Prestige Beauty Acquisitions: New, from Procter & Gamble. 
First, P&G bought out Art of Shaving. The acquisition made sense, as Art of Shaving makes razors that take Gillette Fusion blades (made by P&G).
Then, P&G bought Zirh today. This isn't the first time Zirh has been bought out: it was sold to Shiseido in 2004, and Brian Robinson bought it back in 2007. (Shiseido kept the John Varvatos fragrance business developed under ZIRH and transfered distribution to their Beaute Prestige International division.)
And I have a feeling that P&G is hungry for more acquistions: Incoming P&G CEO Bob McDonald wants the consumer products giant to double its sales under his tenure. And we aren't just talking with mass-market products like Tide detergent, Crest toothpaste, Olay skincare, and Old Spice men's grooming... P&G wants to be the world leader in the prestige sector, too.
Here's my ideas on what P&G will do next:
In the end, given P&G's spotless track record, they'll come out Zestfully clean! But what do you think?
First, P&G bought out Art of Shaving. The acquisition made sense, as Art of Shaving makes razors that take Gillette Fusion blades (made by P&G).
Then, P&G bought Zirh today. This isn't the first time Zirh has been bought out: it was sold to Shiseido in 2004, and Brian Robinson bought it back in 2007. (Shiseido kept the John Varvatos fragrance business developed under ZIRH and transfered distribution to their Beaute Prestige International division.)
And I have a feeling that P&G is hungry for more acquistions: Incoming P&G CEO Bob McDonald wants the consumer products giant to double its sales under his tenure. And we aren't just talking with mass-market products like Tide detergent, Crest toothpaste, Olay skincare, and Old Spice men's grooming... P&G wants to be the world leader in the prestige sector, too.
Here's my ideas on what P&G will do next:
- Buy one skincare/fragrance giant. If there's one beauty area where P&G is weak in, it's prestige makeup and skincare. But who could P&G buy? L'Oreal is fine on its own, the Clarins family does not want to sell, Elizabeth Arden is weak in everything but celebuscents, and Japanese mindsets might make a takeover of Shiseido tough. So the logical choice would be a P&G acquisition of Estee Lauder, who happens to be a powerhouse in skincare and fragrance. And Lauder's new CEO happens to be a former P&G guy, so integration could be easy.
- Buy one or two niche fragrance manufacturers. P&G, through their P&G Prestige Beaute division, is strong in fragrance. The next logical step: buy a larger niche fragrance manufacturer. L'Artisan Parfumeur, Bond no. 9, and others come to mind.
- Buy some smaller skincare lines. To go along with a purchase of the likes of Estee Lauder, P&G could buy some smaller boutique skincare lines.
In the end, given P&G's spotless track record, they'll come out Zestfully clean! But what do you think?
