Australian pre-Christmas sales reach $50 billion estimate; Inter Parfums signs global fragrance deal with Guess; Puig inks beauty license with Christian Louboutin; and K-beauty ideal of "cloudless skin" spurs major growth in hydrating skincare.
Australian pre-Christmas sales reach $50 billion estimate
The six weeks from November 15th to December 24th is the most important retail period of the year. Prior to the national shopping binge, Roy Morgan Research in collaboration with the Australian Retailers Association predicted retail sales growth for the crucial timespan of 2.8 per cent to $50.073 billion. The figures are now in. The estimate was only a whisker away from reality with the actual growth rate coming at at 2.7 per cent to $50.019 billion.
Retailers had been worried following a slight decrease in consumer confidence for the November/December 2017 timeframe. But all six major categories experienced growth. Australians spent an impressive $20.157 billion on food, $8.754 billion on household goods, $7.135 billion on hospitality, $3.912 billion on clothes, footwear and accessories, $2.945 billion in department stores and $7.118 billion on "other retailing".
New South Wales led the retail therapy stampede with sales rising 2.8 per cent to $16.128 billion, followed by Victoria where revenues increased 4.7 per cent to $12.839 billion. The highest growth rate of 5.1 per cent to $3.32 billion was achieved in South Australia. But WA barely moved the needle over the previous year with a rise of 0.8 per cent to $5.4 billion.
Inter Parfums signs global fragrance deal with Guess
Coty has been slowly hiving off fragrance licenses and brands since April last year when Jennifer Lopez fragrances moved to the Designer Parfums Group. Last September rumours circulated that the multinational was trying to slim down its celebrity fragrance portfolio by unloading David Beckham, Beyonce, Katy Perry and Guess. The reason? Sales of celebrity fragrances in the US alone plummeted 66 per cent from 2011 to 2014.
Coty are still strongly backing the David Beckham and Katy Perry juices, but Guess has moved camps. Inter Parfums has signed a 15 year licensing agreement with the global fashion and lifestyle brand which boasts 1700 retail outposts worldwide and a fast-growing e-commerce business. The deal is effective from April 1st and involves creating, developing and distributing new fragrances and continuing to produce best-selling existing fragrances. The first new scents will debut in early 2020.
Guess has been a household name for more than 35 years and Inter Parfums will use a multi-channel strategy in department, speciality and duty-free stores to increase exposure and sales. New and existing fragrances will also be available in Guess standalone stores in the Americas, Europe, Asia/Pacific, Australia and Africa, says Inter Parfums Chairman and CEO, Jean Madar.
Puig inks beauty license with Christian Louboutin
French shoe king Christian Louboutin scored global headlines with the launch of his first beauty products in 2014. In collaboration with joint venture partner, Batallure Beauty, nail polishes were the first to hit the shelves, followed by lipsticks, lip glosses, fragrances and eye makeup. But the time has come to think a lot bigger and Louboutin has signed a longterm licensing agreement with Puig, the Spanish fragrance and cosmetic group whose tentpole name brands are sold in 150 countries.
Puig is one of the fastest-growing fragrance and fashion multinationals with yearly sales of more than $AUD2.6 billion. Over the past few years the company has acquired Penhaligon's and L'Artisan Parfumeur to add to its stellar stable of licensed and owned fragrance brands – Paco Rabanne, Jean Paul Gaultier, Nina Ricci, Prada, Valentino and Comme des Garcons. Makeup has been a low priority and the Louboutin deal will be key to growing the cosmetics category for the Puig group.
The new agreement covers creation, development and distribution of Christian Louboutin beauty products. According to Alexis Mourot, Christian Louboutin COO and General Manager: "Puig is the best partner to bring our beauty business to the next level while underscoring and protecting our DNA. As we strongly believe in our potential in beauty, we decided to sign a license agreement".
K-beauty ideal of "cloudless skin" spurs major growth in hydrating skincare
Over the past few weeks beauty media have noticed a common thread in the latest skincare releases. Hydration is back with a vengeance. L'Occitane's new Aqua range, Clinique Moisture Surge 72-Hour Auto-Replenishing Hydrator, Rodan + Fields Active Hydration Serum, Lancôme Advanced Génifique Hydrogel Melting Mask are just a handful of the new launches hanging their hats on intense moisture. Hydration is, of course, crucial to any moisturiser but why the renewed emphasis?
Asian skincare has long featured hydrating essences, toners and gel/cream formulations. But the latest skin trend from Korea has supercharged the focus. The concept of "cloudless skin"– as in it should look as clear as a blue sky on the sunny day – hinges as much on skin health as beauty. There are four major steps to creating the glossy ideal – a cleanser that doesn't strip the skin of natural oils, a hydrating toner, a brightening/soothing product and a super-hydrating moisturiser. Maximum hydration is mandatory to producing fresh, glowing skin.
Japanese beauty companies are also re-formulating products to emphasise hydration, says Mintel. The new Shiseido Essential Energy range, for example, relies on advanced neuroscience with its ReNeura Technology to leave the skin super-moist and radiant. The trend also appeals to many Western beauty brands who are now focused on skin concerns rather than specific age groups to broaden a skincare product's appeal. Women of all ages and skin types need added hydration.
Snippets from the wires
- Speaking of broader reach, the psychographic approach to beauty marketing has rebounded strongly as more brands pull back from too heavy an emphasis on Millennials. Kate Spade's new fragrance – Full Bloom – is fronted by a Gen Xer – Laura Dern aged 51 – a Millennial – SNL's Sasheer Zamata aged 31 – and a Gen Zer – Tavi Gevinson now 21 – the US teen influencer turned editor-in-chief of online magazine Rookie.
- Two major market research companies – Technavio and Research Markets and Data – have predicted that the global natural and organic personal care market will grow by close to 10 per cent over the next three years. The market is led by North America, followed by Europe and Asia-Pacific, but China and India will be key drivers in the growth rate.
- e.l.f Beauty continues to deliver double digit growth. in 2017, global sales climbed 18 per cent to US$270 million.
- Fosun International, founded in 1992 by Guo Guangchang the self-styled "Chinese Warren Buffett", has been on a shopping spree over the past month. The Chinese conglomerate bought a controlling stake in heritage French fashion house Lanvin in early February for 120 million euros ($AUD190.3 million). Last week, Fosun also bought a majority stake in Austrian lingerie and legwear specialist Wolford for $US40 million. The Chinese giant narrowly missed out on buying La Perla because it wanted to move production from Italy to China. With the Chinese luxury market growing by 20 per cent a year, Fosun has announced it is interested in acquiring more luxe companies in healthcare and fashion.
