The Heat Group continues to produce outstanding results in the highly competitive Cosmetics, Toiletries and Fragrance Market.

The Heat Group continues to produce outstanding results in the highly competitive Cosmetics, Toiletries and Fragrance Market. The latest Accord* industry data revealed that in the main arena of Colour Cosmetics, the market has maintained its positive growth of the last four years with 4.5% growth in unit in-market sales and 6.7% dollar growth for the calendar year 2006. Since 2001, the colour cosmetics market has grown a remarkable 39.3% to reach a value of around $440M.

The Heat Group, with Max Factor and Covergirl brands, held 8.3% share in 2001 with big guns Revlon (21.4%), LOreal (20%) and Estee Lauder(14.3%) dominating the market.

In 2006, we have seen a dramatic change in the share ownership. Heat now owns 11%, growing an amazing 132.9% to lead the growth stakes.

Max Factor and Covergirl brands have performed exceptionally well for Heat and in 2006 again delivered outstanding results.

Max Factor grew market share to hold 5.5% of total market Max Factor is set to grow its total in-market sales by double digits by the end of this financial year via strong new product launches, promotions and new stand roll-out. Max Factor also relaunched in August with exciting new products, new logo, packaging and creative which reinforces its heritage and equity links to Makeup artistry.

Covergirl grew its market share to hold 5.7% of total market. This was despite growth from new competitor Rimmel which seemed to take share from the other major budget brand, Maybelline but did not impact Covergirl which continued its impressive continued growth. Covergirl too had impressive product launches in F07 with momentum being maintained in F08 and its ‘easy, breezy beautiful’ clean fresh natural positioning being successfully promoted by Jennifer Hawkins.

With forward plans geared towards maintaining double digit growth, the ambition is to have Covergirl and Max Factor ranking number 3 and 4 in units within the market and 4 and 3 in dollars within a couple of years.

With new cosmetic brands Bourjois and Red Earth, new fashion beauty and accessory brand Elite and our impulse pharmacy brand Ulta3 also anticipated to grow, Heat’s share of the colour cosmetics is set to sky-rocket in the next results period.
* Accord ADVOCATE FOR THE CONSUMER, COSMETIC, HYGIENE AND SPECIALTY PRODUCTS INDUSTRY – statistical survey Jul-Dec 2006