Yankee Candle Company Joins Roster of Jarden’s Iconic Brands
In the world of home fragrances, new scents and repackaging are typically the most notable developments of the year. Last week’s news of Yankee Candle Company’s acquisition was noteworthy not because of the acquisition itself, which had been rumored for quite some time, but because of the company’s suitor, Jarden.
Jarden, composed of well over 100 familiar niche brands, purchased the candle company for $1.75 billion. Who is Jarden, and what are they going to do with Yankee? Nothing probably. Just continue to provide resources to help the company grow. This is the pure strategy that drives this 10-year-old company built primarily on acquisitions of iconic brands that one might find in a big box retailer ranging from Mr. Coffee to Crock Pot. Continue reading
Unmasking Great Potential: L’Oréal Announces the Acquisition of China’s Magic Holdings
Reflecting an astute strategy allowing both the better penetration of the China market through an already well established domestic player, and canny product diversification, L’Oréal is poised to acquire Magic Holdings, China’s facial mask segment leader, with its MG brand.
The advantages of this acquisition are manifold. Although a young company, Magic Holdings has been growing at a remarkable pace over its first five years, and it now dominates over a quarter of the facial mask market. The company will supplement its two existing factories with a new production facility, slated to come into operation in 2015, and bringing with it an expected 50% plus production capacity and enhancing its economies of scale. Given the absence of a facial mask line within L’Oréal’s existing product portfolio, this acquisition—pending approval by the Ministry of Commerce of the People’s Republic of China— will therefore enhance and extend L’Oreal’s product range as a significant asset.Continue reading
Taming the Serpent: How to Stake a Smart Claim in the Ever-changing Chinese Market
In this, the Year of the Snake, many well-established companies are finding the dramatic changes in China to be a serpent that is hard to grasp. Myriad rapid social, economic, and governmental evolutions in this turbulent economy have left many executives scratching their heads and, in some cases, feeling bitten. Multiple economic and industrial factors have changed in China, including the following:
- Government growth priorities are shifting towards a more domestic focus with greater environmental concerns
- The contrast between traditional values and modern habits is becoming more pronounced, between the graying China’s population – an estimated 40% will be over age 50 by 2020 – and the younger generation’s rapid adoption of the Internet, e-commerce, and social networking
- Increasing wealth and the emerging middle class are fueling greater mobility and urbanization, resulting in new housing and infrastructure in development for approximately 300 million new city dwellers
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Natural Personal Care Markets Flourishing in China and Japan
While many countries have significant and growing natural cosmetics and toiletries markets, China and Japan represent two markets of particular interest and potential.
In 2013, the Chinese natural personal care is posting growth of almost 25%, fueled by a cultural reliance on Traditional Chinese Medicine (TCM), increased – confidence-inspiring – transparency in product safety and health related matters, and growing affluence. TCM-based brands still dominate the market, but foreign competitors are starting to gain market share. Continue reading
Newly Acquired DermStore.com to Serve as Target’s Dotcom Laboratory
Target’s announcement of its intent to purchase DermStore.com, the prestige skin care e-tailer, furthers the brick-and-mortar giant’s strategy to learn how to reach upscale consumers within selective high-growth markets via the Internet. Earlier this year, the retailer purchased both Cooking.com and CHEFS catalog, affording it with cross-channel opportunities and a solid foray into the upscale housewares market, the accrued experience of which will likely be parlayed into its own website and in-store housewares offerings. It is expected that Target will employ similar leverage with this new acquisition.
FDA Initiative Forms Basis for Healthy Rx-to-OTC Switch Opportunities
In the not so distant past, the U.S. FDA has taken a rather conservative stance concerning Rx-to-OTC switches. Many potential categories have been discounted as not safe and/or effective without a physician’s prescription. This has compelled drug manufacturers to judiciously consider which drugs, if any, they would seek to switch given the necessary multi-million dollar expenditure on prerequisite clinical trials including self-selection, actual-use, and label-comprehension studies with consumers before the application and approval process with the FDA can even begin. With its recent NSURE (Nonprescription Safe Use Regulatory Expansion) initiative, there are encouraging indications that FDA is becoming more receptive to allowing greater Rx-to-OTC switches.Continue reading
Revlon Acquires Colomer: A Sign of Health from the Long-suffering Cosmetic Giant
Revlon has re-entered the professional beauty business with its acquisition of Colomer for $660 million—13 years after it initially sold this same business to CVC Capital Partners for $315 million—a move which returns the Revlon Professional business back “home”. The 2000 sale was part of a plan to help Revlon reduce debt and return to profitability, a plan that appears to be finally yielding benefits. In the years following the divestiture, Revlon continued to suffer from steep profit losses, a revolving door in top leadership, and various facility closures.Continue reading
Rendez-vous in Paris: Beauty devices and professional skin care markets – Focus on China
Paris – the city of light and beauty…and Beyond Beauty, who is hosting two premier beauty industry events between September 9 – 11, 2013, in Paris, Porte de Versailles, Pavilion 4.
With 500 exhibitors, some tens of thousands of beauty industry professionals are expected to show up. Among the industry elite making this a must-attend venue, will be Pierrick Dutton, a seasoned beauty industry expert at Kline.
Dutton will be presenting insights gleaned from Kline’s latest research assaying the beauty devices and professional skin care markets, with a primary and timely focus on China. With the Chinese at-home skin care devices market boasting near 100% growth in 2012, this otherwise booming segment is still largely under-penetrated and suggests even greater opportunity for growth.Continue reading
Vive la différence – Professional Beauty in France
La belle France, a country with a strong aesthetic tradition, widely admired for its taste in style, luxury, and beauty, and where those with an eye for professional primping à la Française continue to pamper themselves – albeit with notable moderation finds our research on professional skin care, beauty devices, and salon hair care markets in France.
When it comes to professional skin care, the discerning French bon vivant is right at home in the largest market, with France accounting for over 20% of skin care product sales in Europe. This figure has remained stable through 2012, save for incremental growth of 0.9%. Ongoing challenging market conditions have seen Guinot, the country’s largest professional skin care brand, which enjoys a loyal clientele, suffer a drop in sales. Conversely, Clarins and Sothys both experienced growth in this period. Continue reading…
Bee is for Beauty: Buzz from Cosmoprof North America
Within the hive of activity at Cosmoprof North America held in Las Vegas July 14-16 was a florid melody of bold nail shades, a swarm of keratin-inspired products, and international brands hailing from Brazil to Turkey.
There were many enticing opportunities to catch one’s attention. However, something different caught the eye of the Kline team. In the “Discover Beauty” pavilion, which is devoted to distinctive and emerging brands from around the world and featured brands such as African Botanics, Greenland, Jenetiqa,Continue reading
