French beauty exports to Australia reach $AUD271 million; beauty and health still a power force in global $US183 billion direct selling industry; Australia among top 4 must-visit destinations for Chinese tourists; and new boom for jojoba oil.
French beauty exports to Australia reach $AUD271 million
Cosmetics and beauty is one of the few industries where France is a global leader. Export sales of French cosmetics and beauty products reached a new record of 13.6 billion euros ($AUD21.3 billion) in 2017. An increase of 12 per cent over 2016, reports the Federation des Entreprises de la Beaute (FEBEA)
Nearly 50 per cent of total beauty exports – 6.5 billion euros ($AUD10.18 billion) – went to France's EU neighbours, led by Germany, the UK, Italy and Spain. The Asia Pacific region lost some steam a couple of years ago but was back with a bang last year to account for 20 per cent of total French beauty exports – 2.6 billion euros ($AUD4.07 billion). North America also performed well with a 20 per cent increase in 2017 to 1.6 billion euros ($AUD2.5 billion).
Australia is a very lucrative market, reports the FEBEA, with French beauty exports rising to 173 million euros ($AUD271.07 million). Other fast-rising regional markets included the Middle East at 948 million euros ($AUD1.48 billion) and "Other Europe", including Russia and Turkey) at 970 million euros ($AUD1.52 million).
Two categories – skincare and fragrance – make up 75 per cent of French beauty exports – 44.3 per cent and 31 per cent, respectively. The makeup category also displayed reinvigorated dynamism with lip colour exports up 28 per cent and eye makeup sales increasing by 14.5 per cent.
Beauty and health still a power force in global $US183 billion direct selling industry
With all the talk about fast-growing digital sales, the success of online marketplaces like Amazon and China's Alibaba and the up-and-coming withdrawal of Avon from Australia and New Zealand, it's easy to forget that the global direct selling market remains massive with annual sales of $US183 billion. Beauty and health companies filled 8 out of the top 20 places in the 2017 DSN Global 100 list which covers all industries involved in direct selling.
The number one spot went to Amway with global sales of $US8.8 billion, followed by Avon in second place with sales of $US5.7 billion. Herbalife was ranked number 3 ($US4.5 billion) and Mary Kay rounded out the top five placegetters with revenues of $US3.5 billion. Brazilian giant Natura came in at number 8 after posting sales of $US2.26 billion, followed by NuSkin at number 11 ($US2.208 billion), Jeunesse at number 14 ($US1.41 billion) and Swedish cosmetics company Oriflame ranked number 15 at $US1.4 billion.
The Asia/Pacific region is the largest direct-selling market with a 46 per cent global share. In Australia, 641,000 independent salespeople are involved in direct selling, reports Direct Selling Australia (DSA). Over the past four years the direct selling industry has enjoyed steady growth in Australia with annual revenues of $AUD1.6 billion. Cosmetics and personal care products account for 22 per cent of the revenues of DSA members and complementary healthcare makes up 33 per cent of DSA member's sales.
Of crucial importance to female employment, women account for 74 per cent of the direct selling workforce in Australia. A similar ratio operates in other key markets among the global direct-selling workforce of 107 million salespeople.
Australia among top 4 must-visit destinations for Chinese tourists
The number of Chinese tourists visiting Australia each year has skyrocketed to more than 1.3 million. But we may have seen nothing yet, reports CLSA. By 2021, Chinese tourists are expected to spend $US429 billion overseas. Better yet, says the leading Asian brokerage and investment company, over the next three years Japan, Thailand, the US and Australia top the must-visit list for Chinese mainland travellers.
According to the United Nations World Tourism Organization, China already accounts for more than 20 per cent of the money spent by the world's outbound tourists. Double the amount of second placegetter – the US. A stunning figure when you consider that only 5 per cent of the Chinese population currently have passports. Over the next five years, major travel destinations in the Asia Pacific region will welcome an influx of 50 million new outbound travellers, says Mastercard. Australia's share of the Chinese tourist market is expected to reach 3.3 million at least by 2026, predicts Tourism Australia.
A lot has changed in the past decade, though. Many Chinese still travel in groups, but there has been an upsurge in the number of FITs – free, independent travellers – who are addicted to their smartphones and data. Like their Western counterparts, they trawl the Internet to plan itineraries, book flights, translate signs and to shop. Two local examples illustrate how Australia is reaching out to the new generation of Chinese travellers. Sydney Airport was the first organisation outside Greater China to use the popular Baidu maps app and like Melbourne's Tullamarine also has a WeChat account.
New boom for jojoba oil
Australia's The Jojoba Company is recognised as a prominent player in the global marketplace, exporting to Japan, China, the US and the UK. Best known for its anti-ageing and sun protection properties, jojoba oil boosts the performance of a wide range of products from sunscreens to lipsticks, balms and moisturisers. But jojoba oil also has significant medicinal applications as an appetite depressant, antibiotics stabiliser and as a carrier for prescription and OTC drug production. A beauty/medical one-two punch that is fuelling a new boom in worldwide demand.
According to Grand View Research, the global jojoba oil market is on track to reach $US254.2 million by 2024. Long used by Native Americans as a healing soother, the golden oil comes from a shrub indigenous to the South Western US and North Western Mexico. North America still accounts for a 39.2 per cent share of the global jojoba oil market, but the Asia Pacific region is growing strongly because of increased demand for organic and natural personal care products in Japan, China and South East Asia.
Snippets from the wires
- L'Oreal has been tapped in the 2018 World's Most Ethical Companies list for the ninth year in a row. The 135-strong rankings are collated by the Ethisphere Institute and other beauty and personal care companies that made the cut include – Colgate-Palmolive, Kao and Brazilian giant Natura, the owner of Aesop and The Body Shop.
- Over the next three years, the global natural and organic beauty market is expected to grow by nearly 10 per cent to $US17.63 billion, according to a new report by Technavio. Skincare is the leading category, making up a third of total sales.
- China is the champion of e-commerce. Online sales comprise 23 per cent of total retail sales in China. By contrast to 8 per cent in the US, 7.7 per cent in Australia, 5 per cent in Singapore and 3 per cent in Indonesia.
- Many fashion designers earn more from their fragrance licenses than their clothes and accessories. The latest brand to take a tilt at the big bucks is Elie Tahari, the global ready-to-wear brand based in New York. The company has signed a deal with TPR Holdings, who recently made the headlines for a similar fragrance agreement with Badgley Mischka. TPR's stable also includes Cargo Cosmetics, Freeze 24/7 and Zirh men's skincare.
