Procter & Gamble's Beauty Divestitures are a Treasure Trove of Opportunities, According to Kline

PARSIPPANY, N.J., April 14, 2015 /PRNewswire/ -- Prospective acquirers are now diving into the details on the soon-to-be former brands of Procter & Gamble's struggling beauty business. The assets reportedly include small yet prestigious fragrance brands, such as Gucci and Hugo Boss, the substantial professional and retail hair care businesses of Wella and Clairol, and the legendary Max Factor and Cover Girl color cosmetic brands. While this partial dismantling of P&G's beauty empire ends an era of the company's impressive growth trajectory in personal care, it sets the stage for exciting growth opportunities for strategic and financial buyers, according to global market research and management consulting firm Kline & Company.

The beauty research and consulting team at Kline has a unique and deep perspective on the history, performance, and potential of this array of brands, as well as what the future may look like for the new owners of these P&G equities. In this opinion piece, Kline evaluates the beauty brands included in P&G's assets for sale and the potential they offer to possible acquirers.

Kline shares its perspective on three categories included in P&G's divestitures, starting with hair care brands, such as Clairol, a distant number two to L'Oreal in retail hair colorants, but "benefiting from strong consumer awareness and heritage in the category," according to Carrie Mellage, head of Kline's Market Research & Reports practice in Beauty. Susan Babinsky, head of Kline's Management Consulting practice in consumer products, also noted that "by focusing efforts on the space that Clairol does indeed own, the brand has the opportunity to revitalize growth." Kline experts also discuss Wella, a leading player in professional hair care with a strong position in hair colorants, as well as Nioxin, one of the treasures in this offering, per Babinsky.

Furthermore, this brief analysis covers other important brand assets including the two popular color cosmetic brands, Cover Girl and Max Factor and its portfolio of prestige fragrance brands, most of which are licensed offerings of high-end fashion brands, such as Dolce & Gabbana, Gucci, Hugo Boss, and others.

Read more about the opportunities P&G's planned assets for sale can offer by viewing the full point-of-view article on Kline's website. 

About Kline & Company
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

Vera Sandarova
Marketing Communications
[email protected]
+420722 018 881

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SOURCE Kline & Company

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