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PARIS —The Top 100 ranks the world’s largest cosmetics companies by beauty sales. A Who’s Who of the cosmetics industry, these fi rms weigh in at $134.244 billion. The U.S. has the most companies on the list, with 34; France is second, with 17. Italy has 11; Germany and Japan, nine each; the U.K., six; South Korea and Switzerland, three each; Russia, Spain and Brazil, two each, and Sweden and Belgium, one each. The U.S. leads in volume terms with $55.396 billion, about 41% of the worldwide total. Sales fi gures were obtained from the companies or are estimates calculated with the help of industry sources. Sales are for the 2005 calendar year or the closest fi scal year at the magazine’s printing date. Beauty volume is made up of fragrance, makeup, skin care, sun and hair care, deodorant, plus cellulite and shaving items. It does not include bar soap, razors, toothpaste, foods and diet foods, medicine, vitamins or detergents. To be included in this ranking, a company must sell its products in at least two of four major markets: Europe, North America, South America and Asia.
1. L’OREAL GROUP
Clichy, France
$18.099 billion
?14.533 billion
/ 6.5% v. ’04
Consumer/L’Oréal Paris, Garnier, Maybelline New York, La Scad, SoftSheen, Carson, Mininurse. Professional/L’Oréal Professionnel, Kérastase, Inné, Redken, Matrix, Mizani. Luxury/Lancôme, Biotherm, Helena Rubinstein, Kiehl’s, Shu Uemura, Parfums Giorgio Armani, Parfums Cacharel, Ralph Lauren Fragrances, Paloma Picasso, Parfums Guy Laroche, Diesel, Yue-Sai. Active Cosmetics/Vichy, La Roche-Posay, Skinceuticals. The Body Shop. Galderma, Le Club des Créateurs de Beauté, Laboratoires Innéov (50% each). Sanofi -Aventis (10.4%).
This April, Jean-Paul Agon took over as ceo of L’Oréal from Lindsay Owen-Jones, who became its non-executive chairman after 18 years at the company’s helm. Agon has spent his career at L’Oréal, in all of its divisions and on several continents. First-half 2006 company sales rose 8.7% to ?7.8 billion, thanks to a 3.9% uptick in Western Europe, plus strong showings in Eastern Europe and Latin America. For 2005, L’Oréal’s net income hit ?1.973 billion, up 37% on year. In March, L’Oréal made a cash offer to buy British beauty chain The Body Shop for 300 pence per share, valuing the company at £652 million. The European Commission gave the green light to the takeover in June. Adding The Body Shop to L’Oréal’s portfolio offers the company a new perspective on retail, an entry into the masstige market and an opportunity to be associated with the burgeoning fair-trade movement. It also helps bolster L’Oréal’s coffers; for the fi scal year ended Feb. 25, The Body Shop generated £485.8 million, up 16% on year. In January, L’Oréal inked a long-term fragrance licensing deal with Italian denim fi rm Diesel. The fi rst Diesel scent is due out by end-2007. Notable launches over the past year include Lancôme’s women’s fragrance Hypnôse, in fall 2005, which the company says was a bestseller in Europe by year-end. The fi rst scent by Viktor & Rolf, Flowerbomb, launched in spring 2005, was also a hit in Europe and the U.S. L’Oréal’s Professional division debuted its revamped hairdressing academy in central Paris in May. L’Oréal opened its fi rst Chinese R&D center, dedicated to products adapted to local skin and hair, last September. L’Oréal’s top-four markets are France, which generates 15% of the company’s sales; the rest of Europe, with 37%; North America, with 28%, and Asia, with 10%.
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2. PROCTER & GAMBLE
Cincinnati, Ohio
$18 billion (Est.)
/ 9.2% v. Fiscal ’04-’05
Pantene, Head & Shoulders, Clairol, Herbal Essences, Nice ‘n Easy, Natural Instincts, Wella, Koleston, Shockwaves, Wellafl ex, Vidal Sassoon, Infusium 23, Aussie, Rejoice (hair care). Cover Girl, Max Factor (makeup). Hugo Boss, Old Spice, Lacoste, Jean Patou, Valentino, Gucci, Rochas, Escada, Puma, Anna Sui, Ghost, Dunhill, Laura Biagotti, Dolce & Gabbana (fragrance). Olay, SK-II, Noxzema, Gillette (skin care). Secret (deodorant).
In early August, Procter & Gamble announced total fourth-quarter earnings up 36% to $1.9 billion on a 25% sales increase to $17.84 billion. Beauty sales for the year, excluding business from razors, feminine care and bar soaps, rose an estimated 9.2% to $18 billion. Total beauty sales for the year increased 7% to $21.13 billion, driven by the integration of the Gillette personal-care business, acquired last year, and the doubledigit sales growth of Olay’s Regenerist and Total Effects brands. In February, P&G sold Gillette deodorant brands Right Guard, Soft & Dri and Dry Idea to the Dial Corp. subsidiary of Henkel for $420 million. P&G drove category growth this year with the launch of Clairol Nice ‘n Easy Root Touch Up, touted as the first at-home product for root touch-ups between hair colorings. Pantene, a $2.5 billion hair-care brand, solidifi ed its global leadership by introducing Pantene Restoratives, a line of specialty and treatment products. P&G Prestige entered the upscale men’s skin-care market with Boss Skin, fi rst in Europe, then the U.S. The fi rm built a framework for its fragrance future by signing long-term licensing deals with Gucci Group and Dolce & Gabbana. The latter pact reportedly came after an intense high-stakes competition with both L’Oréal and the Estée Lauder Cos. for the rights to produce and distribute D&G fragrances. Christie Brinkley became the face of Cover Girl’s Advanced Radiance line, and the brand added Keri Russell and Joy Bryant to its spokesmodel lineup. Clairol Natural Instincts launched Shine Happy, a colorless treatment designed to revive hair shine.
3. UNILEVER
London, Rotterdam
$12.066 (Est.)
?9.685 billion (Est.)
/ 29% v ’04
Unilever Home and Personal Care: Axe/Lynx, Impulse, Rexona/ Sure, Degree, Dove, Lux, Ponds, Vaseline, Suave, Sunsilk, Timotei.
Unilever’s total net profi t for fi rst-half 2006 leapt 19% to ?2.103 billion on a 6% sales increase to ?19.793 billion. Its personal-care business—including oral care—came in at ?5.466 billion, up 10% on the fi rsthalf 2005. Last year, Unilever posted total sales of ?39.672 billion. The company sold its Finesse business and Aqua Net hair-care brands to Lornamead Brands Inc. in May for an estimated $130 million. The move was part of a strategy to reshape Unilever’s hair-care portfolio, with a focus on introducing products through its remaining local and global brands, the company said. Bolstered by its Campaign for Real Beauty, similar gains are expected in 2006. The brand recruited TV show “Desperate Housewives” actress Felicity Huffman to star in TV and Internet advertising for the Dove Night showering product. Dove also introduced the Summer Glow tinted moisturizing line and the Cool Moisture line in the U.S. Click, the latest line from Axe/Lynx, was rolled out internationally. Axe in the Americas now includes body washes. Axe is the top-selling deodorant brand in the U.S., according to the company.
4. THE ESTEE LAUDER COS.
New York
$6.3 billion v. Fiscal ’03-’04
/ 9% v. ’04
American Beauty, Aramis, Aveda, Bobbi Brown, Bumble & bumble, Clinique, Darphin, Donald Trump The Fragrance, Donna Karan, Estée Lauder, Flirt, Good Skin, Grassroots, Jo Malone, Kate Spade, La Mer, MAC, Michael Kors, Origins, Prescriptives, Rodan + Fields, Tom Ford, Tommy Hilfiger.
For the third quarter ended March 31, the company clocked net sales of $1.58 billion, up 3% on the same period last year. New skin care products, such as Resilience Lift Extreme Ultra Firming Creme from Estée Lauder and Turnaround Concentrate Visible Skin Renewer from Clinique, helped offset disappointing business from some existing lines. Over the nine-month period, sales rose 2% to $4.86 billion. The Estée Lauder Cos. opened its Innovation Institute in Shanghai for research and development. In April, it sold niche makeup-artist brand Stila to Sun Capital Partners Inc., a Boca Raton, Florida-based investment group, for an undisclosed sum. The Estée Lauder Cos. expanded globally, particularly in Asia. It introduced the Estée Lauder brand in Vietnam, and MAC, La Mer and Bobbi Brown in China. Among recent executive changes, the fi rm named Lynne Greene president of Clinique, Andrea Robinson president of Tom Ford Beauty and Prescriptives, and Javier Perez vice president of strategic planning and development. Maureen Case became president of Jo Malone and La Mer, while remaining president of Bobbi Brown. Important launches, according to the company, this year include its fi rst two product collections in collaboration with Tom Ford: Estée Lauder Youth Dew Amber Nude color, fragrance and accessories, and Azurée makeup and scent.
5. SHISEIDO CO.
Tokyo
$6.053 billion
¥665.2 billion
/ 4.7% v. ’04
Shiseido, Clé de Peau Beauté, Carita, Shiseido Fitit, Shiseido Professional, Joico. Beauté Prestige International: Parfums Issey Miyake, Parfums Jean Paul Gaultier, Parfums Narciso Rodriguez. Serge Lutens, Auprés, D’ici là, Ipsa, Ayura, Ettusais, Decléor, Nars, Zirh, Soka Mocka, Kesyo- Wakusei, Yuxia, Za, FT Shiseido, Sea Breeze, Zotos, Pure & Mild, Tsubaki.
Japan’s largest cosmetics company pulled itself back into the black this past fi scal year, ended March 31. Shiseido posted net income of ¥14.4 billion, compared with net losses of ¥8.9 billion for the prior-year period. Most of the drive came from overseas markets, where sales grew 12.3% to ¥197.2 billion, compared with just a 2.1% domestic gain. Shiseido had been struggling against rising production costs in Japan, but is gaining ground there following a restructuring plan. China continues to be Shiseido’s biggest international growth driver, generating 4.7% of sales, up 36% year-on-year. Last November, Shiseido expanded its threeyear- old Beijing-based research center to some 10-times its original size. The facility has contributed to the development of Auprés Eternal Total Recharge Cream, launched in China, and Sinoadore, a brand based on traditional Chinese medicine. Shiseido’s cosmetics sales rose 5.6% on year, broken down as a 2.2% uptick in Shiseido’s domestic market and a 13.3% leap in overseas sales. Toiletries fared less well, gaining just 1.1% worldwide on year. Europe follows China in growth terms, with a 7.3% gain to represent 12.7% of total sales. The Americas is next, with a 6.8% increase to make up 6.9% of Shiseido’s overall business. For this year, the company predicts top-line growth of 2% and a 59% leap in net income to ¥23 billion.
6. AVON PRODUCTS
New York
$5.8 billion
/ 12% v. ’04
Avon Color, Anew, Skin-So- Soft, Avon Solutions, Advanced Techniques Hair Care, Avon Naturals, Mark, Avon Wellness.
Six months into its three-year turnaround program—which includes thinning top management, realigning global manufacturing, pursuing supply-chain effi ciencies in procurement and distribution, and streamlining administration functions—Avon continues to feel the pinch of its cost-cutting efforts and few of its rewards. Its second-quarter net earnings fell 54% to $150.9 million, pulled down by $49.2 million in restructuring costs. Net revenues increased 5% to $2.08 billion. For the six months, net income was $207.1 million, decreasing 59%, while revenues rose 6% to $4.08 billion. Avon chairman and ceo Andrea Jung said Avon has reduced management to eight layers from 15, eliminating about 25% of the executives within those ranks, and 4,300 people, or 10%, of its workforce. The company expects the cuts alone to yield $200 million, putting the beauty fi rm closer to its target of $300 million in cost savings. Avon has accelerated its marketing support across all regions, upping advertising spending 78% in the quarter to more than $50 million. The company plans similar increases for the second half, according to Jung. In the second quarter, Avon’s active representative base grew 4%. Beauty sales rose 4% year-on-year in U.S. dollars and 3% in local currency. Jung hinted the company plans a major color cosmetics initiative in 2007.
7. BEIERSDORF
Hamburg, Germany
$4.568 billion
?3.668 billion
/ 6% v. ’04
Nivea, 8×4, Atrix, Labello, Hidrofugal, La Prairie, SBT Skin Biology Therapy, Juvena, Marlies Möller, Florena, Eucerin.
Beiersdorf’s branded consumer division, including skin-care brands and bandages, rose 6.8% to ?1.14 billion in the second-quarter 2006. In 2005, earnings for the division grew 7.4 % to ?465 million. The group’s cash cow Nivea, with sales of ?2.9 billion, boosted its number-one market positions to 203, up from 188 in 2004, and increased sales 6.4%. There are 30 Nivea shop-in-shops, each with sales personnel, and Blue Walls self-service areas. At end-April, the first Nivea House, including a wellness and spa program of more than 800 sq. m., was unveiled in Hamburg. Eucerin and La Prairie generated Beiersdorf’s strongest sales growth. Eucerin was relaunched in new packaging in late 2005. The line’s sales advanced 11% to ?228 million in the year. The La Prairie Group (formerly Juvena/La Prairie Group), which also includes Juvena, Marlies Möller and SBT, increased sales 11.4% to ?207 million. La Prairie moved into China. Its Silver Rain sub-brand opened its fi rst spa in the Grand Cayman Ritz Carlton. Beiersdorf is realigning its supply chain, shuttering some production sites and warehouses for an estimated saving of ?100 million per year by 2009. Its consumer division also plans to cut its product portfolio 20% to 30% and reduce development and marketing costs by ?100 million after 2009. Acquisitions may be in the cards.
8. JOHNSON & JOHNSON
New Brunswick, New Jersey
$4.4 billion (Est.)
/ 10% v. ’04
Neutrogena, Aveeno, RoC, Clean & Clear, pH5.5, Retin-A, Renova, Ambi, Biapharm SAS.
This March, J&J’s French subsidiary, Johnson & Johnson Consumer France, acquired Dijon, France-based beauty fi rm Groupe Vendôme, which manufactures skin-care and toiletries brands, including Le Petit Marseillais and Laboratories Vendôme, for an undisclosed sum. J&J said strong sales from its Aveeno and Johnson’s skin-care lines contributed to a second-quarter 2006 sales spike of 5.3% to $2.4 billion for its overall consumer-products division (which also includes non-beauty lines). In June, the fi rm’s 40-unit Clean & Clear brand targeted the quickly growing Hispanic market in the U.S. with a competition to appear on the bilingual TV network mun2. Other marketing initiatives included the fi rm’s eighth fi lm under the Johnson & Johnson Spotlight Presentation series. Called “The Ron Clark Story,” it features Clean & Clear, Aveeno, Neutrogena and Johnson’s, among other J&J brands, and aired on the U.S.’s TNT channel this August.
9. ALBERTO-CULVER
Melrose Park, Illinois
$3.38 billion
/ 8.4% v. Fiscal ’03-’04
Alberto-Culver North America: Alberto VO5, Tresemme, Consort (hair care). St. Ives Swiss Formula (hair and skin care). TCB, Soft & Beautiful, Just for Me, Comb-Thru, Motions (ethnic hair care). Alberto- Culver International/Cederroth International: Alberto VO5, Family Fresh (hair care). St. Ives Swiss Formula (hair and skin care).
In July, Alberto-Culver completed its acquisition of Salon Success, a U.K. distributor of professional beauty products with annual sales of about $30 million. Alberto-Culver’s third-quarter earnings, including noncore items, for the period ended June 30 dropped 43% to $30.5 million on sales that fell 6% to $952.7 million. Later this year, Alberto-Culver is expected to spin off its distribution and retail divisions, selling a portion of its beauty supplies business to Clayton, Dubilier & Rice. The move would be part of Alberto- Culver’s ambition to return to its consumer-products roots. Alberto-Culver continued to fl ourish in the mass-market hair- and skin-care categories, due to its international success in expanding its leading Alberto VO5, Tresemme and St. Ives brands. Alberto VO5 launched a successful styling line, while Tresemme aimed to meet the needs of consumers with a color-enhancement line, several leave-in treatments and styling items. Alberto-Culver restaged its salon brand Nexxus for the mass market last year. Nexxus is expected to reach $100 million at retail by year-end.
10. LIMITED BRANDS
Columbus, Ohio
$3.3 billion (Est.)
/ 10% v. ’04
Limited Brands: Victoria’s Secret Beauty, Bath & Body Works, White Barn Candle Co.
In May, Christine Beauchamp was promoted to ceo and president of Victoria’s Secret Beauty, following the departure of Jill Granoff. The division’s beauty operations are now part of the Victoria’s Secret (VS) Group, headed by ceo and president Sharon Jester Turney. Limited Brands chairman and coo Leslie Wexner plans to double the company’s beauty and cosmetics business in the next fi ve years in the lower 48 U.S. states. He said he hopes to develop larger VS stores, with store-in-store retail beauty concepts selling more third-party brands. Bath & Body Works also had a strong year in 2005, thanks to successful products launches, including C.O. Bigelow, Breathe, American Girl and the Dr. Pat Wexler dermatological skin-care line, as well as an e-commerce site. Limited Brands operated 3,590 stores by the end of 2005, down from 3,779 in 2004. Last year, Victoria’s Secret Beauty rang up strong sales from newly launched products, including the So In Love fragrance, Victoria’s Secret Spa and extensions within the So Sexy hair-care line.
11. KAO CORP.
Tokyo
$3.135 billion
¥344.5 billion
/ 6% v. Fiscal ’04-’05
Kao Co.: Bioré, Asience, Essential, Merit, Sifone, Feather, Liese, Blaune, Sofi na, Aube, Est. Kao Brands: Jergens, Cure l, Ban (skin care). John Frieda, Guhl (hair care). KPSS GmbH: Goldwell, KMS (hair care). Molton Brown (fragrance, skin care).
In February, Kao Corp. bought fellow Japanese fi rm Kanebo Cosmetics for ¥412 billion. Following the purchase, which allows Kanebo to continue operating as a separate company, Kao holds nearly 19% of the Japanese cosmetics market, second only to Shiseido’s 24%. For Kao’s most recent fi scal year ended March 31, prestige cosmetics generated ¥85.2 billion, up 9%. The sector represents 25% of Kao’s total beauty business. The company’s personal-care division, meanwhile, grew strongest in North America and Europe, where combined revenues rose 8.1% to ¥115.3 billion. Worldwide retail sales of Jergens Natural Glow moisturizer, released in Jan. 2005, have already passed the $50 million mark. Jergens added a facial-care product to the franchise in early 2006, which could push sales toward $100 million at retail by year-end. Its personal-care products’ sales increased 4% to ¥187.8 billion on year in Japan, by far Kao’s largest market, thanks to new launches. But the local sector continues to be threatened by declining retail prices and rising raw material costs.
12. COTY
New York
$2.9 billion
/ 38% v. Fiscal ’04-’05
Coty Prestige/Designer brands: Calvin Klein, Cerruti, Jette Joop, Jil Sander, Kenneth Cole, Marc Jacobs, Vera Wang. Celebrity brands: Desperate Housewives, Jennifer Lopez, Sarah Jessica Parker. Lifestyle brands: Baby Fat, Chopard, Davidoff, Lancaster. Coty Beauty/Designer brands: Esprit, Miss Sixty. Pierre Cardin (European license). Celebrity brands: Celine Dion, David and Victoria Beckham. Lifestyle brands: Adidas, Rimmel, The Healing Garden.
In July 2005, Coty acquired the Unilever Cosmetics International (UCI) global prestige fragrance business from Unilever for $800 million. This added the Calvin Klein, Vera Wang, Cerruti and Chloé beauty brands to its portfolio. As a result, Coty claims to have the world’s largest fragrance business. For the next 18 months, the company will focus in part on integrating the supply chain of the former UCI brands. Coty has more than doubled its sales to $2.9 billion in fi scal ’05-’06 from $1.4 billion in fi scal ’00-’01. During the most recent fi scal year, 50% of Coty’s sales were generated in Europe; 33% in the Americas; 4% in Asia, and 13% in the rest of the world. This January, the company announced the creation of Coty Prestige, uniting the former Lancaster Group and LCI Cosmetics (formerly UCI). Coty Prestige generated 55% of the company’s total business in the most recent fi scal year. In July, Coty signed a fragrance licensing agreement with pop star Kylie Minogue. Her fi rst scent is expected in late fall. In March, Coty inked a licensing deal to create a fragrance inspired by the TV show “Desperate Housewives,” and a deal with Kosé Corp. to develop and distribute Rimmel (Coty’s fastest-growing brand) in Japan. Among Coty’s recent top-selling scents is Euphoria Calvin Klein, which generated more than $100 million at wholesale in its fi rst year worldwide.
13. LVMH MOET HENNESSY LOUIS VUITTON
Paris
$2.846 billion
?2.285 billion
/ 7% v. ’04
Perfumes and Cosmetics/Parfums Christian Dior: Addict, J’adore, Eau Sauvage, Poison, Capture Totale, Dior Homme. Guerlain: Issima, Shalimar, Météorites, Folifora de Aqua Allegoria, L’Instant de Guerlain. Parfums Givenchy: Givenchy Pour Homme, Organza, Amarige, Very Irresistible. Givenchy Le Makeup. Parfums Kenzo: Flower by Kenzo. Parfums Loewe, Sephora, Acqua di Parma, Benefi t Cosmetics, Fresh, Make Up For Ever.
LVMH’S fragrance and cosmetics division’s business grew 11% during the fi rst half of 2006, fueled by what it calls the “extraordinary” success of Christian Dior’s Capture Totale skin care, launched in spring and fronted by actress Sharon Stone. The continued popularity of Dior’s J’adore and Parfums Givenchy’s Very Irresistible fragrances, introduced in 2000 and 2003, respectively, also kept business bubbling at the house. During 2005, profi t from recurring operations for the division rose 15% to ?173 million. The results were driven by strong fragrance launches, such as Miss Dior Chérie and Dior Homme, as well as from Dior makeup and the introduction of KissKiss lipstick by Guerlain. New products generated 25% of revenues for the makeup division last year. Dior, the company’s bestselling beauty brand, ranks among the top-three skin-care names in Japan, according to LVMH. It is also strong in Europe and China with skin care, but needs to ramp up its U.S. fan base. Guerlain signed actress Hilary Swank to be the face of its Insolence women’s fragrance, due out in August. In Nov. 2005, LVMH appointed François Demachy senior vice president of olfactive development of LVMH’s fragrance and cosmetics division.
14. CHANEL
Neuilly-sur-Seine, France
$2.790 billion (Est.)
?2.24 billion (Est.)
/ 5% v. ’04
Chanel: Chanel No. 5, Allure, Allure Homme, Coco, Coco Mademoiselle, Chance, No. 19, Cristalle, Pour Monsieur, Antaeus, Egoïste (fragrance). Précision (skin care). Rouge Allure, Le Vernis, Inimitable (makeup).
Executive changes continue at the private French company. In the U.S., for instance, Maureen Chiquet replaced Arie Kopelman as Chanel Inc. president and coo. Since then, she has steadily rebuilt a new team. Chanel says its products continue to sell well. The company’s Précision line is now the eighth bestselling facial-care collection worldwide, according to the fi rm, which also says Chanel dominates the female fragrance top 10 in Europe. Chanel No. 5 is number-one there, whereas Coco Mademoiselle takes third place and Chance ranks eighth. Chanel holds the fourth position worldwide for its men’s fragrances. This year, well-received launches for Chanel include the lipstick Rouge Allure, the mascara Inimitable and the antiaging skin-care product Sublimage, the company said. In April, Chanel signed British actress Keira Knightley as the face of its fi ve-year-old Coco Mademoiselle fragrance, replacing Kate Moss.
15. HENKEL
Dusseldorf, Germany
$2.711 billion
?2.177 billion
/ 4% v. ’04
Schwarzkopf & Henkel: Schwarzkopf, Fa, Taft, Gliss Kur, Schauma, Palette, Diadermine, Brillance, Got2b, Dep, L.A. Looks, Citré Shine, Smooth ‘N Shine, Paon. Schwarzkopf Professional: Igora, bc bonacure, Osis, Seah Hairspa, Silhouette, Indola. Henkel Lion Corp.: Fresh Light. Morris: Sergio Tacchini, La Perla, Genny, Krizia, Fiorucci Parfums, Ferrari. Dial: Dial, Tone, Coast, Pure & Natural, Right Guard, Soft & Dri, Dry Idea.
In July 2005, Hans Van Bylen took over the leadership of Henkel’s cosmetics and toiletries division from Uwe Specht, who retired. Henkel continued the pace of its U.S. acquisitions by snapping up deodorant brands, including Right Guard from Gillette in February for some $420 million. Henkel said this latest acquisition will make it number-three in the U.S. deodorant and body-care segment. Despite a sluggish environment in Western Europe’s consumer-brands market, Henkel managed to gain share in 2005. The strongest growth came from Eastern Europe, the Asia-Pacifi c region and Latin America. The Fa body-care brand was given a relaunch in Europe and was supplemented by the Fa Yogurt and Fa Asia Spa lines in Europe in 2005. Diadermine continued to power Henkel’s European skin-care sales. Consumer hair-care revenues benefi ted from additions to Schwarzkopf (in color), Taft (in styling), Gliss Kur (in hair care) and from the launch of Schwarzkopf Retoucher stick. Eastern Europe, the Asia-Pacifi c region and Latin America also motored salon-market sales for Henkel. Key product introductions included the two-phase colorant Igora Duality, the revamped BC Bonacure hair-care and Silhouette styling series, plus the revision of the Indola line. Secondquarter sales rose 9% to ?746 versus the prior-year period.
16. MARY KAY
Dallas, Texas
$2.2 billion
/ 16% v. ’04
TimeWise, MK Signature, Mary Kay, Velocity, Private Spa Collection, Satin Hands.
In April, Mary Kay appointed David Holl president and ceo. He replaced Richard Rogers, co-founder of the company and son of Mary Kay Ash. Successful skin-care launches and updates drove beauty growth at Mary Kay last year. The company’s new TimeWise Microdermabrasion Set was the biggest skin-care launch in the company’s history. This March, Mary Kay introduced new formulas and packaging for the TimeWise Day Solution with SPF 25 and the Night Solution. It also added Age-Fighting Lip Primer to the line. In June, the company recreated Private Spa Collection Satin Hands, comprising the Extra Emollient Night Cream, Satin Smoothie Hand Scrub and Hand Cream. This year, the company also launched its fi rst prestige scent, Affection Eau de Parfum. Mary Kay’s sales force is made up of more than 1.6 million Mary Kay Independent Beauty Consultants, up 6% on year in 2005, in more than 30 markets. The Mary Kay product line-up comprises 200 premium products in six categories: facial skin care, color cosmetics, body care, sun protection, nail care and fi ne fragrance.
17. KANEBO COSMETICS
Tokyo
$1.934 billion
¥212.5 billion
/ 6% v. ’04
Kanebo Cosmetics Inc., Kanebo International/Rmk, Suqqu, Lunasol, Yusui, Impress, Sensai, Aqua, Doltier, Twany, Freeplus (prestige skin care, cosmetics). T’Estimo, Revue, Kate, Tiffa, Lavshuca (cosmetics). Dew, Suisai, Kanebo Blanchir, Faircrea, Evita (skin care). Sala (hair care). Allie (sun screen).
On Jan. 31, Kao Corp., Japan’s largest manufacturer of consumer products, bought Kanebo Cosmetics in a deal worth $3.5 billion. Since then, the company has acted as an independent subsidiary. Kanebo Cosmetics, which was founded in May 2004 when it was spun off from Kanebo Ltd., has been stepping up its presence in Asia, particularly China, as well as in Europe. It is also expanding in the U.S., where it is projected to end 2006 with 37 doors and $10 million in retail sales, according to industry sources. In Japan last year, Kanebo Cosmetics launched Twany Century Cellulism SP premium skin-care cream for specialist stores and introduced a new concept for Lunasol, a makeup line for department stores, which upped company sales in the younger age bracket. This March, Kanebo Cosmetics introduced a multi-step product in the U.S. and Europe called Sensai Silk that experts predict could generate $20 million in retail sales in its fi rst year. In August, Kanebo debuted an anti-aging foundation collection under the Sensai Cellular Performance brand, one of its more competitively priced lines. Kanebo cosmetics are sold in 50 countries through distributors, subsidiaries and affi liated companies. Its largest international markets are Taiwan, Germany and Spain.
18. YVES ROCHER
Issy-les-Moulineaux, France
$1.905 billion
?1.53 billion
Flat v. ’04
Yves Rocher (skin care, makeup, fragrance). Daniel Jouvance, Dr. Pierre Ricaud, Santé Naturelle (skin care). Isabel Derroisne (fragrance). Kiotis (skin and body care). Galerie Noémie (makeup).
French natural beauty company Yves Rocher is focusing on developing high-growth markets, particularly Asia. Earlier this year, it began opening stores in China. In Russia, where Yves Rocher has 145 doors, the fi rm upped sales 46% on the back of only fi ve openings during 2005. Sales also grew 18% in Thailand. Last year, Yves Rocher opened 192 stores across 25 countries to bring its total to 1,600 doors, 1,050 of which are outside France. Yves Rocher’s mail-order business represented 45% of total company sales in 2005, down from 47% in 2004. Total 2005 revenues for Yves Rocher Group, which also manufactures textile and household products, reached ?2 billion. By geographic zone, France generated 43% of the entire company’s business; Europe, excluding France, 46%, and the rest of the world, 11%. The Yves Rocher beauty brand pulled in almost 60% of the company’s 2005 business, fl at on year. Notable product launches for 2006 include Yves Rocher’s six-SKU Inositol Végétal anti-aging line, according to the company.
19. KOSE CORP.
Tokyo
$1.618 billion
¥177.81 billion
/ 5% v. Fiscal ’04-’05
Kosé Corp.: Cosme Decorte, Awake, Beauté de Kosé, Sekkisei, Seikisho, Rutina, Luminous, Visée, Esprique, Stephen Knoll Collection, Prédia, Jill Stuart. Kosé Cosmenience Co. Ltd., Kosé Cosmeport Corp., Albion Co. Ltd., Dr. Phil Cosmetics Inc.
Kosé Corp. reinforced its international expansion in the fi scal year ended March 31, with overseas business registering 17.8% growth in net sales. Driving such strong results were brands Sekkisei and Seikisho, coupled with the launch of Beauté de Kosé in Vietnam and Indonesia. In the medium term, Kosé plans to focus on expanding into China, Taiwan and South Korea. The company aims to increase overseas business to at least 11% of total sales by fi scal ’08-’09. Today, it represents 8.5%. On its home turf, Kosé inked a deal with Coty Inc. to sell Rimmel makeup products in Japan. Key launches last year for Kosé included the luxury beauty serum Astalution, which sold 600,000 units in Japan between Nov. 2005 and end-January. Existing brands, such as Fasio mascara and Softymo facial cleanser, continued to be key growth motors in Kosé’s “self-selection” category, sold in self-serve retail environments, where sales rose 7.4% on year. For fi scal ’06-’07, Kosé forecasts 4.5% sales growth to ¥185.8 billion and 2.1% increase in net income to ¥10.2 billion.
20. ALTICOR
Ada, Michigan
$1.56 billion
/ 2% v. ’04
Artistry, E. Funkhouser New York, NAO (cosmetics). Tolsom (men’s skin care). Satinique (hair care). Body Series, G&H (body care).
Alticor’s sales tapered in 2005 due to slower growth in Asia, where the company generates 80% of its revenues. The rest of Alticor’s business is equally split between North America and Europe. This March, the fi rm launched its largest brand, Artistry, on the Russian market, where it is already posting wholesale sales of $23 million. The company revamped Artistry with multiple sub-brands targeted to various life stages and lifestyles. It plans to introduce the brand’s color cosmetics to Russia early next year. International efforts include the launch of a wrinkle-fi ghting face-care product called Derma Erase, an anti-aging hand cream called Essential and a line of yellow-toned face makeup, called Flawless Finish Powder Foundation. E. Funkhouser New York has met expectations in its ability to draw a young consumer base and generate wholesale sales of more than $30 million. Alticor products are sold in upward of 80 countries and territories.
To view the list in full download the compete issue of Beauty Report International.
Sales figures in non-U.S. currencies were converted to the dollar using the following 2005 average exchange rates from FXHistory, www.oanda.com: $1 = ?0.80453; £0.55004; ¥110.12445; KRW 1,027.59332; CHF 1.24577; Ruble 28.29327; Real 2.43480.
— With contributions from Melissa Drier, Poul Funder Larsen, Brid Costello, Stephanie Epiro, Peter Born, Faye Brookman, Michelle Edgar, Matthew Evans, Megan Mcintyre, Andrea Nagel, Julie Naughton, Molly Prior and Michael Kepp