J&J buys Vogue International for $US3.3 billion, surge in Australian online beauty sales favours local retailers, Melbourne's Eastland set to launch The Beauty Garden, and fashion and beauty entrepreneurs rank highly on Forbes Richest Self-Made Women List.
J&J buys Vogue International for $US3.3 billion
Johnson & Johnson have triumphed in the "auction" for Vogue International, maker of the OGX natural haircare brand. The multinational will pay $US3.3 billion in cash, and the big price tag is justified. Natural and organic haircare products have rejuvenated sales in pharmacies, supermarkets and department stores worldwide. In many countries the category is growing at five times the rate of the overall haircare market, especially among Millennials looking for "better-for-you" products. The higher-performance formulas of the new generation shampoos, conditioners and treatments from brands like OGX are also key factors in tempting consumers of all ages to switch to natural haircare brands.
J&J have enjoyed huge success in the natural skincare market with the revival of Aveeno Active Naturals, and plans to carve out a bigger chunk of the action in the naural haircare market. Fast-growing mega-markets like China and Brazil have a pronounced preference for natural haircare. According to Jorge Mesquita, global chairman for consumer at J&J: "Our acquisition of Vogue International's full line of leading advanced haircare products in the US and 38 countries will strengthen our global presence in this important category". The deal will be completed in the third quarter.
Surge in Australian online beauty sales favours local retailers
Bricks-and-mortar stores still account for the vast majority of cosmetic and skincare sales in Australia. But the number of online beauty purchases is tracking strongly. In the year from April 2014 to March 2015, 316,000 Aussies bought cosmetics and a further 283,000 purchased skincare products online. A hefty 108,000 shoppers bought items from both categories, reports Roy Morgan.
A year later, from April 2015 to March 2016, sales figures surged. More than 370,000 Australians bought cosmetics and 367,000 purchased skincare online - with the number of crossover buyers rising to 120,000, says the researcher. The average spend - not single SKUs - was $90 for cosmetics and $94 for skincare.
Local online retailers are way out in front in both categories. When it comes to make-up buys, 179,000 Australians say they buy solely from local online retailers, in contrast to 91,000 who made purchases from overseas websites. The gap was even wider for skincare, adds Roy Morgan. Close to 194,000 bought skincare from local e-commerce retailers, which was more than double the number - 82,000 - who said they purchased creams and serums from international retailers.
According to Norman Morris, industry communications director, Roy Morgan Research: "A higher proportion of 35 to 49 years olds buy these products online than women of any other age. It is a popular category across most age groups, only dropping off past the age of 65. Part of the appeal of purchasing skincare and makeup via the Internet is that it's often cheaper than shopping in bricks-and-mortar stores. However, while people who buy these products online are slightly more likely than the average Australian to agree they'll go out of their way in search of a bargain, they are much more likely to over-index when it comes to attitudes such as "it's important to look fashionable" and "I was born to shop."
Melbourne's Eastland set to launch The Beauty Garden
Melbourne's Eastland Shopping Centre is celebrating its 50th birthday in style. Owners QIC have invested $665 million in a huge Stage 5 expansion, which doubles the retail space of the complex to match Westfield Doncaster as one of the biggest shopping centres in the country. Together with major anchors such as Myer, David Jones and a 12 screen Multiplex, Eastland will unveil The Beauty Garden, a "sanctuary" dedicated to health and beauty rituals, on June 22.
Garden doesn't mean a few squares of AstroTurf in this case. Eastland has teamed with internationally renowned British artist, Rebecca Louise Law, to create a permanent, inverted garden of 150,000 preserved flowers - all Australian blooms. "Beneath the art of The Canopy, guests will enjoy an exceptional sensory experience, move freely between some of the best names in beauty, treat themselves to pressed juice and get their nails done all at once," reveals Law.
She's not wrong. Major names who have signed up include Mecca Cosmetica, iKOU, , , Inglot, and . Located on the circuit of Level 2, The Beauty Garden joins 350 speciality brands in the revamped centre, covering contemporary gourmet food, fashion, style and design.
Fashion and beauty entrepreneurs rank highly on Forbes Richest Self-Made Women List
Most of the women who make Forbes magazine's annual list of the most wealthy females on the planet acquired their money the easy way. They inherited it. So last year, the financial publication introduced the first America's richest self-made women rankings. Fashion and beauty have always been two of the major ways women have achieved multi-millionaire status from Coco Chanel to Elizabeth Arden and Estée Lauder and the tradition continues.
The richest self-made woman in fashion and beauty on the 60-strong 2016 list is Doris Fisher, co-founder of Gap, who ranks number three overall behind Oprah Winfrey with a net worth of US$2.4 billion. Forever 21 co-founder, Jin Sook Chang, also makes the top 10 at number nine with a net worth of US$1.9 billion.
Other fashion and beauty entrepreneurs who can give themselves a major pat on the back include: Sara Blakely, founder of Spanx (No17; US$1 billion), Tory Burch (No19; US$750 million), Carolyn Rafaelian, founder of Alex and Ani (No 22; US$700 million), Donna Karan (No 31; US$450 million), Vera Wang (No34; US$420 million), Diane von Furstenberg (No43; US$340million), Patricia Miller, co-founder of Vera Bradley (No49; US$300 million), Sophia Amoruso, founder of Nasty Gal (No53; US$280 million), Barbara Bradley Baekgaard, co-founder of Vera Bradley (No54; US$270 million) and Toni Ko, founder of NYX Professional Makeup (No57; US$260 million).
Snippets from the wires
- Acne, psoriasis and ageing are fuelling double digit growth in the global beauty devices market, says P&S Market Reserach. Valued at $US2.34 billion in 2015, global sales are expected to increase 19 per cent year-on-year to 2022.
- Only 11 photography apps have hit the 100 million download mark. According to Perfect Corp, its YouCam Makeup app has joined the exclusive club.
- Ulta Beauty is making good on its promise to poach sales from Sephora in the US. the beauty chain announced a huge upsurge in sales of 23.7 per cent in the first quarter to $US1.073 billion. Interestingly, prestige brands including Urban Decay, , IT Cosmetics, Lancôme and were some of the best performers.
- YSL's Black Opium family, including the recently launched Nuit Blanche, now ranks number four in prestige fragrance sales in Australia. The prestige French brand is targeting the second cohort of Millennials - 25 to 30 year olds - with its latest juice - Mon Paris. The global rollout begins in France this month, and the new scent is an homage to YSL's best-selling Paris, released in 1983. A fruity/floral, the key notes are Calabrian bergamot, raspberry, strawberry, a white floral heart and drydown of two types of patchouli.
- The oil boom continues. But Smashbox has - ahem - thought outside the box with its latest release - Photofinish Primer Oil. Comprising 50 per cent primer and 50 per cent oil (or rather a blend of 15, including jojoba and argan), the product claims to be the first ever primer specially formulated with lightweight oil to create a dewy, youthful finish.
Newsletter image: Instagram.com/sophiaamoruso
