OPI Products knows some women like to make a statement with their 20 collective finger and toe nails. The company is well known for whimsical nail polish names, such as Not So Bora-Bora-ing Pink, I'm Not Really A Waitress, Got A Date To-Knight!, and Who the Shrek Are You? The firm offers 400 nail colors among its portfolio. In addition to nail polish, OPI also makes and markets nail care and skin care products. The company peddles its products primarily through salons and specialty beauty stores throughout the US and overseas. The company's brands include Nail Envy, Avoplex, Feet, Garden Party, Avojuice, and Nicole. OPI is owned by fragrance giant Coty.
Change in Company Type
Beauty behemoth Coty bought OPI in 2010 for $948.8 million in cash.
Under Coty's umbrella, OPI benefits from a well-established customer base and solid distribution system, as well as its financial resources. For Coty, adding an established nail polish maker enables the fragrance firm to expand its presence in the nail care category through professional salons, which represents an important new distribution channel for the company.
Based in California, OPI makes its products available throughout more than 100 countries.
With its vast portfolio of products, OPI serves consumers and beauty professionals through a network of distributors and wholesalers across the US and internationally.
Products include professional items, highlighting nail treatments, finishing products, lotions, items for manicures and pedicures, files, tools, acrylics, and gels, including its new GelColor by OPI that cures in 30 seconds and lasts for weeks.
Sales and Marketing
OPI works to get its name in front of mobile consumers by rolling out an iPhone app and Android app. It also regularly enlists the help of celebrities to develop niche color palettes specific to them.
While it caters to consumers in the US, OPI has been expanding aggressively on the international front to diversify its revenue. The UK is its largest foreign market, followed by Japan and Russia. OPI anticipates that Japan will surpass the UK to become OPI's biggest overseas market.
To further diversify, OPI in 2014 partnered with do-it-yourself chain Ace Hardware to roll out an exclusive OPI Color Palette by Clark+Kensington in more than 3,200 Ace Hardware stores nationwide.
The nail polish industry has been under pressure to make its polishes more consumer friendly. To this end, OPI removed the chemical toluene from its nail polish formula in recent years, saying it had discovered other ingredients that work better in the product. The company had eliminated another controversial ingredient called DBP in 2006. OPI is looking to replace formaldehyde, which is still in some of its nail products as a strengthener.
While Coty does not disclose sales for OPI specifically, the parent company reported in 2013 that sales in the Americas increased 2% -- or $40.3 million, to $1.9 billion from $1.87 billion in 2012. The firm points to improved sales across nearly all countries in the region, with the largest gains coming from the US, followed by Latin America, and Canada. US growth was also bolstered during the reporting period by higher net revenues in fragrances and color cosmetics, offset in part by lower sales among the OPI and Sally Hansen brands.
President and CEO George Schaeffer purchased a dental supply business in 1981. Upon realizing that manicurists were frequenting his shop to buy acrylic porcelain for artificial fingernails, Schaeffer decided to apply his knowledge of dental technology to create product lines for nail technicians. OPI released its first line of nail lacquers in 1989.