Record Profit for Priceline, Hailey Baldwin tops rankings of celebrity endorsers, beauty and fragrance major drivers of LVMH annual sales, and Hollywood celebs and L Catterton invest in Kopari Beauty.
Record Profit for Priceline
As Priceline gears up for The Beauty Prescription event at Randwick Racecourse on February 10, API, also the parent company of Soul Pattinson pharmacies, has announced record half year results. Half year profits after tax are expected to rise 14.6 per cent to $29 million.
Priceline was the key player in the bullish performance. Total sales in the year-to-date rose 3.6 per cent, says in-coming CEO, Richard Vincent. Former CEO Stephen Roche will hand over the reins on February 15, following a rise in sales of 1.4 per cent over the Christmas period.
API's expansion strategy for this year will see the group reach 462 stores nationwide by the end of the company's financial year on August 31. Priceline will continue to lead the way, says Vincent. “There is no other retailer of our scale in this sector with a brand for women that has our strength of brand marketing assets".
Hailey Baldwin tops rankings of celebrity endorsers
There's a growing trend for beauty and fashion brands to appoint influencers and social media stars as ambassadors. But famous faces still dominate by a country mile, says Celebrity Intelligence, which bills itself as the most powerful digital resource in celebrity engagement strategy. Models and athletes are the most popular choices for brands on the hunt for spokesmodels and the two professions monopolise the top 20 celebrity endorser rankings.
Hailey Baldwin signed the biggest numbers of deals over the past year, including one for a colour cosmetics collection for Australian brand ModelCo. Irish model Vogue Williams ranked second, followed by Kendall Jenner through her agreements with Estee Lauder, Fendi, La Perla and more. Breaking the mould yet again, 95 year old fashion icon, Iris Apfel, secured fourth place on the list.
Skewing back to youth, Karlie Kloss was ranked fifth, followed by Gigi and Bella Hadid in 6th and 7th slots. Other well-known names to make the top 20 included Emily Ratajkowski, Cara Delevingne, Alessandra Ambrosio, Kate Moss, Alexa Chung and Rosie Huntington-Whiteley.
But the big bucks are still commanded by celebs from the entertainment world, says the NPD Group in its influencer rankings. Rihanna was crowned “most marketable celebrity".
Beauty and fragrance major drivers of LVMH annual sales
LVMH enjoyed sales growth of 5 per cent in 2016 as revenues climbed to $US40.2 billion – the world's largest luxury goods group's highest total sales ever. The Perfume and Cosmetics division enjoyed a robust sales rise of 8 per cent. Sephora continued its onwards-and-upwards journey with double digit growth, opening 100 new stores worldwide last year and debuting online in six additional countries.
A highlight of the past 12 months was the revitalisation of Louis Vuitton's fragrance business - Les Fontaines Parfumees. Christian Dior increased market share in all key regions, boosted by its Sauvage, J'Adore and Miss Dior fragrances. Benefit's landmark 13 SKU eyebrow collection was a winner. Guerlain, Make Up For Ever, Fresh and Kat Von D also put in strong performances.
Hollywood celebs and L Catterton invest in Kopari Beauty
Launched in late 2015, US-based Kopari Beauty has had a dream run. Originally a direct-selling business, the coconut oil-based brand is now sold through Sephora online and the QVC shopping network. The brand's hero product is Coconut Melt, a 100 per cent organic coconut oil.
L Catteron, the world's largest consumer-focused private equity firm, was formed last year by Catterton Partners, LVMH and Groupe Arnault. The company's beauty investments include Clio, the South Korean cosmetics brand, Dr Wu Clinical Skincare from Taiwan, Cover FX and Brit skincare brand, Elemis. Australian companies have been desirable investment vehicles for the partnership, which has invested in R.M Williams, Seafolly swimwear and Jones The Grocer.
Kopari Beauty has also secured a significant investment from L Catterton to springboard further development. One of the brand's four co-founders James Brennan is a friend of Jared Leto. The musician-turned- superstar has also stumped up funds to invest in the brand, along with other celebrities such as Ashton Kutcher, Mila Kunis, Karlie Kloss, Hillary Duff and Shay Mitchell.
The combined capital injection will help Kopari open own-brand concept stores, expand to international markets and drive innovation in R&D. An on-shelf presence in Sephora, beginning later this month, is another plus of LVMH's financial involvement.
Snippets from the wires
- According to Euromonitor International, many brands are shifting their product development, marketing and advertising away from Millennials towards the over-45 demographics in skincare, haircare and body care. The trend will accelerate this year, says the researcher. A new label has emerged – Midorexia – to refer to middle-aged and older consumers who look and act much younger than their biological age.
- Rosacea is a widespread problem globally, triggered by sun exposure, weather, diet and stress. To date, treatments have mainly kept the issue under control. Allergan, the makers of Botox, are launching Rhofade in May. Containing 1% oxymetazoline hydrochloride, the once-daily prescription solution is a major step forward in minimising rosacea more effectively.
- Unilever plans to take on P&G's Head & Shoulders, the world's number one anti-dandruff shampoo. Rolling out first in the US, the Dove DermaCare Scalp collection is a six SKU range – Dryness & Itch Relief Shampoo and Conditioner, Invigorating Mint Shampoo, Invigorating Mint 2-in1, Pure Daily Care Shampoo and Pure Daily Care 2-in1.
- Many surveys and studies cited by beauty and cosmetic brands are very small. P&G's Olay brand consistently follows a reverse methodology by polling tens of thousands of respondents. Over 155,000 participants took part in the power brand's latest survey, conducted in partnership with 23andMe, the genetic testing service. Lifestyle matters more than heredity when it comes to maintaining a youthful appearance was the main takeaway. Using sunscreen regularly and maintaining a positive attitude are the top two factors when it comes to looking younger, followed by regular exercise, good sleeping patterns, vitamin and supplement use and high self-rated health.
