Unilever’s strategy to build a portfolio of premium-positioned, niche skin care brands is clearly reflected in this current acquisition of Dermalogica, following the two purchases since the beginning of 2015: REN and Kate Somerville. Dermalogica had well established presence through salons, department stores and growing sales through beauty retail channels. In Western European premium beauty it has registered an 8% CAGR between 2009-2014.
The lucrative growth opportunities offered by well-performing niche brands and categories have been captured is being multinationals through intense acquisition activity in 2014 and on into 2015. Niche brands have the advantage of a more personalised offering, unique features and benefits and are highly specialised in their focus categories.

Ildiko Szalai
Industry Analyst at Euromonitor International