THE CEO’s BLOG
Here we are, in the last hurrah of the 2010 decade, wondering where the last ten years went. Hey, I still think about Y2K and 12/31/1999. That seems like forever ago and it seems like yesterday at the same time.
The next two weeks are slow and easy with most of us taking holiday time off, shopping, getting ready for Christmas and New Year’s Eve, college football bowl games and our favorite activity of all: Eating and drinking. No school busses, traffic is light and hey, next weeks temps are in the 40’s and sunshine. It won’t be a White Christmas, but it surely will be enjoyable.
With New Year’s Day falling on Wednesday, even the 2nd and 3rd will be slow with schools still closed and people extending their vacation time. The real action starts Monday, January 6. So what is the action going to look like?
That depends whom you are talking too. Look, it’s a new year and the start of a new decade. The optimist in me looks at this being one of the best times to move forward, embrace change and start off fast. And that is exactly what TNG is going to do. The pessimist in others might look at this time period as just another week, another month, another year that is going to be no different than last year or any other year. Those individuals will fall further behind.
We are going to see a new era of change unlike any other era. The likes of Tesla, Amazon, 5G, AI, biotechnology are just in the early adopter phases of product and technology roll-outs. By the end of this decade, everything we own today in technology will be obsolete and most likely, so will our SUV’s and pickup trucks. Biotech drugs will be introduced at a much faster pace and many cancers will become curable or at least manageable. The average life expectancy in 2100 will be 115 due to all the changes that will take place.
But for now, none of the excitement that will change our world will happen in the beauty business. It will continue to be product driven by celebrities and influencers. Surely this too will change but what new medium will appear to make that change happen? When Coty buys a 51% interest in Kylie’s company for $600 million, you know we are near a tipping point. And speaking of Coty, they are still trying to unload the P&G brands they bought just a few years ago along with OPI, GhD and a few others. It looks they will have to wait until 2020 just like Revlon who has yet to find a buyer. One thing is for certain, the beauty business will not get easier in the new decade.
For TNG, I am staking the company on product innovation, best-in-class customer service (we are like Delta, best service year after year), and best value proposition. If you look at most successful brands moving into 2020, they are all brands that sell their products at list price (no discounts), offer the highest quality and are in stock. These brands include Costco, Trader Joe’s, Lululemon, Apple, and ALDI. And for a peak at the master of branding building, look no further than LVMH who just bought Tiffany for a cool $16B. In fact, Bernard Arnault is the richest man on earth amassing a fortune over $100B and growing faster than Jeff Bezo’s or Bill Gate’s.
I’m super excited about 2020 and at my age, there are not many decades left to get excited about so this is perfect timing! Regardless of what the new era of change takes place, one thing is for certain: Girls from the ages of 6 to 96 will continue to get their mani’s, pedi’s, hair cut-colored-highlighted, and take in the occasional massage and facial. That is the sweet spot, beauty services, and we will continue to lead the way in nurturing this niche segment.
Safe travels whether you are staying home or on the road, safe and healthy new year and look forward to connecting in 2020.
©2019 Larry Gaynor. All rights reserved.