BEAUTY CARE

BrandZ ranks top personal care brands by value

BY David Salazar

LONDON — WPP and Kantar Millward Brown’s latest BrandZ Top 100 Most Valuable Global Brands ranking is emphasizing customer connection. The brand that took the top spot in the personal care category was L’Oréal Paris which BrandZ said grew its brand value 2% in the last year to $23.9 billion through efforts to focus on customers, the companies said.

The total value of the BrandZ Personal Care Top 15 has grown by 1% in the past year, the company said. The top five brands were L’Oreal; Colgate, with a total brand value of $17.7 billion; Gillette, with $16.3 billion in value; Lancôme, with $9.4 billion in value; and Nivea with $6.7 billion in value. 

BrandZ said that the past year has seen brands working to extend their appeal by expanding into new subcategories and looking to capture new audiences. It pointed to Lancôme's introduction of Juicy Shaker lip gloss aimed at younger shoppers — which could have played a role in the brand’s 10% brand value increase. L’Oréal and Lancôme both worked to leverage technology to improve product accessibility, developing e-commerce capabilities directly from mobile ads, blogs and YouTube tutorials.

And though eight of the top 15 brands saw their value increase in the past year, the results note that such niche startups as Too Faced and retailers’ owned brands could be giving established brands a run for their money in coming years as consumers shop less from loyalty and more based on which brands best meet their needs. The results highlighted L’Oréal’s efforts to create personalized experiences — exemplified in the launch of its True Match range of products and its establishing a social media influencer Beauty Squad that worked to forge deeper consumer connections.

“Growing as a brand in today’s crowded and diverse personal care marketplace means understanding your position in the sector, and who your consumers are,” BrandZ global head Doreen Wang said. “Luxury brands need to find innovative ways to emphasize their difference, which consumers value highly, to build connections. Mass brands should create affinity by focusing innovation around their ability to meet needs and make consumers’ lives better. All brands can foster loyalty by using data and technology to communicate the right message at exactly the right time, for example contacting consumers with incentives to buy again when they’re about to run out of a product.”

The top 15 companies were:

  1. L’Oréal Paris
  2. Colgate
  3. Gillette
  4. Lancôme
  5. Nivea
  6. Garnier
  7. Clinique
  8. Dove
  9. Estée Lauder
  10. Pantene Pro-V
  11. Olay
  12. Crest
  13. Shiseido
  14. Oral-B
  15. Head & Shoulders

To read the full rankings, click here.

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BEAUTY CARE

Revlon adds CFO duties to COO role as Figuereo retires

BY David Salazar

NEW YORK — Revlon is losing one of its executives who played a key role in its acquisition of Elizabeth Arden. The company on Tuesday announced the retirement of CFO Juan Figuereo, who joined the company in April 2016.

Revlon said that with the Elizabeth Arden acquisition complete and the transition under way, COO Chris Peterson would assume direct responsibility for the CFO role, effective immediately, in addition to his role overseeing finance, supply chain and IT functions.

Peterson joined Revlon in April from Ralph Lauren, where he was president global brands since 2015, having joined the company as SVP and CFO in 2012.  In that role, he oversaw the company’s global brand presidents, investor relations, IT and real estate. Before Ralph Lauren, he spent 201 years in carious roles at Procter & Gamble.

"I’d like to thank Juan for his contributions and leadership throughout the successful acquisition of Elizabeth Arden and the early stages of its integration,” Peterson said. “Our integration is on track and, as we have reported, exceeding our initial synergy expectations. We are excited to have Chris take on the CFO role in order to continue this momentum as we execute on our strategy to drive long-term growth.”

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Report shows Amazon is fertile ground for health, personal care and consumables sales

BY Deena M. Amato-McCoy

SANDY, Utah — Despite a decline in the overall health and personal care, or HPC, baby and grocery categories industry-wide, Amazon is grabbing double-digit wallet share.

This was according to the “Health & Personal Care” report from One Click Retail. The company uses a combination of website indexing, machine learning and proprietary software to estimate weekly online sales of individual SKUs on Amazon. The total HPC and grocery markets experienced declines of 1% and 10%, respectively in the first quarter of 2017 due to more consumers shifting away from brick-and-mortar and toward e-commerce for consumables. That said, Amazon’s sales of consumables in the HPC, baby and grocery groups saw double-digit growth for the period.

The report revealed that Amazon is the best growth opportunity for HPC brands, given that total HPC sales in the United States increased only about 1% in Q1 2017. Amazon already earned $1.3 billion, or 27.5% of the total annual sales, in 2017. 

The real “MVP” of Amazon's HPC product group continues to be Prime Pantry. With more shoppers buying into exclusive Amazon Pantry access, the growth rate for HPC (and most other product categories) is much higher in Pantry than in the general marketplace — and top categories are multiplying by hundreds of percentage points. The leading Amazon HPC category is hair care in the U.S. (85% growth), and household consumables (440% growth) in the U.K., the report revealed.

For the quarter, total U.S. baby products revenues dropped 10%. This slide mainly took place in offline sales, allowing e-commerce market share to rise from 20% to 22%.

The baby products category enjoyed the highest e-commerce CPG penetration, with Amazon having 43% of the total. First quarter Amazon U.S. sales of diapers increased 30%, baby food 15%, and baby formula 80%. In both the U.S. and the U.K., Amazon saw triple-digit growth of top brands like Pampers (700% increase), data revealed.

According to the report, there was a 30% growth rate in Amazon’s grocery categories averaged across the U.S., U.K. and Germany. This was driven by the growing adoption of Amazon Prime in first quarter 2017.

Traditionally, grocery has been less susceptible to the shift toward e-commerce (in 2016, only 5% of U.S. grocery sales occurred online). According to Amazon sales data calculations for first quarter 2017 however, Amazon's grocery sales outpaced that of the total market 15-fold.

"The popularity of perishables is growing rapidly, not only because consumers are becoming more comfortable with buying their groceries online, but also because Amazon is improving its delivery times and offering more fulfillment options," explains Spencer Millerberg, One Click Retail CEO.

He estimated that there are now more than 65 million Amazon Prime subscribers, “and they are more likely to buy their groceries online than non-subscribers. Last year's sharp rise in Prime membership has continued into Q1 2017,” Millerberg said.

“With more shoppers buying exclusive access to Amazon Pantry, the rate of growth for most consumables is much higher in Pantry than in the general marketplace, with top categories multiplying revenue by as much as five times,” he added. “As Amazon continues to corner the market, CPGs in the U.S., U.K. and Germany would be smart to engage with Amazon Prime members as their target audience."

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