La Perla launches beauty division; Unilever Q3 sales reach US$14.7 billion; Miniso to open 68 more new stores in Australia; and new Google for beauty search engine debuts.
La Perla launches beauty division
In 2017, La Perla inked a deal with CBB Beauty, the UK fragrance producer and distributor owned by Revlon. Within a year the first fragrance – La Mia Perla – rolled out globally, including Australia. But the Italian luxury lingerie label has now set its sights on a major expansion into the beauty business.
The company has set up a new subsidiary – La Perla Beauty – which will extend into cosmetics and skincare in addition to fragrance. The division will be operated and managed separately to other parts of the La Perla group, but the company has remained silent on the remaining term of its licensing agreement with CB Beauty which has three more years to run.
Founded in 1954 by Ada Massotti and acquired by German entrepreneur Lars Windhorst in 2018, the brand celebrated its 65th anniversary this year. The move follows a spate of luxury brands such as Celine entering the fragrance and beauty space.
Unilever Q3 sales reach US$14.7 billion
Unilever just missed the forecast of 3 per cent growth to reach sales of US$14.7 billion for the third quarter. The major reason for the marginally lower increase of 2.9 per cent was a slowdown in China and India, Unilever's two major emerging markets. Southeast Asia was a highlight following an increased focus on the region and the important Brazilian market also lifted slightly.
The beauty and personal care division reported underlying growth of 2.8 per cent for the period, with deodorants such as Rexona Clinical Protection continuing to perform well. Prestige brands, including Dermalogica, Hourglass Cosmetics and Living Proof haircare, stayed on a firm growth track. Other hotspots included the launch of cleansers in the Clear Men range in China and Pond's Instabright Glow Up Cream across key Asian markets.
Unilever has been in fierce competition with P&G in the haircare category. A battle which has led the multinational to focus on new products such as the shampoo and conditioner bars in its recently launched Love Beauty and Planet brand. According to CEO Alan Jope: "For the full year, we continue to expect underlying sales growth to be in the lower half of our multi-year 3-5 per cent range, an improvement in underlying operating margin that keeps us on track for the 2020 target and another year of strong free cash flow".
Miniso to open 68 more stores in Australia
Miniso has taken the world by storm since launching in 2011. The Japanese-inspired Chinese retailer now operates 3800 stores worldwide, including 32 in Australia located in major shopping centres such as Chadstone in Melbourne and Westfield Parramatta in Sydney. Last month, the company signed agreements to enter six new markets, including the UK, France, the Maldives, Reunion Island, Aruba and Curacao in the Caribbean.
The first Australian Miniso store opened in 2017 and the company has announced it will launch 68 new stores by the end of 2020, taking its national network to 100 outlets. The retailer has secured distribution deals with a clutch of global brands, including Hello Kitty, Sesame Street and Pantone. The springboard to Aussie expansion is the new licensing partnership with Marvel Comics." Australia is a key country in the world for the rapid expansion of Miniso and our distribution of Marvel products, which feature more than 600 different SKUs", said Richard Li, Miniso Australia vice-president.
Miniso specialises in low cost stationery, toys, kitchenware and cosmetics. With global revenues of US$2.5 billion in 2018, stores offer an extensive range of moisturisers, sheet masks, serums and cleansers priced between $1.99 and $9.99. We have already recorded strong sales success in Australia with expectations that we will continue to grow, added Li.
New Google for beauty search engine debuts
Mira, a free search engine for beauty products, has debuted to global acclaim. The brainchild of Stanford graduates, Jay Hack and Brandon Garcia, the new app bills itself as "the Google for beauty". According to the founders – "Mira is democratising the world of beauty by translating millions of product reviews into digestible product synopses. Users can find out what consumers really think, do side-by-side comparisons, and click-through to purchase their favourite products for the best price".
Plenty of others agree with the company's assessment that Mira is the world's most knowledgeable beauty insider in your pocket. Key backers include Unilever Ventures, the investment arm of the multinational, e.ventures, Founders Fund and Great Oaks Venture Capital – all multi-billion global venture capital funds. The app is available for iOS or there's a beta version on AskMira.com. The platform uses facial recognition and AI to help shoppers find the right products and will continue to develop as its reach and community grow.
Snippets from the Wires
- Korean cosmetics giant, LG Household & Healthcare, bought New Avon, the direct seller's North American business, for US$125 million in April. The goal was to gain a foothold in the US market. But with access to LG's world-class technology, Avon is partnering with the Korean beauty chain, The Face Shop, to launch a collection of skincare and makeup including cushion foundation and blusher – a first for Avon.
- Helena Rubinstein kickstarted her career in Australia to become the world's first self-made beauty mogul. The brand was once a department staple worldwide and L'Oréal acquired it in 1988. The multinational has steered the products toward prestige anti-ageing ranges which are available online in Australia. The brand is opening a new counter in Harrods in London after a 16 year hiatus in the UK. Chinese nationals overtook British customers as the iconic store's biggest spenders in 2017, so the Rubinstein revival has a clear marketing focus.
- Therapeutic skincare is a natural fit for travel retail. Nothing irritates or dehydrates the skin faster than hours of flying. L'Oréal's Active Cosmetics division includes La Roche-Posay and Vichy and is expanding rapidly in travel retail. By the end of the year, over 90 shops in airports worldwide will carry the two leading dermocosmetic brands.
