Bumper December retail sales set optimistic tone for 2016, body contouring a major driver of global cosmetic surgery market, Elizabeth Arden teams with world's number one makeover app, and Shiseido and AmorePacific smash records in Asian boom.
Bumper December retail sales set optimistic tone for 2016
December is a crucial month in retailing and indicates consumer confidence for the year ahead. Predictions for the Festive season were optimistic and sales increased by four per cent to $24.8 billion over the same period last year reports the Australian Bureau of Statistics. Many people did their Christmas shopping early and November also posted a 4.2 per cent upsurge in sales to finish the year on a high note.
Household goods saw the biggest growth of 5.6 per cent in December, followed closely by a strong lift of 5 per cent from department stores. "Department stores across the board have picked up their act in the past 12 months, and I believe that's reflected in these results," notes Russell Zimmermann, executive director of the Australian Retailers Association.
Victoria led the way in the nation's year-end splurge with an uplift of 5.4 per cent, followed by Tasmania at 5.2 per cent, NSW at 4.5 per cent, South Australia at 3.4 per cent, Queensland at 3.1 per cent and WA at 1.2 per cent. Online sales continued to surge with the NAB Online Retail Sales Index reporting an 11.2 per cent increase in e-commerce sales in December in contrast to 2014. Australians spent a total of $19.1 billion online in the calendar year 2015 says NAB - 6.6 per cent of the total Australian retail market.
E-commerce is a vital pillar of all retail business these days adds Zimmermann. "Its double digit year-on-year growth is unsurprising when you look at how many retailers are now giving their customers the opportunity to shop online at their own convenience. I think we'll see 2016 become a year of business evolution for retail, with a host of digitally-based enhancements enabling the merging of the online and offline shopping worlds into a more seamless experience".
Body contouring a major driver of global cosmetic surgery market
In spite of the soaring popularity of so-called soft options such as Botox and dermal fillers, the global cosmetic surgery market grew 8.2 per cent in 2015 to US$6.89 billion, according to new figures released at the annual IMCAS (International Master Course in Ageing Science) conference held in Paris in late January.
Body contouring, a grab bag category including tummy tucks, butt augmentations and liposuction, enjoyed double digit growth of 13.5 per cent. The number of laser and energy device procedures lifted 9.3 per cent. Breast implants showed the smallest increase of 3.9 per cent. Analysts expect the global cosmetic surgery market to continue to grow at an annual rate of 8 to 9 per cent to 2020 to reach US$10.49 billion.
The US is the world's largest market by a country mile with a 45 per cent share, followed by Europe at 24 per cent, Asia at 22 per cent and South America at 9 per cent. Asia is the fastest growing market and is expected to grow at an annual rate rate of 13.8 per cent over the next five years.
Elizabeth Arden teams with world's number one makeover app
Masstige and mass brands have been quicker on the uptake with beauty apps because they don't have an army of trained beauty advisors to get their message across. Elizabeth Arden has teamed with Perfect Corp, the company responsible for YouCam Makeup, the number one makeover app in the world with over 100 million downloads. Arden's digital presence takes a quantum leap and Perfect Corp's influence in prestige beauty soars in a win-win initiative for both parties.
YouCam Makeup boasts the number one photo and video app ranking in App stores in 39 major countries. Not only can users try Arden's foundations, eyeshadows, mascaras and lipsticks, they can also buy products through the app which connects to the brand's main website. Co-branded content will also offer advice, on-trend application techniques and the latest in seasonal looks. Says JuE Wong, president of Elizabeth Arden: "The app simplifies product discovery and provides both an entirely new and existing customer base with unprecedented access to the Elizabeth Arden portfolio. It will provide the brand with millions of realtime consumer insights".
The strategy also backs Arden's on-going corporate plan of driving the signature brand, growing the fragrance portfolio and improving go-to-market capability. Global second quarter sales dipped 5.2 per cent to US$316.2 million but strong momentum from the John Varvatos and Juicy Couture fragrance brands and the global success of Superstart Skin Renewal Booster in the last quarter of the year bode well for 2016.
Shiseido and AmorePacific smash records in Asian boom
Shiseido set a new Tokyo trading record on the Nikkei last week as its shares spiked 20 per cent to 2690.5 yen ( AUD$32.50) following news that sales for the first nine months of 2015 topped 763 billion yen (AUD$9.24 billion) - one billion yen more than sales for the entire calendar year of 2014. The number of Chinese visitors to Japan doubled last year to five million and Shiseido skincare ranked high on their shopping lists.
To meet strong demand, Shiseido has announced it will build its first new manufacturing facility in 40 years near Osaka. The new centre will cost US$328 million and will produce prestige and mass market skincare in a bid to double the Japanese giant's output to 100 million units a year.
AmorePacific, the South Korean mover-and-shaker also enjoyed spectacular success last year. Sales reached a record high in 2015 of 5.66 trillion won (US$5.6 billion) - up 20.1 per cent on 2014. Quarter 4 sales rose 77.4 per cent to yield a net profit increase of US$76.2 million. Duty-free sales and exports to North America and other Asian countries were the major growth drivers. Best-selling skincare brands such as Sulhwasoo and Laneige lifted Amore Pacific's export sales by 51.5 per cent in Asia and 39 per cent in the US in 2015. Korea's huge domestic market also helped the nation's leading beauty player top a landmark year with local sales lifting 18.9 percent to 3.06 trillion won (US$3 billion).
Snippets from the wires
- The Parlour in Tokyo's upmarket Ginza district has been serving up cakes and ice-cream for over 100 years. Shoppers who drop by the brand's nearby Salon de Cafe can also enjoy exclusive cakes made on the premises. Lancôme has taken a leaf from the Japanese pioneer's marketing book and debuted its new retail concept - Café Lancome - in Dubai. Tricked out like a Parisian cafe, the pop-up coffee shop serves coffee and macarons as Lancome BAs show them the prestige brands makeup, skincare and fragrances.
- In another bid to attract Millennials. will launch the Estée Edit in 320 Sephora stores and online. Brand ambassadors, including Kendall Jenner, will promote the curated collection of make-up and skincare through social media and a dedicated Instagram site.
- Luxury brands are returning to print in a big way overseas. The latest issue of British Vogue is the largest March issue in the title's 100 year history with 275 ad pages - 27 more than last year.
- Mass retailers such as Target and Kmart have become serious beauty destinations in Australia and the US. Target in the US upped its beauty cred two years ago with the launch of L'Oréal's Vichy and AmorePacific's Laneige skincare brands. Four new exclusive brands have been added to the inventory - Marlowe, the Mayfair Soap Foundry and You Are Amazing - three body brands that offer a cheaper alternative to Bath & Body Works - and Defy & Inspire, a private label nail polish range.
- LVMH, the world's largest luxury goods group, enjoyed a 16 per cent increase in revenues in 2015 to 35.7 billion euros (AUD$56.29 billion). Perfume and cosmetics sales jumped 15 per cent as Dior's new men's fragrance Sauvage did well and so did the J'adore and Miss Dior juices. Sephora had another very positive year, gaining share in all of its markets. Lower sales in Asia were balanced by strong results in Europe, Japan and the US.
