DTC Dispatch #041

Luxury Perfume for...Dogs?

☀️ How is summer almost over?!

This week in DTC Dispatch:

🦷 How Colgate-Palmolive has worked toward a digital transformation

📈 Prestige beauty sales continue to outpace mass with 8% growth in the first half of the year

💄 e.l.f. Cosmetics and World Champion Blind Swimmer Anastasia Pagonis Launch “Beauty For Every Eye” Accessibility Bundle

🐕️ Not to be sniffed at: Dolce & Gabbana launches EUR 99 dog perfume

LATEST NEWS

How Colgate-Palmolive has worked toward a digital transformation

Remember when you’d see a product commercial on TV and then head to a store to buy it? While that still happens occasionally, the path to purchase for most retail transactions now begins and ends online—a significant shift from the past.

Brigitte King, the global chief digital officer at Colgate-Palmolive, has witnessed this transformation firsthand throughout her 30+ years in the CPG industry and has adapted her career to reflect it.

King began her journey at Colgate-Palmolive as a global trainee in the early 1990s, gaining experience in marketing, finance, and market research. She later joined L’Oréal in 1995, working in traditional brand marketing. Her digital pivot started in 2002 when she joined John Frieda and helped build its first website. This experience with coding and wireframes set the stage for her shift to digital marketing. In 2020, after years of honing her digital expertise, she returned to Colgate-Palmolive.

Founded in 1806 and merging with Palmolive-Peet in 1928, Colgate-Palmolive is a longstanding company known for brands like Colgate, Palmolive, Softsoap, Speed Stick, Irish Spring, and more. King’s current focus is leading the company’s digital transformation, driving innovation in a business that spans centuries.

Our take: The shift from in-store shopping to online retail is one of the biggest changes in consumer behavior in recent decades. Brigitte King, Colgate-Palmolive's global chief digital officer, has expertly navigated this transition.

Starting in the early 1990s, King experienced the traditional marketing era but quickly adapted to digital trends. Her pivotal moment came in 2002 when she built John Frieda’s first website, embracing the digital future. Returning to Colgate-Palmolive in 2020 with a wealth of digital experience, she now drives the company's digital transformation.

King’s career highlights the importance of adapting to new technologies, showing that those who embrace change will lead the future of their industries.

Prestige beauty sales continue to outpace mass with 8% growth in the first half of the year

U.S. prestige beauty sales showed robust growth, rising 8% year-over-year to $15.3 billion in the first half of this year, signaling steady demand for high-end products, according to a Circana report. In contrast, mass-market beauty sales remained flat compared to last year.

The most significant growth was seen in prestige fragrances, with a 12% increase in sales. Prestige hair care also performed well, growing 10%, driven by styling and treatment products, while high-end makeup and skin care brands saw sales rise by 5% and 7%, respectively.

On the mass-market side, the trends were less favorable. Fragrance sales dropped 1%, hair care grew slightly by 2%, and skin care saw a modest 1% increase. Makeup fared the worst, with a 4% decline in sales.

Our take: Recent U.S. beauty sales reveal a clear divide between prestige and mass-market segments, highlighting shifts in consumer preferences. Prestige beauty saw an 8% growth, reaching $15.3 billion, indicating a strong demand for high-end products even in uncertain times. Consumers are willing to pay more for quality and luxury, as seen in the significant growth in fragrances, hair care, makeup, and skin care.

In contrast, mass-market beauty sales remained flat, with declines in categories like fragrance and makeup, suggesting a challenging environment where price sensitivity plays a key role. This shift toward premium products highlights the need for brands to innovate and focus on quality, sustainability, and consumer values.

As the prestige sector continues to grow, understanding and adapting to these trends will be crucial for long-term success across the beauty industry.

e.l.f. Cosmetics and World Champion Blind Swimmer Anastasia Pagonis Launch “Beauty For Every Eye” Accessibility Bundle

e.l.f., a beauty brand dedicated to making high-quality products accessible to everyone, has partnered with world champion blind swimmer Anastasia "Tas" Pagonis to improve accessibility in beauty for the blind and low-vision community.

Pagonis, a record-setting swimmer and influential advocate, uses her nearly three million followers on TikTok and Instagram to share her journey and inspire others. Her candid and impactful posts aim to "change the way you ‘see’ the visually impaired," bringing awareness and understanding to her community.

Today, e.l.f. and Pagonis are launching the "Beauty For Every Eye" bundle, a limited-edition kit featuring three of Pagonis' favorite e.l.f. products: Big Mood Waterproof Mascara, Glossy Lip Stain in Power Mauves, and Suntouchable Whoa Glow SPF 30 in Sunbeam. Each product comes with a scannable QR code that links to an audio recording by Pagonis, offering product descriptions, finishes, and application tips. This innovative approach is Pagonis’ way of making beauty more accessible for everyone, especially those who are visually impaired.

Our take: The collaboration between e.l.f. and blind swimmer Anastasia "Tas" Pagonis is a significant move towards inclusivity in beauty. This partnership highlights the importance of accessibility, especially for the blind and low-vision community.

Pagonis, with her athletic achievements and social media influence, is an ideal advocate for this cause. Her mission to change perceptions of the visually impaired challenges traditional beauty standards and promotes inclusivity.

The "Beauty For Every Eye" bundle, featuring products with scannable QR codes that link to audio descriptions, is a practical innovation that enhances accessibility. This partnership is more than just marketing—it's about making a real difference. As more brands recognize the importance of accessibility, the beauty industry can become a more inclusive space for everyone.

Three ways Ralph Lauren keeps its customers coming back

Ralph Lauren (RL) exceeded profit expectations in its first quarter earnings, driven by strong performance in Europe and Asia, outpacing many other retailers.

In an interview with Yahoo Finance Executive Editor Brian Sozzi, Ralph Lauren CEO Patrice Louvet highlighted three key strategies the company uses to retain customers.

First, Louvet emphasized the importance of consistency, staying true to the brand and its core values. Second, he stressed understanding the customer—knowing who they are, what matters to them, and how they want to engage with the brand. With a consumer base ranging from newborns to the silent generation, Louvet underscored the need for a segmented and targeted approach.

Finally, Louvet pointed to the importance of freshness, ensuring that the brand continuously introduces new and exciting offerings that keep customers coming back for unique and interesting products.

Our take: Ralph Lauren’s strong first-quarter earnings, driven by growth in Europe and Asia, showcase a successful strategy. CEO Patrice Louvet’s approach to customer retention offers valuable lessons.

Consistency is key for Ralph Lauren. By sticking to its core values, the brand maintains a reliable identity that builds trust and loyalty.

Understanding a diverse customer base—from newborns to the silent generation—allows Ralph Lauren to tailor its offerings effectively, enhancing satisfaction and engagement.

Freshness is also crucial. By regularly introducing new and exciting products, Ralph Lauren keeps customers interested and engaged.

Overall, Ralph Lauren’s success highlights the importance of consistency, customer insight, and innovation in driving profitability and setting industry standards.

Not to be sniffed at: Dolce & Gabbana launches EUR 99 dog perfume

No more struggling to bathe your dog—Dolce & Gabbana has introduced a new luxury perfume for pets. This "alcohol-free scented mist" for dogs is priced at 99 euros and comes with a complimentary collar. However, animal rights advocates have raised concerns about potential distress for pets.

The ad for the perfume features stylish Bichon Frises, Dachshunds, and Chihuahuas, with the tagline: "Cause I’m not just a dog, I’m Fefe." Named after co-founder Domenico Dolce's dog, the fragrance blends ylang ylang, musk, and sandalwood for a "tender and embracing" scent.

Dolce & Gabbana describes the perfume as part of a playful beauty routine. Yet, PETA warns that fragrances can be distressing for dogs. With their heightened sense of smell, perfumes may cause irritation and interfere with their natural ability to detect scents and communicate with other animals.

Our take: Dolce & Gabbana’s foray into the pet care market with a luxury perfume for dogs is a bold move that blends high fashion with pet grooming. At 99 euros, this "alcohol-free scented mist" promises to add a touch of glamour to our canine companions, complete with a free collar. The product, inspired by co-founder Domenico Dolce's own dog and featuring notes of ylang ylang, musk, and sandalwood, certainly targets the premium pet market.

However, this innovation has sparked debate, particularly from animal rights advocates. PETA’s concerns about the impact of fragrances on dogs highlight a critical issue. Dogs have an extraordinary sense of smell—far more acute than humans—and introducing strong scents can potentially cause them distress. Such perfumes might irritate their sensitive skin and disrupt their ability to perceive natural scents, which is crucial for their communication and environmental awareness.

While the idea of a luxury pet fragrance aligns with the growing trend of treating pets as part of the family, it’s essential to balance indulgence with the well-being of our pets. Dolce & Gabbana's offering is a reminder of the need to consider how luxury products affect animals and to prioritize their comfort and health alongside human preferences.

Thanks for reading this week’s edition of the DTC Dispatch!