Unilever buys Living Proof, exit Jennifer Aniston, Selena Gomez inks US$10 million deal with Coach, credit card spending - Australians coping well, and global sales of niche fragrances continue to soar.
Unilever buys Living Proof, exit Jennifer Aniston
Unilever is one of the heavyweights of haircare. The multinational owns TREsemme, VO5, TIGI, Toni & Guy, Sunsilk, Dove haircare and more. With more consumers trading up to designer or salon hair brands, Unilever has bought Living Proof to slot into its fast-growing prestige division alongside Dermalogica, Murad and REN.
Living Proof has a strong cult following worldwide, selling around US$100 million worth of products annually. In addition to being stocked by 850 salons in the US, the brand's list of international retailers speaks volumes about demand for its scientific-based hair solutions - Space NK, Sephora, Harvey Nichols, Nordstrom, Marks & Spencer and Saks Fifth Avenue.
Founded by venture capitalist Jon Flint and backed by private equity firms, Polaris Partners and Leerink Partners, Living Proof's collections are based on innovations developed at MIT, one of the world's leading research institutes. Claiming to deliver "results you can see across the room", Living Proof's prowess is based on three patented molecues - Healthy Hair, Thickening and Volumizing and Texturizing. Best-selling collections include Perfect Hair Day, Timeless and No Frizz.
Spokesperson Jennifer Aniston will depart when the deal closes in the first quarter of 2017. But Unilever believes it can provide enough leverage to scale new heights. According to Alan Jope, president, personal care for Unilever: "The prestige hair retail market is very attractive and offers significant potential for growth. Through compelling product result demonstrations and influencer driven marketing, Living Proof is already a successful business in this space and we look forward to further growing and developing this wonderful brand".
Selena Gomez inks US$10 million deal with Coach
Iconic US luxury goods brand, Coach, has always appointed high profile ambassadors such as Gwyneth Paltrow and Karlie Kloss. But to semaphore its growing ambitions as a global fashion, accessories and fragrance powerhouse with a strong appeal to Millennials, the 75 year old brand has announced the signing of Selena Gomez as its new face.
Coach has been making waves in the fashion industry for the past few weeks with a blow-out party in New York to celebrate its landmark anniversary and rumours of an attempted takeover bid for Burberry. Gomez is currently the most followed person on Instagram, which gave her enormous leverage in negotiating the US$10 million agreement.
In addition to fronting all campaigns for the prestigious US fashion house, Gomez will also design her own line of accessories for Coach. Following the global success of the reinvigorated fragrance business, she will also replace the original perfume muse, Chloe Grace Moretz.
Credit card spending - Australians coping well
Around Christmas in particular, the level of debt on major cards is likely to get some adverse publicity, says Norman Morris, Industry Communications Director, Roy Morgan Research. In the 12 months to October, Aussie cardholders of Visa, Mastercard and American Express carried forward a collective monthly debt of $19 billion. "But most Australians are coping well", he notes.
The major worry of Roy Morgan's Single Source Survey of over 50,000 consumers is that lower-income cardholders owed a much higher percentage of their income than their higher-paid counterparts. Many cardholders with incomes under $25,000 carry forward an average debt of $1100 - 8.9 per cent of their annual income. Of even more concern, cardholders in this income group represent more than 33 per cent of Australian cardholders.
At the other end of the income scale - those earning $250,000-plus - have an average debt of $2500 - less than one per cent of their average income. Over half - 56.8 per cent - carry forward zero or less than $100 each month.
As their income levels rise, Australians pay down more of their credit card debt, especially once they pass the average wage level of around $60,000. The total monthly debt figures look huge, but the nation's overall credit card debt is only equivalent to 2.8 per cent of cardholders' incomes, adds Morris.
Global sales of niche fragrances continue to soar
Sales of mainstream flanker fragrances such as Chanel No 5 L'Eau are booming. But according to renowned French fragrance expert, Isabelle Ferrand, Director of Cinquieme Sens, the fabled training centre for perfume professionals in Paris, more than 2000 new fragrances debuted this year. A huge chunk - 41 per cent - were classified as niche.
Ten years ago, niche fragrances accounted for a still significant 17 per cent slice of new releases, says Ferrand. What hasn't changed is that most women are still passionate about florals. Of total fragrance launches - 72 per cent are classified as florals, in contrast to 13 per cent which fit the oriental label. Woody fragrances are on the rise, though. "In the future, I am betting woody fragrances will boom", says Ferrand.
Men's fragrances are reaching new heights, notes Ferrand. "Along with woody fragrances, the fern ( fougere) family is making a strong comeback, but more as a sub-family. A strong hint behind woody and oriental notes. Citrus fruits remain very popular as top notes".
His and hers fragrances have been one of the strongest trends of the year, says Ferrand. Zadig & Voltaire, Paco Rabanne 1 Million and Lady Million Prive and Jean Paul Gaultier's promotion of Le Male and Classique as a classic couple are just a few instances of the continuing phenomenon. Going forward, she predicts, heterosexual twosomes will soon be no longer a reference to launch a couple perfume.
Snippets from the wires
- An increasing number of beauty brands and major pharmacy chains are ploughing more of their ad budgets into TV campaigns. Little wonder, says Nielsen. The TV screen still dominates Australian viewing habits. Over 20 million Australians - 86 per cent of the population - watch free-to-air or subcription channel programming on a weekly basis. Says OzTam CEO, Doug Peiffer - "All age groups still spend most of their viewing time on any single device watching broadcast TV on at-home TV sets".
- Avatar star, Sam Worthington, wore a pair of $20 Payless Shoes to the Oscars in 2010. He will have to find another favourite footwear brand. All of the company's 132 stores across Australia will close in February if the business does not find a buyer.
- No prizes for guessing the top three nail trends of 2016. According to US researcher Kline & Co, top coats with gel-like results, longwear nail polishes and natural and organic nail products were the most wanted threesome.
- The right packaging is just as important as the product inside, says Transparency Market research. The global cosmetic packaging market is set to reach US$33 billion by 2024 - up from US$23 billion in 2015.
