NEW YORK — Thank goodness for the upcoming fall boom in beauty.
With their fortunes so closely tied to the industry, fashion and beauty magazines believe the wave of upcoming launches should give a desperately needed kick to their second-half business. The launches come at a time when most magazines have been hammered by a steep drop-off in advertising across all categories. Through May, toiletries and cosmetics ad pages alone tumbled 8.4 percent, or 547.7 pages, to 5,998.7 from 6,546.4, according to Publishers Information Bureau. The decline was even more painful since it came after a year when toiletries and cosmetics advertising pages rose 6.1 percent, to 16,695.8 in 2001 from 15,741.2 in 2000.
This story first appeared in the June 21, 2002 issue of WWD. Subscribe Today.
Among the most anticipated launches for fall are Chanel’s Chance for young women; Crave by Calvin Klein aimed at young men; Kenneth Cole’s women’s and men’s master brand; Christian Dior’s Addict for women; Armani Mania for men; Ralph Lauren’s Polo Blue for young men, and Tommy Hilfiger’s T Girl for women. There’s also the new Coty Lancaster fragrance by Jennifer Lopez called Glow and Liz Claiborne’s newest entry, Bora Bora.
Publishers say they are excited about the increase in men’s fragrance launches, many of which have chosen to run ads in women’s fashion magazines.
Here are publishers’ predictions for their beauty business for the second half, except for Elle, whose beauty pages were down 44 percent, or 94.8 ad pages from January through May, according to PIB. The magazine chose not to participate since it’s working on some programs for the second half, but can’t divulge them yet, said a spokesman.
The beauty category accounted for 55 percent of Allure’s business in the first half and was off 12 percent, or 45 pages, during the period. However, Allure managed to turn in a 1 percent gain overall for the half attributed to its business in areas such as fashion, retail, jewelry-watches, accessories and automotive. Nancy Berger, vice president and publisher of Allure, attributed the first-half decline in beauty to fewer launches. “After Sept. 11, people got nervous and some advertising got pushed back to the second half,” she said, adding the second half is looking a lot stronger because of all the upcoming introductions. The magazine’s July issue alone was up 11 pages in beauty advertising.
Among its new business in the second half are Chanel’s Chance; L’Oreal’s Pure Zone, a skin care line for the younger customer; T Girl; Liz Claiborne’s Bora Bora; Christian Dior’s Addict; Trish McEvoy’s makeup line, which is exclusive to Allure; and Vera Wang’s new fragrance.
“What we’ve been asked for is added value that ties in at the retail level at department stores and mass stores.” Berger said the magazine held an Allure Backstage event at Bergdorf Goodman in March highlighting spring trends and inviting makeup artists, which they intend to do again this fall. Allure readers and Bergdorf’s best customers bought over $70,000 worth of beauty products in one night during the March event.
Allure will also sponsor the Allure on Tour concert series, which kicks off in mid-August and runs through mid-September. It features concerts in six major markets around the country, with performances by Lenny Kravitz, Pink, O Town, Sheryl Crow and Aerosmith. “We are building this massive venue outside the amphitheaters with booths and product sampling,” said Berger. Each of Allure’s advertisers will have a suite, where representatives can meet with customers. Advertisers so far are Polo Jeans and State Farm. The magazine will offer concert-goers makeovers at the beauty and fashion stations, as well as gift bags. Berger said Allure also plans promotional programs with Eckerd Drugs, Rite Aid, Duane Reade, Macy’s and Henri Bendel in the second half. COSMOPOLITAN
Donna Kalajian Lagani, senior vice president, publishing director of the Cosmopolitan Group, said the magazine’s beauty advertising declined 16 percent in the first half. Like other publishing executives, though, she expects the fall launches to help turn around the category. Lagani said Cosmo and Cosmogirl! are getting some exclusive business with L’Oreal, and Cosmo has won some exclusive business with Johnson & Johnson.
“We’re getting Chanel’s Chance for both titles and we’re on the schedule for all the new fragrance launches,” she said.
The beauty category accounts for 43 percent of Cosmo’s overall business, and 49 percent of Cosmogirl’s overall business. Among women’s magazines, Cosmo ranks number one in the beauty category in terms of ad pages, according to PIB. Like Allure, Cosmo is finding that advertisers want more value-added from magazines. In September, Cosmogirl! will once again offer its Kiss of Approval Awards, citing the best beauty products, and Cosmo will publish its second annual beauty awards in the October issue. “Both are looking very strong, and there are big retail programs tied in for both at the mass and prestige levels.” IN STYLE
Unlike at other titles, Lynette Harrison, publisher of In Style, claimed that “beauty continues to be somewhat of a bright spot.” Beauty advertising accounts for 26 percent of In Style’s total business.
Harrison said In Style’s competitive set was down 21 percent in beauty in the first half but her market share grew to 13.6 percent from 12 percent. For the first half, In Style was down 16 percent in beauty ad pages. Although beauty spending was down overall, In Style managed to get more of the business than some of its competitors.
It’s a record year for launches in the fall, in both mass and prestige,” said Harrison. One of its new advertisers is Aveda, and Origins is returning after not advertising this spring. In Style is also getting additional business from Donna Karan and Armani Cosmetics. Among the new fragrances that will advertise for fall are Kenneth Cole, Liz Claiborne’s Bora Bora, Dior’s Addict, Elizabeth Arden’s new line with Catherine Zeta-Jones as the spokeswoman, Chanel’s Chance and Elizabeth Taylor’s new fragrance Forever Elizabeth, said Harrison. On the mass side, In Style will do a gift-with-purchase program with Neutrogena and CVS.
“There’s a lot of opportunity in beauty. When the economy is so questionable, beauty is one of our insurance policies. ” said Harrison.
In October, In Style will do its annual Beauty Report, which will carry a big color story, including hair. Ads for that section haven’t been booked yet.
Tom Florio, the magazine’s vice president and publisher, said its beauty business was down 21 percent in the first half, which he attributed to reduced budgets and fewer launches. But with all the new fragrances coming this fall, Florio estimates Vogue will get 30 pages of launch business from July through December. Of its total beauty business, Florio anticipates that 63 ad pages will be exclusive to Vogue.
“We expect our major growth to come from eight major accounts, which we expect will run 60 more pages than last year,” said Florio. For the second half, he expects them to contribute 95 ad pages, up from 35 a year ago.
In a best-case scenario, he said, “The net effect is we expect to be up double digits in the second half in beauty, which would put us up 6 percent [in beauty ad pages] for the year.”
Florio pointed out that 80 percent of the launch activity is in the prestige area, and 78 percent of the growth business in the mass end.
Suzanne Grimes, vice president and publisher of Glamour, said that beauty business was down 11.4 percent in the first half although “May, June and July were up 3.9 percent in beauty” and the business continues to trend in that direction.
Encouraged by increases in both mass and prestige business for the second half, Grimes said she expects at least a 10 percent gain in beauty in the period. Glamour has partnerships with Wal-Mart in July and November; CVS in August, and Kmart in October. On the prestige side, Glamour is doing promotional programs with Bloomingdale’s, Nordstrom and Macy’s West.
“Mass spending seems stronger than prestige spending,” said Grimes. She said this is the first year Glamour has done business with Wal-Mart.
Grimes said Estee Lauder will sponsor a gatefold in the September issue in the front-of-the-book fashion section. In addition, Chanel is trying to reach out to a younger customer and is a sponsor of Glamour’s College TV program. In common with other titles, Glamour is reaching out to the men’s beauty category, in the past gaining such advertisers as Nivea for Men and Neutrogena for Men.
W’s beauty advertising, which accounted for 13 percent of its business in the first half, was flat during that period and Alyce Alston, vice president and publisher, predicts business to be even for the second half as well. As with its competitors, W is getting business from the upcoming launches, especially in the men’s category.
This fall, W plans to repeat a national beauty promotion it did with Neiman Marcus (including a four-page section) where readers could win a sweepstakes.
W, whose beauty advertising is 90 percent prestige, broke two mass clients in the first half: Neutrogena and Revlon. During that period, it also ran exclusive business from Shiseido, Nars, La Prairie, La Mer and Aveda, Alston said.
“The opportunity is there for both the magazines and the beauty companies to post some gains against a really challenging post-Sept. 11 fourth quarter last year,” said Beth Brenner, vice president and publisher of Self.
(According to PIB, after running 13 percent ahead in the first half of 2001, toiletries and cosmetics ad pages stalled in the second half of last year and were virtually flat in the period compared with 2000. Therefore, it won’t be too hard to beat those numbers.)
“The retail business froze after 9/11. No one’s going against numbers they had expected. I have a hunch there’s so much newness going on to drive business back to stores,” added Brenner. Beauty currently accounts for 35 to 40 percent of Self’s total business.
Self will carry prestige and mass brands, as well as Avon. Among the prestige advertisers for fall are T Girl, Chance, Liz Claiborne’s Bora Bora, and the new Ardenbeauty with spokesmodel Catherine Zeta-Jones. In mass, Coty is stepping up its activity, especially with its Healing Garden bath line, and Club Med’s fragrance My Ocean. Avon is also launching an entire Anew line.
“Where beauty goes, so goes the overall business,” said Brenner.
“It’s still a challenging time for beauty, especially prestige. It’s all about sell-throughs. If the customers aren’t coming into the stores, they won’t sell the products. It’s not just about getting the products into the stores,” said Cynthia Lewis, vice president and publisher of Harper’s Bazaar.
She said she’s seeing a lot of momentum in the second half, noting Shiseido and YSL Beaute are both back in Bazaar. “We’re projecting to be up with Estee Lauder and L’Oreal,” she added.
In addition, Lewis said that Glenda Bailey, editor in chief, increased the number of beauty editorial pages by 13 percent from January through May to a total of 80 pages. “We ran more beauty edit than Elle, Vogue and W,” said Lewis, each of which reduced their beauty pages during the five-month period, according to media analysts.
(According to Bazaar’s study conducted by media analysts, Elle’s beauty editorial pages dropped for the first five months of the year to 69 from 83; Vogue’s dropped to 50 from 56, and W’s declined to 29 from 46.)
Lewis said she expects to carry 200 beauty ad pages in the second half of 2002, up from 180 beauty pages a year ago — an 11 percent gain. For the first half, Bazaar carried 170 beauty ad pages, down from 226 — a 24.8 percent decline.
Katherine Rizzuto, publisher of Marie Claire, said the magazine will experience its biggest June, July, August and September in its history. June’s ad pages were up 44 percent to 147; July’s ad pages gained 0.1 percent to 77; August’s ad pages were up 13 percent to 112, and although it hasn’t closed yet, September is expected to be up about 6 percent to 220 ad pages.
“Growth is coming largely from beauty and beauty aids categories. There are all levels of beauty from prestige to mass,” said Rizzuto. She added that the magazine plans a big retail program in the fourth quarter with its beauty advertisers, but said it’s too early to divulge details. It has a Web component as well.
She said for the first half of the year, the magazine was up 2 to 3 percent in beauty. For the second half, she said, “There are a lot of launches we’re benefiting from — Chanel’s Chance, Kenneth Cole, Dior’s Addict, Liz Claiborne’s Bora Bora and Polo Blue for Men. Most of them are doing scent strips.”
Eva Dillon, vice president and publisher of Jane, said the magazine was flat in beauty through May. However, through August, its beauty business is up 3.5 percent and Dillon expects to be up 3 percent in beauty overall for the year. Beauty is the magazine’s biggest category, followed by fashion. Combined, the two categories represent 70 percent of the business.
Jane will carry ads for such fall fragrance launches as Chic, Marc Jacobs, T. Girl, Chance, Shiseido’s Pureness, Kenneth Cole, Coty Lancaster’s Glow by J.Lo and American Eagle’s Aura, said Dillon.
Last Saturday, Jane did a beauty promotion with Feria, the hair products firm, creating a Feria Lounge in SoHo, where Oribe was on hand to do cuts and colors and give complementary color consultations. It also threw a party called Feria Peepshow, where the lounge was turned into a burlesque peep show with dancers in the windows, and collected items from celebrities such as Britney Spears, Charlize Theron and Elvis Costello and auctioned them off. The auction raised $10,000 for the charities Ovarian Cancer Research Fund, and Boarding for Breast Cancer.