80 per cent of global shoppers said they would like retail assistants to carry hand-held mobile devices to ensure the best customer service.
Easy checkout processes are top-of-mind for 83 per cent of shoppers. No wonder Priceline's Sister Club is one of the most popular loyalty programs in Australia and offers more benefits than ever. Over 91.9 per cent of survey respondents said they buy products with the express aim of racking up loyalty points.
In a blow for retail employment prospects, 44.4 per cent of global shoppers said they liked to shop at retailers with self-checkouts. Click and collect usage has soared by over 30 per cent in the past year and the main drivers are – by-passing delivery charges (47.4%) and saving time (44.4%). In Australia, many brands and retailers have also discovered that click and collect is a good way to get customers in store and they frequently buy something else when they pick up goods they have bought online.
Other trends in the survey confirm longterm shifts. Over 79.7 per cent of global shoppers said they responded to social media and online ads. Seven out of 10 respond to offers delivered to their smartphones when they are in stores. But enthusiasm dipped dramatically to 37 per cent for personalised product recommendations and offers.
P&G teams with Humane Society to fight animal testing worldwide
More and more countries, including Australia, have banned animal testing for cosmetics. The Humane Society International (HSI) launched the #BeCrueltyFree campaign in 2012 to expand the European Union's legal precedent of animal testing bans and the sale of recent product releases based on animal testing. Even China, the last major country to mandate animal testing on many beauty goods, has begun to relax the rules on the requirement, albeit at a slow pace.
There's still a lot of progress to be made in spite of recent wins. P&G has joined the #BeCrueltyFree campaign in a bid to ban animal testing in all major global markets by 2023. The multinational is already a leader in the field and has been collaborating with the Humane Society for over 20 years in the development and legal uptake of alternative testing methods. According to Dr Harald Schlatter, P&G Corporate Communications and Animal Welfare Advocacy: " We've invested more than US$420 million over 40 years in developing non-animal test methods. Our researchers have led or co-designed at least 25 cruelty-free methods that have replaced animal testing of cosmetic products".
The Humane Society and its partners represent one of the world's largest animal protection organisations. We need the active support of industry leaders such as P&G, says Troy Seidle, HSI Vice President for Research and Toxicology. "With the power of P&G's brands, I'm confident we can achieve a legislative end to cosmetic animal testing globally within five years".
Snippets from the Wires
- Myer has been named Department Store of the Year in the Roy Morgan 2018 Customer Satisfaction Awards. Discount Drug Stores, with 135 stores nationwide, won the Chemist/Pharmacy of the Year gong for the first time.
- AmorePacific, Korea's number one beauty and personal care company, has entered into a global strategic partnership with the A.S. Watson Group, the world's largest health and beauty retail group. The company has 14,900 stores in 25 leading markets and is a pioneer of K-Beauty in Asia, Europe and the US. AmorePacific is looking to further expand its reach in Asia and Europe.
- Fragrance major, International Flavors and Fragrances, has bought The Additive Advantage. Founded in 2006, the US-based company could change the face of the fragrance industry under its new owner. Its expertise is in the development of delivery systems that enable the printing of flavours, fragrances, cosmetic, health and nutrition actives onto a wide range of consumer products.
- UK department store stalwart, Debenhams, which opened a Melbourne outpost just over a year ago, has been stumbling lately. The retailer sounded a profit warning recently and experienced a flat festive season. The company has secured a credit facility of AUD$73.47 million from Li & Fung, the Hong Kong-based supply chain manager, to partially fund a turnaround.
