New names join list of Top 50 US beauty giants, discounts fire up Australian retail growth, decline of facial fuzz lifts men's grooming sales, and Aussie mega mall makes its debut.
New names join list of Top 50 US beauty giants
For nearly 40 years, P&G has topped the list of the biggest US beauty and personal care companies. This year is no different, but with buyout fever on a roll many smaller enterprises have eased their way up or slid down the rankings. During the second half of the year, analysts expects several up-and-coming acquisitions and re-shuffles to impact revenues and positions.
Before we look at to the top 20, it's interesting to note how many US companies present in Australia are far from being bit players. Cult skincare brand Rodan + Fields, launching in Australia next year, pulled in $US624 million in global sales to rise to number twenty-three. Arbonne comes in at number 25, with revenues of $US502 million. Inter Parfums and John Paul Mitchell haircare fill the number 28 and 29 slots, with strong revenues of $US468 million and $US437 million, respectively. Other companies active in Australia include Markwins, owners of Physicians Formula, (No 33; $US403 million), Combe, makers of Just For Men, (No 38; $US252 million), Too Faced, stocked by Mecca Cosmetica, (No 46;$150 million) and Herbalife (No 50; $US135 million).
1) P&G - $US48 billion
2) Colgate-Palmolive - $US13.8 billion
3) Estée Lauder - $US10.7 billion
4) SC Johnson - $US10 billion
5) Johnson & Johnson - $US7.1 billion
6) Amway - $US4.5 billion
6) Avon - $US4.5 billion
8) L Brands - Victoria's Secret and Bath & Body Works - $US4.4 billion
9) Coty New York - $US4.3 billion
10) Ecolabs - healthcare and hygiene - $US4.3 billion
11) Mary Kay - $US4 billion
12) Clorox, maker of Burt's Bees - $US2.6 billion
13) Church & Dwight (Nair, Batiste etc) - $US2.5 billion
14) Sealed Air (Bubble Wrap, Cryovac etc) - $US2 billion
15) Revlon - $US1.9 billion
16) Guthy-Renker (Proactiv) - $US1.8 billion
17) Sun Products (owned by Henkel) - $US1.6 billion
18) NuSkin - $US1.3 billion
19) New Avon, New York - $US1.5 billion
20) Elizabeth Arden - $US971 million.
Discounts fire up Australian retail growth
Total retail sales for May increased 3.4 per cent to $25 billion, reports the Australian Bureau of Statistics. Even casual observers noticed that warmer temperatures throughout the country led to heavy discounting, particularly in the fashion industry. "Most Australian states witnessed a very late start to winter this year," says Russell Zimmermann, executive director of the Australian Retailers Association (ARA). "The extra discounts on offer, combined with the beginning mid-year sales have been responsible for the bulk of May's growth. The blast of cold in the last week of May also served to drive retail spending, sending those who had previously held off on purchases of winter goods and clothing scurrying into stores".
Apart from fashion, the "other retailing" sector had the top rate of growth, boosted by strong sales in cosmetics, toiletries, pharmaceuticals and recreational goods, says the ARA. A power performance springboarded by Mother's Day.
The standout category for the month was department store sales, notes Zimmermann. Supermarket sales increased by only two per cent because of increased competition between Coles and Woolworths and deep discounting by Aldi. But sales in department stores rose 4 per cent in contrast to the same month last year.
Decline of facial fuzz lifts men's grooming sales
At the height of the global beard and facial hair craze, there was an upsurge in beard care products - mainly from niche players. Sales of post-shave products were dented and skincare innovation slowed, reports Mintel. Since the beginning of the year, though, hundreds of male skincare and haircare products and brands have hit the market in Australia and overseas as men return to the clean-shaven look.
The global men's grooming market will grow by 4 per cent a year through to 2020, reports analyst Technavio. The major drivers will be styling and grooming products, notably deodorants, haircare, skincare, bath and shower gels. Global sales of men's deodorants are expected to increase to $US12 billion over the next four years. As more men make the shift to premium shampoos and styling products, the male haircare market will spike to $US5 billion. Men also like natural ingredients, notes Technavio, and the organic/natural trend will help lift men's skincare sales by 7 per cent by 2020.
Aussie mega mall makes its debut
The nation's love affair with online shopping shows no sign of fading, reports NAB's Online Retail Sales Index. Australians spent $19.6 billion on online retail in the 12 months to April this year. In a bid to keep things local, the Aussie Mega Mall (aussiemegamall.com) was recently launched to support Australian businesses.
Living up to its name, AMM showcases more than 3500 Australian online stores. That's seven times the size of Westfield Bondi Junction with 522 stores. "The site is 100 per cent touch which is perfect for handheld devices", says CEO and founder Darryl Reeves. "Every store looks and works like an app and can be found on page one of the aisle of a shopper's choosing".
Local online stores, large and small, can list an online store for free on AMM. There are also 15 premium paid spots available in each category. A New Zealand Mega Mall is expected to launch later this year, followed by the US, the UK and South Africa. Beauty brands already in residence include Adorn Cosmetics and Crush Cosmetics.
Snippets from the wires
- Local consumers now account for 70 per cent of luxury retail sales in Australia, says Ben Tremellen, retail leasing specialist for Colliers International. Five years ago, the ratio was reversed with international consumers scooping up 70 per cent of luxury retail sales.
- Jurlique unveiled its new look Westfield Sydney store in Pitt Street Mall on Saturday. Designed by architect Kevin Ho from Akin Creative, the sleek space features a centralised Vend POS System and uses natural and sustainable materials to reflect the prestige brand's core DNA - Tasmanian oak, terracotta tiles and silver travertine.
- Luxury eyewear is very lucrative for fashion brands from Chanel to Dior and Giorgio Armani. Omega, the luxury watch maker, has followed suit and inked a deal with Marcolin, who also do the honours for Tom Ford, Guess, Diesel and Swarovski.
- Revlon is gearing up for its expanded global footprint. Pamela Gill Alabaster, former VP global corporate responsibility for the Estee Lauder Companies, has been apponited global corporate communications and corporate social responsibility for Revlon. A well-respected veteran, who also worked at L'Oreal for 20 years, Alabaster will report to Fabian Garcia, Revlon's president and CEO.
