Tom Ford debuts new skincare division; Crabtree & Evelyn to return to Australian market; Korean duty-free sales reach US$1.66 billion; and Kopari secures US$20 million for further global expansion.
Tom Ford debuts new skincare division
Tom Ford has the golden touch when it comes to all things beauty. In 2013 he launched a male-targeted grooming and skincare collection, including Purifying Face Cleanser, Oil-Free Moisturizer, Anti-Fatigue Eye Treatment and Hydrating Lip Balm. The move came two years after the highly-anticipated launch of his makeup range. The iconic designer's signature and Private Blend fragrance collections debuted in 2006, winning multiple awards and becoming a phenomenal success story.
Tom Ford Beauty has announced the launch of a new division – Tom Ford Research – to make an assault on the lucrative prestige skin care category. The first two products from the Estée Lauder-owned brand – a US$350 serum concentrate and a US$450 cream concentrate – will launch exclusively in Saks Fifth Avenue and Tom Ford stores in the US in August, followed by a global rollout in September. The hero ingredients are caffeine and the Japanese green tea, gyokuro, whose name means jade dew. Three additional products will be released in March next year.
Crabtree & Evelyn to return to Australian market
When Chinese investment holding firm, Nan Hai Corporation, acquired Crabtree & Evelyn in 2015 for US$175 million, the buyout was the largest foreign beauty deal involving a Chinese company. There were big expansion plans, but the reality turned out differently. In January this year, the prestige fragrance and personal care brand closed its 12 stores in Australia, 12 stores in Singapore and 19 in Canada, leaving one flagship bricks-and-mortar location in London.
Nan Hai has re-grouped and unveiled a new brand message – Born Curious, Grown Wild – to target Millennials and Gen Zers. Crabtree & Evelyn has also relaunched its e-commerce business and launched two new product ranges – Evelyn Rose and a gender-neutral lineup simply called Crabtree – a first for the 47 year old brand.
The company also has a strategy to open concept stores in key global cities, says CEO David Stern. "The concept stores will likely be in major cities in the UK, the US, Australia and Greater China. Singapore will also open one within the next two years".
Pop-up stores are on the drawing board in key global hotspots, as yet unnamed. As part of its comeback, Crabtree & Evelyn also has a busy pipeline of new products to roll out gradually, including exfoliants, masks, solid perfumes, cleansing balms, facial mists and lip scrubs.
Korean duty-free sales reach US$1.66 billion
AmorePacific's Sulwhasoo, LG Household and Healthcare's The History of Whoo and Estée Lauder's premium ranges are the leading skincare brands in South Korea's duty-free sector. Overseas travellers account for 94.9 per cent of cosmetic sales through the channel, reveals the Korea Customs Agency. Overall duty-free revenues soared 26 per cent in the year to June 2019 to reach US$1.66 billion.
In spite of worries surrounding the US/China trade war and other political disagreements, duty-free sales to Chinese travellers rose 22.1 per cent over the 12 month period. Daigous continue to buy in bulk, reports the Korea Duty Free Association, and accounted for 82 per cent of sales to overseas travellers. AmorePacific, one of the big two Korean beauty giants, introduced a limit to daigou purchases, but the move has backfired. The company's prized Sulwhasoo prestige skincare brand has dropped from the number one ranking to third position behind LG's The History of Whoo and Estée Lauder.
Thanks to its popularity with Chinese consumers, The History of Whoo has become a phenomenon and became the first Korean brand to reach 2 trillion Korean won (US$1.79 billion) in sales last year. 2018 was a banner year with sales rising 40.8 per cent. Launched in 2002, The History of Whoo crossed the 1 trillion Korean won threshold in 2016 and is now a real contender globally with leading prestige skincare brands from Lancôme and Estée Lauder.
Kopari secures US$20 million for further global expansion
Founded only three years ago as a direct-to-consumer brand, Kopari has enjoyed a meteoric rise and attracted serious investment. The US-based coconut-rich natural beauty player boasts 30 products and is sold in 2000 outlets worldwide in the US, Canada, Southeast Asia and Australia through major retailers such as Sephora, Ulta Beauty, Nordstrom, Bloomingdale's and Amazon.
Major investors and celebs backed the fledgling brand in 2017 with funding from L Catterton, the world's largest consumer-focused investment firm owned by LVMH, Ashton Kutcher, Mila Kunis, Jared Leto, Karlie Kloss and Hilary Duff.
In another round of Series A funding, Kopari has secured further investment from L Catterton and Unilever Ventures, the investment arm of the multinational, and others to the tune of US$20 million. The fiscal injection will further cement Kopari's partnership with Sephora, help to create new products and build in-store and online sales.
Snippets from the Wires
- International passenger numbers at Melbourne Airport jumped 5.3 per cent over the 2018/2019 financial year to 11.44 million. The top five nations of origin were: China/Hong Kong, New Zealand, India, the UK and the US. Total passenger numbers also reached a record high of 37.2 million as domestic traffic edged up to 25.95 million.
- Stella McCartney was a pioneer of ethical fashion long before it became a major trend. The British designer bought back full control of her brand from luxury goods group, Kering, last year. LVMH, the world's largest luxury goods group, has bought a minority stake in the label and McCartney remains the majority owner and creative director.
- Target in the US has become the latest retailer to join the clean beauty trend, even if an exact definition remains elusive. Major brands that merit the mass retailer's green symbol include: Jessica Alba's The Honest Comapny, e.l.f, Aveeno, SheaMoisture, Love Beauty Planet and Burt's Bees.
- Sephora has extended its Clean at Sephora lineup to 68 brands, including Lululemon's new personal care range. The world's largest speciality beauty chain has also revised its "free from" list to over 50 ingredients – up from 18 last year – giving the boot to "nasties" such as carbon black, mercury compounds, aluminium salts and lead.
