Bettencourt death ignites rumours about L'Oréal's future; Estée Lauder launches biggest marketing campaign for a Michael Kors fragrance; Terry White tops Roy Morgan Pharmacy Satisfaction rankings; Sell-out Aussie face mask to launch in Harvey Nichols.
Bettencourt death ignites rumours about L'Oréal's future
L'Oréal shares jumped 5 per cent on the news of Liliane Bettencourt's death last week. The world's richest woman was the largest shareholder of the company founded by her father, Eugene Schueller, with a 33 per cent stake. Nestlé, the giant Swiss multinational, reduced its stake in L'Oréal from 31 per cent to 23 per cent in 2014, currently worth $US27.6 billion. But a 43-year-old agreement between the two companies not to increase their shares in the world's biggest pure beauty player is set to expire in six months.
At one time many analysts speculated that Nestlé might attempt to buy L'Oréal, but this viewpoint has run out of steam. The interests of the two multinationals have diverged, with Nestlé shifting its strategy towards nutrition and health and L'Oréal retaining its focus on cosmetics and haircare. The French colossus also has the funds and investments and/or could exchange shares to acquire Nestlé's stake. In June, Nestlé shareholder Third Point urged the company to exit the L'Oréal investment which accounts for more than 10 per cent of its market value.
Estée Lauder launches biggest marketing campaign for a Michael Kors fragrance
Over the past 16 years Michael Kors has released more than 30 fragrances. The brand enjoys double digit growth in Australia and white florals and citrus scents are a speciality. Last year's blockbuster launch, Wonderlust, was a clear departure from the established norm. Taking its cue from Michael Kors sobriquet as the king of the jetrosexuals, the oriental floral gourmand kickstarted a new era.
Michael Kors latest release, Sexy Ruby, hits stores worldwide this week. The former Project Runway judge has ditched travel for sex appeal. Licensee Estée Lauder has earmarked one of its most expensive marketing budgets ever – $US30 million – in a bid to secure $US75 million in global sales in the first year for the fruity/floral scent aimed at Millennials.
International sales now make up 60 per cent of Michael Kors fragrance revenues and more money will be directed to digital and social media. Print, sampling and scent strips have been allocated the lion's share of the global marketing spend – 50 per cent – with 35 per cent going to digital.
The big names are engaged in a battle for Millennial noses in the run-up to Christmas. Chanel is reported to have poured $US50 million into its global marketing campaign for its new pillar fragrance – Gabrielle Chanel.
Terry White tops Roy Morgan Pharmacy Satisfaction rankings
By the end of the year the re-branding of the 500 stores joined by the Terry White/Chemmart merger will be complete. Customers are happy with the arrangement too, reports Roy Morgan. Terry White topped the rankings of the researcher's Pharmacy Satisfaction report for July with a 90.3 per cent rating and Chemmart filled the number three spot with an 88.9 per cent score. My Chemist split the duo in second position with an 89.9 per cent thumbs-up from customers.
According to Michele Levine, CEO, Roy Morgan Research, Terry White Chemists has continued its strong performance in 2017 and has now finished as one of the Top 2 pharmacies for customer satisfaction for six months in a row swapping leadership with My Chemist during this period. "In third position is Terry White merger partner Chemmart which has seen an improved performance in 2017 following the completion of the merger late last year".
Levine points out that the Australian pharmacy industry is incredibly competitive. In fact, there's only the narrowest of margins separating the leading pharmacy chains when it comes to pleasing consumers. Priceline pharmacy achieved an 88.5 per cent rating, followed by Chemist Warehouse at 88.2 per cent and Discount Drug Stores at 88 per cent.
Sell-out Aussie face mask to launch in Harvey Nichols
Six years ago, Sarah and Emily Hamilton, entrepreneurial twin sisters from Geelong, founded Bellabox, Australia's leading beauty subscription box service. Longterm global nomads, few people know more about the appeal of Australian-made makeup and skincare to the global market. In April, the siblings launched the Sand & Sky skincare brand with one product – Purifying Pink Clay Mask.
More than 60,000 tubs of the naturally-based mask containing native ingredients such as kakadu plum and Australian pink clay were sold in the UK and Australia within 12 weeks. A waitlist of 2000 quickly formed for the second delivery of the brightening pick-me-up in both countries. The Hamiltons are currently formulating the second product in the Sand & Sky range and the sellout pink clay mask will debut in luxury department store Harvey Nichols in the UK in October. The product has scored over two million views on YouTube and attracted the attention of two of the world's most important beauty influencers – Huda Kattan and Jeffree Star.
Snippets from the wires
- Nike and Amazon scored the top two rankings for social media clout in the latest Retail Brands Industry Report from NetBase. In the luxury and fashion sector, Chanel, Louis Vuitton, Burberry and Gucci all rated in the top 20.
- Travel retail has become a core focus for beauty, fragrance and skincare brands. But they could do better reveals new research from m1nd-set. In spite of travellers browsing cosmetic counters, high prices and a lack of assortment have emerged as the leading reasons for reduced beauty spending. People are prepared to pay more for special and limited editions in travel retail, though.
- Brands have to be where their customers are these days. Napoleon Perdis is launching in Hairhouse Warehouse in November. In the UK, Estée Lauder-owned Origins will debut in Marks & Spencer stores and the iconic retailer's website this week.
- Zara now has 7000 stores worldwide. Inditex, the fast fashion giant's parent company, has reported a 9 per cent rise in net sales for the year to June to $AU2.055 billion.
- Over the past eight years, Chemist Warehouse media billings have skyrocketed from $5 million to $100 million across TV, radio, digital, print and sponsorships. Australia's largest pharmacy retailer has announced it will take its huge media and creative accounts in-house. Quattro, the Melbourne-based full-service agency, has held the account since 2009.
