Elisabeth King reports on Scott Eastwood tapped as new face of Cool Water, profits up again at L'Oréal, the global success of Zara's little sister, and Unilever signing on the global license for TIGI Cosmetics.
Scott Eastwood tapped as new face of Cool Water
As perfume authority Michael Edwards puts it - Cool Water was the first fragrance to turn men into sex objects. Launched in 1988, it was the first men's juice to contain the very unsexy-sounding ingredient - dihydromyrcenol - the hero note that attracts women like flies. A popular choice of parallel importers, even Coty doesn't know how much of the potent love juice is sold in Australia each year beyond admitting that the volume must be huge.
But Cool Water's bestseller status is about to be further amplified with the appointment of Scott Eastwood as the new face of a global TV and print campaign, kicking off in the second quarter of the year. A handsome chip off the old block - the actor is the son of Clint Eastwood - his first movie as a top-billing star, The Longest Ride, based on the best-selling book by Nicholas "The Notebook" Sparks, debuts worldwide in April. His last screen outing, alongside Brad Pitt and Shia LaBoeuf, was the World War II tank tale, Fury, and he has just signed for an untitled movie directed by Oliver Stone and also starring Joseph Gordon-Levitt.
There's no denying Eastwood's acting and genetic credentials as the sort of outdoorsy, adventurous guy that's been the trademark of Cool Water ads for over 25 years. The late Paul Walker of The Fast and the Furious fame was the scent's last celebrity appointment.
Profits up again at L'Oréal
US-based multinationals are feeling the pinch of a stronger greenback but L'Oréal's profits remain firmly in the black. The cosmetics giant posted a 1.8% increase in global sales in 2014 to US$25.5 billion.
According to CEO Jean-Paul Agon: "As anticipated and announced, L'Oréal recorded in the fourth quarter its strongest growth of the year. In a volatile economic context and a less dynamic market, the Group posted growth in all its divisions and regions of the world. L'Oréal Luxe and Active Cosmetics achieved very good growth and outperformed their market significantly". The only downer was a dip in the growth of the Consumer Products Division, notably in the US.
Agon expects more of the same in 2015, citing the strength of the mutinational's business model and global strategies such as Beauty For All.This year's acquisitions of Magic Holdings, a Chinese mask manufacturer, NYX Professional Makeup, , Carita and Niely Cosmeticos of Brazil will also, no doubt, add to the bottom line.
Stradivarius - the global success of Zara's little sister
H&M launched COS, its more upmarket brand in Australia in November. While Zara's semi-luxury brands, Massimo Dutti and Zara Home, will also make their Sydney debuts later this year. But what of Stradivarius, Zara's chic little sister, which targets Millennials with its value prices?
Bought by Inditex, Zara's parent company in 1999, Stradivarius with its cute-as treble clef logo has grown at rapid-fire speed. With over 900 stores in 60 countries, the brand boasts more shops than Abercrombie & Fitch and J. Crew combined. It also enjoys higher sales than American Apparel and operates in more countries than Gap. The latest flagship store in Shinsaibashi, Osaka's main shopping centre and centre of youth culture, opened in November - a two-storey glass palace measuring over 2500 square metres.
Stradivarius has been slow to enter English-speaking markets and opened its first UK store in Westfield Stratford City in London last September. Targeted at women aged 20 to 35 who are "too young to dress like their mothers but too sophisticated to dress like teenyboppers" says the company website, the low prices - $19 for a tube dress - make Zara look mid-market.
As more and more fast fashion retailers open stores in the US from Topshop through to H&M and Zara itself because of weak economies in Europe (the same reason they are opening up shop in Australia), fashion observers are wondering when Stradivarius will follow the lead. Even Primark, the British budget chain, plans to open seven stores across the US by the end of this year.
There's no doubt that Zara's expansion in the US has been respectable but it hasn't been spectacular since it opened its first store in Manhattan 26 years ago - 52 stores with another 12 planned for 2015. The US youth fashion market is ferociously competitive and "everyone" is chasing Millennials. In the meantime, though, Zara could choose to test-market Stradivarius in Australia, following the successful British debut last year.
Unilever signs global license for TIGI Cosmetics
Unilever bought the haircare brand in 2009 for US$411.5 million in cash. The deal covered the Bed Head, Catwalk and S-Factor brands but excluded Toni & Guy hairdressing salons. The multinational had plenty of experience in mass haircare but none at the premium end of the market. But over the past five years it has rapidly expanded the worldwide reach and distribution of TIGI.
Now Unilever plan to do the same with TIGI Cosmetics. Founded as a professional makeup range in 1989, TIGI Cometics was given a major makeover in 2012 and has a "rebellious offspring" - Bed Head Makeup. The award-winning range is a leader in the professional colour cosmetics space in several European markets but Unilever has an eye on a bigger prize - the US and South America.
The multinational has signed a global licensing agreement with Naterra International to further develop and distribute TIGI Cosmetics. Based near Dallas, Naterra makes several US name brands - Aqua Spa, Baby Magic and Tree Hut. According to CEO Jin Song, Naterra is poised to blaze a trail in the fashion makeup category, targeting fashion leaders, trend setters and elite makeup artists. Check out the range on www.tigi-cosmetics.com
Snippets from the wires
- Dedicated men's skincare has been around for over 50 years, led by 's two major prestige brands - For Men and . But the men's market is starting to experience a similar segmentation to its female counterpart and is increasingly offering anti-ageing products for men aged 35-plus. Kanebo, bought by the Kao Corporation, owners of Bioré, John Frieda and , in 2006 is following suit in Japan. The Lissange Men range is the company's first grooming lineup for over-40s males.
- Skin evaluation analysis and gadgets are having a major moment in beauty. Sony has announced it will launch the Beauty Explorer first in Japan in mid-March. Incorporating the Smart Skin Evaluation Program developed by Sony two years ago, the technology offers an accurate analysis of skin textures, pore size, radiance and blemishes in seconds. The Beauty Explorer connects to smartphones and is capable of spotting skin issues invisible to the naked eye. The launch price will be US$125 or slightly more.
- Sales of , the youth makeup brand imported by The Heat Group, rose 21% in Australia last year. We're not the only fans. The brand's German parent company, cosnova Beauty, has reported a 13% increase in global sales to 297.3 million euros ($411 million) in 2014 - a company record. Overseas sales account for 50% of total business.
- Miss Vogue began life as a biannual print supplement in the April and October issues of British Vogue. Conde Nast has launched an online presence on its sister title's web site - vogue.co.uk/missvogue. We wanted to bring the best elements of Vogue to a teenage audience, says editor Emily Sheffield.
- It's impossible to predict when 81 year old Karl Lagerfeld will throw in the professional towel because of advancing age. He's still at the very top of the fashion game. So much so, "The Kaiser" has announced he will launch a signature children's collection for kids 16 and under in the first quarter of 2016.
Image: Stradivarius.
