Did you catch Doja Cat’s striking new video for “Gorgeous”? It’s sparking a buzz as a makeup masterpiece—especially with Maybelline’s revival of the iconic “Maybe It’s Maybelline” campaign, featuring Miley Cyrus. Although the video wasn’t officially an advertisement, the looks artist Sam Visser crafted were pure artistry. With an exciting mix of ’80s Tresemmé vibes and even a sax solo, it was a delightful spectacle.
Speaking of beauty collaborations, who do you think will seal the deal with Bad Bunny, given his recent Superbowl half-time show announcement? Chanel has Timothée Chalamet, YSL is representing with Austin Butler, and Dior continues its partnership with Johnny Depp. It would be interesting to see if L’Oréal is already strategizing on this.
Just a quick note: I’ll be in Paris this weekend for several events, including a beauty and fashion breakfast at the Shangri-La Paris on Tuesday. Alongside my colleague Alice Gividen, we’ll explore luxury trends, so feel free to reach out to [email protected] to join. If you’re in Paris and want to reconnect, please get in touch!
In this edition, I’m focusing on the fragrance market, particularly on Estée Lauder Companies. I’ll also be examining Coty’s developments, especially the challenges faced by Covergirl.
Estée Lauder Companies’ Bold Fragrance Strategy
If you find yourself in New York’s SoHo neighborhood this Friday, be prepared for some crowd control. Estée Lauder Companies is transforming Prince Street into a fragrance haven, taking cues from luxury fashion’s playbook.
Recently, the company launched multiple flagship stores for its premier fragrance lines, like Frédéric Malle and Kilian Paris. This strategic gathering of brands is designed to create a unique “scent row” experience for shoppers. Notably, Le Labo won’t join this cluster, as its nearest outlet is situated across Broadway.
The Friday event promises to be a celebration, featuring remarks from CEO Stéphane de La Faverie and America’s president Tara Simon, affirming the company’s dedication to the fragrance sector. This culminates in the upcoming opening of a new fragrance atelier in Paris on October 14.
SoHo is becoming a hub for niche fragrance enthusiasts. Competing brands like Puig’s Penhaligon’s and La Beauté Louis Vuitton are positioned nearby, along with Olfactory NYC’s flagship location and others. Though the stores aren’t physically linked, the cluster strategy is a well-honed way to attract clientele, reminiscent of Marc Jacobs’ successful West Village takeover.
The Kilian Paris storefront exudes a welcoming bar atmosphere, while Jo Malone’s space is already gearing up for the holiday season. Kilian’s associates exemplify their brand knowledge, embodying the expertise needed for such a luxury retail environment.
According to Simon, this aromatic strip is genuinely reflective of its core brands and exemplifies the company’s approach to being present where its customers shop. Estée Lauder’s fragrance category ranks third within its overall portfolio, generating around $2.5 billion in revenue. While sales have remained stable, their luxury segment has shown promising growth—proving the viability of the fragrance market.
Ultimately, fragrance has become an essential component of beauty, akin to a bottled water revolution that experts have likened to recent booming trends. Successful brands in this space balance core fragrances with innovative new offerings to maintain interest and allure.
The Decline of Iconic American Beauty Brands
In recent months, Coty has been rumored to be offloading its mass color cosmetics brands, including the iconic Covergirl and Max Factor, as it shifts focus to fragrance. On Tuesday, the company confirmed this transition.
Despite Covergirl’s storied history, there’s no guarantee that buyers will show interest in these brands. Founded in 1961, Covergirl set the standard for accessible beauty, with many aspiring to look like its famous models. It’s hard to believe this once-dominant name now faces potential obsolescence.
Coty’s acquisition of 43 brands from Procter & Gamble in 2015 initially positioned it as a leader in color cosmetics and fragrances. However, this ambitious move did not pan out as expected, leading to divestitures in various categories, including hair care.
Now, Covergirl finds itself in a precarious position. One critical question looms: Is there a private equity firm willing to invest in revitalizing such storied brands? Past attempts, like Advent’s acquisition of Shiseido’s makeup lines, raise skepticism about the future of these giants.
Despite nostalgia and recent campaigns, such as one featuring Niki Taylor, Covergirl struggles to regain its former allure. In a saturated market dominated by niche brands, it seems that heritage brands might be too large to thrive.
The Downsizing of Makeup’s Reign
The ongoing challenges in mergers and acquisitions (M&A) contribute to the instability in the beauty sector. Many major players, including Coty, are caught in prolonged strategic reviews, rendering brands temporarily unavailable for acquisition.
As businesses refine their strategies amidst a slowdown, one has to wonder whether makeup can remain a staple category in aesthetics. Reports indicate that brands like Smashbox could be targeted for divestiture at Estée Lauder Companies, while Unilever remains uncertain about the future of its lines.
Despite setbacks, color cosmetics remain the cornerstone of the beauty industry. In an era oversaturated with launches and market complexity, the need for compelling and quality makeup offerings hasn’t diminished.
Thank you for joining me in this exploration of beauty’s evolving landscape.
