Beauty Store Business

JAN 2017

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10 January 2017 | beautystorebusiness.com News Top left: courtesy of Too Faced, bottom left: googleimages, bottom right charts: courtesy of Kari Gran THE ESTÉE LAUDER COMPANIES ANNOUNCES TOO FACED ACQUISITION FOR $1.45 BILLION The Estée Lauder Companies closed out the year with the acquisition of makeup brand Too Faced for roughly $1.45 billion, the largest purchase in the company's 70-year history. Too Faced, founded in 1998 by cosmetics visionaries Jerrod Blandino and Jeremy Johnson, has established itself as a lighthearted and irreverent makeup brand known for high-quality, feminine cosmetics popular with millennials. With more than 7.4 million Instagram followers and nearly 2 million Facebook followers, Too Faced is one of the fastest-growing makeup brands online and in specialty- multi. The strategic move strengthens The Estée Lauder Companies hold in the global prestige makeup category while increasing its consumer reach with millennials. Too Faced has experienced dramatic growth in recent years—more than 70 percent for 2016, and 60 percent compounded annually over the past three years. Once tallied, net sales for 2016 are expected to be in the $270 million range. The brand has developed a strong following and built a vibrant community among millennials who are passionate about social media, fashion and pop culture. "We are delighted to be joining forces with The Estée Lauder Companies as we continue to drive Too Faced's dynamic growth," said Blandino and Johnson. "We started our careers behind the counters of the Estée Lauder brand, so this is truly a 'homecoming' for us." Too Faced's iconic Better Than Sex Mascara launched in 2013 and quickly became the number one selling mascara with the brand's primary retail partners. The brand's Born This Way foundation launched in 2015 and has also become one of the bestselling foundations within its channels of distribution. Sellers also include General Atlantic, which acquired a majority stake in Too Faced in June 2015 for $500 million."Too Faced is a terrific growth company with an impressive track record of successful product innovation and an authentic connection with its customers. We've enjoyed a strong partnership with Jeremy, Jerrod, Eric and the rest of the Too Faced team and believe the company's bright future will only be enhanced as part of The Estée Lauder Companies' portfolio," said Andrew Crawford, managing director and global head of retail & consumer at General Atlantic. John Demsey, executive group president, The Estée Lauder Companies, will add Too Faced to the portfolio of brands that he oversees. Current Too Faced chief executive officer, Eric Hohl, will now report to Demsey. JD BEAUTY GROUP ACQUIRES TEEZE W/ EEZ Hairstyling tools manufacturer teeze w/ eez has been acquired by JD Beauty Group. Its signature teeze w/ eez teasing tool will be managed under the Wet Brush-Pro line. "We are thrilled to bring a strong professional teasing tool under the Wet Brush umbrella," said Jeffrey Davidson, chief operating officer of Wet Brush. "We are committed to marketing the best hair tools in the industry." The popular hair tool uses patented technology and an anti- static stainless steel pin to lift and style hair. Designed to aid users in backcombing the hair in one-fourth the usual time, its ergonnomic handle provides a comfortable grip to decrease hand and wrist fatigue. The pick end allows users to lift and separate segments of hair for easy and fluid teasing. Jerrod Blandino Jeremy Johnson SURVEY INDICATES MORE WOMEN WANT GREEN BEAUTY Over the next two years, 35 percent more women consumers are expected to purchase natural beauty products, according to a Green Beauty Barometer survey by Kari Gran, maker of all-natural skincare products. The regions of the United States that expect to see the largest increase in natural beauty product purchases are the Midwest and Northeast regions (both to the tune of 36 percent). Another interesting finding from the report was that 69 percent of women with children in the home are more likely (than the average woman with no children in the home) to value green beauty products. Not surprisingly, the most sought-after, all-natural beauty product category is skin care. In second place is hair care, followed by makeup, sunscreen, fragrance and nail care (in order of all-natural ingredient demand). More specifically, three in 10 women will not purchase beauty products containing sulfates. How are retailers meeting the consumer demand for all-natural beauty? It turns out that specialty cosmetic stores are doing it best, with only 8 percent of shoppers unsatisfied with their natural-beauty offer- ings. Whereas 14 percent of women are unsatisfied with mass market drug/grocery store natural-beauty offerings, followed by department stores at 13 percent and drug/grocery stores at 12 percent. Notably, the highest dissatisfaction with natural beauty offerings came from women aged 45 to 54 and women who live in the western U.S. Here are some other top insights gathered by the survey: Percentage of Women Who Read Labels, by Age Percentage of Women Who Read Labels, by Region (West, Midwest, Northeast & South) For more information, visit karigran.com/greenbeauty

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