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Henkel Hires Lagerfeld in Campaign to Narrow Gap to L’Oreal

March 11 (Bloomberg) -- Henkel AG has hired fashion designer Karl Lagerfeld for its hair-care division’s biggest event-marketing campaign, which aims to help Schwarzkopf shampoo gain ground on larger competitor L’Oreal SA’s brands.

“We want to give Schwarzkopf a more trendy and fashion-oriented image,” Tina Mueller, Henkel’s chief marketing officer for cosmetics, said in an interview in Dusseldorf today. Schwarzkopf ranks second in Europe’s hair-care market, she said.

Lagerfeld has designed a three-floor exhibition and hair-treatment pavilion to attract visitors to the Eurovision Song Contest, Europe’s biggest TV event, where Henkel is the main sponsor. The building will move from Dusseldorf, Germany, where Henkel is based and this year’s contest takes place on May 14, to Milan and Paris later this year, Mueller said today at a press conference.

Schwarzkopf, with products that cost from 2.49 euros ($3.44) for a shampoo to 29 euros for hair extensions, is the fastest-growing brand in Henkel’s beauty division, the source of more than 20 percent of annual revenue, Mueller said. The division, which also sells toothpaste and skin creams, overtook Procter & Gamble Co and Unilever NV last year to become Europe’s second-biggest supplier in these segments, she added.

Henkel expects 140 million television spectators to follow the Eurovision event, more than any other TV event this year in Europe, Mueller said. She declined to say how much Henkel will spend for the Lagerfeld campaign.

To contact the reporter on this story: Holger Elfes in Dusseldorf at helfes@bloomberg.net.

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net.

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