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Looks to make gains in skin care and fragrance.
January 14, 2011
By: TOM BRANNA
Editor
Procter & Gamble dominates in many categories, but when it comes to prestige beauty, L’Oréal is still No. 1. But P&G hopes to change all that in the coming years by emphasizing its prowess in skin care, fine fragrance and color cosmetics. According to P&G estimates, the global prestige beauty segment is worth $70 billion and is expected to reach $90 billion in five years. Skin care and fine fragrance each currently accounts for 38% of sales, with the remaining sales coming from color cosmetics. To overtake L’Oréal, which had sales of $24.3 billion in 2009, vs. $18.6 billion for P&G, Procter & Gamble created a new operating unit, P&G Prestige, which contains its existing luxury beauty portfolio. Brands in that portfolio include the high-end skin care treatment line SK-II, The Art of Shaving men’s grooming collection, men’s skin care label Zirh, DDF dermatological skin care, Frédéric Fekkai hair care and Dolce & Gabbana’s makeup collection, which was launched in 2009. Offering products at the high-end of the market will enable P&G to create skin care products that are priced from $500-1000, according to the company.
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