Apparel retailers freshen up merchandise with beauty offerings

NEW YORK —In the retail world, when one thinks of November, Black Friday comes to mind as the ultimate attraction on the calendar. However, a few apparel companies have released statements announcing an expansion into beauty—enticing shoppers into their stores with something other than sales.

New York & Co. launched City Beauty, a line of bath and body care products in six scents that include body mist, body scrub, hand and body cream and shower gel. The products are developed by Inter Parfums Inc., which manufactures products for Gap Inc., as well as a fragrance licensee for Quicksilver. The specialty retailer hopes to build brand loyalty with repeat customers who embrace the beauty segment as part of the New York & Co. culture.

Generally, expanding into beauty builds a stronger brand and becomes more of a lifestyle, said Neil Stern, senior partner at McMillan Doolittle, a Chicago-based retail consulting firm. “They have your jacket and now they can also have your fragrance,” he added.

Much like Victoria’s Secret, New York & Co. has an opportunity to gain positive returns on its beauty booty. Sales associates can easily upsell a low dollar item, creating a safe way for the consumer to experiment with a new beauty brand.

Ann Taylor Stores also unveiled its new beauty collection in 350 Ann Taylor locations and online at Anntaylor.com .

The collection consists of body mist, body lotion and body wash in six scents including Silver Tea Citrus Flower, Sugar Vanilla Orchid and Peach Honey Sheer Musk, among others. In addition, Ann Taylor launched its signature perfume: Possibilities, eau de parfum.

Morgan Ward, beauty analyst for McMillan Doolittle, believes it makes sense for the company to incorporate a beauty line. “Ann Taylor has a very brand loyal customer that has a signifiscant portion of disposable income,” she said. The brand designs for a lifestyle filled with elegant clothes, so “why wouldn’t customers trust Ann Taylor with beauty products,” added Ward. On the other hand, these customers have very defined preferences and, as a result, probably purchase beauty brands that already have their loyalty, which may lead to their reluctance to buy into a slightly lower tier of beauty, she continued.

Rocawear, recently purchased by Iconix Brand Group, disclosed that it has locked a beauty licensing deal with Elizabeth Arden. Shawn Carter, better known as JayZ, co-founded the street-inspired lifestyle brand, complete with sportswear, footwear and accessories. In addition to Rocawear.com, Macy’s distributes the brand as well.

Developing a relationship between a strong apparel label and an international beauty mogul opens doors for both parties. Rocawear hopes to heighten brand awareness, as well as reach out to a younger audience. “We are excited about the launch of the first ever Rocawear fragrance next fall,” said Iconix chairman and ceo Neil Cole in a statement. “The excitement and advertising surrounding the launch will make Rocawear more visible than it has ever been and benefit the entire brand merchandise.”

In the case of Elizabeth Arden, it has the opportunity to produce a variety of unique men’s and women’s fragrances, cosmetics and skin care. Although the beauty label has a strong presence in the women’s beauty category, it has not yet built a robust men’s beauty business. The partnership will serve as a launching pad for diversifying its brand portfolio in reaching out to a more modern, younger customer.

Ward, however, echoes some concern, because the two brands may cause cognitive dissonance for the consumer. “People have an understanding of a brand, its attributes and meaning,” she said. “When you match two brands that have different meanings and values to people, it may cause customer confusion.” Elizabeth Arden associates itself with an older, sophisticated woman, while Rocawear rings hip-hop youth. Therefore, Rocawear should have a smart marketing plan on hand.

To boot, Brooks Brothers expects to work with fragrance producer Inter Parfums in designing, manufacturing and supplying new fragrances to U.S. stores next November. Brooks Brothers aficionados across the world should see the scents inside international stores by spring 2009. The specialty retailer also plans to repackage the three existing scents, in addition to introducing a first-time women’s fragrance to complement the escalating growth of Brooks Brothers women’s apparel.

Breaking into the beauty market, dominated by department stores and Sephora, is no easy feat, yet these companies feel confident that their customer will want to purchase items from a brand they love. As long as retailers understand their customers’ desires, the concept of brand stretch should run smoothly, said Stern.