Coty's new structure packs a one, two, three punch, Priceline CEO to step down after a decade, mid-range international retailers lining up to open stores in Australia and New Zealand, and Frederic Malle partners with Alber Elbaz for new fragrance.
Coty's new structure packs a one, two, three punch
Coty's new global logo - a butterfly - tells the story. The multinational has gone through a major metamorphosis following the acquisition of 43 P&G brands to become the world's third largest beauty, haircare and cosmetics company. To break it down further, Coty is now the global number one in fragrance, number two in the salon hair category and number three in colour cosmetics.
Camillo Pane, CEO of Coty explains: "The completion of this transaction is a key step in our journey to return P&G results to a balance of strong top-line growth, bottom-line growth and cash regeneration. We are now focused on 10 product categories and about 65 brands where P&G has leading market positions and where product technologies deliver performance differences that matter most to consumers."
All of Coty's subsidiaries, including Australia, are in the final phase of a business re-structure which splits the company into three main divisions: Coty Consumer Beauty, Coty Luxury and Coty Professional Beauty.
Coty Consumer Beauty will cover make-up, bodycare, hair colourants and fragrance brands sold in mass channels. Major brands include: Adidas , Clairol, COVERGIRL, David Beckham, , Max Factor, Rimmel London, Sally Hansen and Wella.
Travel retail and the luxury beauty market are the stamping grounds of Coty Luxury. A portfolio of prestige brands including , , , Gucci, Hugo Boss, , Bottega Veneta, Alexander McQueen, , Miu Miu, and Lancaster.
Coty Professional Beauty is spread across salon and professional nail and haircare. The brands comprising this division include: Clairol Professional, Nioxin, Sebastian Professional, System Professional, Wella Professionals and OPI.
Priceline CEO to step down after a decade
Stephen Roche, CEO and managing director of Australian Pharmaceutical Industries, the parent company of Priceline, will hand over the reins in February next year to Richard Vincent, the current general manager of business development, operations and strategy. Roche took the helm 10 years ago and what an amazing corporate journey it has been.
According to API Chairman, Peter Robinson: "Stephen was appointed CEO and managing director in 2006 to stablise the wholesaling business and undertake a major expansion of the Priceline Pharmacy network to create a leading mass market health and beauty retailer."
He delivered in spades. Today, the Priceline network of 442 stores has an annualised retail turnover of over $2 billion. The company is the market leader in colour cosmetics and skincare, and has enjoyed like-for-like sales growth over the past five years. Another feather in Roche's cap was the implementation of a world first wholesale and retail SAP system.
Mid-range international retailers lining up to open stores in Australia and New Zealand
More than 90 international retailers are eyeing the Australian market to rollout stores over the next five years, reveals new research from retail adviser CBRE. A total of 1.6 million square metres of retail space - about 1800 stores - through to 2021. New Zealand is also a prized target, notes Stephen McNabb, CBRE's head of research, with about 50 international retailers looking to hang out their shingles across the Tasman.
To date, luxury retailers have led the charge but this trend is slowing, says Tim Starling, head of CBRE's Pacific retailer occupier team. "Over the next five years, we expect mid-range fashion and specialist clothing brands will have a more wide-ranging impact than the luxury brands, as they tend to focus only on CBD or prime regional centre locations".
The growth in Chinese visitor numbers is having a significant impact on the expansion plans of major overseas retailers. Tourist arrivals from China to Australia have tripled in the past 10 years and quadrupled to New Zealand. "But another market driver has been Australia and New Zealand's consumption per capita, which has grown at twice the rate of the US over the past decade," says McNabb. "This has contributed to the sales productivity of some international brands being among the highest in the world".
Frederic Malle partners with Alber Elbaz for new fragrance
It's been a year since visionary designer, Alber Elbaz, suddenly departed from Lanvin, the storied fashion label he brought back from the brink. Iconic perfumer Frederic Malle, whose niche fragrance company was acquired by in late 2014, has announced a collaboration with Elbaz, his second fashion fragrance team-up since his collaboration with Dries Van Noten in 2013. The fragrance will be called Superstitious and is scheduled for release next March.
Hopefully, not during the ides of the month. All the other signs are very promising, though. The two men agreed on the name almost immediately, says Elbaz, because they are both superstitious. Dominique Ropion, the gun perfumer who has created bestsellers for Lancôme , , , Ralph Lauren and Yves Saint Laurent, as well as the cult hit, Carnal Flower, for Frederic Malle has been tasked with the job.
Snippets from the wires
- The scenic route to a shopping destination conjures up thoughts of being at the mercy of taxi drivers who don't know where they are going. The new Hello Sydney! Shopper Hopper puts paid to such negative connotations. The daily ferry service whisks shoppers from Harbourside at Darling Harbour to Birkenhead Point Outlet Centre in Drummoyne or vice versa. Costing only $10 one-way, the journey takes in the Harbour Bridge, Opera House and Cockatoo Island.
- Elizabeth Thibaudeau, formerly vice-president of global marketing at Nu Skin, has been appointed CEO of Jamberry Nails, the fast-expanding direct seller of decorative nail products. Adam Hepworth, her predecessor, remains a major shareholder and a member of the company's board.
- Two Australian cities - Sydney and Melbourne - will join London, New York and Mumbai for the initial rollout of Etihad Airways new First Class amenity bag. Anyone flying to and from Abu Dhabi in the pointy end from these five hubs will receive a Christian Lacroix bag containing four skincare products from Hungarian luxury skincare brand, Omorovicza. Other destinations will have to wait until the first quarter of next year.
- France remains a powerhouse for fashion and beauty sales, reports IFM (the French fashion insitute). Annual sales of cosmetics and fashion-related products totaled $US170 billion last year. More than double the revenues of the country's aviation and car industries.
- The Chinese government has reduced consumption tax on luxury cosmetics from 30 per cent to 15 per cent and removed it completely for non-luxury cosmetics.
- Manuka honey from New Zealand has become a key ingredient in home-grown and international natural skincare formulas. Procter & Gamble has inked "an exploratory relationship" with Kiwi-based Honeylab, noted for its Honevo range using medical grade Manuka honey.
- Shiseido has announced ambitions to become a top five global fragrance company over the next 10 years. A linchpin of growth will be the newly acquired Dolce & Gabbana licence, which the Japanese giant plans to grow from sales of 400 million euros ($AUD590 million) to one billion euros ($AUD1.47 billion) a year.
