The Frédéric Fekkai brand plans to bid adieu to its overseas markets.
This story first appeared in the July 12, 2012 issue of WWD. Subscribe Today.
The Procter & Gamble Co. owned hair care brand will exit its international markets in January, with plans to relaunch business overseas in the future, confirmed a P&G spokesman. Fekkai is carried in 25 countries outside the U.S., primarily across Europe.
“We are pulling back so we can go back and look at the business model, get the right proposition and continue to grow [the brand],” he said, adding that Fekkai’s business has been strong since P&G acquired the brand in 2008, growing at a rate of high single digits. Rough estimates by industry sources put the global sales total at upward of $150 million.
In the U.S., Fekkai has lines both in higher-end stores, including Bloomingdale’s, Ulta and Bluemercury, and in drugstores, such as Walgreens.
A financial source said Fekkai’s business overseas is small, and that P&G has more pressing concerns.
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The company is feeling the squeeze from slowing growth in developed markets. In June, Bob McDonald, the company’s president, chairman and chief executive officer, said P&G will tighten its focus on the biggest opportunities.
“We are targeting our 40 largest and most profitable businesses, the 20 largest and most promising innovations, and the 10 most important developing markets, where the growth potential is the highest,” said McDonald. “We do business in 1,000 category-country combinations. The top 40 represents about 50 percent of our sales and about 70 percent of our profit. Twenty of these are in the household care business, and 20 are in the beauty and grooming business.”