Prestige beauty industry hit hardest last year
PORT WASHINGTON, N.Y. The prestige beauty industry struggled in 2008 while the make up and skin care categories in the mass channel experienced growth, according to The NPD Group, a market research company.
The NPD Group presented the findings at its annual “Hot off the Press” event at the Rainbow Room in New York on Wednesday.
According to NPD, the total U.S. prestige beauty industry experienced a decline of 3.3% in dollar sales in 2008 compared with 2007. Of all the categories tracked by the research company, fragrance experienced the biggest decline.
“Conversely, fragrance may hold the greatest opportunity for growth,” noted Karen Grant, senior global industry analyst and VP beauty. “The most pressing concerns for the fragrance category are not only the loss of users, but decreasing frequency of usage. It is important that the industry find new ways to engage consumers, especially as they become more independent about their product selection.”
Fragrance sales in the mass channel (excluding Wal-Mart) also experienced a decline; however, make up and skin care sales in the mass channel experienced growth.
Globally, the prestige beauty industry outpaced U.S. performance in 2008. China experienced ?impressive? sales growth in the fragrance, make up and skin care segments, as did Mexico. Meanwhile, Italy and France saw an increase in make up sales, as skin care sales declined in both countries.
Fragrance sales were flat in France and Italy.
Brooke Shields named Coppertone spokeswoman
KENILWORTH, N.J. Schering-Plough, the maker of Coppertone, has named actress and model Brooke Shields a spokeswoman for the brand’s new Coppertone NutraShield with Dual Defense.
“I am excited to work with the Coppertone brand to help raise awareness on the need for year-round sun protection and the benefits of antioxidants in promoting natural skin repair,” stated Shields.
The new NutraShield product line, which includes a SPF 70+ Faces lotion as well as SPF 70+ and SPF 30 for the body, is a broad spectrum sunscreen lotion enriched with antioxidants that promote natural skin repair and combat premature skin aging from the sun.
Unilever acquiring TIGI professional hair product business
ENGLEWOOD CLIFFS, N.J. Unilever, whose hair care brands include Dove, Suave and Sunsilk, is stepping into the premium hair care business by agreeing to buy the TIGI professional hair product business and its supporting education academies for $411.5 million in cash.
“We already have a strong position in daily hair care and adding the salon brands will further our position in the hair category. We can bring our world-class R&D expertise to it and offer greater opportunity for geographical expansion. TIGI’s strength in styling, and its fashion and beauty expertise will also help us raise the bar on innovation for our existing hair brands,” stated Vindi Banga, Unilever president of foods, home and personal care.
The deal, which is subject to regulatory approval, is expected to be completed by the end of March.
Upon completion of the transaction, TIGI will operate as a stand-alone global business unit within Unilever, reporting to Michael Polk, president of Unilever Americas.
TIGI’s major brands include Bed Head, Catwalk and S-Factor. TIGI, which launched in 1986, has operations in the United States, United Kingdom, Italy, Germany and Australia. It employs about 550 people and, in 2008, generated worldwide sales of approximately $250 million, with nearly half coming from the United States.
The transaction does not include the Toni & Guy salon business.
TIGI has been owned and run by Bruno, Guy and Anthony Mascolo, creators of Toni & Guy ‹ with their brother Toni — who are CEO, chairman and worldwide creative director of TIGI, respectively. As part of an exclusive consulting agreement with Anthony and Bruno, Anthony will continue to work in the business in his creative role and Bruno will continue to be an advisor.