Travel retail firsts for Sephora and Bath & Body Works, Zara's parent company joins US$100 billion club, Jamberry Nails to launch in Australia and New Zealand, and Neiman Marcus on track for IPO.
Travel retail firsts for Sephora and Bath & Body Works
Sephora has put the beauty world on alert. Beauty & Fragrance was the biggest selling category in Abu Dhabi International Airport, the home base of Etihad Airways, in 2014 with a huge 31 per cent of duty-free turnover. So it's the perfect location for a global-first for Sephora. The LVMH-owned beauty giant will make its travel retail debut over the next three months with two pop-up outlets in Terminals 1 and 3.
Made in Sephora, the private label of the world's largest beauty chain, will share space with the cream of global beauty brands. Sephora operates 24 stores in the Middle East and the fast-growing region is a natural fit to springboad Sephora into the multi-billion dollar travel retail market.
Like Victoria's Secret, Bath & Body Works is making its Australian debut in travel retail. Currently sold in more than 1660 stores in the US, the 20 year old brand enjoys high recognition with well-travelled Australians. In a collaboration with LS travel retail ASPAC, the first Bath & Body Works store in the country will open at Sydney domestic airport's Terminal 2 in late Spring. Measuring 100 square metres, the perfumed premises will stock Bath & Body Works soaps, body products, sanitisers, homewares and candles.
Zara's parent company joins US$100 billion club
No wonder Amancio Ortega, the founder of Inditex, is the world's second richest man after Bill Gates. The parent company of Zara is the world's largest clothing retailer and its shares have jumped 36 per cent since the beginning of the year. Ortega's net worth has soared to US$72.3 billion, surpassing the personal fortune of super-investor Warren Buffett on the Bloomberg Billionaires Index.
Even more importantly, the Spanish retailer, which also owns fashion brands Massimo Dutti, Stradivarius and Bershka, reached a market value of US$109 billion last week. The company's profits skyrocketed 28 per cent in the first quarter, the fastest rate in more than two years, and analysts expect a full-year gain of 16 per cent on net income.
Zara is celebrating its 40th anniversary this year and Ortega is widely regarded as the founder of fast fashion. He still lives in the Spanish port of A Coruna, where he opened the first Zara outlet in the mid-1970s. Today, the company has 6700 stores in 90 countries and its massive market valuation is only matched by 79 other companies across all industries worldwide.
Jamberry Nails to launch in Australia and New Zealand
Since its debut in 2010, direct seller Jamberry Nails has carved out a formidable reputation in North America for its on-trend, DIY nail wraps. Offering more than 300 nail wraps and 25 polishes, base and top coats, the company was founded by three nail-loving sisters - Keri Evans, Christy Hepworth and Lyndsey Ekstrom.
With an impressive 35,000 independent consultants throughout the US, Canada and Puerto Rico, Jamberry has set its sights on Australia and New Zealand for a Spring debut in time for the party season. The major selling point of the nail wraps is that they last for two weeks on fingers and four weeks on toes without chipping or smudging.
The brand launches two new collections a year - in March and September - plus themed capsule collections and limited edition "Sisters' Style Exclusives". The major reason behind the brand's spectacular success is ease-of-application through heat and pressure technology. According to Lyndsey Ekstrom, the youngest of the three sisters: "It had to be doable for people who don't necessarily do girly stuff". Check out www.jamberry.com
Neiman Marcus on track for IPO
Two years ago, luxury US department store retailers Neiman Marcus and Saks Fifth Avenue were both sold to Canadian buyers with deep pockets. In September 2013, Neiman Marcus was acquired by Canadian Pension Plan (CPP) and Ares Management for US$6 billion. Since then the 41 store network, which also owns Bergdorf Goodman, has been focusing growth on e-commerce and sales to overseas markets, including Australia.
Neiman Marcus has enjoyed something of a turnaround with a 5 per cent lift in revenues to US$1.2 billion in the first quarter. Profits also lifted to US$19.8 million, in contrast to a US$8 million loss for the same period in 2014. The company has filed plans for an IPO to raise US$100 million to pay down some of its US$4.7 billion debt.
CPP and Ares will retain a majority stake in the 108 year old business. As always, Neiman Marcus prides itself on its reputation as the shopping destination of choice for the Ultra Wealthy. According to its latest annual report: About 70 per cent of people with assets of at least US$30 million live within 50 miles of a Neiman Marcus or Bergdorf Goodman store. Our portfolio of stores in iconic locations would be virtually impossible to replicate.
Snippets from the wires
- The first Chanel spa in the world will debut in the Ritz Paris hotel. The iconic property on the Place Vendome has announced the date when its gorgeous doors will re-open after a four year closure and a multi-million dollar reno - March 14th 2016. The most inexpensive room will cost $1334 per night.
- We reported on Younique's global expansion a few months ago. The natural beauty direct seller has just launched in Germany, Europe's biggest natural cosmetic market. It's sixth market after the US, the UK, Canada, Australia and New Zealand.
- To mark 21 years of fragrance making, is launching her first scent containing truffles in the Jo Loves range. Inspired by the cult pasta dish topped by truffle shavings served at Harry's Bar in Venice, the new scent is called Red Truffle 21. Other notes in the mix include vetiver, patchouli, black pepper, fig and juniper.
- has over 200 boutiques in the US and has launched an initiative worth copying in other countries. The prestige French brand is collaborating with beauty app Glamsquad. A team of makeup artists has undergone training to learn about L'Occitane's signature skincare products and will use them for pre and post makeovers on clients who book one of Glamsquad's one-to-one consultations.
- E-commerce pure plays are increasingly opening bricks and mortar stores as it becomes clear that consumers want both. In Sydney, Men's Biz, the luxury online men's grooming retailer founded in 2006, is opening a store in the Strand Arcade in September to complement its Melbourne flagship. Even the biggest online player of all - Amazon - has leased premises in Manhattan for its first walk-in shop. It's easy to see why. Even in the US, the largest online market in the world, 92 per cent of beauty and personal care sales take place in physical stores reports Beauty Retailing USA.
- According to a new report from Research & Markets, the global shampoo market will enjoy 4.6 per cent annual growth over the next five years. Key drivers will be organic formulas, dry shampoo, and professional brands.
- It's not often that Chanel, and Lancôme lipsticks rank as bargain alternatives. Shoe king Christian Louboutin is venturing deeper into the beauty world following the much-hyped launch of his US$50 nail polish. His first 38 SKU lipstick collection will debut overseas in September priced at US$90 a tube. To entice beauty lovers to pay double the going rate for an upmarket lippie, the packaging tube doubles as a pendant necklace.
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