Friday, January 15, 2010

Huge Merger on the Horizon....



This is one of the biggest pieces of news to hit the beauty industry all year (see link below)...I feel like this can go in any direction. On one hand, one of my favorite things about Bare Escentuals is the fact that it hasn't gone "corporate," but on the other hand, I think that the only way to strengthen such a growing brand is to create a solid company structure, something that Shiseido has maintained successfully and proven. Without a doubt, it is a great growth opportunity for Bare Escentuals, especially since Shiseido pretty much owns the Asian market (well deserved, in my opinion.) I just hope that Bare Escentuals maintains its original business plan and doesn't fall into the trap of greed and over-growth because the fundamental reason for its amazing customer loyalty is its non-corporate image. The products themselves are great quality and original, yet this is one of those classic examples of buying into a story, and one that women relate to and trust. If Bare Escentuals loses that "personal touch," and sells its soul to generic ideas and less than stellar customer service, then all that will be left will be something as boring as supermarket brand butter. It will be a staple that most women will inevitably buy, but the experience will be bland, and the chances of her branching out to other products will be about as likely as going to Publix for butter and coming home with six packs of grade A truffle infused butter.

I am not quick to judge how this situation/merger will turn out because it could also be extremely successful for both companies and rewarding to the consumer. I also have a really good feeling about this because I personally have a lot of faith in Shiseido and its umbrella of brands. I love that Shiseido has been about to globalize and still maintain exclusivity and quality in its product lines. We are dealing with two very powerful creatures here that have the ability to take over the world...one lipstick at a time. I will be following this business deal and reporting on it regularly!