The top 10 international beauty giants for 2016, New pharmacy Super Group - Terry White to merge with Chemmart, Record sales for AmorePacific, and SK-II, Pantene and Gillette boost P&G's bottom line.
The top 10 international beauty giants for 2016
We recently looked at the top beauty and personal care companies based in the US. P&G was again the top dog stateside. Unsurprisingly, Unilever continues to hold onto the international number one ranking in terms of revenues. and Kao remain the standard bearers for Asia, but the two major Korean players - AmorePacific and LG - are moving up the list of international giants at a cracking pace. LG just missed out on breaking into the top 10 with sales of $US3.5 billion to secure 11th place.
1) Unilever - $US33.5 billion
2) L'Oréal - $US27.9 billion
3) Henkel (makers of Schwarzkopf) - $US15.6 billion
4) Reckitt Benckiser (, etc) - $US13 billion
5) Kao (Molton Brown, John Frieda, Biore etc) - $US10 billion
6) - $US6.3 billion
7) Beiersdorf (Nivea, La Prairie, Eucerin etc) - $US6.1 billion
8) LVMH (Sephora etc) - $US5 billion
9) AmorePacific - $US4.1 billion
10) Chanel - $US4 billion
New pharmacy Super Group - Terry White to merge with Chemmart
Getting bigger to achieve critical mass has long been a proven path to business success and expansion. Leading pharmacy groups, Terry White and Chemmart, have agreed on a merger to become one of Australia's largest pharmacy networks - a nationwide total of 500 pharmacies with combined sales of $2 billion. Chemmart's parent, the EBOS Group, will sell the company's business assets to the Terry White Group in exchange for equity, in addition to investing capital to achieve a 50 per cent stake in the super network.
The proposed agreement still requires shareholder approval and an Extraordinary General Meeting is scheduled for late September. A major national presence and increased scale will drive strong retail sales growth, says Anthony White, CEO of the Terry White Group. Patrick Davies, CEO of the EBOS Group, believes the merger offers short and long-term benefits through the creation of the strongest retail pharmacy network in Australia. The move should greatly benefit the beauty industry as both groups enjoy major sales in fragrance, cosmetics and skincare.
Record sales for AmorePacific
Over 20 years ago, AmorePacific announced a strategic goal to become a top 10 global beauty company. With less than $US1 billion in sales, Pacific Chemical, as the company was formerly known, seemed an unlikely candidate to surpass some of the biggest names in beauty. How times change. On the back of the K-Beauty boom, AmorePacific has posted a record performance for the first half of the year with revenues rising to 3.5 trillion Korean won ($AUD4.12 billion)
The company's full year target of six trillion Korean won ($AUD7.02 billion) for its best-ever performance looks like a cinch. AmorePacific's overseas sales jumped 46 per cent over the past six months to $AUD491 million. The only fly in the ointment is a heavy reliance on duty-free sales.
The Korean Customs Service has announced plans to reduce the number of beauty products each international traveller can buy in duty-free from 50 to 30 because China has placed new restrictions on the importation of Korean cosmetics. No final decision has been made and the Korean giants remain optimistic that the ruling will be only a guideline.
SK-II, Pantene and Gillette boost P&G's bottom line
P&G is hanging out the bunting as strong top and bottom line growth exceeded analysts' estimates for the fourth quarter. The huge multinational reported revenues of $US65.3 billion for fiscal 2016, with Q4 revenues coming in at $US15.83 billion. "We expect fiscal 2017 to mark another significant step toward our goal of balanced growth and value creation," says CEO David Taylor.
In the beauty and personal care sector, P&G will focus on a tight selection of core brands, including Gillette, Olay, Herbal Essences, Pantene Pro-V, Head & Shoulders and . Olay continues to report less stellar results than in the past, but the skincare slack has been filled by an upsurge in revenues from . The prestige skincare brand helped to lift organic sales in the beauty segment by one per cent overall.
Pantene and Head & Shoulders were the standout performers in P&G's haircare stable. Sales of Gillette's Fusion FlexBall razor were particularly strong in fast-growing developing markets. Following the finalisation of its brand sell-off to Coty in October, P&G plans to increase its advertising spend over the next fiscal year with a strong emphasis on in-store promotion to double organic sales growth to two per cent.
Snippets from the wires
- The gradual slide of the Australian dollar against the greenback over the past three years has boosted international tourism numbers, reports IBISWorld. According to the data company's latest report - Luxury Retailing in Australia - sales of Swiss watches, leathergoods, fashion and prestige cosmetics will reach $AUD1.8 billion in 2017 - an annual growth of 11 per cent. More than 30 per cent of revenues can be traced to overseas visitors, notably from China. Over the next five years, Australia's luxury market is expected to reach $AUD2.7 billion.
- There's another new entrant in the global shaving market. Super sprinter Usain Bolt has launched his own brand of razors - Champion Shave. Produced in the US, the multi-bladed razor is aimed at the budget market. The fastest man alive will, of course, fill the role of brand ambassador.
- Coty plans to overhaul its global communications strategy for the Rimmel London and brands. The multinational has appointed French advertising agency BETC to springboard the power brands to the next level. The company has run successful campaigns for Air France and Evian.
- Chanel has been tapped as the most reputable luxury fashion brand, according to global analyst Brandwatch Analytics. Louis Vuitton and Christian Dior took out the number two and three spots, followed by Cartier, Tiffany & Co, Versace, Christian Louboutin, Prada, Michael Kors and Ted Baker.
- The US remains the world's largest single marke for deodorants with yearly sales of $US3 billion, reports Euromonitor International. But Brazil, currently number two with sales of $US2.2 billion, is poised to overtake its northern rival. Global deodorant sales reached $US20 billion last year, reveals the researcher. Innovative spray products continue to gain market share at the expense of roll-ons, pumps and creams.
