Elisabeth King reports on Estée Lauder buying RODIN Olio Lusso, Beyoncé cuts major deal with Topshop, L'Oréal to extend leadership in travel retail with three key brands, and the legendary Paul Poiret fashion house set for revival.
Estée Lauder buys RODIN Olio Lusso
Before the recent acquisition of niche fragrance brand Le Labo a couple of weeks ago, Estée Lauder's last major purchase was Smashbox in 2010. In a one-two punch shopping spree, the prestige player has bought RODIN olio lusso. Founded by legendary 65 year old NYC stylist, Linda Rodin, in 2007, the hero product is The Luxury Face Oil - a potent combo of eleven floral and botanical essential oils.
Rodin started experimenting with essential oils in her Manhattan apartment and took sample blends to photo-shoots and runways shows, where they quickly became complexion lifesavers. Working with visionary hairstylist, Bob Recine, she extended the luxury lineup to include body oil, a hand and body cream perfume and hair oil. With limited distribution in trend-setting boutiques and department stores such as Barneys and Liberty, RODIN olio lusso became the ultimate insider beauty brand says Fabrizio Freda, President and CEO of Estée Lauder.
Le Labo has estimated sales of between US$20 million and US$30 million a year but RODIN's figures are harder to track. No matter, says Freda - "It has the potential to be a high growth global skincare brand that strategically enhances our portfolio". In other words, RODIN could become a future La Mer. John Demsey, the Estée Lauder Companies Group President, adds another responsibility to his busy work schedule, overseeing Estée Lauder, M.A.C, Tom Ford, Prescriptives, Bobbi Brown, Bumble & Bumble, Jo Malone, La Mer, Smashbox, Aramis and Designer Brands.
Beyoncé cuts major deal with Topshop
No wonder Harvard Business School has conducted a study on Beyoncé's financial nous. Like husband Jay-Z, she's become a major mogul who sings and dances a bit. Latching on to the booming athleisure trend, Queen Bey has signed a deal with Topshop to produce a new range of athletic streetwear on track to debut at the end of 2015.
In a major departure from the way most celebs attach their names to fashion brands - by launching their own boutique labels like Victoria Beckham or leasing their name - Beyoncé has scored a 50/50 partnership with the British fast fashion brand via a joint venture company - Parkwear Topshop Athletic.
With Topshop boasting over 500 stores worldwide and concept shops in leading department stores such as Nordstroms, the partnership is poised to be far more lucrative that the standard celebrity fashion deal. It's a win-win for Topshop owner Sir Philip Green, too. The British entrepreneur is keen to expand in the US and teaming with the mega-star should provide the fastest insider track. Beyoncé has already "worked" well for Topshop. She wore one of the brand's black and white satin A-line frocks in London in early March and prompted an immediate global sell-out.
L'Oréal to extend leadership in travel retail with three key brands
In 2013, global duty-free and travel retail reached a record US$60 billion reports Generation Research - a rise of 7%. Cosmetics and fragrances are the largest sector, accounting for 29% of total sales - followed by wines and spirits (16%), fashion/accessories (15%), tobacco (13%), watches/jewellery (10%) and electronics and gifts (9%). The dominant market leader is L'Oréal, which enjoys a 21.3% share of global travel retail cosmetic sales. But the French giant wants more.
La Roche-Posay has significantly ramped up its presence in Australia over the past year in terms of strategic launches and its recent Spot Checker initiative. L'Oréal has announced it will debut the brand, its dermocosmetic stablemate Vichy and the Kerastase haircare brand in selected travel retail locations across Asia by the end of the year and in North and South America in the first quarter of 2015. La Roche-Posay and Vichy will be sold through Dermacenter outlets, shop-in-shop concept stores dedicated to derm brands.
The Asia/Pacific zone is the world's most lucrative travel retail region, accounting for 37% of global sales - followed by Europe ( 34%) and the US (19%). But Dubai Duty Free has regained its crown as the world's largest single airport retail operation with sales of US$1.8 billion in 2013. With a record 66.4 million passengers travelling through the Middle Eastern hub, sales are expected to climb to US$1.9 billion by year's end.
The legendary Paul Poiret fashion house set for revival
Contrary to widespread myth, Paul Poiret - not Chanel - launched the first fragrance linked to a couture fashion house in 1911. Coco's once-bitter rival named the scents after his daughter - Les Parfums de Rosine - and they enjoyed huge popularity for over 20 years. Known as the man who liberated women from corsets and put them into harem pants, Poiret was the subject of a hugely successful exhibition at the Metropolitan Museum of Art in New York in 2007 - Poiret: King of Fashion.
None of Poiret's original fragrance formulas still exist. But in 1991, fourth-generation perfumer Marie-Helene Rogeon revived Poiret's fragrance house using the original name. Since 1998 she has created 30 perfumes made from natural essences and based on rose from Rose d'Éte to this year's Ballerina No 1. Over the past few years, a string of heritage French houses have undergone fashion and fragrance revivals, including Courreges, Carven and Schiaparelli, largely because of the Chinese passion for long dormant fashion names with a historic pedigree.
Off the radar for nigh on 80 years, the spotlight is now on Paul Poiret. Luvanis, an investment firm based in Luxembourg, which specialises in reviving "sleeping beauty" brands and trademarks is asking for online bids for interested parties until November 14th. Founder and Director, Arnaud de Lummen, has a track record in brokering sales of fashion brands. Consider: the LVMH buyout of British shoemaker Nicholas Kirkwood and the sale of Vionnet to Matteo Marzotto, the Italian luxury and fashion tycoon. Analysts expect the buyer to be Asian. Probably a major player such as First Heritage Brands, the investment arm of the Fung Group.
Snippets from the wires
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Last week marked the 20th anniversary of the first-ever banner ad on Hot Wired, the online version of Wired magazine. Way back then 44% of people clicked on.
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Avon's cost-cutting programs seem to be working. The direct-selling giant posted a net income hike to US$91.4 million in the third quarter on total global revenues of US$2.1 billion - in contrast to a loss of US$5.5 million for the same period last year.
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The appointment of Helen Mirren as a beauty ambassador for L’Oréal Paris in the UK has sparked another round of "Is 60 the New 30?" headlines. The truthful answer is, of course, no. But the much-admired actress, now 69, makes a strong addition to the brand's growing older gracefully lineup and acknowledges that the majority of the brand's skincare products are aimed at the 40-plus market.
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COS, the H&M owned fashion label famed for its chic minimalism, has enjoyed cult status in Europe from its launch in 2007. Following an e-commerce launch in the US in July, the brand has opened its first store stateside in Beverly Hills. At the end of November, the first COS store in Australia opens in Melbourne.
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How time flies. Kim Kardashian's seventh fragrance is about to hit US counters. Called Fleur Fatale, it's billed as an "elegant floral" and comes in white opaque bottle shaped like her favourite bloom - a white rose.
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She has a long way to go to catch Paris Hilton, though. The former celebutante is launching her 17th fragrance in the US - With Love, Paris Hilton. According to Donald J. Loftus, the president of licensee Parlux, more than US$2 billion worth of Paris Hilton scents have been sold since 2004.
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As the Grooming Editor of Men's Style magazine, I've been deluged with beard balms and oils this year as male facial hair has become a year-round look. Tom Ford, of course, makes the trend much more sophisticated with a trio of beard oils scented with some of his top-selling juices - Neroli Portofino, Tobacco Vanille and Oud Wood. Launching in the US next week, they arrive on Australian counters on December 26th.
Image credit: Beyoncé | I Am Tumblr