Revlon buys the global distributor of One Direction scents, Nielsen reveals why advertisers are increasing radio ad spend, Shiseido plans to boost global sales to one trillion yen, and Benefit wins big in Beauty 2.0 Awards.
Revlon buys global distributor of One Direction scents
Revlon celebrates its 70th anniversary in the fragrance business next year. Aquamarine, the first fragrance from the beauty heavyweight, debuted in 1946 and the brand has produced more than 60 scents, including global blockbusters such as Charlie, Chiara, Enjoli, Intimate and Jontue.
In a bid to return to those glory days and springboard significant growth in the global fragrance sector, Revlon has bought CBBeauty, the UK-based global fragrance management company and parent of distributor SAS & Company. The jewel in the crown is the One Direction brand, distributed in 80 markets, including Australia. One Moment, the debut scent from the boy band, was the biggest celebrity fragrance launch of 2013 - globally and in Australia.
SAS & Company also distributes mass and prestige fragrance and beauty brands, including Rihanna, Carven and Burberry and is the licensee of Brit pop sensations Little Mix and Cheryl. Details of the deal were not disclosed but CBBeauty CEO, Corrado Brondi, who founded the company in 2011 will retain his position. Operating as an independent division within Revlon, other key executives such SAS & Company CEO Shelley Smyth will also stay put.
Nielsen reveals why advertisers are increasing radio ad spend
Radio advertising, like its outdoor counterpart, is in double digit growth. Digital and social media may be hogging a lot of the limelight but apart from numbers, information on demographics, income and spending power is often scanty. Not so with radio, says Nielsen, which is why advertisers are increasing their spend on radio advertising by the month.
Forget the shock-jock stereotypes, says the researcher, commercial radio listeners are high-tech and are heavy users of the Internet - 83 per cent access the Net at least once a day and 62 per cent log on several times a day. Even more importantly, they are big spenders online. More than 23 per cent of commercial radio listeners spend in excess of $300 a month online and three in five had made an online purchase in the previous 30 days before the survey.
The three big ticket items bought by commercial radio users are: fashion (23 per cent), airline tickets (20 per cent) and accommodation (17 per cent). Mobile use is a blanket activity - 94 per cent own a mobile phone and 75 per cent own a smartphone.
For brands and retailers, the most crucial factor in directing ad dollars to radio involve the purchase-ready nature of commercial radio listeners says Nielsen. More than 60 per cent compare prices online and 45 per cent use the Internet to plan their shopping. While a hefty 58 per cent searched online for products within the 30 days before being surveyed.
Shiseido plans to boost global sales to one trillion yen
The Japanese giant's last three year plan - 2011 to 2014 - led to major gains in 's major markets and a turnaround of key brands - notably Japan, China and Bare Escentuals - lifting global sales by 12.4 per cent in 2014 to US$7.4 billion. Most of the upswing came from overseas, not domestic sales. The goal of Shiseido's new three year plan - 2015 to 2017 - aims to lift global revenues to the magic figure of one trillion yen - US$10.5 billion - placing the Japanese giant's revenues on a par with the Group's worldwide sales.
Japan tops the league of the world's longest-lived populations and Shiseido has devoted a lot of energy to anti-ageing and communication with seniors. But the next three year plan will see the company attempt to engage younger consumers, particularly in Japan and China. Travel retail will become an even stronger focus and the company plans to re-engineer its Chinese business to balance minimal growth in financially-strapped Western Europe.
Shiseido sold the Decleor and Carita professional skincare brands to L'Oréal Paris last year. The company's prestige makeup and skincare brand, the flagship of its international business in Australia, the US, the UK and other leading markets, continues to perform well, as does Nars. BPI, the Shiseido-owned fragrance distributor for Ferragamo, Narciso Rodriguez, Burberry and other key designer brands, has also enjoyed solid growth. Bare Escentuals, the mineral makeup brand acquired by Shiseido to spearhead increased growth in the US, has also been restructured and is poised for growth by the end of this calendar year.
Shiseido will also amplify its efforts in core Asian markets such as Thailand and Taiwan. But has not entered any new emerging markets for nearly two years as it concentrates first and foremost on China.
Benefit wins big in Beauty 2.0 Awards
took out three of the 10 major categories at the third annual #beauty20 awards. Held in London this year, after the inaugural events were staged in New York and Paris, the awards honour the beauty brands that lead the way in connecting with consumers through social media and digital. The judges sifted though more than 250 entries to come up with the top five brands in each category.
- Best Brand on Twitter - Benefit - followed by IT Cosmetics, M.A.C, OPI and Simple Skin
- Best Brand on Facebook - Burt's Bees - followed by Bee Nature Cosmetics, Butter London, OPI and La Mer
- Best Beauty Brand Online - Benefit - followed by Burberry, Elie Saab, Make Up For Ever and Sephora
- Best Brand on Instagram - Benefit - followed by Caudalie, Ellis Faas, Illamasqua and Make Up For Ever
- Best App - L'Oreal Makeup Genius - followed by Clarins, Mary Kay, OP and Sephora To-Go
- Best Online Video - Legacy - followed by Dove Men + Care, Kerastase Discipline, L'Oreal #beautyforall, Nivea Body: The Sexy-in-Shower Experiment
- Best e-commerce website - - followed by Clarins, Clinique, Estee Lauder and The Body Shop
- Best Beauty Start-Up - eSalon - followed by DECIEM, Glossybox, Preen.me and Skin Design London
- Best Beauty Blog - Beauty Junkie London - followed by Essie Button, London Beauty Queen, Talk Becky Talk and Vivianna Does Makeup
Snippets from the wires
- Probiotics for internal health have become a supermarket staple. But live bacteria cultures are set to carve out a niche in skincare. Pro Renew Complex, from German ingredient manufacturer CLR, made the shortlist for the 2015 in-cosmetics Active Ingredient Award for its ability to stimulate skin renewal. US-based Be Bella has launched a full line of probiotic products, including supplements, a moisturising serum and night cream. Bio-In, a Russian start-up, has debuted a probiotic supplement with anti-ageing claims.
- Hair loss has become a fast-growing R&D sector for haircare manufacturers. Mibelle Biochemistry, the Swiss bio-tech company responsible for the apple stem cell extract used by brands as diverse asLancôme and Lacura from ALDI, has launched RootBioTec HO. Based on a basil extract, the active will be incorporated in hair oils, serums and conditioners to inhibit the enzyme 5a reductase which speeds up hair loss.
- Sephora makes most of its money in the US though its concept boutiques in 500 JCPenney stores. The beauty chain has opened another 25 Sephora shops across the department store's network in smaller locations such as Waco, Texas, and Idaho Falls.
- Net-A-Porter launched an athleisure category for women last year. Online stablemate, Mr Porter, has followed suit with Mr Porter Sport, flogging men's activewear from established - Nike, Under Armor - and niche brands - Qor, Mountain Standard.
- Thanks to its unparalleled medical care, safety and clean streets, Germany has become the number one tourist destination for wealthy citizens of the Gulf States, beating out the UK and France. Munich has been the major winner because of its world-class clinics and luxury shopping.
- The soaring popularity of K-Beauty is boosting the fortunes of leading executives reports Forbes magazine. Suh Kyung-Bae, AmorePacific's Chairman and CEO, was worth US$2 billion in 2013 but his personal weath has zoomed to US$9.2 billion, making him South Korea's second richest person. AmorePacific currently ranks as the 14th largest cosmetic company in the world and is on track to break into the top 10 over the next few years.
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