Elizabeth Arden inks outsourcing contract with Williams Lea
NEW YORK Elizabeth Arden has signed a multiyear procurement outsourcing contract with Williams Lea, a provider of corporate information solutions.
Under the agreement, Williams Lea will manage sourcing activities for Elizabeth Arden’s packaging and print requirements. Williams Lea will deliver process expertise and strategic sourcing capabilities, which are expected to secure savings and operational efficiencies for Elizabeth Arden.
“Focusing on our core business through simplification of our business processes and outsourcing of noncore activities is part of our global efficiency re-engineering initiative started in late 2007, and Williams Lea is fully aligned with is effort,” stated Pierre Pirard, SVP global supply chain for Elizabeth Arden.
What’s Hot: A hot mocha espresso for hair
NEW YORK —Consumers are hooked on mocha espresso—for their hair.
Vogue International is making waves in hair care with its Organix line of hair care products that contain organic active ingredients and are sulfate- and paraben-free. Originally launched in 2007, with about 20 SKUs, the line now features more than 50 SKUs.
The collection, currently sold in such retailers as CVS, Target, Walgreens and Duane Reade, includes such fragrances as coconut milk, shea butter, cucumber yogurt, pomegranate green tea and mocha espresso. In fact, beauty buffs appear to be addicted to mocha espresso.
According to data provided by Information Resources Inc., while category sales for regular shampoo and conditioner for the 52 weeks ended Sept. 6 at food, drug and mass (excluding Walmart) slipped 3.5% and 5%, respectively, sales of Organix mocha espresso shampoo rose 152%, and sales of Organix mocha espresso conditioner rose 182% during that same period.
Cosmeceuticals help beautify segment’s bottom line
Serving as yet another indication that beauty shoppers are hungry for products that promise to turn back the hands of time is a recent report by IBISWorld, a provider of industry and market research, that found that the niche market of cosmeceuticals is a growth opportunity in a mature industry.
“The development of new product categories, like cosmeceuticals and dermacosmetics, has grown considerably in the last five years, driven by America’s obsession with antiaging and wellness,” stated Toon van Beeck, senior analyst with IBISWorld. “Companies are taking the opportunity to manufacture more of these high-market products, which typically generate profits greater than the industry average of 10%.”
According to IBISWorld, while the $60.37 billion cosmetics industry is on track to decline 1.2% in 2009, the niche market of cosmeceuticals is expected to increase 7.7%. Now accounting for $3.5 billion in revenue, cosmeceuticals have become a prospective growth area for businesses operating in the mature cosmetics industry, the firm noted.
By 2011, IBISWorld predicted the industry will surpass $4 billion, and will continue to grow at nearly double-digit rates for quite some time. Fueling the growth will be the perceived health advantages of cosmeceuticals, as well as the traditional cosmetic benefits.
Retailers, from department stores to big-box retailers, have taken notice, increasingly shelving such products as antiwrinkle creams, bleaching agents and medication lotions. For example, available at CVS’ high-end Beauty360 concept is the Bioelements line of professional skin care that includes Power Peptide, Lutein indoor protective day cream and Oxygen Cocktail. Prices range from about $27 to $62.
IBISWorld noted that cosmeceuticals command a premium price because consumers perceive the ingredients as being expensive and uniquely manufactured, with research and development accounting for the majority of costs. However, R&D represents about 2% of the industry’s cost structure, while the selling, general and administrative costs represent 21%.
“Manufacturers and retailers will continue to fuel demand for cosmeceuticals by developing and marketing a steady stream of new products,” van Beeck stated. “New products in the pipeline present solid opportunities to bolster bottom lines and build customer loyalty, reinventing the mature cosmetics industry.”