Will the fashion industry carry on mostly as it has in the past 10 years after the coronavirus ends? Or, will it evolve slightly and basically bounce along the same-old tired path it has been trudging along? Or, will it explode into an exciting new time of creativity and rebirth? One thing is certain, the industry had better be working hard right now to get ready for the new world that is going to emerge. To be sure, there will be lingering problems from the immense destruction caused by the pandemic. The exciting opportunity rising from the …
Opinion: Do Prestige Beauty Brands Need to Pivot?
As an industry observer for many decades, I believe the prestige sector of the $532 billion global beauty industry is desperately working to find new ways of retaining its best customers during the ongoing pandemic -- and beyond. Now, in addition to trying to acquire new customers -- a chief goal of the last 10 years -- luxury brands are struggling to retain their base, who, because of Covid-19 safety concerns, are even more department store-resistant than they already were. With the pandemic, the major lure of department stores -- that women …
The Beauty Industry Faces Its Biggest Challenge, Ever
The beauty industry is facing the biggest and most complicated period in its history. Some might say, “The beauty industry is broken.” Others may ask, “Are the days of ten-time markups on luxury makeup and skincare products numbered?” Luxury, while barely holding its own now, better be thinking about the day after tomorrow. Here’s the rub: Do the transparencies enabled by social media and competing websites have premium products on the ropes?” Department stores that carry these luxury brands are fighting to find a good solution to …
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The Power Of John Fairchild
John Burr Fairchild, who turned a family owned bread and butter garment center trade publication, Women’s Wear Daily, into a fashion powerhouse, passed away last week at 87 years of age. John completely understood the business of publishing. His father, Lewis Fairchild, drummed circulation, advertising and administration into him. His father had no need to school John in journalism; he had spawned an editorial genius. Rarely has a man’s talents and interests been so perfectly synchronized with John’s innate journalistic abilities, his …
The ‘Do Nothing’ Avon Board…Too Little, Too Late — Dividend in Jeopardy
Rarely has a new CEO jumped into a big-time, high-profile turnaround situation such as Avon Inc. presents. And if history is any guide, the ‘Do Nothing’ Avon Board of Directors will not be of any help. Sherilyn S. McCoy who took over the CEO slot on April 23rd must hit the ground running. And not only must she put out short-term fires, she also has to develop a long-term strategic plan — on the run. Simultaneously, she must learn a new (for her) direct-sell business model. Plus she has to deal with SEC probes of bribery charges in China; …
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The Coty/Avon Dance: A Train Wreck About To Happen
Avon’s sudden hiring of Sherilyn S. McCoy as CEO – almost certainly intended to thwart any takeover attempt by Coty - indicates that the smaller suitor will have a fight on its hands to acquire the giant direct sales company. Coty would be better off letting this one get away. Its $10 billion offer for Avon is the biggest and most recent effort in its aggressive quest to become one of the world’s major beauty companies – in other words, to play with the big boys. The company has spent over $2 billion on acquisitions in the past two years, …