Australia retains top 4 country status on Singles' Day; Clinique targets Millennials with bespoke approach; P&G to inaugurate biggest organisational change in 20 years; Sydney's Pitt Street Mall ranks as world's 7th most expensive retail precinct.
Australia retains top 4 country status on Singles' Day
This year's Alibaba Singles' Day broke new records – a 27 per cent increase in sales to AUD$42.7 billion of gross merchandise value (GMV). A performance that makes Australia's retention of its number four ranking among the top 10 nations selling to China by GMV during the world's largest shopping festival even more impressive than last year. Japan took out the number one position, followed by the US, South Korea, Australia, Germany, the UK, France, Spain, New Zealand and Italy.
Australia also put in a stellar performance in the top 10 brand rankings with Swisse vitamins and supplements rated as the number one selling brand overall. Bio Island, another Aussie supplement brand, and New Zealand's a2 Milk Company achieved number 5 and 6 positions as Chinese consumers clicked on international brands for 40 per cent of total purchases.
Yet again, the top 10 categories of imported products centred on baby and maternity, health and nutrition, cosmetics, food and beverages. Natural skincare was one of the fastest-growing categories and the personal care products most sought after included facial masks, serums, face washes, makeup removers and toners.
NSW Trade Minister Niall Blair confirmed that with hundreds of thousands of Australian-made products selling in minutes, with the right exposure a local manufacturer can become an exporting powerhouse in a matter of seconds. Du'it, for example, is a great favourite with daigous and sold AUD$2.5 million worth of its soothing dry skin products on Singles' Day to solidify its position as one of the top five per cent of Australian-made brands sold on Alibaba's online network.
Clinique targets Millennials with bespoke approach
Dramatically Different Moisturizing Lotion debuted 50 years ago as the final step of Clinique's famous 3-Step System. The legendary hydrator remains the first prestige skin enhancer young women worldwide seek out when their skin stops being oily or they need more moisture. In Australia, DDML, as it fans call it, accounts for 7 per cent of Clinique's total business. Regular re-formulations keep the best-selling product top-of-mind and the latest update launched earlier this year was Dramatically Different Hydrating Jelly, a 100% transparent, oil-free water jelly with anti-pollution benefits.
In Clinique's biggest launch since Even Better Clinical Dark Spot Corrector, the Lauder-owned power brand is premiering Clinique iD, a bespoke hydration system aimed at Millennials. According to a research study, more than 68 per cent of US women claim they have yet to discover the right moisturiser for their skin needs. Clinique's new approach allows customers to select from three Dramatically Different bases – jelly, lotion or oil-control gel – and combine the chosen formulation with one of five active ingredient cartridge concentrates. In total, there are about 15 possible blends to suit different skin concerns.
Clinique iD will launch first in the US on December 1 and then roll out to the rest of the world, including Australia, in the new year. The innovative system is expected to add US$200 million to Clinique's global sales in the first 12 months.
P&G to inaugurate biggest organisational change in 20 years
The marketing maxim that it's cheaper to keep a loyal customer than attract a new one is being given a new twist by Procter & Gamble. The giant multinational, which is also the world's biggest advertiser, will embark on "the most significant organisational change in 20 years" in July next year. More than 80 per cent of P&G's sales and 90 per cent of its after-tax profits come from its 10 largest markets – the US, Canada, China, Japan, the UK, Germany, France, Spain, Italy, Russia and smaller adjacent countries.
To strengthen its operations and accelerate growth and value creation in these major geographic markets, P&G will restructure into six industry-based Sector Business Units (SBUs) with their own CEOs who will report directly to David Taylor, P&G Chairman, President and CEO. The smaller management structures will increase responsibility across leadership, direct sales, profit, cash and more. "We will have a more agile and accountable organisation focused on winning with consumers through superiority, fuelled by productivity and operating at the speed of the market”, notes Taylor.
Sydney's Pitt Street Mall ranks as world's 7th most expensive retail precinct
Cushman & Wakefield's annual ranking of the top 65 shopping streets in the world is eagerly awaited by global retailers. In this year's roundup from the international real estate services firm, Hong Kong's Causeway Bay has edged New York's Upper 5th Avenue out of the top spot with an average rent of US$2671 per square foot, by contrast to the Big Apple contender's US$2250 per square foot.
Strong foot traffic and increased demand for experiential shopping, particularly in the high-end luxury category, has positioned Sydney's Pitt Street Mall as the world's seventh most expensive retail precinct with rents averaging AUD$14,000 per square metre, reports Cushman & Wakefield. The central CBD strip is also ranked third, behind Causeway Bay and Tokyo's Ginza, in the Asia/Pacific region. Melbourne's Bourke Street has climbed the ladder from sixth to fifth slot in the regional rankings at AUD$7000 per square metre. While Brisbane's Queen Street is the eighth most expensive retail precinct in the APAC region averaging AUD$4500 per square metre.
Snippets from the Wires
- Japanese cosmetic exports rose 48 per cent during the eight month period from January to August to reach US$3.06 billion. China is the biggest export market for Japanese beauty products, followed by Hong Kong, South Korea and Taiwan.
- Too Faced, the youth-oriented brand acquired by Estée Lauder in 2016, has made its global travel retail debut in New York's JFK International Airport. The US is the highest earning tourist market in the world, pulling in US$211 billion a year.
- Foreo, the Swedish beauty device maker, has joined mega-brands such as Apple in surpassing the RMB 100 million (US$14.4 million) sales milestone during this year's Singles' Day.
- Online shaving disruptor, the Dollar Shave Club, is expanding into the men's fragrance market. Now part of Unilever's portfolio, the brand's new Blueprint fine fragrance collection is priced between US$35 and US$50 and was created by veteran perfumer Ann Gottlieb (Calvin Klein Obsession, Marc Jacobs Lola and Elizabeth Arden 5th Avenue).
