Deal to Acquire Tilbury Could Fetch £1Bn
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Copyright © 2020 HPCi Media. This publication is not to be distributed without prior permission 11 May 2020 Issue 17 cosmeticsbusiness.com NEWS BUSINESS 2 EXPERT ADVICE 7 DIGITAL 8 PEOPLE 11 L Brands and Sycamore How to launch a new social How Pinterest is boosting Revlon re-enters China with terminate Victoria’s Secret deal network aimed at women visibility for beauty brands K-pop star Jessica Jung DEAL TO ACQUIRE TILBURY COULD FETCH £1BN Bids have been made to buy Charlotte Tilbury by beauty’s biggest players harlotte Tilbury, the premium skin and make-up brand, has received offers from Cseveral of the beauty industry’s major players in a deal that could fetch up to £1bn. Unilever, Puig, L’Oréal, Estée Lauder Companies and Shiseido are said to have made bids for the company, according to Bloomberg. Meanwhile, several private equity firms are also rumoured to have shown interest. With discussions ongoing, it is reported the company could select a buyer this month with the help of advisers at Goldman Sachs Group and Jefferies Financial Group. British make-up artist Charlotte Tilbury MBE launched her eponymously-named brand in 2013 and today the brand has 3.4 million followers on Instagram and nearly 190,000 on Twitter. Based in London, the company now has a global presence; last year it expanded into the US with a debut store in Los Angeles. It also entered travel retail for the first time in 2019, through a retail partnership with World Duty Free at Heathrow’s Terminal 5. Charlotte Tilbury has faced issues with copycat brands imitating her hero products and last year the brand won a legal battle against supermarket chain Aldi, which created a £6.99 dupe of the Filmstar Bronze & Glow palette, which typically sells for £49. Direct-selling brand AVON has cast five female ambassadors of UK charity Changing Faces to appear in its new HerStory fragrance campaign. Due to the Covid-19 crisis, Charlotte Tilbury The organisation provides advice and psychosocial support to anyone who stores have been temporarily closed, although has a scar, mark or condition on their face or body. online orders continue to operate. The five ‘inspiring’ women, as Avon describes them, have been cast to The brand has been engaging with consumers share their experiences of their own scars, marks and features. on lockdown via Instagram with a new live chat Brenda (pictured) was diagnosed with alopecia universalis, causing her series called Charlotte Tilbury Happy Hour (see to lose her hair when she was 14-years-old. page 8), while it frequently updates its feed with The new HerStory edp is said to represent ‘inspiration for all women’. posts from the make-up artist herself. The fragrance’s top notes are infused with bourbon pepper, while its heart In a recent post, Tilbury recalls memories of features notes of iris and the base contains patchouli prisma. creating make-up looks for A-list celebrities at the Met Gala. @cb_beautynews Cosmetics Business cosmeticsbusiness Copyright © 2020 HPCi Media. This publication is not to be distributed without prior permission BUSINESS VICTORIA’S SECRET TAKEOVER TERMINATED Brands has abandoned its Victoria’s Secret company, our stakeholders and our associates to takeover deal with Sycamore Partners. The focus our efforts entirely on navigating this NEWS Lagreement would have seen the private environment to address those challenges and 11 May 2020 equity firm buy Victoria’s Secret’s lingerie and positioning our brands for success rather than beauty divisions, as well as L Brands’ Pink fashion engaging in costly and distracting litigation to Issue 17 business, in a deal worth US$525m. force a partnership with Sycamore.” cosmeticsbusiness.com However, hostility between the firms emerged L Brands said it is taking proactive measures to in a legal battle last month, when L Brands manage costs and expenditures of Victoria’s accused Sycamore of attempting to back out of Secret to ensure liquidity amid Covid-19, and to Editor the sale due to the coronavirus pandemic. improve its performance once its stores reopen. Lucy Tandon Copp The New York-based investment Features Editor company retaliated with a counter Sarah Parsons suit against L Brands claiming the Reporter Bath & Body Works owner had Becky Bargh breached its takeover terms by Sub Editor closing nearly all of Victoria’s Austyn King Secret’s and Pink’s 1,600 outlets due to Covid-19. Head of Print & As a result of the breakdown, Digital Production L Brands has implemented a major Ross Murdoch leadership reshuffle to ensure Art Editor Victoria’s Secret’s survival as a Sibylla Duffy standalone entity. Digital Production L Brands’ new Chairman of the Megan Daly Board, Sarah Nash, said: “Like all Managing Director retailers, the company faces an Colin Bailey-Wood extremely challenging business environment. Our Board believes that it is in the best interests of the NATRUE APPROVES UK CERTIFIER Online grocery market FOR NATURAL COSMETICS forecast to grow 33% in 2020 Cosmetics Business Natrue, the international non-profit certifier of HPCi Media Limited natural and organic cosmetics, has approved a The online grocery market in the UK is forecast to Natraj Building new accreditor in the UK and Ireland. grow 33% in 2020 to reach an estimated value of The Tanneries, OF&G, based in Shropshire, already has £16.8bn, bucking consecutive declines 55 Bermondsey St, DEFRA approval and currently certifies around experienced over the last four years. London SE1 3XG one third of the UK’s organic food sector. Both food and non-food purchases, including +44 20 7193 1279 With Natrue approval, OF&G will be able to personal care products, are being bought online [email protected] certify natural and organic cosmetics, meeting the by more consumers as social-distancing increased demand in the UK. continues to be enforced by government. Subscriptions Natrue’s Director General, Dr Mark Smith, Mintel data reveals that 36% of British +44 20 7193 1279 said: “It was clear that as the UK market’s consumers have increased the amount of online [email protected] demand for natural and organic cosmetics grows shopping they do, while 50% are trying to limit the Editorial yearly, having a UK-based certifier was a must for time they spend in-store. +44 20 7193 9502 Natrue, and with over 45 years of experience, Nick Carroll, Associate Director of Retail [email protected] OF&G is a highly reputable certification body of Research at Mintel, described the impact of organic products that echoes our core values.” Covid-19 on the grocery sector as “seismic” and OF&G developed its own cosmetic and body one that will last beyond the pandemic. care standards a number of years ago and decided “Shopper numbers in the online grocery market to apply to be a Natrue-approved certifier. have plateaued in recent years as retailers ©HPCi Media Limited struggled to get new customers to try these Articles published in this publication may only be reproduced with permission. The services,” he said. “The outbreak is bringing a publisher accepts no responsibility for any new audience to online grocery, and this should statements made in signed contributions or in boost the market long term with strong growth those reproduced from any other source. ISSN 2057-1984 forecast through to 2024.” Carroll added: “While there is currently a significant disruption to the online grocery market, with some retailers not accepting new customers, this will ease in the short-term as more capacity is brought online.” 2 cosmetics business 11 May 2020 Copyright © 2020 HPCi Media. This publication is not to be distributed without prior permission BUSINESS GLOBAL RETAIL MARKET TO LOSE BILLIONS NEWS IN BRIEF lobal retail spend is forecast to fall Retail Consortium (BRC) issued new guidance US$549.7bn in 2020 as a result of the about how to do so safely, once government and G coronavirus pandemic. health experts give the go-ahead. Helen Dickinson, According to figures from GlobalData, the Chief Executive of the BRC, said: “This guidance is impact of the virus will hit North American and the product of retail’s incredible efforts to adapt to European retail markets the most. exceptional circumstances. The industry knows how Sofie Willmott, Lead Analyst at GlobalData, said: to serve the public while protecting staff and “North America and Europe are set to experience customers alike.” the steepest drops in retail spend forecast to Elsewhere, in the US and parts of Canada, ANISA INTERNATIONAL the brushes manufacturer, is decrease 4.8% and 4.4% respectively. And while certain non-food retail businesses are also preparing supplying 5,000 medical APAC is expected to only see a relatively minor to reopen stores, such as Apple. grade masks and other decline of 1.3%, which looks good supplies to local hospitals in relative to other regions, pre- Atlanta, Georgia in the US, Covid-19 we had forecast the where its headquarters are region’s growth to be 7.2%.” based. The donation will be Prior to the outbreak of Covid- used to support healthcare 19, global retail spend was predicted workers treating those with Covid-19. The company’s to rise 5% in 2020. headquarters continue to The pandemic has forced all remain closed with more retailers that are not deemed than 50 employees working “essential businesses” to temporarily from home. Founder and shut their doors. CEO, Anisa Telwar Kaicker, Many have shifted their efforts to said: “Now more than ever the digital space, with companies we are working together with such as bareMinerals, Deciem and the same goals; stay safe, stay healthy and stay Space NK rolling out virtual steady.” She added: “Giving services and consultations.