Elisabeth King reports on Shiseido buying Serge Lutens trademark, Lancome teaming up with Versus Versace Designer, Ulta breaking US$1 Billion for a single quarter, and the end of an era for Women's Wear Daily.
Shiseido to buy Serge Lutens trademark
Niche fragrance brands have become hot targets for the beauty industry's major players. Late last year, snapped up Le Labo and Editions de Parfums Frederic Malle. Now has announced it will buy the trademark of Serge Lutens and amplify the brand by opening free-standing boutiques in major cities worldwide.
Now 73, Monsieur Lutens will remain the creative director of his eponymous brand, currently available in more than 2000 outlets in 35 countries, including Mecca Cosmetica in Australia.
Serge Lutens has built up a formidable reputation over the past 50 years as a photographer, film-maker, creative hair and makeup stylist, fashion designer and perfume guru. In the 1960s, he established Christian Dior's makeup line. His collaboration with Shiseido dates back to 1980, when he started as an artistic director to develop the Japanese giant's brand image and spearhead its expansion in Europe. Ten years later, he launched a range of luxury fragrances only available at Les Salons du Palais Royal Shiseido in Paris. In 1999, the upmarket yet affordable luxury range of fragrances that have built up a global cult following made their debut. Standouts include: Ambre Sultan, Chergui, Tubereuse Criminelle and A La Nuit.
Lancôme taps Versus Versace designer
Versace is famous for fashion and fragrance but unlike its Italian rivals - Gucci and Dolce & Gabbana - the flamboyant brand doesn't "do" makeup. Following collaborations with Proenza Schouler and Lanvin's Alber Elbaz, Lancôme has teamed with Anthony Vaccarello, the creative director of Versus Versace, for a limited edition make-up collection to be launched in October.
The lineup could be a test-run for Versace to enter the beauty space. But if it's a one-off to help celebrate Lancome's 80th anniversary, the exclusive range should have a strong impact. Vaccarello is known as the master of asymmetric cuts - at once edgy and romantic - for his own label. It's been a landmark year for the 31-year-old Belgian. He debuted his first Versus Versace collection as creative director for the Fall/Winter 2015 season, following a guest designer capsule collection under the watchful eye of Donatella Versace.
In a mutual schmooze, Vaccarello declared: "For me, Lancome embodies the philosophy of understated beauty; it's something quintessentially French". Francoise Lehmann, Lancome International general manager, responded : "Entrusting a selection of our most iconic products to a designer with such a unique creative universe is an incredibly energising and enriching experience for a Maison like ours that consistently combines heritage and innovation".
Ulta breaks US$1 Billion for a single quarter
Ulta is the largest and fastest-growing beauty retailer in the US. With a track record of opening 100 new shops each year, the 774 store chain has a fast-approaching goal of 1200 stores nationwide. Specialising in mass market and prestige cosmetics as well as hair and skincare services at in-store salons, Ulta broke the US$1 billion sales barrier for the fourth quarter. The first time it has posted the magic figure for a single three-month sales period.
The company's share price jumped 9% on the news to US$157.35. Only a year ago, Ulta's stock price was US$95. For 2014, revenue climbed 21.4% to US$3.24 billion. A surge in online sales, an increase in in-store sales (7.7%) and salon sales - up 20.9% for the fourth quarter - were the major drivers of growth. This year, Ulta plans to invest US$300 million in growth projects, including 100 new stores and a new e-commerce distribution centre. The company also plans to roll out more Lancome and Clinique boutiques in selected stores.
End of an era for Women's Wear Daily
Condé Nast sold the fashion bible - Women's Wear Daily - to Penske Media seven months ago. It wasn't necessary to be a clairvoyant to predict that changes were inevitable. On April 24th, WWD will publish the final edition of its daily print newspaper. A weekly glossy print magazine will debut on April 29th, covering global fashion, retail and beauty news and social coverage.
Print subscribers will receive a new Daily Digital edition of WWD. The revered publication is also extending its reach and will open offices in China and Brazil to tap into the growing influence and affluence of the two emerging giants. Planet Fashion has become a reality - not a sound bite - and WWD is also expanding its roster of correspondents around the world.
Snippets from the wires
- Hyper-pigmentation is the most common skin concern in Australia for women over the age of 18. Beauty eds have seen a torrent of new lightening and brightening products over the past month. According to Kline & Co's new report on the professional skincare market in the US, nearly 25% of take-home products from salons and clinics address hyper-pigmentation and the category is growing faster than its anti-acne and anti-ageing counterparts.
- Founded in the London suburb of Brixton in 1928, British Home Stores was a High Street stalwart for decades. A name change to BHS and a sale to Sir Philip Green, the owner of Topshop, failed to revive the 180 store chain. The loss-making business has been unofficially on the block for years, mainly because Green was looking for a buyer who would attempt to reinvigorate the company. Retail Acquisitions, an investment company, has stepped up to the plate to buy BHS for one pound ( $1.93). The tiny price reflects the fact that the business is debt-free.
- Urban Decay has launched a global initiative to empower women. Called the Ultraviolet Edge, the L'Oreal-owned brand hopes to raise US$3 million over the next five years. The first program to receive help will be the Women's Global Empowerment Fund for micro-loans and literacy education to women in Uganda.
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is the number one men's grooming brand in the world. A no-brainer when you consider that generations of men grew up with the "little blue tin" in the house. Now Beiersdorf is offering males a replica of their own called Nivea Men Creme. Light and non-greasy, it can be used on the face, hands and body and the global roll-out begins next month.
- Just as Leonard Nimoy's iconic character, Mr Spock, was famous for the use of the word fascinating, Oscar de la Renta's favourite description was extraordinary. So that's the name of the first fragrance released since the designer's death under the brand's new licensing deal with Inter Parfums with the global roll-out starting next month.
- Online beauty sales are still struggling to reach low double-digit percentages of total global cosmetic sales. But with an eye to the future L'Oreal USA has signed a deal with Powa Technologies. Details of the strategy are sketchy but the agreement could allow L'Oreal to become the first industry giant to add direct-response sales to all advertising - on and offline.
