Big Money Pours Into Makeup Business Amid Rebound

Share Tweet Share Share Share E mailWhen the pinnacle of the world’s largest perfume and cosmetics firm stated two months in the past that L’Oréal was relying on a post-pandemic euphoria rally that will resemble the “roaring 20s,” some cynics might have snickered, whereas different believers appear to have taken observe.“When COVID is gone, folks might be joyful to exit once more, to rejoice, to socialize, and this might be like within the well-known roaring 20s,” L’Oréal CEO and Chairman Jean-Paul Agon instructed analysts and traders in the course of the firm’s earnings name in early February, predicting that the world was on the cusp of a “fiesta of make-up and fragrances.”Agon’s feedback weren’t solely a departure from the staid and plain-spoken steering company executives usually dole out, however his message seems to have been heard — and acted upon — by institutional traders who share his optimistic thesis, and are desirous to catch the following wave of the COVID disaster.Carlyle and Counter BrandsFor instance, the private-equity powerhouse Carlyle Group has reportedly simply taken a majority stake within the $1 billion clear cosmetics agency Counter Brands, whose Beautycounter enterprise is rising a loyal following by not utilizing near 2,000 frequent chemical compounds discovered in lots of varieties of make-up.While the Journal report stated the Santa Monica-based firm intends to make use of the proceeds to proceed to boost model consciousness and to bolster its digital gross sales, evidently phrase of the non-toxic make-up motion has already caught the eye of 1 slice of the market: traders.“This is a model that in our view isn’t just on the forefront of what’s necessary to magnificence customers, but in addition to customers usually,” stated Jay Sammons, Carlyle’s world head of shopper, media and retail.  For Founder and CEO Gregg Renfrew, the Carlyle money brings Beautycounter “one step nearer to a world the place all magnificence is clear magnificence,” per an organization tweet. “The aim was all the time to construct a magnificence model that transforms the sweetness business at massive,” Renfrew instructed Fast Company concerning the mission of her eight-year-old enterprise. “There was by no means one particular plan to gasoline our development, however we consider that Carlyle is the proper accomplice for the place we’re.”Nykaa’s $4bln IPONot to be outdone on the coming fiesta, Mumbai-based Nykaa is reportedly shifting forward with its personal plans for the final word fundraising: an preliminary public providing that will worth the cosmetics and vogue retailer at an estimated $4 billion. With the backing of funding banks Kotak Mahindra and Morgan Stanley, Nykaa is seeking to drop a prospectus within the subsequent 60 days and full its itemizing by the top of the 12 months.According to its web site, over the previous 9 years, Nykaa has grown to be India’s largest omnichannel magnificence vacation spot, serving hundreds of thousands of consumers through 68 shops and an internet site that provides over 1,200 completely different branded merchandise.“Nykaa presents a complete collection of make-up, skincare, hair care, fragrances, private care, luxurious and wellness merchandise for ladies and men,” because the soon-to-be listed firm characterised its operations, noting that its title is derived from the Sanskrit phrase “Nayaka,“ that means “actress” or “one within the highlight.” Although Nykaa’s mission is “to rejoice the star in every lady,” for now, the main focus seems to be on the cosmetics firm itself, because it readies for its personal roaring 20s second within the highlight.——————————
NEW PYMNTS STUDY: OPEN BANKING 2021 
About The Study: Open banking-powered cost choices have been accessible in some markets since 2018, however the pandemic drove many customers to attempt these options for the primary time — and there’s no going again. In the Open Banking Report, PYMNTS examines open banking’s rise as retailers and cost companies suppliers worldwide faucet into such choices to supply safe, seamless account-to-account funds.