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www.bwconfidential.com The inside view on the international beauty industry July 7 - August 24, 2016 #134

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Comment Inside

The buzz 2 Dealmakers News roundup

nother week and another few brands change hands in Netwatch 6 Abeauty. The big news last week was the announcement Social media monitor that Japanese group Shiseido would acquire the fragrance and beauty license for Dolce&Gabbana. The Dolce&Gabbana license Interview 8 had been the subject of much speculation since it emerged that IFF group president fragrances the brand would not be included in the sale of P&G’s specialty Nicolas Mirzayantz beauty business to Coty. The deal is seen as a good move for Shiseido. Analysts say that Insight 10 Dolce&Gabbana is the type of blockbuster brand the company Sephora’s European strategy needed to fill the gap in its portfolio following the loss of Jean Paul Gaultier—Spanish group Puig took over the Gaultier fragrance business in January this year. Although on the Show review downside, some point to the high royalty rate demanded by the Italian designers. MakeUp in Paris 14 Also in the fragrance arena, last week saw L’Oréal enter the fray of major groups buying Alternative Fragrance & Beauty 18 niche brands. The group said it would acquire French fragrance brand Atelier Cologne, which launched in 2009 and manufactures colognes absolues. Store visit 21 The acquisition is the latest in a string of niche fragrance buys by major groups. In the L’Occitane, São Paulo, Brazil past year and a half, Estée Lauder Companies has acquired Le Labo, Editions de Parfums Frédéric Malle and By Kilian, while Puig bought L’Artisan Parfumeur, Penhaligon’s and took a stake in Eric Buterbaugh Florals. And given the growth rate in this segment of the market—estimated to be at around 20% per year—and the heightened interest by major companies, more deals are likely to come. BW Confidential will be taking a break for the summer. We will be back with more news, analysis and commentary on August 25. The next issue of BW Confidential will be Oonagh Phillips published on August 25, 2016 Editor in Chief [email protected] Stay informed with our daily news service on www.bwconfidential.com News headlines daily on www.bwconfidential.com @BWCbeautynews News roundup At a glance...

n Shiseido inks D&G license

n L’Oréal to buy Atelier Cologne

The buzz n Birchbox to cut more jobs

Stay informed with our daily news headlines on www.bwconfidential.com

Strategy

Japanese group Shiseido’s Beauté Prestige International division has inked the much-coveted fragrance and license for Italian brand Dolce&Gabbana. The Dolce&Gabbana fragrance license was previously held by P&G, but was not included in Coty’s deal to acquire P&G’s beauty brands. Dolce&Gabbana’s fragrance and cosmetics business reported sales of around €400m in 2015. Shiseido Group EMEA will take over the business from October this year. Dolce&Gabbana’s main beauty business is in fragrance with key lines such as Dolce, The One and Light Blue. However, the brand recently entered make-up and skincare and Shiseido says it plans to develop these categories. Shiseido also aims to expand Dolce&Gabbana’s global sales by reinforcing its presence in Asia. Shiseido is showing itself to be aggressive on the acquisition front. Just a few weeks ago the group said it would buy US-based Gurwitch Products, which markets the Laura Mercier and Révive brands.

L’Oréal is to acquire French niche fragrance brand Atelier Cologne. The brand, which manufactures colognes absolues, was launched in 2009 by Sylvie Ganter and Christophe Cervasel. Atelier Cologne is sold in more than 800 prestige doors BW Confidential in 40 countries and on e-commerce sites. It also has six standalone stores: three in 4 avenue de la Marne France, two in the US and one in Hong Kong. The brand did retail sales of around 92600 Asnières sur Seine, France [email protected] €40m in 2015. Atelier Cologne will join L’Oréal’s Luxe division. Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 The acquisition is the latest in a string of niche fragrance buys by major groups. www.bwconfidential.com ISSN: 2104-3302 In the past year and a half, Estée Lauder Companies has acquired Le Labo, Publisher: Nicolas Grob Editions de Parfums Frédéric Malle and By Kilian, while Puig bought L’Artisan Editorial Director: Oonagh Phillips [email protected] Parfumeur, Penhaligon’s and took a stake in Eric Buterbaugh Florals. Journalist & Copy Editor: Katie Nichol [email protected] Journalist: Hannah Ikin California-based Counter Brands, parent company of Beautycounter, has [email protected] Contributors: Sophie Douez, Alex Wynne, acquired the natural skincare brand Nude from LVMH. The company said it plans Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet to develop Nude internationally, along with its own Beautycounter brand, which Subscriptions 1 year: electronic publication (20 issues) + is based on the safe and clean cosmetics concept. The deal will see the creation of print magazine (4 issues) + daily news: €499 Counter Brands UK to lead international expansion of the two brands. or US$699 [email protected] As part of the deal, Nude founder Ali Hewson will join the board of Counter Advertising [email protected] Brands and she and her husband Bono, the musician, will become investors BW Confidential is published by Noon Media in the company. Also joining as investors in Counter Brands are entrepreneur 513 746 297 RCS Nanterre Copyright © 2016. All rights reserved. Bryan Meehan, who originally created Nude with Hewson, and global investor Reproduction in whole or in part without permission is strictly prohibited. Paddy McKillen. n n n

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n n n Nude is sold in the US on Sephora.com, across Europe in Space.NK stores and online and in Australia in Mecca stores and Mecca.com. Nude was founded with the aim of developing safe and natural beauty products and with a commitment to transparency in ingredients. Beautycounter says Nude’s ‘Beautiful Without’ formulation standards are

The buzz closely aligned to its ‘Never List’ of more than 1,500 ingredients banned from its products, and was fundamental to the decision behind the acquisition.

Switzerland-based industrial group Sulzer is to acquire German brush manufacturer and packager Geka Holding from investment company 3i. The enterprise value of the deal is estimated at €260m. Geka is expected to see sales of €150m and an Ebitda of €27m in 2016. 3i took a majority stake in Geka in 2012. Under 3i’s ownership Geka has expanded into Asia and Latin America and increased production in the US.

Beauty subscription box company Birchbox is to lay off 12% of its workforce in the US for a total of 30 staff in a bid to cut costs and enable its US operations to reach profitability more quickly. The news comes after the company cut 15% of its workforce (50 staff), and suspended operations in Canada earlier this year.

Swiss group Art & Fragrance is to be renamed Lalique Group in a bid to focus on the company’s main brand and build awareness of the Lalique name internationally. The company’s Lalique brand accounted for 67% of its total sales in 2015. The beauty segments (perfume and cosmetics) will continue under a new sub-holding company called Art & Fragrance SA. The change of name will not affect its strategy, the company said.

ModiFace, a provider of augmented reality technology for the beauty and medical industries, is launching what it claims is the first beauty advisor on Facebook Messenger. The ModiFace bot is designed to allow users to try on and buy beauty products directly while chatting. The ModiFace bot, which has expert knowledge of about 5,000 beauty products, enables shoppers to search for make-up by conversing with ModiFace and asking questions about color, brand name or shade name. Once a consumer has found their desired shade, they can try the product on their own photo by taking a photo within Messenger. Users can also purchase products directly from the bot, which connects to beauty retailers. To interact with the beauty advisor, users message ModiFace on Facebook Messenger and start by asking about particular shades or colors.

Data

Despite a drop in sales in 2015, the global duty-free and travel-retail industry is set for a compound annual growth rate (CAGR) of 6.8% over the next decade, meaning that the industry will double its current sales between now and 2025, according to market research joint venture m1nd-set Generation. The growth is 0.5% higher than the average over the previous two decades since the mid-nineties. It is set to be a result of the growth of travelers from emerging countries and of international travel generally and improved marketing and premiumization of the offer, according to the group. Better analytical tools, to understand traveler behavior and n n n

www.bwconfidential.com - July 7 - August 24, 2016 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL The buzz in September. EdT) and€85(100mlEdT), willlaunch Uomo retailsat€46(30mlEdT), €61(50ml what theItalianwayoflifemeans tothem. young consumerstotakephotos representing Life initiativeonitswebsite,which willinvite by acampaignstarringactorBenBarnes. in blackonbothsides.Thelaunchissupported features thebrand’sVennalogo,reinterpreted cardamom andbergamot.Thescent’sbottle of orangeblossom,ambrox,blackpepper, Ferragamo isawoodyorientalwithnotes Guichard ofFirmenich,UomoSalvatore Composed byAlbertoMorillasandAurélien Italian gentlemanandthelifestyle. fragrance isdesignedtoevokethemodern this fallcalledUomoSalvatoreFerragamo.The Parfums istolaunchamajornewmen’sscent Italian brandSalvatoreFerragamo Launches 2014, accordingtothegroup. of directors’successionplanthatincludedGennette’selectionaspresidentMacy’sin effect. Lundgrenwillcontinuetobeexecutivechairman.Thetransitionispartoftheboard ceo roleinthefirstquarterof2017.Hewilljoinboarddirectorswithimmediate company veteranwhoiscurrentlypresidentofthecompany.Gennettewilltakeon US-based retailerMacy’sceoTerryLundgrenistobereplacedbyJeffGennette,a33-year People n annual growth (-2.0%), as will airlines (-1.5%) between now and 2025. annual growth(-2.0%),aswillairlines(-1.5%)betweennowand2025. CAGR isforecasttobe7.1%.Thegroupalsoforecaststhatferrieswillexperiencenegative will seethefastestgrowthwithanexpectedCAGRof7.7%aheadairports,whose Africa willallexperiencebelow-averagegrowthoverthenextdecade,saysgroup. $57bn, representingjustunder50%ofglobalsalesby2025.Europe,theAmericasand also forecaststhattheAsiaPacificregionwillgrowfromcurrentsalesofover$25bnto will represent11.7%ofglobalsales(upfrom9.4%in2015)toreach$14bn2025.It of 9.2%and8.5%respectively,accordingtothecompany.ItpredictsthatMiddleEast the MiddleEastandAsiaPacificarepredictedtoseeabove-averagegrowth,withCAGRs sources estimateannualtrafficwillgrowbetween4.1%and4.2%. another factorcontributingtothisgrowth.TrafficforecastsfromIATAandotherkey News roundup The brand is also launching the Scent of The brandisalsolaunchingtheScentof By sales channel, “other shops” (border stores, cruise ship stores and downtown shops) By saleschannel,“othershops”(borderstores,cruiseshipstoresanddowntownshops) By category,beautywillseeabove-averagegrowth,saysthecompany.region,both the means to target travelers at all stages of the journey through technology, will be the meanstotargettravelersatallstagesofjourneythroughtechnology,willbe n

LPTC_banner_Corporate_110x1130mm_BW Confidential_ENG_AAFF.indd 1 ® 2016 The Lubrizol Corporation. Lubrizol The ® 2016 www.lipotec.com cosmetics. in application for systems delivery -and extracts botanical to molecules biotechnological and synthetic peptides, -from ingredients active innovative of production and development research, the in specializes Lipotec INSPIRING YOUR INNOVATION 3/6/16 10:25 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz News roundup n in France,followed byEurope. Liquides inParisandonBDK’s website.Benedeksaidthatheaimstodevelopdistribution Parisienne ispricedat€160for the100mlEdP.Theperfumesaresoldatfragrancestore Grand Palais. glass flaconstoppedwithacapthatpaystributetothearchitecture ofthedomeParis’ Oud AbramadcomposedbyMathildeBijaouiofMane.The fragrances comeinbevelled Camille LeguayofCinquièmeSens;TubéreuseImpérialefrom CécileMattonofManeand Collection OrientaleParisienneiscomprisedofthreefragrances: WoodJasminecreatedby Violaine CollasofManeandfeaturespear,blackpepper,quince chutneyandpatchouli. a floralfragrancecreatedbyManeperfumerSergeMajouillier. PasceSoirwascreatedby Orientale Parisienne.CollectionParisienneconsistsoftwoscents. BouquetdeHongrieis modern twist.Thelineiscomprisedoftworanges:Collection ParisienneandCollection positioning. Theaimistocreateabrandinspiredbytraditional perfumery,butwitha BDK wascreatedbyDavidBenedek,whohighlightedthebrand’smadeinFrance BDK Paris,anewnichefragrancebrand,hasunveileditsfirstlineoffiveperfumes. LiftDynamic creamandeyetreatmentwillbesupportedbyaTVprintadcampaign. rosemary phyto-essenceandthebrand’sbio-renewalcomplex.Bio-Performance bottom layerbackup.TherangeisbasedonTruStructivetechnology,whichincludes The LiftDynamicproductsclaimtobolstertheskin’sownstemcells,enablingitliftits group foundthatwhensweatglandsshrinkthesub-dermpocketsbecomeenlarged. pockets beneaththeskin’ssurface,whichareweakareasthatmakeskinsag.The aimed atwomenaged40andover. launched lastsummer.TheBio-PerformanceLiftDynamiclinetargetssaggingskinandis A creamandeyetreatmentwilljointheBio-PerformanceLiftDynamicserum,which Shiseido istoaddtwonewproductsitsBio-PerformanceLiftDynamiclinethisfall. EdT) and€92(100mlEdT),willlaunchattheendofSeptember. scent issupportedbyanadcampaign,setinaforest.L’Insoumispricedat€69(50ml lavender andblackpepper,abaseofpatchouliheart,haitivetivermoss.The fragrance family.Itfeaturestopnotesofbasil,rumandbergamot,aheartsage, perfumery, accordingtothebrand. salute theartistRenéLalique,whorevolutionizedartofjewelry,glass-makingand maverick, thescentplaysonideaofamodern-dayadventurer,andisdesignedto Lalique istolaunchanewfragranceformenthisfall.CalledL’Insoumis,Frenchthe four sizes:35mlEdP(€49),50ml(€58),75ml(€68)and125ml(€87). Dominik, aswellprintadvertising.DieselBadwilllaunchinmid-Augustandcomes featuring AmericanactorBoydHolbrookandincludesamoviedirectedbyAndrew that thebottleisburningfrominside.Thelaunchsupportedbyacampaign features thescent’soversizedlogo.Itscopperinteriorisdesignedtogiveimpression micro-engraved glass,intendedtorepresenttheleatherofablackbikerjacket,and tobacco andcaviar.Thefragranceplaysona‘badboy’theme.bottleismadeof was createdbyIFFperfumersAnneFlipoandCarlosBenaïmcombinesaccordsof Collection Parisienne retails at €140 for the 100ml EdP, while Collection Orientale Collection Parisienneretailsat €140forthe100mlEdP,whileCollectionOrientale The newproductsweredevelopedbasedonresearchoftheanalysissub-derm Created byFabricePellegrinofFirmenich,thescentclaimstoreinventfougère (L’Oréal) is to launch a new men’s fragrance called Diesel Bad. The scent Diesel (L’Oréal)istolaunchanewmen’sfragrancecalledBad.Thescent n www.bwconfidential.com -July7 August 24,2016 #134-Page 5 brands, retailers, packagers and fragrance allthe Plus houses latest data and listings on the category’s launches, •Retail developments •Online sales •Travelretail •Mature &emerging markets NEW The FragranceGuide more than100 pages of insight and analysis

E verything you need to know about fragrance: The views expressed in this section are those of bloggers and do not represent the opinions of BW Confidential

Netwatch of the global fragrance market foam, andplaygumtexturesforstylinghair. include waterlesstowel-offshampooslikeZerreau,whichisbasedonawet Bloggers havebeentakinganinterestinnewhaircaretrends,which skin elasticity. thereby diffusingResveratroldirectlyintothebloodstreamtoimprove ‘next generationinskincare’.Thebrand’sfilmsaredissolvedthemouth, Sweden-based brandReserolSkinCareFilmshasbeendescribedasthe brands standout,althoughbloggerswonderifmenwillusesuchproducts. designs andproductnamesliketheBodManReallyRippedAbshelpmen’s concepts likebeardsoftnersanddrybodycleansingsprays.Interestingpackage The men’scategoryhasbeenattractingattentionwiththelaunchofedgier convenience withsmall,portablesizesandaffordableprices. designs. BrandssuchasStowawayforexample,arealsolikedtheirtakeon conversation amongbloggerswhopraisethesebrands’novellaunchesandnifty The growthofinternet-onlycosmeticsbrandshasbeenatopic Social mediamonitor BW Confidential BW

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3505 INCOSUS Advert A4_V3.indd 1 25/04/2016 12:49 IFF group president fragrances Nicolas Mirzayantz

Making market scents Interview Despite a difficult market, US-based fragrance house International Flavors & Fragrances (IFF) group president fragrances Nicolas Mirzayantz discusses how innovation is driving renewed optimism in scent creation

What is your outlook for the fragrance creation market? We have never been so positive about the market because of the many influences that are reshaping consumer expectations and their desire to discover new olfactive space. It’s not just looking at fine fragrance in isolation, but looking at the greater market. The first trend that is critical to recognize is the scent experience that has been delivered to consumers by other categories, primarily by fabric care. The use of microencapsulation has been a significant revolution. Brands have been able to deliver a far superior, richer, scent experience to consumers. The volume of the scent delivered through encapsulation technology has increased three-fold, so a 300%-400% increase in scent load. This has filled an unmet need and there is a new consumer desire to discover a far greater and more complex scent experience on an everyday level. This is perhaps the biggest revolution in the There is a new perfume industry. “consumer desire to You also have beauty care brands moving more into premium and using very similar methods of communication to the fine fragrance industry. This is raising the level of discover a far greater education and expectation, and provides another opportunity to bring new codes to and more complex discuss the value of the prestige category. This is augmented by some brands investing more in the quality of the fragrances, in naturals and in creating more long-lasting, unique, scent experience on differentiated signatures. The brands that have committed to the scent as the fundamental an everyday level. This part of the success of the brand have usually been rewarded. When you compare the progression of the fragrances from launch, they are the ones that are not eroding very fast. is perhaps the biggest This is complemented by the fact that niche brands have also explored new notes and new revolution in the interpretations, so we see many positive trends converging at the same time. perfume industry Where do you see the opportunities for growth? As bigger brands are refocusing on their core equity and coming out with very qualitative launches, the underlying signals are strong and positive for all of us. Niche brands have been IFF group president fragrances another laboratory of exploration and experimentation. They have helped consumers to find Nicolas Mirzayantz and develop expectations and experiences that did not necessarily exist, or were expressed ” differently. Each of the categories is recreating the scent relationship with consumers. Will it happen everywhere, for every brand for every market? Probably not, but we have seen evidence that the brands betting on conviction are significantly rewarded. There is more of this type of dialogue, which we are very pleased to see.

So are brands putting more value on the fragrance? The discussion around naturals, about increased concentration, is something that we see people recognizing. The market has gone through structurally challenging times and n n n

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n n n people were very cautious. [But now the industry] is recognizing that providing extra value is a way to differentiate, to innovate, and to provide new benefits to the consumer.

Is it mainly the niche brands that are going in this direction? It’s not only niche. When you look at the success of La Vie est Belle [Lancôme], Alien The challenge is how Interview [Thierry Mugler] or Flowerbomb [Viktor & Rolf], you see investment; you see a strong to communicate conviction behind the fragrance signature. These brands have been rewarded. Their market “ share is growing and they are creating a following. Think about Paco Rabanne’s Invictus; all a smell digitally. these big signatures are very unique and are redefining the olfactive categories and creating We are seeing strong identities. Look also at Tom Ford, Frédéric Malle and Jo Malone—all this has been building up over some time, so it’s not something that just happened; however, people are opportunities to now seeing the benefit and it has given additional confidence in the potential for growth provide a new scent and innovation. experience with How is IFF meeting this new demand for increased differentiation? a digital device Our unique and expert capabilities at IFF-LMR [Laboratoire Monique Rémy] has given us the opportunity to launch new, higher-quality products to meet a more upscale market connected to your that recognizes the value of natural products. We have launched many new innovative smartphone or tablet, ingredients. With the increased focus on investment in innovation we have the strongest pipeline of new molecules, devices and microencapsulation systems in the history of IFF and and being able to we are seeing the difference it is making in terms of product signature and performance. create fragrance on We’re also expanding the palette and the solutions the can bring to the brands we are working with. demand. We have made a strategic What role do you see digital playing in fragrance? Technology is changing the way people live, experience and connect through wearable decision to invest devices, sensors and the data about consumers’ shopping behavior. It’s an opportunity in in digital terms of segmentation to target very specific needs. The challenge is how to communicate a smell digitally. We have invested in a strategic partnership with Vapor Communications, a pioneer in digital scents. We are seeing opportunities to provide a new scent experience with a digital device connected to your smartphone or tablet, and being able to create IFF group president fragrances fragrance on demand. We have made a strategic decision to invest in digital. This new Nicolas Mirzayantz technology will either be employed at the retail level, to send scent messages, or even to ” experience the essence of a brand or a new launch olfactively. We see a lot of start-ups trying to create a breakthrough; this did not exist 18 months ago.

Many in the industry say sustainability efforts are key to driving innovation in fragrance creation. Do you agree? Today, innovation is multi-sensorial; it’s about health, naturals and performance. It’s also about quality and sustainability, which is a key driver of innovation. Sustainability was something that was talked about, but now we see key leaders in our industry and key partners really drawing a line in the sand, saying this is about the future and this is what we are expecting. It’s challenging the industry to have a new mind-set, and because of that drive, new s IFF says more fragrances with strong signatures such solutions are being developed. n as La Vie est Belle and Invictus are coming to the market

www.bwconfidential.com - July 7 - August 24, 2016 #134 - Page 9 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Sephora’s European strategy

Bucking the trend Insight Sephora continues to do well in Europe thanks to its product assortment, services and digital approach. BW Confidential analyzes the retailer’s strategy

espite a morose European market, perfumery chain Sephora is still seeing Dgrowth. The LVMH-owned retailer claims it continues to increase its market share around the world, and in Europe it appears to be largely immune to the declining footfall many of the major chains are suffering as younger consumers desert these stores, preferring to shop in other channels like monobrand beauty boutiques. “[Apart from] after the Paris attacks, we are not suffering from decreasing traffic,” comments Sephora president Europe and the Middle East Stephan Borchert. “I think the secret lies in a smart combination of digital and brick-and-mortar. The shop window doesn’t make it any more; it’s really more about how we address customers and become part of their lives.” In 2015, LVMH’s Selective Retailing division registered estimated sales of €1.46bn in France, a 2% increase on the previous year. The division includes results for the Le Bon Marché department store as well as Sephora. By way of comparison, sales at French perfumeries overall were flat at €2.9bn in 2015, according to data from the French Federation of Selective Perfumeries, although these figures do not include data from private-label or online sales. In the rest of Europe, LVMH’s Selective Retailing division saw sales grow an estimated 4.7% to €898.6m. Perhaps unlike more traditional perfumery chains, Sephora’s offer is constantly evolving, with new brands on shelves twice a year, many of them exclusive, n n n

s Sephora is putting the focus on services, with bottle engraving, gift factory stations and beauty bars

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n n n and a strong focus on the retailer’s own brand collection, Made in Sephora, which is estimated by industry observers to represent up to half of its sales. “We are continuing to boost our experience and range,” says Borchert. “We Insight feel that the excitement of customers is strongly driven by new brands and hot new things that are around like services.” Spring saw Sephora stores in France introduce a focus on K-beauty with brands including Tony Moly. For fall, the retailer will introduce brands from the Middle East including Huda Beauty, the make-up brand launched by Dubai-based blogger and make-up artist Huda Kattan, and UAE-based holistic brand Shiffa Dubai Skincare. Anastasia Beverly Hills and Dr Jart+ will also be added to the mix. Recent introductions under Made in Sephora, meanwhile, include Fingertip Eyeliner, a quirky product whose lid doubles up as an applicator on the end of the finger, as well as cushion lip products, blushes and highlighters. “The Made in Sephora brand is a very important part of our strategy because we can creatively express our brand DNA and personalize our range,” Borchert comments. “We are going to look for a balanced way to extend it. We feel because we know the customer and because of our global footprint, we are able to catch trends early, and we try to translate that into products faster than anyone else. We want to drive innovation much faster on that side.”

Focus on services As well as a fresh brand offer, in-store services have taken on increased importance Sephora stores in Europe* at Sephora. The retailer offers a strong Country Number of stores roster of services, including the Gift Factory, France 329 (including 2 in where consumers can create their own Luxembourg and 1 in gift wrapping; Color Profile, a consultation Monaco) that helps consumers find their foundation Russia 138 shade, make-up bars, Benefit brow bars and nail bars. It also offers the possibility of Italy 130 personalizing products by enabling consumers Spain 120 (including 47 El to engrave their fragrance bottles. Corte Inglés corners) Recent service initiatives include Sephora’s Poland 93 move to team up with the LPG brand to Greece 35 offer the LPG endermologie massage at the Romania 29 retailer’s new skincare bars in two of its key stores in Paris. The free 20-minute service Portugal 26 (including 2 corners) uses LPG’s machine to massage the face to Turkey 25 stimulate collagen production, as well as the Czech Republic 19 application of skincare. Sweden 5 Another is the Go Pro Make Up service in Serbia 3 conjunction with color brand Make Up For Bulgaria 2 Ever. The make-up bar concept at the retailer’s French flagship store on the Champs Denmark 2 Elysées in Paris aims to enable consumers to Switzerland 1 find out more about color trends and learn Total Europe 957 how to create looks in a step-by-step n n n Source: Sephora *Store numbers at June 1, 2016

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n n n process from professional make-up artists. The concept is designed to resemble a bar and features a moving conveyor belt (similar to those found in sushi restaurants), which is used to display 18 make-up boxes. Each make-up Insight box is devoted to a trend or look and features a sketch of the look and the products to create it. Customers seated at the bar choose a box and then reproduce the look with the help of make-up artists and using a how-to step-by step leaflet. This focus on novelty and discovery is a key element in how Sephora continues to bring consumers into its stores. The Beauty To Go concept introduced last year, which offers products for travel and discovery, is also performing strongly, We are strong Borchert says. “We love it because it’s a recruitment tool; many customers try believers in brick- something and are introduced to a category or product. This is linked to our “ focus on play.” and-mortar, but the

Looking to new concepts whole digital element Certain recently introduced store concepts, meanwhile, have more of a focus on is becoming much the Sephora brand and exclusive items and less on traditional selective brands. Sephora’s new store-in-store concept developed in partnership with Swiss more important department store Manor, for example, offers the Made in Sephora brand, as now, particularly on well as a selection of exclusive brands. While the concept was developed specifically for Manor so as not to cannibalize the broader offer from selective social communities. brands on the main beauty floor, elements of it will be rolled out to other Online services such markets too, Borchert says. He sees Switzerland as an attractive market for testing the new concept, which as Click & Collect will be rolled out to a total of seven Manor doors in French-speaking parts of the perfectly embody country this year. “Switzerland may look quite small as a market, but it’s quite attractive. However, it’s not easy to probe, as it’s trilingual and tri-cultural and our omnichannel the competitive landscape is quite dense,” he says. “It gives us an opportunity to strategy offering test not only this model, but also a new type of customer in a very luxury market, more interactions and of course we are happy to have another white spot covered in Europe.”n n n between our stores and e-commerce

Sephora president Europe and Middle East Stephan” Borchert

s The Beauty To Go area, which offers products for travel and discovery, is seen as an important consumer recruitment tool

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n n n In Spain, Sephora operates in a similar way with El Corté Inglés. “We have markets like Spain where we have practiced this model, and it runs very successfully,” Borchert explains. “Will it be a pillar of our business model in Insight the future? Probably not, but it’s a good addition.” He continues: “We The Made in Sephora strongly believe in the presentation of full assortments. That’s quite important “brand is a very because it’s still the emotional experience people want to have.” In France, for example, he says such a model would be less relevant. “In France, we important part of our have huge coverage, so we don’t need it.” strategy because we Nevertheless, new concepts are also part of the retailer’s domestic strategy—it began testing Sephora Flash last year with a smaller offer in can creatively express store, but which gave consumers access to its assortment through interactive our brand DNA screens. “We are testing different types of models and Flash was one of those,” says Borchert. “We wanted to understand how consumers interact and personalize our with a limited assortment and order online. The experience is quite positive.” range. We will look He adds, however, that, “at the end of the day I don’t think we need to innovate so much on format, it’s more about what we do inside, that’s really for a balanced way where our constant innovation process is going on.” to extend it Sephora is also rolling out The Beauty Board, a community feature, that it describes as its own version of Pinterest for beauty, on its French website. The feature already launched in the US. Clients can create their own social pages on The Beauty Board, post photos, identify the products used to create their Sephora president Europe and Middle East Stephan Borchert looks and share advice and beauty techniques. The retailer is looking to bring more ” of these digital elements into its stores. For example, as part of The Beauty Board feature, consumers can play with products in-store and take STAY INFORMED WITH OUR selfies that they publish online, which DAILY NEWS SERVICE are also posted on a screen in the shops. The service also provides product recommendations. News headlines daily on www.bwconfidential.com Creating a seamless online and @BWCbeautynews offline experience is a core part of Sephora’s strategy, and is integral to attracting younger consumers. “We are strong believers in brick- and-mortar, but the whole digital element is becoming much more important now, particularly on social communities. Online services such as Click & Collect perfectly embody our omnichannel strategy offering more interactions between our stores and • All major news on the industry published every day on our website • News headlines complement analysis and interviews in our electronic e-commerce,” comments Borchert. publication and print magazine More digital initiatives both in-store • BW Confidential is the destination for keeping up-to-date with what’s and online, as well as a continued going on in the industry and staying ahead of the competition focus on services look set to come. n BW Confidential, the inside view on the international beauty industry

The website - daily news•The electronic publication - every two weeks•The print magazine - four times a year MakeUp in Paris

Color on show BW Confidential reports on what was seen and heard at MakeUp in Paris, which took place in the French Show review capital from June 9-10

he seventh edition of MakeUp in Paris, the trade show dedicated to make-up MakeUp in Paris Tformulation, packs and trends, continues to grow. The show welcomed 3,508 visitors, Took place: June 9-10, up 12.7% from 2015, and 151 exhibitors, an increase of 20.8% from 2015. Some 36 of Paris, France these exhibitors were new, and were mainly from Europe, but also Asia and the Americas. Visitors: 3,508, + 12.7% New features at this year’s show included an area called Digital Beauty, where visitors vs 2015 could find digital solutions specifically for beauty and make-up. The area housed around Exhibitors: 151, + 20.8% 10 companies across product development, retail, consumer relations and digital strategy vs 2015 consulting. In addition, there were a series of conferences on digital and beauty. New exhibitors: 36 The show also presented its Innovation Tree again this year, showcasing 28 creative products selected by a panel of judges. Some 75 products were submitted by 33 companies for a place on the Tree. There was also a new stand dedicated to sustainable development, sponsored by Chanel Parfums et Beauté. In terms of make-up trends, products for brows continued to be strong, as were specific applicators for eyes and lips and brushes for contouring and strobing. Cushions for all types of products including lips, eyes, foundation and even nails were also much in evidence. Several formulators indicated that new, more daring colors for the eye area and brows, such as green for example would hit the market next year. Many highlighted the trend for long-lasting products, especially in lips and eyes, and for items that put the comfort of the user at the forefront. When it came to pack decoration, metallization was a strong trend, as were crackled or marbling effects.

Seen in Digital Beauty France-based Provane presented its app, La Nail Revolution, whose goal is to allow users to create nail varnish in the color of their choice. Users can scan an item of clothing or an accessory with the small Colorcatch Nano device (created by Swiss company Colorix) before validating one of the proposed shades of the color and receiving the product at home within 24 hours for €20. The app launches in July and the brand also hopes to introduce the machine, which can make the nail varnish in a few minutes, to a network of stores including nail-bars, department stores and perfumeries in early 2017.

France-based Adelphi presented Delphi, an automatic sample distributor which aims to help its clients gather information on their consumers. The machine, which claims to be a better solution than street marketing, can be rented out by clients for specific events, and its system can be personalized with games or videos. Consumers scan a ticket (previously provided by the brand) and enter some personal data, before receiving a free sample. The machine will be presented in September, and the aim is to target Germany, Spain and the UK in 2017. n n n

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n n n French start-up Feeligreen’s cosmetics brand Feeligold presented its i-feel Sport box set, which includes four sports care products, and the Activ’feel device, designed to be used with the products and controlled via a smartphone through the Feeligold app. Once the user has applied the product, they can massage the skin with the device, which diffuses bipolar micro-currents and uses photodynamic treatment by LED, according to the brand. Priced at €350 for a box set, i-feel Sport launched in early 2016, and is available on the brand’s webshop.

Show review France-based technology company Wisimage, which was founded in 2007, presented its My Smart Makeup and Makeup Live mobile apps. My Smart Makeup proposes personalized make-up looks and techniques adapted to the user’s facial features. It uses algorithms to detect the color of the user’s eyes, skin and hair, and 100 color combinations are possible for each personalized make-up option. Makeup Live allows users to virtually test a product by scanning its barcode, and enables them to see themselves wearing the make-up featured on models in ads. Wisimage aims to launch Makeup Live this summer, and to roll out My Smart Makeup in late 2016 or early 2017, when it will be combined with Makeup Live into one app. The two apps can also be licensed and customized separately.

First-time exhibitor French packaging supplier Albéa presented the Albéa Connect app, its B2B application which aims to show clients its digital expertise and enable them to find out more about the company’s packs. The app is designed to visually recognize Albéa packaging to provide clients with details including product benefits, technical specifications and product tutorials. Clients can also send a direct request via the app for follow-up. The app will serve as a tool for its sales teams, and aims to connect the packaging manufacturer to brands, according to Albéa. Albéa Connect will launch in September 2016 in Europe and North America.

French company Otstc Creative Biometic, which offers virtual cosmetics solutions, showcased its software that aims to analyze the user’s skin to help them choose products. It can pinpoint dark spots or wrinkles, loss of firmness on the user’s face, before providing them with personalized advice and proposing products. Its make-up solutions include an automatic shade recommendation, which suggests shades for foundation and blush and brings up the product recommended by the brand. Otstc Creative Biometic counts L’Oréal Paris and Lancôme among its clients.

Seen in show German company Geka showed its latest collection focusing on trends for spring/summer 2017, called Green Glamour. The company says that green products are becoming more elegant and refined. The collection includes new endlessDefiner mascara, which claims to provide lashes with maximum length and volume. The EOS 2K fiber consists of two components: the core is made of a harder material than the outside thereby ensuring precision and softness at the same time. Second in the line-up is the company’s molded brush flexiQUEEN, which has been given a new extra soft material for volume. The short bristles enable a bulk deposit on the lashes for volume, while the long bristles push the lashes upwards. The cap of the mascara sports a marble effect. The third product n n n

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n n n is a lip gloss, whose cap is made out of a renewable PLA material. The last product is a shimmering green intense liner. The cap of the liner is decorated with a crackle lacquering effect, which the company says was inspired by nature.

German company Schwann Cosmetics showcased its limited-edition collection of eye and lip products based on the theme of a garden at night. The collection includes the Wow Brow eyebrow mascara, which claims to fill and fix the brow and be easy to apply thanks to a new eyebrow brush. Also for brows, was a double-ended product with a Show review liquid liner on one end of the stick and a brow powder on the other, designed to provide a natural finish. Schwann Cosmetics said that trends for 2017/2018 would center on brown and white shades, formulas and colors for older women and products with a technological inspiration, such as silver, shiny and metallized colors.

France-based Cosmogen presented a new line of teardrop-shaped brushes for face and eye make-up, and its Flawless brush collection for foundation and concealer that features extendable middle sections which double as smaller brushes. It also showed Attract One Expert, a new addition to its Attract line. Featuring an interchangeable roller ball top, which is designed for use across all facial zones, Attract One Expert aims to help users create a home massage experience. The tube claims to be suited to all formulas, and aims to avoid contamination. The gold ball can be run under hot water for a hot massage evening ritual, while the silver ball can be run under cold water for a cold massage morning ritual.

Topline Products by Texen presented a range of 13 brushes for eye, lip and base make-up, which it produced for Revlon. The brushes were made in Texen’s Tianjin factory in China. The company says that the brushes stand out for the harmonious colors of their handles, which are made up of three different parts that are assembled before being decorated using hot stamping: a facetted black ABS handle, mass dyed and with a matte finish; at the base of the bristles, an injected ABS ring metallized in Revlon’s signature red and at the end of each handle, a mass dyed, red ABS insert, glued in place. The company also showed Easy Powder, a collection of different sized jars for powders designed for make-up touchups. The transparent walls of the jars reveal the color of the powder inside. The jars are topped with puff applicators that claim to allow consumers to easily apply the right amount of powder. The jars also come with a lid, which protects the powder and is said to be practical when traveling.

Axilone, part of the Ileos group, unveiled what it calls its eco-friendly bamboo lipstick case, in line with increased demand for sustainable packs. Each cap and base is milled from glued laminated bamboo, which can be decorated using most processes including laser engraving.

German company Faber Castell presented a range of new products, including new packaging in the form of its Slim Plastic Pencil. The airtight PVC-free barrel is designed for long-lasting formulations; it can also be sharpened. The pencil comes in two textures: magnetic, which is described as a gel-like soft kajal that can be used to draw a precise line or be blended into a smoky eye. The formula is said to last up to 16 hours. Lip shaper, the second texture provides a colorless contour to correct the lip outline. n

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Alternative Fragrance & Beauty

A different approach BW Confidential spotlights up-and- coming brands on show at Alternative Fragrance & Beauty, which took place in Paris from June 16-18 Show review

rade show organizer Informa has big ambitions for the Alternative Fragrance & Beauty Alternative Fragrance Tshow, whose first edition took place at cultural events center Le Carreau du Temple & Beauty in central Paris in June. The event is positioned as a showcase for up-and-coming brands Took place: June 16-18, Paris in cosmetics and fragrance for both trade visitors and the general public. “We want to Visitors: 3,450 (2,166 trade establish a new international event in Paris that is different and gives a voice to alternative visitors; 1,284 general public) brands and fragrance companies. The aim is to bring together the industry’s players, Exhibitors: 130 (42% from which will allow developing brands to come into contact with concept stores, hotels and outside France; 60% cosmetics department stores,” said Informa Beauty international director Claudia Bonfiglioli. brands, 40% fragrance brands) Indeed, the format of the show is intended to reflect changes in the The winner is… market, where there is a strong French beauty brand Baija’s facial skin cream Crème Ultra Riche Visage C17 demand for original, new brands, as took home the Beauty Challenger Awards grand prize. The cream, launched in witnessed by the rash of acquisitions of January this year, contains 17 principal actives with antioxidant properties, and the niche players over the past year and a brand claims the formula is 96% organic. Baija is mainly present in the bodycare half by major groups. segment. Baija’s facial cream also won the Distribution Prize, which was judged by Some 130 brands exhibited at a jury of key brick-and-mortar and online retailers. the show, 42% of which came France-based men’s organic skincare brand Ho Karan won the Trends & Media from outside France. Some 60% of prize for its La Crème Hydratante de l’Homme (moisturizing men’s cream). The exhibitors were cosmetics brands, while brand, which uses ingredients from its native Brittany region in France, claims the remainder were fragrance players. the product helps the skin combat the effects of stress, pollution and shaving. The first two days of the show were The Trends & Media jury was made up of journalists, including BW Confidential’s reserved for industry professionals and editor in chief, and trend forecasting companies. welcomed 2,166 visitors, while the last The Consumer Prize, judged by a panel of beauty consumers, went to US- day was open to the general public and based company Artis Brush for its Oval 7 Brush. The company creates brushes welcomed 1,284 people. conceived by a make-up artist and it claims the shape of the brush handle and the The show aimed to be rich angle of the fibers make it easier to apply product. Some 27 brands took part in in content and offered a range of this year’s Beauty Challenger Awards and a total of 37 products were judged. olfactive and taste experiences with the intention of allowing visitors to At the Olfactorama awards, which recognize the best olfactive creations of 2015, better understand the fragrance L’Heure Perdue by Cartier won the Special Prize, a new category. Equipage creation process. In addition, the Géranium by Hermès won the men’s fragrance prize, while Narciso by event hosted 25 conferences and two Narciso Rodriguez and Cartier’s Must Gold were both awarded the awards ceremonies: the Beauty women’s prize. Prada’s Infusion d’Oeillet won the unisex award. The Prix de Challenger Awards, recognizing new la Virtuosité (fragrance master prize) went to Chanel’s Misia and Tabac Tabou innovative beauty products and by Parfum d’Empire took home the Prix de l’Emotion (emotion prize). The Olfactorama prizes, which singled out home fragrance award went to the candle Dark Galleon by Arquiste, while the best fragrance creations of 2015 Vacances by Jean Patou won the Prix du Patrimoine (Heritage Prize). (see box). n n n

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n n n Seen in show Blend Oud, an Italy-based fragrance brand centered on the Arabic tradition of blending precious oils in fragrance, presented its Original collection. It is comprised of eight unisex , which all contain oud and can be mixed together. The 75ml eaux de parfum retail at €160. Blend Oud is available in 30-40 stores globally, and its network includes the UAE and Italy. Russia and Europe are key targets for expansion.

French brand Vinésime showcased its range of skincare products based on extracts Show review from the Burgundy vineyards in France. The products use what the brand calls A2OC Bourgogne complex (Antioxidant & Cellular Oxygenation), which is based on a combination of actives from Pinot Noir grapes (from co-founder René Bouvier’s vineyard) and blackcurrant buds. The line comprises eight products: five for the face and three for the body. The products are priced at €95 for a serum and €125 for a cream.

Les Caboux-Tchoux is a new brand of children’s fragrances, intended to be fun and safe to use. The products are based on a family of colorful characters, whose names all begin with the letters CA, such as Câlin (hug in French) or Caméléon (Chameleon). The character is conveyed through a brightly colored rubber casing surrounding the fragrance bottle. “Children’s fragrances on the market come in glass bottles, which are not very safe. Our idea was to make these products safe by covering them in a protective rubber casing, which means even if they are dropped they do not break. We also wanted them to be cute and playful; we plan to create a whole universe of these characters,” comments brand founder William Spindler. The fragrances are unisex and retail for €40. The company also plans to extend the Les Caboux-Tchoux idea to other product categories, such as children’s furniture, school items and glasses.

UK-based wellness brand 1001 Remedies showed its range of aromatherapy health and beauty products. The products claim to use rare and natural ingredients. The brand’s Soin Millenaire, an anti-aging cream retailing at £69 (€82.70), contains Japanese Maitake mushroom, which the brand says can increase the skin’s firmness. 1001 Remedies is present in both France and the UK.

Waters + Wild Perfumery, a certified organic Irish perfume brand, presented its collection of three scents inspired by its West Cork location. The brand, which launched in January, says it uses locally sourced materials and ethically and sustainably sourced exotic oils, resins and absolutes. The brand’s founders Joan Woods and June Housden are also its perfumers. The eaux de parfum (rose + oud, tuberose + frankincense and cedarwood + cognac) each retail at €95 for 50ml. Waters + Wild Perfumery is available through the brand’s own web store, as well as in some 20 pos in Ireland.

Sublimité, a French cosmetics brand dedicated to lip care, presented The Maskrub, a lip scrub and mask featuring natural ingredients such as pomegranate seed oil, which the brand says improves the skin’s elasticity. Sublimité is aiming to launch The Maskrub (€65) by September. n n n

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n n n London-based Pommade Divine showed its product of the same name, a multi-use balm which has existed since 1800 and is designed to heal irritated or damaged skin, as well as treating ailments such as insect bites. The brand was recently taken over by Ania Macadam, and re-launched in December 2014. Retailing at £19.80 (€23.70), Pommade Divine is available in the UK (including in Liberty London and Fortnum & Mason) in the US, and online via its webshop and sites including victoriahealth.com and Net-A-Porter.

Show review French brand Joliderm showed its range of cosmetics patches, which target specific areas such as under the eyes or nose blackheads and are made with plant extracts. Priced between €8.90 and €13.90, the patches are designed to release their active ingredients gradually into the skin, and use solvent-free adhesives. Joliderm, which launched in 2015, is available in pharmacies, health and beauty shops and specialist retailers in France.

German brand Zoeva presented its brushes and color cosmetics products including Rose Golden Brush Palette (€14.90), a trio comprised of pressed blush, highlighting and contour powders, which is claimed to have a velvety formula, and launched in February/ March. Zoeva was founded in 2008, and is available internationally, including at German retailer Douglas and Sephora in Australia and Malaysia.

L’Atelier Maquillage, a French brand that aims to highlight the eyes, showed Delicare Brow (€16.90), an eyebrow scrub designed to help eliminate dead skin cells, which launched in May, as well as its staple Brow Box Kit (€34). L’Atelier Maquillage launched in 2012 and is available in France, in Le Bon Marché, beauty institutes, and at online retailers such as The Beautyst. The brand is looking to expand to Japan. L’Atelier Maquillage is also planning to launch brushes for the eyes in September.

New French company FiiLiT Parfum du Voyage debuted its first collection of travel perfumes. Cyclades, Bali and Cuba come in 10ml sizes with each packaged in a case of wood (€38) or leather (€35). The eaux de parfums were created by Amélie Bourgeois and Anne-Sophie Behaghel of Paris-based fragrance creation studio Flair, and each scent is designed to represent a destination. Bali, for example, aims to evoke flowers under the sun with top notes of bergamot, lime, elemi and pink pepper, a heart of jasmine, frangipani flower and ylang ylang, and a base of sandalwood, white musk and tonka bean.

France-based Maison Flamel is a skincare brand based on what it calls personalized alchemical skincare rituals. At the center of the brand is the Oxygen Vector approach, which consists in bringing oxygen enriched with active ingredients to the skin through a series of rituals. The rituals begin with the black phase, which involves cleansing with the brand’s micellaire gel and micro-exfoliation using its Saphir Exfoliant. It is followed by the white phase, which uses a device that delivers oxygen and antioxydants to the skin, and the gold phase, which consists in the application of the brand’s skincare products. The products include serums and creams based on the elements of copper, air and gold. The complete ritual can currently be carried out at Paris five-star hotel La Maison Champs Elysées. The brand, which was created in June last year, is primarily looking for distribution in spas. Its range consists of eight products. n

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Testing times L’Occitane opens a new flagship store in Brazil with a focus on product testing

o celebrate its 40th anniversary, French brand L´Occitane en Provence opened Ta flagship store in Brazil with a strong focus on experimentation in June. The new store is located at luxury shopping center, the Iguatemi shopping mall in São Paulo. Twice as big as the brand’s regular stores, the new boutique covers 85m2 (915ft2). At its center are two product displays intended to resemble fountains found in the Provence region. At the bottom of the displays are sinks, aimed to encourage shoppers to test and play with soaps, creams, scrubs and oils on sale. Shoppers can avail of a free hand massage here. The store also offers bench seating, where shoppers are invited to sit and test products. The boutique is decorated in yellow, with grey stone merchandising units. The L’Occitane Brazil store is designed to be airy and uncluttered. A large sun-shaped ceiling light is l Opened: June intended to give the store a sun-lit feel. The store’s walls feature illustrations l Location: Iguatemi shopping by Brazilian designer and illustrator Karen Hofstetter and Brazilian artist mall, São Paulo, Brazil Eliane Goes. l Size: 85m2 (915ft2) L´Occitane launched in Brazil in 1995 and currently has over 100 L’Occitane l Special features: stores and more than 390 points of sale in the county, including pharmacies and product displays with sinks to perfumeries. Brazil was also the first country to have a L’Occitane Spa—there encourage product testing, are now five of these spas in the country. n hand massages

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s At the center of the store are two product fountains with sinks to encourage product testing

s The store is designed to be airy, uncluttered and easy to navigate

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