Accelerated Analytics Customers L’Oreal and Coty Ink Big Business Deals in the New Year

The string of beauty deals continues in the new year with significant beauty acquisitions for Accelerated Analytics customers L’Oréal and Coty, all within a 48-hour period earlier this week.

L’Oréal will almost double the size of its Active Cosmetics Division with the acquisition of CeraVe, AcneFree and Ambi for a reported $1.3 billion. Founded in 2005, CeraVe develops cleansers, moisturizers and baby products and is one of the fastest-growing active skincare brands in the United States, L’Oréal said. AcneFree provides acne treatments and skin cleansers, while Ambi makes products to treat dark spots and brighten skin. The new trio of labels generates yearly revenue of about $168 million combined, and puts L’Oréal head-to-head with Nestlé’s blockbuster brand Cetaphil.

“Although the price is very high,” said Eva Quiroga, an analyst at Deutsche Bank, “it is supported by the strong growth the business will likely achieve, initially in the U.S. and eventually on a more global basis. It is the kind of global expansion that L’Oréal has historically excelled at.”

Coty is the latest consumer-products maker to acquire an online start-up with the purchase of Younique, a Utah-based company that makes its own line of skin care, body care and makeup products that are sold via peer-to-peer social selling. Coty will acquire 60% of Younique for $600 million in cash and Younique founders Derek Maxfield and Melanie Huscroft will own the remaining 40% and stay with the company in executive roles. Younique’s sales are made mostly online through virtual parties on Facebook and other social platforms. Modeled after more traditional direct-selling models, Younique is part of a group of young companies that have adapted the model to the internet age.

Sources: Reuters, Women's Wear Daily

ACCELERATED ANALYTICS LUXURY FRAGRANCE VENDORS POISED TO GROW 5.9% BY 2026

Future Market Insights released a report today that estimates the global perfume market is estimated to reach $39.67 billion by the end of this year, and expects growth of this segment of 5.9% over the next ten years. The firm looked at several Accelerated Analytics beauty and fragrance companies for its report, including Estee Lauder Companies, LVMH, Coty Inc., L’Oreal International, Elizabeth Arden Inc., Shiseido Co. Ltd., Puig and Parlux/Perfumania Holdings Inc.

The reports found that demand is being bolstered by the millennial consumer segment, as well as increased online retail strategies from these companies. Female fragrances are leading the increase, with year-over-year increases from 4-5.2% over 2015 to 2026. While online retailing is the most attractive shopping means to this segment of consumers, in-store remains 80.5% of the market share, due to the personal and olfactory nature of fragrance marketing.

Millennials are drawn to products that have natural ingredients. Fragrance vendors are offering more “Eau Fraiche” (alcohol free) products.

The Western Europe market is the largest consumer, and expected growth consumer, of fragrance products, followed by North America.

To get more retail insights from the Accelerated Analytics team, register for our (free) monthly Retail Industry Briefing Book here.

Source: Luxury Daily

US BEAUTY MARKET EXPECTED TO GROW TO $90 BILLION IN 2020, AND ACCELERATED ANALYTICS COSMETICS BRANDS ARE IN THE NEWS!

Today’s $80 billion US beauty market will continue to grow according to a report by Euromonitor International. This growth rate will mean the beauty market will grow by 45% in 10 years. In 2015, the premium beauty category grew 7%, with premium foundation sales increasing 14.2%, compared to just 3% the prior year. Consumers have been shifting to premium products, looking for high quality products. Many luxury beauty brands who use Accelerated Analytics POS reporting to optimize inventory levels, track promotions and drive sales are in the news with big headlines this week, such as Parlux Fragrances, Shiseido, Inter Parfums, Estee Lauder, Elizabeth Arden, Coty and L’Oreal. Click Here to learn more about our solutions for beauty brands.

How Millennials are Revolutionizing the Beauty Industry

For the multi billion-dollar beauty industry, appealing to millennial consumers – the largest generation in America - isn’t just a good idea, it’s crucial.

According to market intelligence agency Mintel, the beauty industry saw revenues of over $46 billion in 2015 and is projected to grow to over $51 billion by 2020. Women ages 18 to 34 are the biggest portion of the $13 billion dollar cosmetics market and they’re the most likely to be heavy buyers, meaning they purchase more than 10 types of products per year.

But, when it comes to beauty products, millennials are suspicious shoppers. Burned by stressful counter experiences and exaggerated magazine reviews, they’re distrusting. Their skepticism is impacting how, why and where beauty purchases happen, and the industry is evolving in response, effectively changing the way all consumers shop for beauty.  Here’s a summary of the changes you may notice:

Try Before You Buy

Product testing is vital to today’s beauty buyer. Online beauty purchases are down and stores like Ulta and Sephora, where trial stations and testers are the norm, are growing. According to a survey conducted by TABS Analytics, Ulta experienced a 41% increase in regular buyer purchases in 2015 compared to 2014. And Sephora reported a 25% increase in buyer penetration and a 32% increase in regular buyer purchases last year over the previous year. Clearly, consumers want to try before they buy. And retailers are listening as more offer samples and bring products out from behind counters.

A-La-Carte Beauty Solutions

According to the TBAS Analytics report the big brands, like Accelerated Analytics’ customers L’Oreal, Estee Lauder and Clinique, among others, are still going strong. What does seem to be changing is the belief that any one brand can provide all solutions to all of their problems. In other words, millennials like to have a choice. This means the door is opening wider for niche and specialty lines like Anastasia Beverly Hills which has seen significant growth. “The consumer has demonstrated a very high capacity to try and use multiple brands and that tendency seems to be growing over time,” says Kurt Jetta, Ph.D., CEO and lead product developer for TABS Analytics.

Fewer Sales People

While 90% of beauty purchases are still made at brick and mortar stores, today’s buyers are researching before they buy and thus taking the experience into their own hands. Beauty consumers are turning to online reviews, beauty blogs, YouTube, and the advice of friends prior to their purchases. All of this pre-purchase research boosts buying confidence and helps match expectations with reality, but it also means that the traditional makeup counter salesperson is becoming obsolete. They’re being relegated to a supporting cast member that shoppers only seek out when absolutely necessary.

Source: www.racked.com

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UPSCALE COSMETICS SALES ARE BEAUTIFUL

The upscale beauty business continues to shine. In 2015, prestige beauty - makeup, fragrances and skin care products that are not found typically at drug stores, saw a 7% increase in sales. Sephora and Ulta each posted phenomenal sales results. Estee Lauder raised its sales forecast as demand for their product line are growing. The makeup subcategory was the strongest, with a 13% increase last year.

In a “selfie-ready age” and YouTube and Pinterest an easy way to get product tutorials, makeup trends are growing the sales. Thicker eyebrows are trendy, so products such as brow-enhancing serum and eyebrow mousse are becoming more popular. In our health-conscious society, products with natural or clinical orientation, which are pricier, comprise the largest share of prestige skincare sales.

JC Penney plans to accelerate its Sephora Inside JC Penney locations, and Kohl’s has redesigned its beauty area on 900 of its stores. Macy’s acquired $210 million Bluemercury, and plans to grow to 150 locations in the next 2 years. Target acquired Sonia Kashuk brand, and L’Oreal is opening brick-and-mortar locations of its NYX Cosmetics concept.

Accelerated Analytics works with a large percentage of beauty brands, such as L’Oreal, Anastasia Beverly Hills, Estee Lauder, Parlux Fragrances and LVMH. Click here to see our full list of beauty vendors, who utilize Accelerated Analytics’ POS reporting tools to track sales and inventory levels at their retailers, such as Dillard’s, Macy’s, Sephora and Ulta.

Source: Washington Post