Revlon CEO steps down, e-commerce shipping disappoints Aussie shoppers, Interparfums pin expansion hopes on Coach, and P&G announces another US$10 billion cost-cutting program.
Revlon CEO steps down
Lorenzo Delpani, the main instigator of the Love Is On global campaign, resigned late last week. He will step down on March 1st, citing "personal reasons" for the decision. It won't be a complete departure, though, as Delpani will be joining the Revlon board as an advisor.
The move was unexpected, so Revlon has not named a successor or interim CEO. The company announced its Q4 results just prior to Delpani's statement. Revenues increased for the first time after three straight quarters of declines, rising 4.2 per cent to nearly US$522 million. Market reactions were muted because of January's announcement that Ron Perelman, Revlon's Chairman and largest shareholder, was looking at strategic alternatives for the company.
The rebound in fourth quarter sales makes Revlon more attractive to potential investors. The company generated global revenues of US$1.91 billion in 2015, and analysts say that a new CEO from a much larger beauty player could help to fast-track a buyout deal.
E-commerce shipping disappoints Aussie shoppers
The 2016 State of Shipping in Commerce report from Temando, the shipping and fulfillment platform, isn't pleasant reading for retailers. Over 80 per cent of Australian shoppers surveyed prefer a specified time slot for delivery, and 75 per cent would like guaranteed weekend or after-hours shipping. Yet only 31 per cent of retailers offer an exact time for delivery, and only 18 per cent attempt to cue in with the lifestyles (i.e. working hours) of purchasers.
Forty three per cent of potential buyers are prepared to pay more for same day shipping, but only about 50 per cent of retailers provide the option. Multiple shopping options in a cart, including click and collect, same day and standard (five to seven days), are high on the wish list for 85 per cent of those surveyed. It's not just a preference in response to a survey question, either. Retailers who provide multiple shopping options experienced a 79 per cent increase in sales, and a 62 per cent reduction in "cart abandonment".
Shipping costs are a major bugbear for Australians, with 70 per cent abandoning purchases because of too-high delivery tariffs. Choice at the checkout is a necessity, not a feature, says Carl Hartmann, CEO of Temando. "The gap between consumer expectation and retailer capability is growing. Only half of retailers are offering the full range of services customers expect, which opens up a potentially huge competitive advantage".
Interparfums pin expansion hopes on Coach
A new portfolio of fragrances from Coach will be one of the major brand debuts from Cosmax, Australia's leading independent fragrance importer and distributor, later this year. The US bagmaker signed an 11 year licensing deal with Interparfums last April, ending a nine year collaboration with . More than 20 fragrances, including Coach The Fragrance and Poppy, were launched from 2007 to 2014. But the future looks even more promising because Interparfums has the wherewithal to springboard the lifestyle brand's fragrance business to new heights.
Interparfums is one of the fastest-growing fragrance licensees, ranking sixth in the world for men's fragrances. Coach is celebrating its 75th anniversary this year, and has undergone a complete makeover in the past two years. We think Coach is a massive opportunity for us, says Stanislas Archimbault, CEO of Interparfums Luxury Brands. "We think it's the right brand to go after the market we need, particularly on the women's side".
Interparfums is gunning for five per cent of the global fragrance market by 2020, following a near-doubling of its business from 2011 to 2015. The company's current portfolio includes , , Balmain, Boucheron, and ."In Fall 2016, we're releasing Coach's new fragrance" says Archambault. "We need a premium pillar brand. The new fragrance will be truly iconic and strongly consistent with what Coach is doing in fashion." The old juices? Interparfums is starting afresh, so buy up existing supplies while they last.
P&G announces another US$10 billion cost-cutting program
The global giant has already saved US$7 billion through cost-cutting drives since 2012. New CEO, David Taylor, has announced a futher US$10 billion cost-slashing program over the next five years. Starting on its home turf, the maker of Olay and Pantene Pro-V, will inaugurate six new distribution centres in the US and factories will produce multiple product lines.
We have to be closer to the consumer, says Taylor. A strategy that translates to a renewed focus on digital communications, particularly mobile devices, and an upward re-appraisal of its marketing and promotional spend. The multinational's lack of agility in China, its fastest growing market, has led to a high single digit slump in sales. "We looked at China too much like a developing market, as opposed to the most discerning market in the world", noted Taylor. Local managers in all regions will be given greater autonomy under P&G's new initiative, so they can respond more quickly to changing market conditions.
Snippets from the wires
- The Beverly Hills Conference and Visitors Bureau has been tracking the distribution of global wealth since 1914. The top 10 cities with the highest number of people boasting a household income in excess of US$30 million are: London, Tokyo, Singapore, New York, Hong Kong, Frankfurt, Paris, Osaka, Beijing and Zurich.
- The first major magazine casualty of the year in the US is More magazine. Launched in 1997 by leading publisher Meredith, more than 30 staffers will be let go.
- Serums aren't just for the face these days, hair, body and nail versions have swelled the category. The global market for serums is expected to reach US$6.87 billion by 2020.
- has enjoyed a huge comeback in recent years. The veteran Italian designer has signed a 10 year licensing deal with eyewear heavyweight, Luxottica. The first collection will debut in January 2017. Valentino premiered his first eyewear range in 1998 in collaboration with Safilo, followed by NYC-based Marchon from 2012.
- According to researcher Trefis, the global skincare market is expected to reach US$154 billion by 2021. The bulk of the growth -75 per cent - will be generated in the Asia-Pacific region, says Euromonitor.
