L'Oréal extends dermo-cosmetic footprint with bid for Rivadis, Johnson & Johnson invests in Japanese skincare brand, Chinese tourist expenditure to reach $US255 billion by 2025, and Hermes acquires minority stake in Pierre Hardy.
L'Oréal extends dermo-cosmetic footprint with bid for Rivadis
The multinational's Active Cosmetics Division has been a bullet performer since its debut. Centered by La Roche-Posay and Vichy, both brands are market leaders in providing expert skincare for a wide range of skin issues from eczema to sensitivity. The global dermo-cosmetics market is on fire, increasing from $US8.45 billion in 2013 to $US16 billion in 2015. L'Oréal has played a major role in accelerating category growth in Australia, China and South America with innovative campaigns and education programs targeting pharmacies. Moves matched by leading competitors such as Eau Thermale Eau Thermale Avène.
L'Oréal has submitted an offer to acquire the exclusive rights to the Rivadis Group, which produces a wide range of therapeutic skincare ranges under the Saint-Gervais Mont Blanc brand. Like La Roche-Posay and Eau Thermale Avene, the core ingredient is thermal spring water. In this case from the spa of Saint Gervais in the French Alps close to Mont Blanc, Europe's highest mountain. Major points of difference are the purity of the water and the use of organic Alpine extracts which combine to enhance the hydration powers of face and body products. The healing waters of St Gervais have been attracting visitors since 1807, and it is the only French ski resort with a thermal spa within the designated ski area.
Johnson & Johnson invests in Japanese skincare brand
J&J has been on a major spending spree over the past three months. In April, the multinational acquired the NeoStrata and Exuviance brands, and recently paid $US3.3 billion for Vogue International, the parent company of the FX and Proganix natural haircare brands. In a bid to boost its prestige skincare chops, J&J has taken a 20 per cent stake in Ci:z Holdings, the owner of Dr Ci: Labo, Japan's number one doctor skincare brand.
J&J will become the second largest stakeholder in the company after founder Yoshinori Shirono. The deal is rumoured to be worth about $AUD43.4 million and all rights to Dr Ci: Labo outside of Japan will transfer to J&J. The brand is available online in the US and its extensive range veers from cleansers and exfoliants priced at between $US20 and $US30 to star products such as Aqua-Collagen-Gel Super Moisture EX for $US107. Go to: www.cilabousa.com
Chinese tourist expenditure to reach $US255 billion by 2025
Chinese travellers spent a huge $US137 billion worldwide in 2015. The US ranked second with a mighty outlay of $US134.1 billion. But the Chinese have the numbers to widen the gap. According to a new report - Mapping the Future of Global Travel and Tourism - by Oxford Economics and Visa, there will be a mammoth 86 per cent increase in Chinese travel spending over the next 10 years to $US255 billion.
Many other forecasts have been even more optimistic, but the credibility of this latest report rests on its use of Visa credit card data, excluding airline ticket purchases. Australia stands to experience huge gains from the upsurge, says Tourism Research Australia. China will overtake New Zealand as the nation's largest visitor source market next year. By 2025, one in four international visitors to Australia will come from China.
In spite of reports of slowing economic conditions in China, the on-going rise of the middle class, rather than the mega-rich will fuel expenditure. By 2015, notes the HSBC bank, the total number of Chinese travellers heading abroad will reach 242 million.
As we've seen in recent years, Chinese shoppers will beome more savvy in their purchasing behaviour. Beauty and personal care will continue to enjoy most favoured status, says the Oxford report. Medical tourism, particularly involving plastic surgery, is another key growth trend that could benefit Australia, the US, Japan and Korea.
Hermes acquires minority stake in Pierre Hardy
The two parties are no strangers, of course. Hardy has been the creative director of Hermes footwear for 25 years and creative director for the luxury brand's jewellery collections since 2001. Hardy founded his own eponymous company in 1999, like Tomas Maier of Bottega Veneta, and is regarded as a master in balancing minimalism and opulence.
Hermes has taken a minority stake in Pierre Hardy to springboard further growth. The company has three standalone boutiques - Paris, New York and Tokyo - and its products are sold in Saks Fifth Avenue, Barneys New York, Bergdorf Goodman and Harvey Nichols. Beauty lovers will remember Monsieur Hardy's collaboration with Nars in 2013 for two striking blusher palettes and his gorgeous travel spray collection for Edition de Parfums Frederic Malle. He has also teamed with Peugeot and Gap and plans are afoot to develop more out-of-the-box partnerships.
Snippets from the wires
- Louis Vuitton teamed with private equity firm Catterton in January to form a consumer-focused giant with assets of $US12 billion. The company is taking a small step into K-beauty by investing $US50 million in South Korean beauty company CLIO, which has doubled its revenues in the past year to $AUD123. 7 million.
- AmorePacific owns the Annick Goutal perfume brand, but the Korean beauty giant has had a tough time breaking into the European market. Just over 26 years ago, the multinational debuted its Soon and Lirikos skincare brands in France without success. Following its partnership with Christian Dior for a cushion compact, AmorePacific feels the time is right to launch its best-selling Sulwhasoo lineup in Europe.
- As we reported recently, the second half of the year is peppered with new pillar fragrance brands. Carolina Herrera is following suit with Good Girl, the designer's first new pillar fragrance in 14 years. Karlie Kloss is the face, and the new juice will roll out first in South America, the Middle East and Spain over the next three months.
- The Online Retailer Conference and Expo will be held at the Royal Hall of Industries and the Hordern Pavilion in Sydney from July 20th to 21st. The largest technology-driven retail event in Australia, it will feature 70 speakers. The Mecca brands, and Myer will carry the flag for beauty. A great opportunity for e-commerce players to network, last minute tickets are available from www.onlineretailer.com/sydney
- The big players are driving growth in natural/organic personal care, reports Persistence Market Research. Global sales are expected to rise to $US21.7 billion by 2024, fueled by the
- Companies, L'Oréal, Weleda, Burt's Bees, , Bare Escentuals, Coty and Johnson & Johnson.
