Revlon soups up Millennial appeal with AllSaints fragrance deal; global mascara market revs up to reach $US5.83 billion; Glossier attracts a further $US52 million in funding; and Johnson & Johnson partners with Monash University.
Revlon soups up Millennial appeal with AllSaints fragrance deal
In 2011, Lion Capital rescued AllSaints from administration when the private equity giant acquired the British biker/lifestyle fashion brand for $AUD187 million. The turnaround has been spectacular, but not unexpected considering Lion Capital bought and sold Jimmy Choo and ghd for a tidy profit. AllSaints reached record sales of $AUD539.5 million in the financial year to January 2017 and close to 50 per cent of the brand's revenues now come from international sales. AllSaints currently has 243 stores in 27 countries and has expanded strongly into Asia, including South Korea and Japan, and is putting out feelers in China.
In early February, AllSaints signed a licensing agreement with Hong Kong-based Global Brands Group (GBG) to design and distribute a new accessories range for men and women. GBG is part of the Fung Group and manages licenses for such fashion heavyweights as Kate Spade, Tommy Hilfiger and Juicy Couture.
Hard on the heels of that corporate coup, AllSaints has signed a global fragrance deal with Revlon. The new range of accessories and the fragrance collection will both debut in the Northern Hemisphere Autumn to double the promotional impact in all major markets. From Revlon's point-of view, the agreement also dovetails with the appointment of high profile, multicultural Millennial actresses and models to front its Live Boldly campaign – Gal Gadot, Ashley Graham, Adwoa Aboah, Imaan Hammam and Raquel Zimmermann.
Global mascara market revs up to reach $US5.83 billion
Ten years ago hardly a week went by without the launch of a new mascara that promised to push the limits of lash enhancement. But since 2013 the global mascara market has experienced low single digit growth of only 3.13 per cent. The spotlight is about to shift back, according to a new report from Transparency Market Research, which estimates that worldwide sales of mascara will reach $US5.83 billion by 2021.
Europe and the Asia/Pacific region will be the biggest drivers of growth, says the researcher. Niche products such as natural and organic mascaras and cake-based mascaras will enjoy faster growth than their mainstream competitors. Online sales will also continue to rise. Not only through replenishment, but also because mascara is one of the leading beauty categories where consumers are not afraid to blind buy a product they have not tried before from a website.
Non-mascara eye enhancement products such as lash growth serums will also surge in popularity, says Transparency Market Research. Over the next five years, lash boosters that moisturise, condition, strengthen and help lashes to grow are on track to reach global sales of $US513.44 million. The US will account for the largest market share, followed by the Asia/Pacific region.
Glossier attracts a further $US52 million in funding
It seems a lifetime ago that Glossier, the direct-to-consumer US brand aimed at Millennials, received its first outside investment of $US2 million in 2013. Another two rounds of funding attracted $US8.6 million in 2014, followed by $US24 million in late 2016. Last year, Glossier opened offices in London and Montreal and has now scored its largest injection of cash yet – $US52 million – taking its total funding over the past four years to $US86 million.
Founded by former blogger Emily Weiss, Glossier now has a range of 28 products and hangs its hat on building beauty communities. Close to 80 per cent of Glossier's staff are women and authenticity has been a major goal for the beginning. Announcing the latest fund-raising effort, led by the brand's existing investors IVP and Index Ventures, Weiss has told subscribers that the bulk of the money will be used to "create the best shopping experience in the world".
Johnson & Johnson partners with Monash University
Johnson & Johnson (J&J), the maker of Aveeno, Neutrogena and Clean & Clear, has identified Australia as an innovation hotspot for personal and health care. The multinational boasts annual revenues of $US7.4 billion and is a leader in skincare and health research. To further its competitive edge, J&J has joined forces with several of the world's leading universities and governments.
The latest move to boost the company's already considerable reputation as a global scientific innovator is a team-up with one of Melbourne's ground-breaking research centres. Johnson & Johnson Innovation division has opened a partnering office – JJIPO@Monash – in collaboration with the Victorian state government at Monash University to speed up the development of medical devices, pharmaceuticals and consumer personal care products.
J&J presented its latest beauty and personal care research at the 2018 American Academy of Dermatology meeting in mid-February. Priority areas covered photoprotection, acne, cleansing and the microbiome, including pioneering work with prebiotics, the benefits of low light therapy on treating acne and developments in skin brightening using a high strength regimen in ethnically diverse formulations. "The studies are excellent examples of the robust discovery process that drives our mission as champions of science", says Jennifer Zhu, Vice President, Global Beauty R&D at Johnson & Johnson.
Snippets from the wires
- Perfumes and cosmetics were bullet performers in pushing Sydney International Airport's retail revenues to a new high of $AUD331 million in 2017. The jump of 12.7 per cent marked the first full year of operation of Terminal 1's international luxury precinct.
- Obesity may have become a national problem, but Aussies still live up to their athletic image. According to Roy Morgan Research, swimming is Australia's number one sport with 6.02 million men and women diving into the water regularly or occasionally. Just over 4.3 million Aussies jog or take part in marathons and track and field pursuits. The number three slot goes to cycling with 3.18 million regular participants.
- The highest ranking beauty brands on social media in the 2018 Luxury Brands Report from NetBase were: L'Oréal in the number 20 slot, followed by Dior (25) and Estée Lauder (28).
- Henkel, the maker of Schwarzkopf hair products, enjoyed a spike in global sales of 7 per cent to 20.09 billion euros ($AUD31.48 billion) in 2017. The first time the German multinational has surpassed the 20 billion euro milestone.
- Beauty and dietary supplements have been around for decades, but the category is well and truly on the comeback trail. According to Euromonitor International, sales of "beauty-positioned" supplements raked in $US3 billion in 2017. The top six markets were: India, Japan, Germany, the UK, Brazil and the US.
