Wella and its sister brands are on the block again after Coty recently announced plans to sell its professional beauty division. The ranking makes Coty an attractive business for potential buyers.
Leveraging 60 years of knowledge in the beauty industry, Kline, a leading market research and consulting firm, has analyzed some of the leading brands in the professional hair care segment and their potential new owners.
Since its acquisition of Wella, the world’s #1 professional color brand, Coty has increased its presence in several strategic salon hair care markets, including China, Japan, Brazil and even L’Oréal-dominated France. has expanded. Wella has garnered his 1.3% share point over its closest competitor L’Oreal Professional in the hair color segment since it was acquired by Procter & Gamble in 2015, revealing Klein’s Salon Hair Care Global Series. became. The brand is rolling out his two-phase strategy focused on selling hair color products in salons and expanding into the retail space. In addition, Coty is at the forefront of innovation by launching Koleston Perfect and Wella Color DJ devices powered by ME+ technology, as well as other comprehensive products for customized care with its newly reimagined System Professional line. Staying on the front lines.
OPI continues to be the global leader in professional nail care, with a strong presence around the world. According to Klein’s Professional Nail Care: Global Market Brief, the brand holds his 24% market share in the United States, establishing itself in the rapidly developing dipping his powder segment and keeping abreast of market trends. I understand.
L’Oréal, the market leader in the global professional hair care industry, is an unlikely candidate for a hair brand. The company is unlikely to receive regulatory approval, which would give it control over his third of the global market and more than 40% of the European market. The beauty giant also seems to be focusing more on indie purchases rather than legacy brands, though OPI and GHD could be interesting for his L’Oréal. Professional nail care and hair appliances are two of the few areas in the beauty industry where L’Oréal does not have a leading position.
Henkel, although a much smaller US brand, is a strong contender as it has already embarked on a massive M&A path over the past few years following a series of rapid acquisitions. These acquisitions solidify Henkel’s number two position in North America. For many years it has been ranked 3rd in the world.
If Henkel buys Coty’s professional hair care brand, the company would be close to No. 1, with just 2 points of share with L’Oréal. However, a challenge exists as Henkel’s largest brand in the portfolio is the German color-focused brand Schwarzkopf Professional, which could lead to a potential conflict of interest with Wella. Looking at the individual brands in the portfolio, Nioxin is the best choice as it fills a gap in Henkel’s scalp care range and strengthens its growth potential in the United States.
Kao is also a potential buyer. This will allow Japan’s Kao to enter new territory in the salon hair care market and maintain its No. 2 position. However, the Goldwell brand has a long history of competition with German brand Wella. This could be a challenge when it comes to integration, assuming the company can get through regulatory approvals, which could also be a problem.
Unilever is another strong contender. TIGI is showing signs of re-establishing itself on the professional stage with its salon-only Copyright Care line. Wella can definitely find a place in Unilever’s more retail-focused portfolio. “With TIGI and Living Proof, Unilever has a strong presence in hair styling products and hair care, and a limited presence in hair color. , said:
Henkel, Kao and Unilever, each with well over $10 billion in annual revenues, will be able to transition to Coty without much difficulty, unlike the situation Coty faced when its acquired brands overshadowed its existing business. It should be able to absorb the brand.
The broader beauty industry could see interest from foreign companies such as Amorepacific (South Korea) and Natura (Brazil). Both of these companies are aggressively expanding their operations abroad. With the acquisition of a professional skincare brand in 2017, she stepped into the professional beauty arena. Certainly, financial firms and private equity firms should also be interested in considering this business.
Photo: Coty logo and products from Coty Professional Beauty
Photo right: Author Carey Melage, VP of Consumer Products at Klein
