WWD List: Buying Beauty Pt. 2

Cincinnati-based Procter & Gamble Co.’s Olay brand continues to lead the U.S. mass skin care category with sales of more than $2 billion globally, according to P&G. “As far as skin care goes, this brand has done a tremendous job of targeting the mature woman, who has money to spend but is looking for value,” Danziger said. She pointed out the brand has also skewed toward higher prices with a few of its products: The Olay Professional Pro-X, which costs $42 to $62 each, features higher price points compared with its Total Effects line, which costs about $20 to $25 apiece.

Maybelline New York will become the official cosmetic sponsor of the Mercedes-Benz Fashion Week in Bryant Park, WWD reported last month. Maybelline, a division of Paris-based L’Oréal, has had fashion sponsorships in Germany. The latest sponsorship deal is thought to be for a two-year period for both the September and February shows, first in Bryant Park and then at Lincoln Center. “This is a youth-skewing brand that has also made a connection with older, affluent women,” Danziger said. Maybelline said its popular products include Expert Eyes Twin Brow & Eye Pencils, Great Lash Mascara and the award-winning Cover Stick Corrector Concealor.

Danziger said Cover Girl’s decision to make Ellen DeGeneres a spokeswoman “resonated with women everywhere.” Cover Girl’s Simply Ageless, hawked by DeGeneres, helped to propel sales early this year, WWD noted in March. The brand also announced that Dominican actress Dania Ramirez (“X-Men: The Last Stand “ and NBC’s “Heroes”) will be its next face. The $1 billion beauty brand “continues to develop products that aim to bring runway looks down the drugstore aisle, the latest being Blast Boutique,” WWD said last week. “The brand has achieved eight consecutive years of share growth, and has garnered attention from a coveted consumer: the prestige shopper.”

In June, L’Oréal celebrated its 100th anniversary in the midst of the toughest business climate in decades. “L’Oréal reaches such a huge audience because the brand spans across hair care, cosmetics, skin care, men’s products — they are so broad that they reach everyone,” Danziger said. New spokesmodels for the brand include Freida Pinto, Elizabeth Banks and Evangeline Lilly. WWD’s Beauty Biz noted this month, “L’Oréal’s stated strategy this year includes upping its advertising outlay while at the same time cutting its number of stockkeeping units, introducing lower-priced items and focusing on innovative products.”

Edging out the $1.3 billion Revlon from the top five is Nivea, which is owned by Germany-based Beiersdorf AG. “Nivea’s standing in the top five really represents luxury consumers’ focus on skin care, versus cosmetics,” said Danziger. The brand features a huge variety of skin care products ranging from sun care, face care and hand care to baby care, hair care and deodorants. Nivea also does feature a cosmetics line, which includes products for the eyes, lips, face and nails. WWD’s Beauty Biz noted this month the company has been putting more marketing muscle behind its hair care business in China, where it opened a Nivea factory in Shanghai in June.