Skincare is the largest and most vibrant segment of the global beauty industry driven by favorable demographic trends and improving adoption rates among young females and males. The skincare market is split about one third prestige and two-thirds mass.
In 2014 Personal Care represented 36.6% of Unilever’s €48.4 billion sales and 47.4% of pre-tax profits. Unilever is well represented in the mass end of the beauty and personal care market with its haircare, bath and shower and deodorant businesses, and has significant exposure to emerging markets as well. Unilever’s skincare brand portfolio includes Dove, Ponds, Lux, Noxzema, Simple, and St Ives Swiss Formula. Recently Unilever has stretched its Dove brand (primarily a bath and shower brand) to the premium end of the skincare market with the introduction of the Dove DermaSeries line of cleansers and creams in 2014. The Kate Somerville acquisition will anchor Unilever in the premium end of the skincare market with its differentiated wellness positioning and is a step forward in Unilever’s “portfolio premiumization” strategy.
Kate Somerville began as a skincare clinic to Hollywood’s celebrities and the line is rooted in a hands-on focus to improving skin health and for those seeking real solutions to skin concerns. Clinical skincare, advanced technologies and a lifestyle approach to healthy skin is redefining skincare at Kate Somerville’s Clinic and the many points of sale where the line is offered in North America and Asia. The line features Active Balance Technology, a blend of advanced active ingredients with natural botanicals. The terms of the acquisition were not disclosed. Hoover’s estimates Kate Somerville Skincare annual sales at $9.9 million.
Dermocosmetics is a branch of dermatology that combines cosmetics and pharmaceuticals in its focus on skin care and the treatment of superficial skin disorders such as acne, wrinkles, and redness.