NEW YORK — Coty Beauty U.S. is revving up the Rimmel London bus.
When the 168-year-old mass market cosmetics brand drove into the U.S. in 2000, it pulled in and parked at Wal-Mart, where it has grown to rank among the discounter’s top five best-selling color brands.
Now Coty is itching to cover more ground with its fashion-driven collection with its hip London attitude, and secure an attractive piece of mass market color real estate.
It’s been nearly impossible for a newcomer to garner a 5 percent share in the U.S. mass color market, a benchmark of success. Procter & Gamble couldn’t do it with its now defunct Olay color line, and Neutrogena cosmetics, launched in 1999, still hovers around a 3 percent share. Revlon, Cover Girl, Maybelline, L’Oréal, Almay and — sometimes — Max Factor have had a lock on the top spots for years. In 2003, Cover Girl had 20 percent, Maybelline, 19 percent, Revlon, 16 percent, L’Oreal 15 percent, Almay, 6 percent and Max Factor, 4 percent, while all other brands had smaller shares and accounted for the outstanding 21 percent, according to ACNielsen and Homescan data.
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But based upon Rimmel’s success in Canada — where it is already the number five brand, according to ACNielsen panel data — and its strength throughout Europe, where it ranks among the top three lines in most markets, Coty executives think the brand can break through in the U.S. Beginning this fall, the 350-stockkeeping-unit collection will be offered to U.S. drugstore and discount retailers beyond Wal-Mart. It is currently in 49 countries worldwide. “Rimmel can be the first brand to crack the top 5 in the U.S. in almost 20 years,” declared John Galantic, president of Coty Beauty U.S.
The goal is to about triple Rimmel’s points of sale to 11,000 doors in the first year, said Coty executives. Sources predict that attaining this goal could translate into annual retail sales of $80 million to $100 million. Wal-Mart does not reveal sales data, but estimates suggest that Rimmel now rings up sales of $40 million to $50 million for Wal-Mart.
Rimmel’s North American sales have increased over 30 percent in both of the last two years, according to Galantic.
Rick Goldberg, vice president, color cosmetics, at Coty Beauty U.S., said the brand “looks different and feels different” from any other in the mass market today. “Rimmel is associated with underground London,” he said. An emphasis on the color range, he added, provides women an opportunity to “create beauty on your own terms.”
A new in-store fixture has been designed for the U.S. market that features headers sporting pictures of London scenes with models, including the brand’s superstar spokeswoman, Kate Moss. The look is designed to highlight shades, and fixtures will be tailored to the needs of individual accounts, noted Goldberg.
With expanded distribution, Coty will create TV spots in addition to print ads for the first time. The media budget is estimated to be between $12 million and $15 million.
Pricing for Rimmel is just below Maybelline and Cover Girl, with price tags typically under $6. Because of the value pricing, Goldberg noted that the brand is designed to inspire multiple purchases.
Industry consultant Suzanne Grayson thinks Rimmel may have a shot.
“There are only the top three,” is how Grayson sizes up the market. “L’Oréal is fourth and then there is a big gap. After that it is a scramble.”
Rimmel, she continued, might be able to attract the attention of consumers “because the advertising is good. It is different. What they have is trendy and semi-shocking — it’s sassy and new.” Additionally, with the growth of dollar stores, she said, “there is a swell for lower priced merchandise, and Rimmel, certainly, for a lower priced brand, has the most image.”
But to play with the big boys, Coty is going to have to spend some money. Upon hearing that the first year budget is closing in on $15 million, she commented, “That is a good start.”
The dilemma for retailers though would a space issue.
“Everybody [color brands] has increased their footage this year,” noted Carrie Cox, cosmetics buyer for May’s Drug Stores in Tulsa, Okla. “We added two feet of Revlon and three feet for Maybelline.” From any playroom May’s may have had, “Space is quickly disappearing,” she added.
The brand’s sales are distributed across product segments, noted Goldberg. While eye makeup is Rimmel’s strongest area, representing 35 percent, nail and lip each possess 22 percent, and face is 20 percent. All other items account for the remaining 1 percent.
A standout product this year is expected to be Extreme Definition Comb Ultimate Lash-Separating mascara, featuring a lash-separating formula. The applicator is a comb, not a brush. A tube is priced at $4.97. In 1834, founder Eugene Rimmel launched the beauty line with a mascara, noted Coty executives. There is also a new nail polish featuring Lycra, said to offer more flexibility and strength.
— Laura Klepacki