ULTA Beauty is #1. But What is Around the Corner???

Ulta Beauty is a thing of beauty. Both the company and the stock are exceeding everyone’s expectations. But like all beautiful things, they can wither from old age and neglect. Ulta Beauty’s strategy is on the edge of doing just that. Yes this sounds crazy, but read on.1st Body Image

It is management’s job to look forward and around the corner in order to set and adjust strategy. Let’s look around the proverbial corner.

Since their 1990 launch, Ulta maintains their force fields of differentiation:

  1. The combination of high/low merchandise price points.
  2. Full-service salons are in the back of every store.

NO COMPETITOR HAS BEEN ABLE TO COPY THESE DIFFERENTIATORS

Their financial position is equally astonishing. On October 25, 2007, Ulta Beauty (NASDAQ: ULTA) went public and opened at $18. Right now, the stock is about $350. If you are counting, that is over 18x your money. They are also completely debt free.


“The Ulta Beauty team delivered excellent results in the fourth quarter,” said CEO Mary Dillon. “This performance reflects an acceleration in comparable sales in our retail stores, primarily driven by traffic.”

Mary Dillon Ulta Beauty CEO
Mary Dillon, CEO ULTA Beauty

Ulta focuses their execution on product, beauty services and in digital. Press releases reveal current status of these initiatives. Only recently have they signed on with cutting edge digital partners. The salon segment of their revenue is a mere 7% of their massive $6.2B in revenue, and they project the salon growth at only 3%. Remember the salon is their sustainable competitive advantage. There has been some significant activity by signing Kylie Jenner and launching Cannuka, a CBD skincare brand.

Ulta Beauty's strategic imperatives.
Ulta’s Strategic Imperatives

Further analysis reveals more. The bulk of their spend and focus on execution is actually on building new stores. They plan about 80 new locations this year. That’s it-this is the grand total of their execution.

Is this enough??? 

To recap- Ulta is a $6.2B company, debt free and the largest retailer of its kind-and their biggest growth driver is new stores in strip malls across suburban America.

Again, the question can be asked- is this enough? Is it enough to maintain the #1 status they have enjoyed for so long? Or does doing the same thing they have always done threaten their competitive advantage? Are they doing enough for shareholders, consumers and for the brands they sell?

Stakeholders and Shareholders are first with public companies
Stakeholders- Is Ulta doing enough for them?

It can be argued that despite their incredible stock performance, Ulta may not be delivering enough value to shareholders. Seems they have much more capacity to comfortably do more- much, much more.

Ulta has only 1 comfort zone.

They have only 1 revenue and profit source.

Compare this to the competition: Sephora is a part of luxury behemoth LVMH and they benefit from an internal capital market. Department stores also sell fashion goods. Digital only players are proving to not even need a brick and mortar environment.

Ulta only makes money from one source- their product sales. This makes them very vulnerable.

What are Ulta’s strategic options? What more could they be doing?

The answer is simple- create additional revenue and profit streams.

Ulta Beauty has many options to generate new revenue and profit streams.
Ulta has many levers to generate new sources of revenue and profits

Lever #1– physically expand in Canada (finally). Utla.com has been shipping there for years, service needs improving, and they already have a great foothold. Market entry via franchise also adds the diverse revenue sources via fees and royalties.

Lever #2– there are underutilized assets and space within the salon services area in every store. Give the brands they carry a whole new way to engage customers in real life. Real life experiences are also the ULTIMATE win against Amazon. A co-op style fee for brands to host events, clinics and pop-ups in every store on a regular basis is a marketing win-win for all. This is also another source of revenue and profits. Financial models suggest Ulta could add as much as 30-100 basis point to their market capitalization with this program!

Lever #3– aggressively pursue the all-things-digital initiatives with IoT installations. Sephora is a wonderland in this aspect. Not doing this threatens Ulta’s #1 status. In the digital age, consumer attention is a currency.

Compared to their formidable capacity, Ulta can do so much more for their stakeholders. The 3 Levers described here just scratch the surface. What do you think? What else could Ulta do?

Madison Luxe Group is an innovative beauty, fashion and lifestyle luxury brand retail sales distributor and marketing consulting agency founder Christine C. Oddo and Madison Luxe Group
Christine C. Oddo founder Madison Luxe Group, author The Christine Report Blog

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Do You Drop? Luxury Players Now Join In On These Exclusive Product Promotions

Do You Plan on Using Drops for Your Product Promotions?  Luxury players are really getting in on this channel.  Check here how to keep drops fresh- and out of the hands of those that engage just to over-buy and resell precious limited edition merchandise.

It started with online flash sales.  That was easy.  It was electronic.  Promote the heck out of it and add a count-down clock with some limited inventory and –whammo– an e-commerce retailer had a fantastic limited time offer event.  It created a sense of urgency while offering scarcity.

Barney everybody cheering
Attended @Barneys The Drop LA Turnout  and Enthusiasm Was Impressive! 

But wait.  Brands also wanted to offer buzz and control their messaging.  Niche cult fave Supreme keeps its anticipation way high among fans with an entire strategy based on drops.

“In many ways, if you think about it, drops operate on the same principle as does home shopping or bidding on Ebay.  These are all timed events and once product is gone or the promotion is over thats it. ”                                       says The Christine Report

Change has arrived.  The luxury players with mainstream availability are now getting in.  Moncler, the must-have luxe winter outerwear brand describes a recent concept for their Drop called the “Genius Project”.   Its as much a drop as it is an art installation.

Moncler Genius Project Installation
Moncler Drop as Art Installation courtesy @Moncler

Luciano Santel, executive director of Moncler explains their approach: “The amount of business we plan to develop under the Genius Project is not particularly significant as compared to the rest of our business,” Santel said. “But…strategically, from the brand, from the communication point of view, from the design, from the product, it is an extremely important project.” 

Burberry also recently announced they are also engaging in drops.  The changes mark “the beginning of a new way of conversing with our customers across product, communication and experience,” says a brand spokesperson……

Drops, as cool as they are, have two major challenges.

adult-beautiful-clothes-291762

Just as technology has enabled brick and mortar to leverage the promotion of their drop, it also inevitably produces the dark side.  Those with the tech know-how unleash bots to scoop up excess merchandise beyond the normal capacity of a single consumer.  Then, that merchandise gets resold online for many, many times over the original price.

Defeating the bots created extra promotional opportunities for Nike.  They developed additional human interaction requirements via gamification.  In recent coverage by Draper’s Online, they described the successful drop for the SB Dunk Hi Momofuku sneaker in collaboration with restaurateur David Chang.  Participants had to locate multiple Nike posters placed around NYC that featured 3D capabilities.  Via their smartphone, up popped a full interactive model of the shoe which then they could go on and purchase.

David Chang
David Chang with Nike’s SB Dunk Hi Momofuku courtesy @Nike

 

Secondly, Don’t Create Drop Dreary Consumers.

belt-belts-business-1023937
Don’t Over Saturate With Too Many Drops or Too Much Sameness

 

 

Too many drop events can create a level of over-saturation and remove the interest.  As in Moncler, keeping the edge on creativity is key.  The gamification of drops and other more sophisticated engagements will also come into play with more interesting technology applications.  Luxury brands are also increasing the exclusivity factor. For example, Louis Vuitton is doing drops with little to no promotion and keeping it extremely fresh- as word only gets out the old fashioned way- peer to peer and mouth to mouth.

Every brand will have to evaluate for themselves the value of drops, can they manage them properly and will the sales enhance relationships with their customer or just cannibalize them?  Keep the drops real, but also keep them away from the bots!

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Trophy Clothes

Luxe, Chic, Fab, Amazing, OMG, Style.  Love it, want it all, bring it, please.  Fashion’s finest unite achieving uber-levels of fashion excellence.  Its much more than the usual over-the-top-look-at-me outfit.  These are pieces are living museum installations that declare a whole new space of existence.

These last couple of seasons definitely are different.  We have reached a new fashion pinnacle.

I call it “Trophy Clothes”

Unquestionably, the tipping point hit us via the amazing Alessandro Michele at Gucci.

Alessandro Michele @WMagazine
Alessandro Michele @WMagazine

 Marco Bizzarri, the newly installed president with the insightful gusto in hiring Michele says, “I thought, Why should I look for someone else when he can translate the heritage—and when the values of Gucci are in his veins?”

It took a couple of seasons for some and years for others, but make no mistake, we are now deep in trophy territory.  How do you know trophy clothes when you see them?  ask yourself these key questions and see where they take you-in your imagination as well as in your closet.

Is it an accessory that is an absolute visual festival of delight? For me that means at least 3 differing elements keeping the mind and eyes entranced.  Many of this season’s Louis Vuitton bags are spot on.

Vuitton Pochette Kabuki $2,650
Vuitton Pochette Kabuki $2,650

OK, I know bags have been trophies for years now, so let’s look at some other pieces.  Dolce & Gabbana is another Trophy standard and they are extremely good at it by pulling off some of the most adorned, ruffled, printed and embellished pieces yet.

Dolce and Gabbana Ruffled Silk Embellished Jumpsuit
Dolce & Gabbana Majolica Ruffled Silk Embellished Jumpsuit $4,195

Versace has turned the simplest concept of the team t-shirt and transformed it into a live decal for the Trophy Movement.

Versace Logo Team T Shirt
Versace Logo Team T-Shirt $750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beauty is full-in as well.  Done right, it can be a fantastical compliment to the whole look.

Guy Tang Hair
@Guy_Tang on Instagram Featuring Rainbow Bayalage

Back to Gucci.  The logos!  It’s at a whole new level.  Nothing like the “Logo-Mania” eras of the past.  Trophy Logos.  Enough said.  Pulling together this mixed-media maximist look is the epitome.

Gucci Trophy Logos

 

Michele from Gucci sums it this way, “The way you dress is really the way you feel, the way you live, what you read, your choices. That’s what I want to put into Gucci.”

Do you want to feel like a trophy this season?  Go for it, that options are aplenty.

 

headshot-from-christmas Author Christine C. Oddo

 

 

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Chloe Resort 2019 Is Killing Me Yaaaas!

Chloe Resort 2019 is BEYOND.  So wearable and the construction looks super-cut in all the right places.  Suddenly I must go out and get my socks to wear with some strappy sandals.  Perfect for a changing season or out on a get away.

Thanks to @Vogue for publishing the look book and to @Chloe for an amazing show.

Chloe Pants Cruise 2019
These pants have all the right moves with just enough swish.  Shirt print an awesome Chloe legacy archival throw back. 

Chloe Mixed Prints Cruise 2019
Mixed prints just keep getting better. So easy on the eyes and so clever at the same time.

Chloe Cruise 2019 High Low Skirt
A personal fave.  Always need something for work that goes the step beyond yet stays within range. Love.

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Global HAPPI Conference and Cosmetic Ingredients Conference Headlines ROOT OF SKIN Skincare Scientists As Keynote Speakers

AIVITA Biomedical Scientists Invited to Deliver Keynote Address at HAPPI Anti-Aging Conference

IRVINE, Calif. – March 21, 2018 – AIVITA Biomedical, a global biotech wellness company specializing in novel stem cell applications, announced today the appointment of its two senior scientists as keynote speakers at the HAPPI Anti-Aging Conference. Chief Science Officer Gabriel Nistor, M.D. and Vice President of Research and Development Aleksandra J. Poole, Ph.D. will deliver a keynote speech titled Biotechnology-derived Active Ingredients for Anti-Aging Cosmetics at the conference taking place May 15-16 at the Jacob Javits Convention Center in New York City.

Javits Graphic

HAPPI is the leading media outlet in the global personal care and household product market. HAPPI’s Anti-Aging Conference will give formulators and their suppliers an opportunity to learn, interact and discuss all things related to anti-aging with industry professionals. The conference will feature breakthrough technology, novel raw materials, regulatory insights and market research involving the multibillion-dollar anti-aging industry.

 In January Dr. Nistor and Dr. Poole introduced to consumers an all-new actives complex which utilizes the natural signaling methods and ingredients of skin stem cells to achieve more youthful-looking skin. The breakthrough active is available in the Company’s  ROOT OF SKIN™ product line.

“We’re grateful for the invitation and look forward to sharing some truly exciting innovations with the attendees,” said Dr. Nistor. “We hope our focus on providing proper nutriments to achieve results is a welcome shift from current, more damaging approaches.”

Dr. Hans Keirstead, CEO AIVITA Biomedical, will also appear on a promotional podcast with host Tom Branna in advance of the show, which will be made available on their website at http://www.happi.com and www.rootofskin.com

Hans For Beauty Independent
           Dr. Hans Keirstead                    CEO AIVITA Biomedical

 

 

 

 

 

 

 

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Will Somebody Please Just Tell Me Why My Moisturizers Don’t Work???

In a recent interview with Dr. Gabriel Nistor, Chief Science Officer, AIVITA Biomedical and ROOT OF SKIN skin care brand, I asked him to explain why moisturizers sometimes do not seem to work? Following is his scientifically based reason why it seems that many moisturizers don’t always help us we we want them to.

 

When we were young our skin had all the moisture it needed. There was no need for moisturizing products, our skin had all the natural oils and protective layers necessary to keep our skin hydrated, soft, and smooth. As we age, this can change, with many of us finding it unthinkable to leave the house without first applying a moisturizer.

But did you know that you can end up in a vicious cycle of dependency by overusing moisturizers? Many moisturizers available today make your skin feel well-hydrated when applied but can make your skin look worse in the long run.

Let me share with you why your moisturizer doesn’t work.

Healthy skin has a natural waterproof layer that should be self-sufficient in protecting against water loss. However, through natural aging and other factors this natural barrier becomes less effective over time, allowing moisture to easily slip out of the skin’s upper layer. This is known as Trans-Epidermal Water Loss, or TEWL for short. Many moisturizers work by applying waxy or oily ingredients to your skin to prevent this water loss.

This is where the viscious cycle begins. The waxes and oils added in many moisturizers to reduce TEWL can cause a build-up on the surface of the skin. This unwanted build-up can also disrupt sweat and sebum glands, natural moisture regulators, or cause inflammation. It can even cause enough build-up so that the skin appears flaky and bumpy.

Some products also contain detergent-based ingredients to provide a silky feeling. These ingredients can strip the skin of its lipids when removed, essential components which maintain the strength of the skin’s protective barrier. This gets to the heart of the reasons as to why your moisturizer doesn’t work.

“Did you know that our natural cycle of cellular turn-over, where fresh clean cells replace the dead and dirty ones, is reduced by half by the time we are 30?”

Dr. Gabriel Nistor  Gabe Headshot

This is where the viscious cycle starts.  The moisturizer you are using to help your skin may actually be causing inflammation, build-up, unevenness and can even also strip away the moisturization you are trying so hard to get back!

Viscious Cycle

For true rejuvenation, skin needs a “vacation” from the heavy waxes, oils, detergents and toxic components that can disrupt its natural moisture regulating capabilities. To restore its vibrancy and youthful appearance a product is needed which supports healthy skin nutrition and does not disrupt its natural function. Check product labels for ingredients and try to carefully observe your skin as it responds to a moisturizer.  Careful observations will tell you what is working, what isn’t, and help you break the        viscious cycle.

Questions?  Comments? Please feel free to email me at rootofskin@gmail.com.

www.rootofskin.com  www.aivitabiomedical.com

Thank you!

Madison Luxe Group is an innovative beauty, fashion and lifestyle luxury brand retail sales distributor and marketing consulting agency founder Christine C. Oddo and Madison Luxe Group
Christine C. Oddo founder Madison Luxe Group, author The Christine Report Blog christine@madisonluxegroup.com

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ROOT OF SKIN- A Whole New Technology In Skin Care

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AIVITA Biomedical™ is a global bio-tech wellness company specializing in novel stem cell applications.  While researching new cures for cancer, we realized the opportunity for a new class of ingredients and from this discovery, the formula for our topical skin care brand, ROOT OF SKIN™, was created.  Our actives complex, SourceCode Technology™, is patent-pending and the most pure stem cell extract ever created.  Our complex does not contain any actual stem cells or debris.  It contains the 670 naturally present precursors for human skin development and is combined with 52 nourishing active ingredients.  See our founder, Dr. Hans Keirstead briefly explain our company and technology!

We are a mission based company and all of the proceeds are rolled back into the company supporting our ongoing cancer therapy research.

Completely gender inclusive, our formula is made for both women and men!

 

 

Cropped Version Front of Package ROS for Women and Men

 

 

 

 

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