Aussies spend $17.2 billion over New Year break, Burt's Bees enters the beauty-from-within market, Glansaol: New global player in niche beauty acquisitions and, the beauty breakthroughs of 2016.
Aussies spend $17.2 billion over New Year break
The sales period from Boxing Day to January 15th was the gift that kept on giving for retailers. "Every year Boxing Day crowds seem to expand, and this year's crowd certainly did not disappoint", says Russell Zimmermann, Director of the Australian Retailers Association (ARA). "We predicted retailers would trade over $2.3 billion this Boxing Day, and judging by the increase of people in stores, I think we may have hit the mark".
The ARA and Roy Morgan Research tipped that Aussie shoppers would shell out $17.2 billion in a three week after-Christmas spending spree ending this week. Food ($6.98 billion), household goods ($3.018 billion) and fashion ($1.346 billion) led the pack when it came to "tangibles". Sales in department stores flatlined with 0.2 per cent growth to $1.05 billion. But the biggest upsurge was in hospitality - up 6.8 per cent to $2.48 billion - reports the ARA, as people of all ages enjoyed the new year break by spending up big in cafes, bars and restaurants.
Burt's Bees enters the beauty-from-within market
Burt's Bees has enjoyed phenomenal growth in Australia over the past year. Overall sales grew by more than 30 per cent and lip products climbed 41 per cent to seal the title - number one natural lip brand in Australia. The beauty-from-within trend is posting rapid growth, particularly among younger consumers and in Asia, and it's a natural focus for one of the global leaders in the natural personal care category.
Burt's Bees has already expanded into body care, baby products and pet care. Known for its certified natural formulas, the popular brand has entered the beauty drink category with three protein-based shakes - Daily Protein, Protein + Gut Health with Probiotics and Protein + Healthy Radiance with Antioxidants Vitamins A, C & E. The trio of powdered mixes contain plant-based proteins such as peas, rice, sunflower seeds and oats boosted with natural vitamin extracts.
Launching first in the US, 70 per cent of the ingredients are certified as organic. Extending into the functional food category is a logical extension for us, says spokesperson Jim Geikie. "We've created formulas that not only enhance daily nutrition, but also support specific areas. Burt's Bees Protein + Gut Health supports digestive health as part of a balanced diet and healthy lifestyle, and Protein + Healthy Radiance gives skin a healthy glow. Both are new benefit offerings in the category that we believe strengthen holistic beauty".
Glansaol: New global player in niche beauty acquisitions
Niche and indie brands have become the Silicon Valley of the cosmetic industry. Last year major players such as Estee Lauder, L'Oreal and Unilever snapped up a bevy of brands with four things in common - committed founders, emotional back stories, top quality products and a clear point-of-difference.
Glansaol (pronounced glan-sale) is the new buyout hunter on the block. Set up by Alan Ennis, former president and CEO of Revlon, and global private equity firm Warburg Pincus, which manages $US40 billion in assets, the company is pitching itself as the "next great beauty company". Unlike many other companies backed by private equity muscle, Glansaol is not seeking to expand for eventual sale, says chief marketing officer Martine Williamson. The aim is to curate a limited stable of beauty and personal care brands and provide "a cosy, non-corporate environment for entrepreneurs".
Glansaol's founding portfolio of brands are: Laura Geller, a beauty company that targets women 35-plus, Clark's Botanicals, created by Francesco Clark and specialising in premium natural skincare products, and Julep, a 10 year old cosmetic brand set up by Jane Park in 2007. All of the founders continued to operate their businesses following acquisition by Glansaol. The parent company provides leadership and marketing insights and is scouting for new brands that fit its acquisition criteria. Go to www.glansaol.com for more information.
Beauty breakthroughs of 2016
The never-ending release of new beauty and cosmetic products should not be confused with constant innovation. Many newbies are flankers of established products, feature improved formulas or are cheaper versions of prestige launches. But every year there is a handful of game-changers that do merit the description breakthrough. Conde Nast-owned Allure magazine is widely recognised as a prime arbiter of what constitutes real step forwards. Here are the prestige magazine's 12 best breakthroughs of 2016 and many are still set to launch in Australia this year.
- Lancome Le Teint Particulier Custom Made Makeup: A colour-matching tool scans the skin and an algorithm determines the right mix of pigments for truly individualised foundations.
- Fragrance Lock: A revolutionary perfume-sealing spray that binds scent to the skin by slowing its evaporation rate.
- Essie Gel Couture: Delivers just the right amount of polish for each nail.
- Dyson Supersonic Hair Dryer: $US71 million development budget was worth it for such superior blow-drying results, says Allure.
- Skin Better Science AlphaRet Overnight Cream: The first overnight moisturiser to combine retinoids and lactic acid for superior anti-ageing and radiance-boosting effects.
- John Frieda In-Shower Lightening Treatment: Instant colouring results for brunettes and blondes.
- Rimmel London Wonder'Full Volume Colourist Mascara: Tints and lengthens lashes at the same time.
- Simplehuman Sensor Mirror Pro: A mirror that really does show you exactly how your makeup looks in daylight.
- One Two Magnetic Fake Lashes: No glue required as these stay-put lashes are magnetised.
- SkinCeuticals Triple Lipid Restore 2:4:2: L'Oreal has big plans for this one-step-away-from prescription brand. The numbers in the title indicate that this moisturiser has the same lipid ratio as young skin to make it "act" younger.
- Living Proof Full Dry Volume Blast: No wonder Unilever just bought the brand. The formula contains hollow balls made of polymers to volumise even baby-fine hair.
- Smashbox Insta-Matte Lipstick Transformer: The filter of silicone polymers in this clear gel helps to keep matte lips looking soft for hours. No bleeding, either.
Snippets From the Wires
- Company integrations often translate as cost-cutting moves and staff layoffs. Revlon acquired Elizabeth Arden mid-last year and has announced that 350 positions will be eliminated worldwide. A strategy that should save between $US40 million and $US50 million.
- La Roche-Posay's prowess as a multi award-winner continues. The L'Oreal-owned dermo-cosmetic brand won 20 international awards in 2016, double its haul in 2015. Standout performers included Anthelios Clear Skin Dry Touch and the revolutionary UV patch.
- Dubai Duty Free is the world's number one travel retailer in a single location. Cash registers rang to the tune of $US1.85 billion in 2016. Fragrances were the best-selling category with revenues of $US306 million. Cosmetics achieved a number four ranking with sales of $US148.8 million.
- Aerin and Jane Lauder are both billionaires, thanks to the family business. Suh Ming-jung, the 25 year old daughter of AmorePacific's chairman, Suh Kyung-bae, isn't quite there yet. But the eldest child of South Korea's second richest man is the second largest shareholder of the company with a personal fortune of $US390 million. A year after graduating from Cornell University with an economics degree, she is joining the booming multinational founded by her grandfather.
- Facial sheet masks are no passing trend, says Transparency Market Research. Global sales are expected to double from $US160.4 million in 2015 to $US336.7 million by 2024. The top three names in the category are: Sephora, Estee Lauder and Swiss-based Starskin.
- Yves Rocher, the legendary French beauty brand, has bought a 66 per cent share in Israeli natural bath and beauty company Sabon for $US129 million. The company has global sales of $144 million and is sold in 14 countries. Japan and the US are the two key export markets. Rocher has the option of buying out the remaining share.
Image: Aerin Lauder
