TonyMoly to challenge K-Beauty giants, Unilever, L'Oréal and Henkel in bidding war for organic haircare brands, the 'Advanced Style' phenomenon is a reality for Aussie women, and more Australian women than men have tattoos.
TonyMoly to challenge K-Beauty giants
With major Western beauty brands releasing more and more spin-offs of Korean benchmark products from cushion foundations to new generation highlighters, TonyMoly has announced an ambitious 10 year plan to challenge K-Beauty leaders AmorePacific and LG Household and Healthcare. "We will double our sales to US$1.6 billion by 2025", says Bae Hae-dong, the company's chairman. "We will continue to expand research and development to introduce a number of best-selling products and boost customer satisfaction."
Although TonyMoly was founded only 10 years ago, it has enjoyed incredible success. Currently stocked in 7700 locations in 41 countries, the brand is also sold in 676 stores in Korea. In April, TonyMoly became the first K-Beauty brand to introduce shop-in-shop outlets in Sephora stores. An expansion move mirrored by the simultaneous establishment of a sales subsidiary in Qingdao in China.
The Chinese market is crucial to TonyMoly's growth. The company plans to introduce directly managed stores in China, in addition to shop-in-shops in leading Chinese department stores and the opening of a factory in China in 2017. Already available in 60 Chinese department stores, TonyMoly plans to increase distribution to 200 stores by year's end.
In all markets - Europe, North America and Asia - the company mainly targets young women in their twenties. But TonyMoly believes its aggressive expansion strategy will flow on to women in their 30s and 40s to ensure its 10 year goal becomes a reality.
Unilever, L'Oréal and Henkel in bidding war for organic haircare brands
Natural and organic shampoo, conditioners and treatments are one of the fastest-growing categories in global haircare. Unilever, L'Oréal and Henkel, who all missed out in the P&G sell-off, are reported to have put in first bids for Vogue International, the US-based owner of the FX, Proganix and OGX natural haircare brands. OGX, a rebranding of the Organix line, is sold in Priceline and Chemist Warehouse.
Vogue International first went on the block in 2013, chasing an asking price of US$800 million. The proposed sale was cancelled due to a lawsuit over the Organix brand name. But private equity firm, The Carlyle Group, bought a 49 per cent stake in the company for US$400 million in 2014.
Founded in 1987, Vogue International has a major presence in the US and exports to 38 countries worldwide. The company has a market valuation of US$2.5 billion to US$3 billion, with an annual EBIDTA of approximately US$150 million.
The Advanced Style phenomenon is a reality for Aussie women, says Roy Morgan
Media hype and "bubble journalism", where writers project the habits of a few friends onto the population as a whole, have a lot to answer for. But beauty companies are on the money for hiring glamorous older faces such as Helen Mirren, Susan Sarandon and Jessica Lange, says Roy Morgan Research. The so-called 'Advanced Style' phenomenon, epitomised by 94 year old Iris Apfel, is very much the norm in Australia.
There are 1.9 million Australian women aged 65-plus, says the researcher, and it's smart not to use the "N" word (nanna) too liberally. Similar to other age groups, older Aussies make a clear distinction between being stylish and being fashionable. According to Roy Morgan Research, 65.3 per cent of women aged 65-plus agree with the statement - "I try to look stylish" - and a further 24.8 per cent believe - "It's important to look fashionable".
They have a lot of money, too. More than 15.2 per cent of Australian women over the age of 65 describe themselves as "big spenders", and 26.7 per cent reveal they are medium spenders. The proportion of older women who buy new clothes within an average four week period rose from 54.5 per cent in 2011 to 57.9 per cent in 2015.
The feisty girl inside is alive and well, too, says Roy Morgan. Nearly 22 per cent are looking for "new experiences every day". A huge 67.7 per cent say they live a full and busy lifestyle, and the same percentage agreed they were optimistic about the future.
Getting inked: More Australian women than men have tatts
You don't have to be a researcher to notice that more Australians than ever are sporting tattoos. But getting inked has become so socially acceptable, says McCrindle Research, that the percentage of Australian women with a tattoo now exceeds that of their male counterparts. According to the researcher, one in five Australian men (19%) have one or more tattoos, but the proportion of females getting "carved" has risen to one in four - 24 per cent.
It's not a youthful trend. Over a third - 36 per cent - waited until they were 26 or older, while 20 per cent held out until they were aged 35-plus. The full sleeve variety isn't rampant. Almost half - 48 per cent - of Australians with tattoos limit themselves to one. Two or three inkings are the preference for a further 30 per cent. Only 15 percent have four to nine, and seven percent are decorated with more than ten.
Design fashions have changed, says McCrindle. The biggest growth in tattoo designs is for words or a phrase - 19 per cent. But images and symbols are way out in front and are favoured by 72 per cent of Australians.
Regrets? Yes, there's still a lot of remorse. A hefty 27 percent say they regret getting a tattoo. Yet only 15 per cent have considered tattoo removal. Parental attitudes have also softened, reveals McCrindle. Only 17 per cent actively discourage their adult children from getting a tattoo. Over half of parents take the neutral ground and don't declare themselves for or against. The biggest change is that nearly 33 per cent of parents have become so relaxed, they would encourage their offspring to book an appointment at a design studio.
Snippets from the wires
- Snapchat has strongly moved to the fore this year as the social media platform du jour. The blink-and-it's-gone messaging app is poised to morph from a teen go-to to a broader media and video platform. Even though Snapchat earned only US$59 million in 2015, a brigade of major investors have stumped up US$1.8 billion in funding to boost Snapchat's on-going evolution.
- Q1 online advertising expenditure in Australia surged 33.5 per cent over the same period last year to $1.73 billion. According to the latest IWB/PwC report, the Australian digital ad market enjoyed a higher growth rate than the US and the UK.
- Fragrance permeates many aspects of our lives from cleaning products to air fresheners. Energizer Holdings, the owner of , has bought HandStands Holding Corp, a maker and distributor of car fragrances, for US$340 million.
- Converting one-off buyers to loyal customers has been a challenge for online retailers, says The Harvard Business Review. According to the author Amit Sharma, Sephora, the world's largest beauty chain, is a leader in its commitment to the post-purchase experience. The company's strategy of online make-up tutorials, branded activity, educational content and integrated return solutions lures customers back time and again.
- Giorgio Armani Si fragrance has become a global smash hit. The next flanker - Si Le Parfum - will be launched in September to boost last quarter and Christmas sales.
Image: Vogue Australia
