Study: Nearly half of beauty shoppers turned to mass for beauty in 2014
DENVER — Mass retailers still reign supreme when it comes to stocking up on beauty products. That’s according to the findings of an ongoing shopper behavior study conducted by The Integer Group and M/A/R/C Research.
"The popularity of this channel is most likely due to the variety of product assortment as well as price points provided by mass beauty," stated Craig Elston, EVP of Insight & Strategy at The Integer Group. "Beauty is a category that is personal and fun and comes with an expectation from shoppers that there is an experience that goes along with it."
According to the findings, 42.5% of total beauty shoppers turned to mass retailers for their beauty needs in 2014 — a slight decrease from 43.7% the previous year.
However, despite upgrades to the beauty aisle at both Target and Walmart, shoppers haven't quite latched on to the idea of "mass-tige," according to the report. Beauty mavens continue to seek out upscale beauty experiences elsewhere. Department stores, such as Nordstrom and Macy's, saw the biggest increase in shoppers looking for their beauty needs. Shoppers said it's because department stores offer high-quality products, all of the products they are looking for, and they get to try before they buy. Those reasons are also what draw shoppers to specialty beauty. The study also shows more people buying beauty purchases through Amazon.com, with the percentage doubling in 2014.
Overall, few shoppers conduct online research to find the best beauty products for them. But for those who do conduct online beauty research, they are turning to search engines. Women conduct the most online research in the category, and, aside from search engines, they rely on retailer web sites, brand web sites, and beauty blogs for information. Males rely on retailer and brand web sites, equally, and then turn to magazine web sites. Social media remains the least used resource, according to the study. However, women drive the use of Pinterest as a beauty resource.
Reports: Coty snaps up beauty lines from P&G for $12B
CINNCINATI — Published reports are noting that beauty brand Coty has reportedly bolstered its portfolio by winning an auction process for three parts of Procter & Gamble’s beauty business for a value that could reach $12 billion.
The deal reportedly includes fragrances (Hugo Boss, Gucci, Dolce & Gabbana), color cosmetics (Cover Girl and Max Factor), and hair care (Wella and Clairol).
Citing sources, the New York Post reported that Coty has spoken to bankers in recent days about acquiring P&G’s divisions through a Reverse Morris Trust. That move would save P&G from paying capital gains taxes on the deal, according to the report, and P&G would sell just under a majority stake to Coty and let Coty run the combined business.
Both P&G and Coty have declined to comment.
For P&G, the move is part of a larger effort to narrow its focus on faster-growing brands. Last year, P&G shed its Duracell battery business in a deal valued at $4.7 billion, and also divested its pet business.
For Coty, which has undergone organizational changes in recent years, such a deal would mark its foray into the hair care business with the Clairol and Wella brands.
According to a Reuters report, Wells Fargo analyst Chris Ferrara said such a deal would be “transformational” for Coty and estimated it would increase its revenue to nearly $11 billion from $4.4 billion.
In a research note, Morgan Stanley analyst Dara Mohsenian acknowledged, “We have no knowledge of a potential deal other than that which was stated published in recent press articles.”
However, based on a preliminary analysis, Mohsenian estimates “the potential acquisitions could be ~60% EPS accretive to Coty, and even ~30% assuming no synergies. In terms of the details, based on our $1.2B EBITDA estimate for the combined businesses, the implied purchase price of 10 times EV/EBITDA was below our prior ~13 times expectation, which is good news for Coty, and we also did not expect Coty to acquire Wella, given their lack of track record in hair care.”
Added Mohsenian, “Bottom line, for Coty, while the market has been pricing in some probability of a deal, the accretion would likely be greater than expected and should be perceived as a significant positive. For P&G, the potential purchase price is lower than we expected given a heated M&A environment, but tax efficiencies under an RMT structure would make the tax effective purchase price near our 13 times expectation.”
Dove Men+Care celebrates Father’s Day with ‘First Fatherhood Moments’ campaign
ENGLEWOOD CLIFFS, N.J. — This Father’s Day, Unilever’s Dove Men+Care is launching the “First Fatherhood Moments” campaign to celebrate the emotion, strength and happiness dads openly express upon learning they are going to become a father.
Reflective of the increase in dad’s sharing more content online today, the heart of the campaign is captured in a new film, which shares the reaction of fathers-to-be in the first moments they find out they are going to be a dad. Comprised of personal online clips from the lives of 13 real dads, the film portrays their authentic and unfiltered reactions, and offers genuine insight into the moment when a man learns his life has changed forever.
“Fatherhood has evolved from previous generations, with men drawing strength and fulfillment from their caring roles. In fact, 88% of men feel that taking care of their family makes them feel strong,” stated Jennifer Bremner, director of marketing for Unilever. “Our brand has seen this displayed through the personal experiences dads are sharing online. In celebration of Father’s Day, we collated moving moments from real men to show the world that a dads’ care begins from the very first instant he finds out he’s going to be a dad.”