SK-II becomes a potential target for Estée Lauder, fragrance spearheads expansion for Azzedine Alaia, sweet sign-off - 25 Years of P&G perfumes, and ageing begins in mid-20s says new study.
SK-II a potential target for Estée Lauder?
That's the view of several US analysts. With US$1.4 billion in the kitty for acquisitions, Lauder was one of the beauty industry's biggest dealmakers last year and is still on the hunt for niche brands. Other brands in the P&G sell-off - the second-largest in beauty/personal care history - weren't a good fit for Lauder but certainly fits the bill. Most of the prestige brand's revenues come from Asia, the fastest-growing market for premium skincare. is keen to gain an even bigger foothold in the region, especially in China, says Ali Dibadj, analyst at Sanford C. Bernstein & Co.
Murad was also seen as a potential target for Lauder before its recent sale to Unilever. But speculation is also swirling around M.D Perricone as a potential candidate for a Lauder buy-out. Private equity firm, TSG Consumer Partners, sold the derm brand to Lion Capital last year and could be in the mood for a fast sell-off.
Fragrance spearheads expansion for Azzedine Alaia
Since he turned up in Paris in the 1950s, Azzedine Alaia has had three clear comebacks. The first time in the 1980s when he forged his name as the "King of Cling", following a couple of decades as an insider favourite. The Tunisian-born designer essentially retreated from the fashion scene in the 1990s. He doesn't always speak in haiku-style announcements, either. Alaia has had a long-running feud with Anna Wintour, the US Vogue supremo, after declaring - "Who will remember Anna Wintour in the history of fashion? ".
A partnership with Prada in 2000 marked Alaia's second re-birth. But within seven years, he bought his brand back from the Italian luxury group. In 2007, he clinched a deal with Swiss watch and jewellery giant Richemont, the world's second largest luxury goods group, and part of the deal was to open a major flagship store and produce the designer's first fragrance for global distribution.
When your parent company has a turnover of US$10.6 billion a year, even Anna Wintour can't stymie a revival. US department stores, including Barneys, have doubled their Alaia space following the brand's return to New York Fashion Week in 2011.
In January 2013, Azzedine Alaia signed an exclusive 13 year licensing agreement with Shiseido-owned Beaute Prestige International (BPI). Founded 25 years ago, BPI is present in 112 countries and it's mission statement is to build lasting designer fragrance brands. A goal it has fulfilled spectacularly with Issey Miyake (1992), Jean Paul Gaultier (1993), Narciso Rodriguez ( 2003) and Elie Saab (2011).
Alaia Paris, the designer's first fragrance was unveiled to beauty media last week, and is very much part of Richemont's vision for the brand. The multinational also owns Chloe, whose fragrance license through Coty is a global smash-hit. Three of Richemont's other brands - Cartier, Alfred Dunhill and Montblanc - have also recently rejuvenated their fragrance offerings. When the multinational bought Azzedine Alaia, the designer's turnover was only $19 million. In addition to a new Paris flagship store, the first Azzedine Alaia store in China opened in Beijing last December. The future? The BPI agreement also includes the possibility of Alaia-branded makeup.
Sweet sign-off - 25 Years of P&G perfumes
As P&G waves goodbye to its major fragrance licenses, it's interesting to look back at the giant's impact on the perfume industry. Over the past 25 years, the multinational has bought and sold close to 50 fragrance brands and licenses - some well-known; some not.
When P&G bought Wella in 2003 for US$10 billion, part of the package included a swath of German and international names - 4711, Anna Sui, Atkinsons, Bogner, Bruno Bonani, Chiemsee, Cindy Crawford, Dunhill, Ellen Tracy, Escada, Extase, Gabriela Sabatini, Gerry Weber, Ghost, Marc O'Polo, Max Mara, Mexx, Montblanc, Muehlens, Naomi Campbell, Puma, Rochas, Sir, Tom Tailor, Tosca, Trussardi and Yardley. Many were sold off within two to three years but a goodly number went the distance.
In the past quarter of a century, P&G also owned and operated the licenses for - Alberta Feretti, Avril Lavigne, Baldessarini, Christina Aguilera, Dolce & Gabbana, Giorgio Beverly Hills, Gucci, Helmut Lang, Herve Leger, Hugo Boss, James Bond, Jean Patou, Lacoste, Laura Biagotti, Otto Kern, Replay, Stella McCartney, Valentino and Yohji Yamamoto.
Ageing begins in mid-20s says new study
The skincare industry has been under fire in recent years for promoting anti-ageing treatments for young women in their early twenties. Rightly so, reveals a new study from Duke University in the US. Nearly 1000 New Zealanders were tracked over a period of 12 years, measuring vital bio-data at the ages of 26, 32 and 38.
As everyone knows, some people age more quickly than others. Most people aged at the expected rate of one biological year for every chronological year. While others aged as fast as three biological years for every chronological year and signs of deterioration were apparent at the age of 26. By the age of 38, some people had a biological age of 60 while others were pegged as being in their late 20s.
The upshot of the study, say the researchers, could pave the way for inexpensive, easy-to-access tests which allow people to see how fast they are ageing in their 20s when they are young enough to avert premature wrinkling and age-related diseases.
Snippets from the wires
- Qatari investment money flooded London a couple of years ago, including the purchase of iconic Brit department store - Harrods. El Corte Ingles is also a household name in upmarket retail in Spain. The chain has sold 10 per cent of its capital to Hamad Bin Jassim Bin Jaber Al Thani, Qatar's former prime minister, for close to $1.5 billion.
- Skincare launches focus on the latest and and greatest actives but it's often hardy old ingredients which post the most spectacular growth. Allantoin has been used for decades because of its anti-inflammatory, anti-irritant and emollient qualities and is on a massive roll. As more emerging markets enjoy increased affluence, says Grand View Research, global allantoin sales are expected to reach US$641.7 million by 2022.
- Coty should be pleased. A CoverGirl ad featuring Pink enjoyed the number one ranking on Ace Metrix's list of top scoring ads in the personal care industry for Quarter Two in the US. Herbal Essences Take Your Hair To Paradise and Vaseline's Moisturising The Skin Every Day campaigns also scored highly.
- E-commerce accounts for less than five percent of the luxury goods industry's global sales of US$270 billion a year. But according to a report from UBR Digital, 45 per cent of luxury purchases are influenced by consumers searching online for information and pricing.
Newsletter image: Instagram.com/eleanorpendleton
