Tom Ford Beauty on track to become $US1 billion brand, Europe remains the world's largest cosmetic market, Balmain acquired by Qatari investors, and Shiseido takes smile power one step forward.
Tom Ford Beauty on track to become $US1 billion brand
is a master at building billion dollar-plus brands from to . Riffing off new launches such as the Soleil colour cosmetics range, Soleil Blanc fragrance and the best-selling signature scents lineup, Tom Ford Beauty is on track to join the exclusive club. By the end of the fiscal year, the luxury brand will reach worldwide sales of $US500 million and double its presence in Sephora stores. New launch countries over the next few months include New Zealand and Taiwan.
Tom Ford Beauty's global revenues have jumped 29 per cent this financial year. A rate of growth that will see the brand hit the magic $US1 billion a year milestone within the next four years. We have a glide path to basically doubling the business in a very short time, says John Demsey, executive group president, the Estée Lauder Companies. "The evolution from signature fragrance to full Tom Ford beauty house and the way the evolution is taking place is a big driver of growth", he adds.
Europe remains the world's largest cosmetic market
With all the beauty chatter surrounding China, Japan and Korea, the recent Cosmetics Europe Week in Brussels rubberstamped the region's status as the world's largest beauty and personal care market. With 500 million consumers dedicated to honing their looks, the European beauty market is worth 77 billion euros ($AUD114.48 billion). As the heartland of L'Oréal, Unilever, Beiersdorf and other global giants, Europe also ranks as the world's biggest innovation hub, employing 26,000 scientists across a range of R&D activities.
Europe also dominates the world's global cosmetic exports, with shipments totalling 17.2 billion euros (AUD$25.57 billion) in 2015. France and Germany alone account for 53 per cent of global beauty exports. Two million people are employed in the continent's beauty industry - 56 per cent are women and a very high 44 per cent are male.
The big stats keep coming. Over 100 European companies manufacture cosmetic ingredients and actives used by brands worldwide. Over 20,000 businesses are involved solely in the wholesaling of cosmetics. There are more than 45,000 specialist retail stores selling cosmetics and 500,000 hairdressing and beauty salons.
"Our industry remains strong", says Loic Armand, president of cosmetics europe. "But we should not be complacent. Business is global and to remain competitive, we need a Europe that facilitates science and innnovation."
First Valentino, now Balmain acquired by Qatari investors
Over the past three years, Balmain has completely revived its fashion and fragrance business. The heritage French fashion house, founded in 1945, posted revenues of US$US134.8 million last year - a rise of 25 per cent. Europe acounts for 50 per cent of sales, followed by Asia (25 per cent) and the rest of the world (7 per cent).
Mayhoola For Investments, backed by the Qatari royal family, has paid a rumoured $US536 million for a majority stake in Balmain. The brand's on-fire designer, Olivier Rousteing, has been a major force in attracting a younger, more savvy global customer. Last November, he collaborated with H&M for the Swedish fashion giant's most successful one-off fashion collection. Balmain operates 17 directly-owned stores worldwide, mainly in China, Japan, Hong Kong, Korea and Dubai.
This latest acquisition pushes Mayhoola closer to its goal of becoming one of the world's leading luxury goods groups. The investment fund bought Valentino in 2014, doubling profits on revenues of $US1 billion within the first year. It also has a majority stake in Italian menswear brand Pal Zileri and holds the licenses for Moschino and Cerruti 1881. In addition, Mayhoola bought a 38 per cent stakes in Anya Hindmarch, the British bag designer, in 2012 for $54 million and a further 21 per cent stake for $48.4 million two years later.
Shiseido takes smile power one step forward
Specialist toothpastes and teeth whitening are no guarantee of a brilliant smile, except in the visual sense. Someone may have the most glamorous gnashers, but their smile can be cold, fake, patronising or worse. Shiseido has created an app which relies on facial movements to rate the quality of a person's smile on a scale from a bleak zero to 120. No longer will anyone have to guess whether a grin is genuine or not.
From next month, the Japanese cosmetics giant will road-test the app on 5000 flight attendants in a lengthy trial lasting for several months. Launching commercially in early 2017, it is initially aimed at the hospitality industry. But knowing whether your smile is trustworthy, elegant, attractive, beautiful, positive, friendly or lively could be a plus for TV presenters, interview candidates and beauty eds and vloggers who make videos.
Human nature is always a wild card, and warns that the most effective smile isn't always about the numbers. "Even if you have a 120 rating smile, it doesn't mean it's the best smile", says a company spokesperson. "For instance, a smile could be perceived as more elegant even when the overall rating is 80".
Snippets from the wires
- Travel retail has become a goldmine for the world's leading beauty brands. Estée Lauder has created the new role of senior vice president and general manager, business operations, Travel Retail Worldwide. The first incumbent is Israel Assa, who joined Lauder's travel retail operations in 2001. He will be based in Switzerland and oversee the companies three regional travel retail divisions.
- Sunscreen may be the first line of defence against UVA and UVB rays, but many chemical SPFs are tough to remove. is taking a new sales tack by spruiking its sonic cleansing devices as the best way to ensure all residues are removed and there's no day-to-day buildup. According to the brand's studies, sonic cleansers remove more than six times as much sunscreen, makeup and sebum as washing your face by hand.
- The popularity of smartphone ad blockers has publishers and marketers in panic mode. The danger is real, reveals a new report from eMarketer. This year 69.8 million Internet users in the US used ad blockers - 26.3 per cent of the nation's web users. By 2017, the number will rise to 86.6 million users - 32 per cent.
Newsletter image: Instagram.com/TomFord
