The consumer products division of L’Oréal USA continues to meet the global downturn head-on.
For one, advertising spending by the U.S. division was increased 10.9 percent for the fourth quarter — and the spigot remains open. Joseph Campinell, president of the Consumer Products Division, says ad spending for the first half has been increased by 2 or 3 percent, since it comes on top of a hefty outlay last year. He predicts that advertising spending for all of 2009 will probably be 5 percent above the level of last year. In terms of sales, as measured in retail sell-through, he expects the division’s volume to be up by 4 to 5 percent for the year.
“We’re off to a good start,” Campinell says. “We’ve got some new things that are working well,” he adds, his confidence bolstered by the division’s fourth-quarter performance.
As the global beauty market began to turn grim in July, L’Oréal executives realized they had to boost ad spending. While some critics contend that the move was an admission the company had erred in earlier cutting back on marketing support for the brands, Campinell steadfastly maintains that the move came straight out of L’Oréal’s long-standing playbook. “In bad times you spend against the categories — you grow your market share — and when things turn, your market share is higher and you’ll be in a better position,” he says.
For the fourth quarter, the division’s main brands — Maybelline New York, L’Oréal Paris, Garnier and SoftSheen - Carson—had a 2.3 percent rise in retail sales, according to Campinell, who also calculates that his main competitors dropped a cumulative 2.2 percent in the quarter.
L’Oréal does not break out advertising budgets or sales totals. But industry sources estimate that L’Oréal USA’s mass market division spent around $600 million in advertising, promotion and marketing for 2008. In terms of sales, the division’s brands command a cumulative market share of 20 percent, according to Campinell, who was quoting data compiled by Information Resources Inc. That figure does not include Wal-Mart, which comprises 30 percent of the market, where Campinell says his brands are selling well. The division generates a combined sales volume that adds up to around $3 billion a year. L’Oréal’s share of the hair coloring market is estimated at more than 50 percent and color cosmetics is said to exceed 30 percent. For the fourth quarter, L’Oréal’s market share was up better than half a point, Campinell noted.
He maintains that L’Oréal usually shoots for a market share gain of a full point every year. Despite the bearishness of the financial climate this year, he still expects his market share to increase between a half point and a full point for 2009.
L’Oréal’s quest to gain momentum against the recessionary tide got some traction with the January launch of Lash Stiletto, which reinforced Maybelline’s dominant position in the mascara category.
Following an initial burst of TV advertising, the new mascara grabbed a 7 percent share, Campinell says. “I’d say we’ll end up between a 6 and an 8 percent share for the year,” Campinell notes.
He also has high hopes for the new home hair coloring kit from L’Oréal Paris called Excellence to Go, as well as Ultra-Lift Pro, a $15 high-tech product designed to ease deep wrinkles.
The Garnier brand scored big in the hotly contested skin care category two years ago with the launch of Nutritioniste. Its sales had registered “as high as a 9 percent market share” in the moisturizing category, Campinell notes.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews