Out Of My Mind On A Monday Mornin’

47 million turkeys were sold for Thanksgiving. Will you buy one next year?

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Wow, what a Thanksgiving weekend. Two sons, their wives, three grandkids made for an eventful time indeed. What memories forget or don’t include: Countless water bottles, some with two sips, some half-empty and some empty, none put in the garbage can; coffee cups some half-full, some empty, scattered wherever; empty toilet paper rolls and Kleenex boxes; laundry machine non-stop; empty bourbon bottles that magically emptied; toys everywhere, most used once; and let’s not even talk about the fridge. Worse culprits: Not the grandkids, but the adults!

We also decided this was the end of turkey, stuffing and veggies no one wants to eat. Friday and Saturday no one wanted leftovers and by the time we got to them on Sunday, neither did we. Oh well, a new tradition will start in 2019.

Sorry but it’s tough to be a state of MI sports fan. The Lions proved inept against the Bears and the Wolverines were embarrassed playing the BIG GAME. Worst loss in Wolverine’s history against OSU. Spartans barely won but I was rooting for Rutgers. Going downtown for the worthless and useless bowl game is so much closer. As they say, at least there is basketball. . . .

Conde Nast, publisher of many magazines including Allure, Vogue and Vanity Fair decided to stop publishing Glamour and keep it online only. Glamour was a top 5 magazine back in the day. Millennial’s, X, Y, and Z’s no longer look to magazines to make their beauty decisions, it’s all about Instagram.

CND’s Vinylux is the latest pro brand to go retail. Huge in-line displays at CVS and other retailers.

Black Friday, Cyber Monday and iPhones. What do they all have in common? Give 25%, 50% and even 75% discounts, and consumers will buy now versus later. Apple recently announced its worst sales of its flagship product in history and only through huge incentives can they move their new XR models. I was at Dick’s on Friday, the entire store was 25% off. They had customers but even at 25% off, it wasn’t a big deal. The other thing is, what happens when you go to mall and don’t find anything to buy? This increasing phenomenon is very scary as the generations I mentioned earlier are more interested in experiences than products. And what is one of the most popular Christmas songs ever? “All I want for Christmas is you.”

Coty has a new CEO and Sennen Pamich, formerly of Revlon, is now an executive. Coty hasn’t made money in more than two years, has $7B in debt and it’s stock is at an all-time low. Can Coty be turned around as P&G unloaded an overpriced asset or will the Clairol/Wella deal prove to be too much?

GM is closing 5-7 factories and laying off more than 6,000 workers; Ford stopped making sedans; Nissan CEO accused of tax fraud in Japan and is in jail. Carlos Ghosn is out at Nissan, Mitsubishi and pending fate at Renault. This while Jeep unveils its first pickup truck since 1992.

Can someone tell me this: What happens when everything is delivered to your home or business within two hours? You know that is the way the world is going. Target is advertising same day delivery paying a fortune to use their stores as warehouses. Amazon already offers this service in many urban areas. But think about this, if the surviving retailers all offer free shipping and two hour service, what will the differentiators become?

Happy Monday!

Coty Brings Fresh Air to Pro Salon Business

How often do you use fragrance (perfume)?

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As expected, Coty bought OPI Monday making OPI perhaps the most valuable company in the history of the pro beauty industry. L’Oreal bought MATRIX and Redken for a mere percentage of what Coty paid for OPI.

Coty which owns Sally Hansen and Rimmel among its brands is also a worldwide leader in fragrances. The information below is from their website:

Today, Coty is the world’s largest fragrance company, and a global leader in the beauty industry. After more than one hundred years in the business, Coty continues to draw on the creative, entrepreneurial and visionary legacy of its founder and, more recently Bernd Beetz, Chief Executive Officer of Coty Inc. Both visionaries have dramatically shaped and re-shaped the future of the company and the beauty industry itself.

Less than a week of acquiring OPI, they also bought Philosophy, known for their holiday lotions and potions. Plus they announced they are making yet another acquisition. WOW is all I can say.

But in the meantime, OPI is the story of the year. In a press release sent by Coty and George Schaeffer, the common thread was “that if isn’t broken, then there is nothing to fix.” With that said, OPI will continue to be the industry leader in the pro nail category and the entire management team is staying on including George.

This is good news indeed. Coty already owns the majority of the nail business in mass retail and now they have the dominant position in professional salons and spas. They have the vision and celebrity names to make OPI even a bigger player and surely they paid a premium knowing what an asset they bought.

The bottom line is that it’s business as usual. With George and the management team staying on, we know the integrity and brand proposition will remain intact and Coty’s influence will only enhance it.

I’m excited and await the new opportunities. In the meantime, congratulations to George, Suzi and Miriam from taking a dental supply company into a global giant and selling to a company that understands their vision and will take it to the next level.

Happy Wednesday!

Out Of My Mind On A Monday Mornin’

Are you a Black Friday or Cyber Monday shopper?

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So happy to be back to work today. One can only take so many consecutive days of eating and drinking anything and everything.

It’s also nice to be back to work today since all the family members left yesterday. They devoured virtually everything in sight and then made a total mess throughout the house. You would not believe the places I found candy wrappers and pistachio nut shells.

OPI is in the news once again. The Wall St. Journal is stating that Coty is the buyer and the price is near $1 Billion. With OPI and Sally Hansen, Coty will own the nail market.

I also heard over the weekend Essie is hitting Walgreen’s the first of the year with a retail price of $8. At this point, any difference in Walgreen’s, Target or even Wal-Mart selling the brand if Ulta does?

MSU 11-1, beats Penn State at Penn State for the first time since 1965 AND is the only team to beat Wisconsin. Our reward? Thumbs down for the BCS games. Enough Mickey Mouse for the Spartan’s.

I was at Somerset Mall on Black Friday (most people don’t know why it’s called that but they know to wake up early to shop) and it was busy but not crazy busy. Except for the Apple store where there was standing room only.

If someone gave you $500 to spend, what would you buy? Girls would opt in for clothes and shoes while boys would opt in for electronics. Unisex choices include designer jeans and fragrance.

Question: If you were at work and your daughter or son called and said they needed you to bring home a red pencil for their homework assignment, would take one from the office or stop at Staples? More than 90% stated they would take one from the office in a major study.

Happy Monday!

Out Of My Mind On A Monday Mornin’

Are you a Black Friday or Cyber Monday shopper?

View Results

So happy to be back to work today. One can only take so many consecutive days of eating and drinking anything and everything.

It’s also nice to be back to work today since all the family members left yesterday. They devoured virtually everything in sight and then made a total mess throughout the house. You would not believe the places I found candy wrappers and pistachio nut shells.

OPI is in the news once again. The Wall St. Journal is stating that Coty is the buyer and the price is near $1 Billion. With OPI and Sally Hansen, Coty will own the nail market.

I also heard over the weekend Essie is hitting Walgreen’s the first of the year with a retail price of $8. At this point, any difference in Walgreen’s, Target or even Wal-Mart selling the brand if Ulta does?

MSU 11-1, beats Penn State at Penn State for the first time since 1965 AND is the only team to beat Wisconsin. Our reward? Thumbs down for the BCS games. Enough Mickey Mouse for the Spartan’s.

I was at Somerset Mall on Black Friday (most people don’t know why it’s called that but they know to wake up early to shop) and it was busy but not crazy busy. Except for the Apple store where there was standing room only.

If someone gave you $500 to spend, what would you buy? Girls would opt in for clothes and shoes while boys would opt in for electronics. Unisex choices include designer jeans and fragrance.

Question: If you were at work and your daughter or son called and said they needed you to bring home a red pencil for their homework assignment, would take one from the office or stop at Staples? More than 90% stated they would take one from the office in a major study.

Happy Monday!

Bottle of OPI Lacquer: $4.25; All The Bottles: $1 Billion; Naming Your Own Colors: Priceless

If you could find out how long you will live, would you want to know?

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Paul DeJoria is licking his chops and having a shot of Patron to celebrate. Already worth some $3.5 Billion, he is watching from the sidelines what OPI is going to fetch. DeJoria owns both Paul Mitchell and Patron. Mitchell is the beauty industry’s biggest privately held company.

OPI is the second largest and is on the auction block. Looks like Coty is a lead bidder and a few private equity firms such as Bain are tagging along. Ultimately the selling price could be $1 billion.

That’s a lot of money. We all know Essie sold to L’Oreal earlier this year but that was a $28 million company compared to the mammoth $300 million company OPI is. I wouldn’t be surprised if L’Oreal doesn’t step in later, they know there isn’t another brand like OPI around.

I’ve written my fair share about OPI, George Schaeffer, Suzi-Weiss Fleishmann and for good reason. They created a phenomenon from nothing. They took risks and spent millions in consumer publications. They took risks and put in state-of-the-art filling machines when most people were outsourcing. They took risks in naming lacquers with strange names.

Now the risks are going to pay off and pay off big. They deserve it. But once the deal is over, the bigger questions remain: Will OPI go retail to pay off the investment and will George and Suzi stay on?

Of course there is a small chance that all this talk from today’s Wall St. Journal is gibberish and only rumors. Wouldn’t that be nice. But in today’s global economy and with companies and equity firms flush with cash, this sounds like an opportunity that won’t be passed up.

WOW. What else is there to say?

Happy Wednesday!