Mobile devices to dominate online Christmas sales; US fitness and health giant buys world's largest eyelash extension franchise; Rothschild family acquire Parfums Caron; Victoria's Secret owner L Brands to close Henri Bendel.
Mobile devices to dominate online Christmas sales
Salesforce Australia, the local arm of the the world's biggest CRM (customer relationship management) platform, is very bullish about the impact of mobile devices on sales over the Festive Season. According to its latest research, mobile will deliver 68 per cent of all e-commerce traffic for the period – an increase of 19 per cent on 2017. The trend will hit a sharp peak on Christmas Eve, jumping to 72 per cent of all visits and half of online orders for the period.
The smartphone will rule, says Rick Kenney, head of consumer insights at Salesforce Commerce Cloud. We'll see more visits from phones this season than total e-commerce visits for the entire 2015 Christmas season, he adds. Forty six per cent of all online orders will come via smartphones, followed by computers (44%) and tablets (9%). Using mobiles as a second screen in-store is a rampant trend, with 83 per cent of Australian consumers aged 18 to 44 predicted to consult their smartphones when they are in a bricks-and-mortar store.
Instagram debuted its Instagram Shopping Platform in Australia earlier this year and is expected to be the fastest-growing social media channel for channelling digital traffic to retail sites over the Christmas period. Health and beauty brands are predicted to be among the major beneficiaries because of their popularity and presence on Instagram
US fitness and health giant buys world's largest eyelash extension franchise
Franchising is a major force in the professional beauty and haircare business in Australia and globally. WellBiz Brands, one of the largest health and wellness companies in the US, manages three leading brands – Fitness Together, Elements Massage and FIT36 – boasting 400 locations nationwide. Recently featured on the Inc 5000 list, a list of the fastest-growing private companies in the US, WellBiz Brands has branched into beauty with the buyout of Amazing Lash Studio, the world's largest eyelash extension franchise.
Amazing Lash Studio has enjoyed tearaway growth since its launch in 2010 to become a market leader in affordably-priced eyelash extensions. The core concept involves the application of semi-permanent extensions which follow the curve and size of natural lashes through a proprietary, patented process. The company started franchising in 2013 and has over 200 studios in 33 US states and was recently ranked number 5 on Entrepreneur Magazine's Top New Franchises of 2018.
Future growth is very much top-of-mind for WellBiz Brands. Final details of the transaction were not disclosed, but Golub Capital proved debt financing of US$75 million. A specialist in middle market private equity acquisitions, Golub has US$25 billion in capital under management. "We were looking for a solution that not only allowed us to execute our current acquisition, but also gave us flexibility for the future growth of WellBiz Brands", said Joe Luongo, Executive Chairman of WellBiz Brands.
Rothschild family acquire Parfums Caron
Founded in 1903, Parfums Caron is regarded as the oldest French perfume house in continuous operation. Iconic fragrances such as Narcisse Noir, Fleur de Rocaille and Caron Pour Un Homme are legends in the perfume industry. The brand was acquired by the Ales Group, owners of the Lierac and Phyto skin and haircare brands, in 1998 and is also famous for its exquisite artisan face powders. Distributed in Australia by Escentials Brands, there has been a strong revival over the past few years and the latest scent release – Dans Ma Bulle – is targeted at Millennials.
Rumours first surfaced in July that the Ales Group was looking for a buyer and had hired Lazard, the world's largest independent investment bank, to scout for prospects. Caron's global sales peaked at US$11.6 million in 2013 and declined to US$9.3 million this year, representing only 4 per cent of the Ales Group's turnover. In spite of the overseas push, most of Caron's revenues come from France and the brand has four stores in Paris.
Ales has entered into exclusive negotiations with Cattleya Finance, the investment company of banking scions, Benjamin and Ariane Rothschild. Details of the deal were not disclosed, but the Rothschild family intend to reinvigorate Caron internationally for "its authentic heritage of high perfumery in France".
Victoria's Secret owner L Brands to close Henri Bendel
A visit to the Henri Bendel store on Fifth Avenue has long been a rite of passage for fashion and beauty fans heading to New York. Founded in 1895 by its eponymous owner, the company was the first luxury retailer to open on Fifth Avenue. A swanky address from the get-go, it also launched the first in-store fashion show and pioneered twice-yearly department store sales. The storied fragrance and makeup sections attract locals and tourists alike and clutching a Bendel brown-and-white bag really seals the deal on an NYC trip.
L Brands, the owner of Victoria's Secret and Bath & Body Works, acquired Henri Bendel in 1985. But the retailer is a minnow by contrast to the rest of the business. The 23 store Henri Bendel network is expected to finish the full year with revenues of US$85 million, while L Brands sales for 2017 totalled US$12.6 billion.
All Henri Bendel stores, including the Fifth Avenue flagship, will close their doors for the last time in the New Year. Under L Brands stewardship, Henri Bendel stopped selling clothes and focused on handbags and accessories. "We have decided to stop operating Bendel to improve company profitability and focus on larger brands that have greater growth potential", said Leslie Wexner, Chairman and CEO of L Brands.
Snippets from the Wires
- Teens, Gen Zers, dry masks and the natural and organic trend are key drivers propelling the ongoing face mask boom, reports Mintel. According to the global intelligence company, the face and neck mask sector accounted for over 20 per cent of new launches targeted at girls aged 13 to 17 from 2014 to 2017. Over 45 per cent of US skincare shoppers aged 18 to 24 polled by the company also agreed that face masks provide major opportunities to take a selfie.
- The diversity in beauty movement has focused mainly on foundations. Maybelline has announced its up-and-coming Color Sensational Made for All lipstick lineup has been tested on 50 different skin tones. The new range will debut globally early next year.
- Over the past decade L'Oréal has acquired 12 new brands, increasing its portfolio to 34. There's more in the offing and the French multinational has appointed Philippe Cornu as its new Global Head of Acquisitions and External Business Development. A 30 year L'Oréal veteran, he takes over from Alain Evrard who held the position for the past 11 years.
- China's cross-border e-commerce market is expected to reach US$1.3 trillion by the end of the year, reveals the China E-Commerce Association. The top 10 countries and territories importing the most goods through the channel are: Japan, the US, South Korea, Australia, Germany, New Zealand, the Netherlands, France, the UK and Hong Kong.
