L'Oréal heads list of world's Top 20 beauty companies, Lush to reach US$1 billion in 2016, today's consumers buck generational trends, and online fraud attempts up 30 per cent.
L'Oréal heads list of world's Top 20 beauty companies
P&G's sell-off of 43 cosmetic and fragrance brands to Coty has left L'Oréal unchallenged as the world's number one beauty multinational. In 2014, sales of the world's 20 top beauty companies fell by US$2.1 billion to total net revenues of US$156.7 billion - down from US$158.8 billion in 2013.
The global beauty market, however, is expanding by 4.5 per cent a year, reports Research and Markets. By 2018, total sales are expected to reach US$461 billion - up from US$379 billion in 2013.
1) L'Oréal - US$27.4 billion
2) Unilever - US$21.5 billion
3) Procter & Gamble - US$18.1 billion
4) Colgate-Palmolive - US$11.7 billion
5) Estée Lauder - US$10.8 billion
6) Johnson & Johnson - US$7.9 billion
7) Shiseido - US$6.5 billion
Joint 8th - Avon and Beiersdorf - both US$6.3 billion
10) Kao - US$5 billion
11) LVMH - US$4.7 billion
12) Coty - US$4.4 billion
Joint 13th - Henkel and AmorePacific - both US$4.3 billion
Joint 15th - L Brands and Mary Kay - US$4 billion
17) Amway - US$2.7 billion
18) Chanel - US$2.5 billion
19) Natura - US$2.4 billion
20) Revlon - US$1.9 billion
Lush to reach US$1 billion in 2016
famously doesn't advertise or use celebrity faces and yet the 20 year old, fresh-as Brit brand is on track to hit global retail sales of US$1 billion in fiscal 2016. In the company's most aggressive expansion strategy to date, more than 200 new products willl be launched between now and the first quarter of 2016.
Lush debuted its biggest-ever store in London's Oxford Street in April and is also close to the magic figure of 1000 shops around the world. Over the next six months, the Lush global network will expand to 956 stores. With operations in 48 countries, including Australia, the company boasts double-digit growth in excess of 20 per cent in 50 per cent of its markets. North American sales are set to soar to US$400 million in fiscal 2016 - up from US$169 million in 2014.
A pioneer in the use of social media to build customer loyalty, global online sales have also risen by nearly 50 per cent over the past three years - from US$43 million in 2012 to US$80 million this year. With seven manufacturing sites around the world, Lush has entered new categories this year, principally oral and hair care and makeup to reach its expansion goals.
Today's consumers buck generational trends
James Dean might find it a lot harder these days to kickstart a movie career as a troubled teen if a new report from Nielsen - Global Generational Lifestyles - is any indication. Not only are many older people rushing headlong into a technology-driven lifestyle, the generation closest to the over-70s in choosing reading as a favourite spare-time activity is Generation Z, a.k.a Post-Millennials. Inter-generational differences in key activities have largely become a myth among the three largest demographics - Millennials, Gen Xers and Baby Boomers - says the researcher.
Watching TV reigns supreme as the number one spare-time activity for Millennials (31 per cent), Gen Xers (38 per cent) and Boomers (42 per cent). Millennials are reading less than their older counterparts but not by much at 20 per cent, in contrast to Gen Xers at 24 per cent and Boomers at 29 per cent. Gen Z comes just after Boomers in their love of reading as relaxation at 27 per cent.
Connecting with family and friends is most important to Gen Xers - 30 per cent - with Millennials and Boomers tieing at 28 per cent each. Listening to music is the number one spare-time activity for Gen Z - 37 per cent - followed by Millennials (27 per cent), Gen Xers (21 per cent) and Boomers (19 per cent).
Travel looms large for every demographic, except the youngest, with the over-70s topping the category at 25 per cent. But there's not much difference between the other generations when it comes to wanderlust- Gen Xers and Boomers tie at 22 percent, followed by Millennials at 18 per cent.
Online fraud attempts up 30 per cent
As we approach the festive shopping season, new data from ACI Worldwide sounds a note of caution for online shoppers. The universal payments company processes US$13 trillion a day and analysed hundreds of millions of transactions from global retailers over the past year.
According to Mike Braatz, senior vice-president, Payments Risk Management for ACI Worldwide: "When it comes to fraud, 2015 is looking among the riskiest holiday season retailers have ever seen." In 2014, CNP ( card-not-present) fraud attempts by volume jumped 30 per cent worldwide and fraud attempts by value soared 33 per cent. The prevalent trend for fraudsters is for lower spend amounts and the average fraud value has increased from US$273 in 2013 to US$282 over the past 12 months.
Digital downloads (e-gifting or virtual gift cards) have the highest attempted fraud rate of 9.55 per cent, says ACI, followed by next day/overnight at 6.57 per cent, international at 2.38 per cent and pick-up in-store at 2.15 percent. Buy online/pick-up in-store attempted fraud rates have risen sharply because many retailers do not require customers to re-run cards when they arrive to claim their purchases.
Snippets from the wires
- Missoni wasn't a good fragrance fit for , unlike its Italian compatriot Zegna. Euroitalia, the current Missoni fragrance license holder, has launched a new signature fragrance in Italy and the UK exclusively in Harrods. With citrus top notes and a heart including jasmine sambac, the scent is the first juice from the new agreement and will roll out worldwide in 2016.
- It's been 11 years since H&M debuted a fragrance linked to one of its celebrated designer collaborations - Liquid Karl from its team-up with Karl Lagerfeld in 2004. The Swedish fast fashion retailer is launching a unisex fragrance with Balmain in-store and online on December 3rd. Priced at US$40, it's more affordable that the French fashion brand's own lineup of fragrances, including Ivoire and Extatic.
- Hemp oil derived from crushed cannabis seeds has long been used in moisturisers, cosmetic and deodorants, notably by . But the Australian government's decision to allow cannabis to be used for medical purposes has opened a new door. US brand Dixie, which makes food, drinks and personal care items infused with THC, the psychoactive component of cannabis, is planning it's first international expansion to Australia once the new legislation is finalised. The brand's leading personal care products include Bath Soak, Muscle Relief Lotion and Relief Balm.
- If you can make it in the world's number one per capita market for skincare, you can make it anywhere. That's the thinking at Korean beauty brand Lalavesi, which has just broken the South Korean speed record for selling one million products. Owned by KB Pacific, Lalavesi was founded in 2012 and has only two products - Akma Cream and Akma Cushion - and sells exclusively online. CEO Won Jin has announced the brand is ready to go international and has applied for sales licenses in the US, Europe and other Asian countries, mainly China and Japan.
