Jessica Alba's The Honest Company on the block, Australian imports of Korean beauty products climb to $AUD18 million, Manuka Doctor taps Kourtney Kardashian as global ambassador, and US Fragrance Foundation names 2016 award finalists.
Jessica Alba's The Honest Company on the block
It's been a hectic year for Jessica Alba's The Honest Company. Backed by $US222 million of venture capital, the company introduced Honest Beauty last year which launched in US mega beauty chain, Ulta, in February. Leading global investment banks Morgan Stanley and Goldman Sachs have been hired to explore the possibility of an IPO for the company valued at $US1.7 billion. But analysts believe that a sell-off is also on the cards because of the subdued state of the world's share markets.
Because of Alba's star power, The Honest Company is a hot buyout target. In addition to beauty products, the company also sells nappies, bath and body products and laundry detergent. A broad-based inventory that widens the list of potential purchasers from L'Oreal to personal care giants such as P&G, Johnson & Johnson, Kimberly Clark, Unilever and Colgate-Palmolive. The opening price should be about $US500 million, say analysts, although a bid could go much higher if Alba remained as the face of the company.
Australian imports of Korean Beauty products climb to $AUD18 Million
That's double the amount of 2014 revenues reveal Federal Government trade figures. The figure is likely to go higher as a new international report from Euromonitor rubber-stamps what most Australians already know - Australia has become the most diverse country in the world.
Entitled - Cultural Diversity and Its Impact on Global Consumer Markets - the report underscores the changing ethnic, cultural and religious mix within Western societies, which is having a profound effect on consumer lifestyles, shopping behaviour and company strategies. Australian publishers and subsidiaries of beauty, watch and fashion brands are already skilled in targeting their messages to fast-growing Asian communities. A phenomenon also singled out by the report as being equally strong in the US and Canada.
Australia has a long way to go to match the success of K Beauty exports in Asia. In new data from the Korean Customs Service, beauty exports surged to $US2.45 billion in 2015 - up 53.1 percent on 2014. China accounted for 40.6 per cent, importing $US999.5 million of Korean skincare and cosmetics last year. The first three months of 2016 has already seen a growth surge of 21.9 percent over the same period in 2015 to $US710 millon.
Manuka Doctor taps Kourtney Kardashian as global ambassador
Just over two years ago Kris Jenner appeared at Advertising Week in New York in a bid to convince advertisers that the Kardashians weren't toxic to established brand names. Looking back, it seems a scarcely credible plea. Kendall Jenner has attracted a younger audience to the brand, and the Momager's ex-husband, Caitlin Jenner, has partnered with to launch a lipstick to name just a couple of commercially successful team-ups with beauty brands.
Kiwi natural skincare brand, Manuka Doctor, has appointed Kourtney Kardashian as its new global brand ambassador. The pop culture star will appear in the brand's marketing and PR promotions for the next few years. The company's products are currently sold in 12,000 stores worldwide, and the eldest Kardashian sister's star status is sure to spread the word to new markets.
According to Kourtney: "I have been using the Manuka Doctor honey line for many years so when the brand asked me to be their global ambassador, I couldn't have wished for a better partnership. I am incredibly excited to have this opportunity to work with a brand I believe in and introduce to people around the world".
US Fragrance Foundation names 2016 award finalists
The biggest names in the fragrance business will have to wait until June 7th to hear if their major launches of the year have claimed top honours. Here are the finalists for the top-of-the-line categories in the world's most important fragrance awards announced late last week.
Women's Luxury
Azzedine Alaia Paris
Cartier La Panthere Eau de Parfum Legere
Bulgari Le Gemme Collection
Noir Pour Femme
Donna
Men's Luxury
Acqua di Parma Colonia Club
Hermes Le Jardin de Monsieur Li
Monsieur from Editions de Parfums Frederic Malle
Venetian Bergamot
Yves Saint Laurent Le Vestiaire des Parfums - Tuxedo
Women's Prestige
Chanel Chance Eau Vive
Gucci Bamboo
Decadence
Mimosa and Cardamon
Yves Saint Laurent Black Opium
Men's Prestige
Bleu de Chanel Eau de Parfum
Boss The Scent from Hugo Boss
Dior Sauvage
Giorgio Armani Acqua di Gio Profumo
Dark Rebel
Snippets from the wires
- Elizabeth Taylor White Diamonds remains the biggest-selling celebrity fragrance of all time, boasting $US1.5 billion in revenues to date. Licensed to , the scent is celebrating its 25th anniversary with a new flanker - White Diamonds Night.
- The major takeaway from Esxence 2016, the Milan trade show dedicated to niche fragrances, comes from founder Silvio Levi. Following a 26 per cent increase in niche fragrance sales since 2012, the category has the potential to achieve one billion euros ($AUD1.5 billion) in sales in Europe alone. Now in its eighth year, Esxence ran from March 31st to April 3rd and attracted 200 brands.
- L Brands, the parent company of Victoria's Secret and Bath & Body Works, has announced a re-structure of its business. Victoria's Secret accounts for 63 per cent of L Brand's annual revenues of $US1.03 billion, and the brand has been split into three units - Victoria's Secret Lingerie, Pink (aimed at Millennials for lingerie, personal care and apparel) and the fast-growing Victoria's Secret Beauty.
- Coty is bulking up its expertise before absorbing the brands acquired from P&G. Simona Cattaneo, currently head of , has been appointed Chief Marketing Officer for the multinational's new division - Coty Luxury. Burberry's beauty revenues enjoyed double digit growth under her watch, and she has also worked for Dior Parfums and Kerastase.
- French fashion house Balmain was put up for sale in February with expectations of 300 to 400 million euros ( $AUD452 million to $AUD603 million). , owned by Mayhoola, the Qatari investment firm, has placed a bid of US$569 million (AUD$753 million). There are two unnamed buyers in the race and the company has until Thursday to decide which one it will accept.
