PRESTIGE BEAUTY GROWS: The prestige beauty market in the U.S. reached $8.9 billion last year, up 2 percent compared with 2006, The NPD Group reported this week. Of the three main categories, only fragrance sales declined (by 1 percent), while sales of makeup and skin care each increased by 4 percent. Makeup was the biggest prestige beauty category last year, with 38 percent of the market on sales of $3.4 billion. Fragrance was second, with $2.94 billion in sales, and skin care rang up $2.5 billion. Face makeup drove the overall makeup category, with 46 percent of prestige makeup sales, while eye makeup accounted for 29 percent. In skin care, antiaging products drove growth, generating $1.2 billion. In fragrance, the men’s and women’s markets were both down 1 percent due to a flood of new launches and scores of brands on the market, NPD noted. The top five prestige scents last year were Acqua di Giò, a men’s scent; Beautiful (Estée Lauder); Coco Mademoiselle; Chanel No.5, and Cashmere Mist (Donna Karan/Lauder).
This story first appeared in the February 15, 2008 issue of WWD. Subscribe Today.
PROCTER IN POLAND: Procter & Gamble is investing $50 million in a factory in Poland, which will manufacture Olay treatment products. Construction already has begun on the plant, which will be operational by the first half of next year, a P&G spokeswoman said on Thursday. Some 300 employees will be based at the factory located in Aleksandrów Lódzki, near Lodz, in central Poland. P&G has been present in the country since 1991 and has two other factories there, which produce Pampers diapers and Gillette razors.
PUIG MOVES: Puig Beauty & Fashion Group is stepping up its international presence. The Barcelona-based firm opened a Mexican subsidiary last month for its prestige fragrance distribution, which was previously handled by Chanel-owned Perfumeria Versailles SA. By 2011, the new subsidiary, Puig Prestige Mexico, aims to double the sales of Puig’s designer fragrance brands — including Paco Rabanne, Nina Ricci and Carolina Herrera — which came in at $12 million at wholesale last year. With an 8.1 percent market share and revenue growth of almost 20 percent in Mexico last year, Carolina Herrera is the leading luxury fragrance brand countrywide, according to Puig. Meantime, in Europe, the company has taken full ownership of its German distributor, Parfum Distribution Hamburg, and its Austrian distributor, Parfum Distribution Wein, which have been renamed Puig Germany and Puig Austria, respectively. Formerly, that business was split evenly between Puig and travel-retail operator Gebr. Heinemann. The move was made to double Puig’s sales in Germany and Austria from 20 million euros, or $29 million at current exchange, today to 40 million euros, or $58 million, by 2011.
BOSWELL TO ALBERTO: Alberto-Culver Co. has named Gina Boswell president of global brands, a new position. Boswell, who was most recently senior vice president and chief operating officer for Avon North America, oversees Alberto-Culver’s Alberto VO5, TRESemmé, St. Ives and Nexxus brands, as well as research and development and consumer insights. She reports to V. James Marino, Alberto-Culver’s president and chief executive officer. Prior to joining at Avon, Boswell, a 10-year veteran of the beauty industry, worked at the Estée Lauder Cos. Inc. and Ford Motor Co. “Gina’s experience shaping strategy and corporate development will be an integral part of Alberto-Culver’s global brand strategy and growth,” Marino said.
DROM APPOINTMENT: Fragrance supplier Drom named Jean Gatignol general manager of its U.S. division. Gatignol, who was most recently at fragrance supplier Takasago, also has held international management positions at fragrance suppliers Symrise and Dragoco. He also has worked at L’Oréal. In his new role at Drom, Gatignol oversees the firm’s U.S. operations. “Jean is the right fit to manage expansion [at Drom] and lead our young and dynamic U.S. team into the future,” said Ferdinand Storp, president and owner of Drom Fragrances.
BOOKWORM: Hairstylist and salon owner Allen Edwards has written a coffee-table book, titled “Shear Force: An Image Maker’s Memoir,” based on his humble beginnings, his rise to the top of the hair world and his salon business. Edwards entered the hair elite after taking over the successful Los Angeles-based John Peters Salon on Rodeo Drive in the Seventies, where he created Farrah Fawcett’s signature feathered look. “Shear Force,” due out in May or June, will be sold at Borders and Barnes & Noble, and is being published by Durban House.
DOUBLE DOWN FOR BEAUTY: Based on the success of the Discover Beauty program at Cosmoprof North America last year — which pairs up new beauty companies with retailers — show officials are adding the spa category to the beauty program. Cosmoprof has partnered with the Las Vegas Spa Association to bring spa directors from some of the largest spas in the country to participate in the one-on-one meetings. About 24 exhibitors are expected to participate in Discover Beauty overall, up from 12 companies last year.
SHOW MOVES: In response to industry concern that the second annual Global Beauty Exhibition & Conference would conflict with area distributor shows, Michael Boyce, president of One Vision Management Group LLC, recently announced that Global Beauty will now take place on Aug. 10 and 11, rather than sometime in October. More than 3,000 industry professionals from 33 states and six countries came to New York’s Jacob K. Javits Convention Center for last year’s inaugural show, with 90 exhibitors filling out more than 20,000 square feet.
TOP 10: TotalBeauty.com, a comprehensive online beauty library for women, is generating more than 500,000 unique visitors a month since launching in December. The site offers more than 60,000 product reviews of prestige, mass and spa brands, the company said. “Women are incredibly passionate about beauty and are hungry for a platform to learn and share. TotalBeauty.com is that place,” said the site’s chief executive officer and founder, Emrah Kovacoglu, who developed it after working at Procter & Gamble as the global digital brand manager for cosmetics.
SAFETY FIRST: L’Oréal USA has granted the Women’s Dermatologic Society Foundation $1.05 million over a three-year period to support the foundation’s Play Safe in the Sun campaign. The mission of the WDS campaign is to educate women athletes to maintain healthy skin and hair by promoting sun safety. Community outreach will take place at various venues in select cities hosting various outdoor sporting events and will reach out to the public with free skin cancer screenings. Volunteer dermatologists will provide photo damage assessments and educational materials will be distributed.
RED HEARTS: In celebration of February being heart health month, Clairol Professional is donating 20 cents for each product purchased from select items within its vast portfolio to the national Go Red for Women movement founded by the American Heart Association. The drive started Feb. 1 and will run until June, contributing toward a total donation of $100,000. Retail chain Perfumania is addressing the charity, too, and this month has launched a new Go Red fragrance in stores, and will donate $5 from the sale of each to the AHA. Since 2004, Go Red for Women aims to raise money and awareness to wipe out heart disease — the leading killer of women.
FLAVOR CRAVE: Strong initial sell-through and mounting consumer demand for the new Guilt Free Lip Gloss by Too Faced Cosmetics has led the company to plan new flavors by yearend and to expand distribution outside of Sephora. Starting in March, the glosses — which retail for $18.50 — will roll out to Nordstrom, Ulta, Gottschalks and Macy’s doors nationwide. Betsy Olum, senior vice president of marketing for Sephora, said the Strawberry Melon version of the product has been a top five selling lip gloss at Sephora as well as for the total Too Faced brand. The glosses first launched in late December exclusively at Sephora stores nationwide. They are a product of a collaboration between Irvine, Calif.,-based Too Faced and Fuze Beverages, which is part of the Coca-Cola group.
COLLIER PROMOTED: Sharon Collier has been named president and chief executive officer of Gurwitch Products, which develops and markets the Laura Mercier beauty brand. Collier, who previously was president of the firm, is replacing Janet Gurwitch in the ceo role. Gurwitch Products, which was acquired by Alticor Inc. in 2006, has reached $100 million in annual sales, according to the company.