Acquisition activity has greatly altered the landscape of the global professional beauty industry in the past few years. L’Oréal is now the clear leader and only major player to have a leadership role in all three sectors of professional beauty: hair care, skin care, and nail care. The company has long held the #1 spot in the hair sector. With its acquisitions of SkinCeuticals (2005) and Essie (2010), L’Oréal landed a slot among the top 10 in skin care and nail care, respectively. Adding Decléor and Carita to its portfolio in 2014 propelled L’Oréal to the #1 ranking in skin care. The #1 spot is now firmly taken, but rankings beyond that are very much up for grabs. Continue reading
The dynamic and hard-to-track professional hair care market continues to evolve each year. Care products, consisting of shampoos and conditioners, is the fastest growing category, advancing 3% globally in 2013. The conditioners category remains vibrant, particularly the treatment segment, which has begun to shift away from oils in favor of multi-benefit and hybrid products, a trend spurred by Revlon’s Uniq One.
Hair colorants are also gaining share, driven mainly by the continuation of the low/no ammonia trend which began in 2009 with the launch of INOA by L’Oréal Professionnel. In 2013, the segment evolved into new sub-segments, such as colorants with conditioning properties and those that are free from potentially harmful ingredients. The popular low/no-ammonia segment surged by 41% in North America, but still has relatively low penetration, especially when compared to Western Europe, which represents the majority of the segment’s sales.Continue reading
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
It was another tremendous year for nail polishes, with category sales up as much as 60% in select channels in 2011. Nail polish proved yet again to be the fastest growing category in the U.S. beauty industry for the third year in a row, and was the only category to register overall sales gains in the high double-digit range. Professional brands like Essie, OPI, and Sinful have gained significant distribution in the mass-market following their recent acquisitions by L’Oréal, Coty, and Revlon, respectively, helping to boost category sales. Continue reading
In the midst of the worst economic crisis that the world has experienced since the Great Depression, Revlon has somehow managed to finallyregister positive net income for the year. Yes, Revlon. The company that had not been in the black for over a decade. The one whose main competitors—L‘Oréal and P&G (both of which have suffered during the crisis)—are the strongest in the industry. The one whose largest account is penny-pinching Wal-Mart. The one that has had more leadership changes than I can remember. And I ask myself, how is this possible? If anything I would have expected Revlon to sink deeper into its pool of red ink.Continue reading