Leadership in Action News from the Beauty Industry’S Think Tank Volume 2, Issue 2

Leadership in Action News from the Beauty Industry’s Think Tank Volume 2, Issue 2 | Summer 2010

Capstone 2010: Graduates Focus on the Future of Beauty

Ask senior executives for their toughest challenges, and near the top is forecasting the future in order to plan for it. Ten years ago, who would have forecast Facebook? Google? Or the worst economic crisis in decades? Forecasting ten years out, to help guide industry thinking, the 2010 graduating class tackled the topic “Beauty 2020: The Future of Beauty,” looking at how consumers, technology, and business evolution could shape beauty industry needs and opportunities by 2020. The event, opening to a wider indus- Capstone speakers, from left to right, Chris Hacker of Johnson & Johnson, Rochelle Bloom of The Fragrance Foundation, IDEO’s Michelle Serro, FIT President Dr. Joyce Brown, Cos- try audience in celebration of the 10th metic Executive Women’s Carlotta Jacobson, Lezlee Westine of the Personal Care Products Anniversary, moved from its previous, Council, and Professor Stephan Kanlian overstretched 275-seat venue, FIT’s Katie Murphy Amphitheater, to FIT’s Vivianna Barrera of L’Oréal’s Matrix they were the event sponsor in 2008, much larger 770-seat Haft Auditorium. unit (class of 2008). Official welcome when Capstone focused on the issue of The event was opened to the public from the college came from FIT Sustainability. for the first time, and intense industry President Dr. Joyce Brown. Keynote re- The evening’s “main event” was the interest nearly filled the venue. marks were delivered by Chris Hacker, graduates’ gaze out to 2020. Student The event was opened by co-Chairs Chief Design Officer for the Johnson & teams focused on retailing, leadership, of the program’s newly formed Alumni Johnson Consumer Companies, corpo- the fragrance industry, and the overall Association – Kate Foster of Juicy rate parent of event sponsor Johnson beauty industry. Teams were mentored Couture (class of 2004), Rebecca Heck & Johnson Beauty Care. This was J&J’s for the second straight year by industry of Firmenich (class of 2007), and second Capstone event sponsorship; continued on page 2

Celebrate 10th Anniversary on September 22 by Jennifer Kaczmarek, Marina Maher Communications Cosmetics and Fragrance Marketing and Management Marketing and Fragrance Cosmetics Program Degree Master’s Over the past ten years, the FIT companies, and contributing to a global Master’s Degree Program has built a classroom. reputation as an industry think tank, a The industry will gather this fall to center of excellence in business innova- celebrate these achievements at “10 Linda Wells Marc Pritchard tion and training ground for tomor- Years in the Making: Guiding Beauty row’s beauty industry leaders. The Into the Next Decade” – an industry Event Details program has guided, mentored, and breakfast to toast our collective suc- Wednesday, September 22 empowered more than 150 graduates, cess and kick-off the next decade of 8:00-10:00 am including 20 who have become corpo- thought leadership. As inspiration for Guastavino’s rate vice presidents, to take the industry our graduates, the event will honor two 409 East 59th Street to the next level. great industry leaders over the past This achievement wouldn’t have decade, in brand management and For more information about the event been possible without the active sup- media: Marc Pritchard, Chief Brand or purchasing tickets, please contact port and involvement of the industry Building Officer, Procter & Gamble, Vicki Guranowski (212-217-4100/ and its leaders, who play critical roles and Linda Wells, Editor-in-Chief, Allure. [email protected]), in guiding the program, sponsoring or the event website at www.fitnyc. and mentoring young leaders in their edu/10years. n 10th Anniversary Brings Recognition of Program and Graduates Capstone 2010 continued from page 1 The tenth anniversary milestone for the FIT In May, the leaders of the beauty industry leaders. IDEO New York Practice Leader Master’s degree program has inspired recogni- gathered at the 2010 WWD Beauty CEO Michele Serro and Wharton Jay H. Baker tion of the program’s value to industry, and Summit, and Fairchild’s Pete Born paid Retailing Intiative Managing Director Erin the contributions of its graduates. The celebra- tribute to the program’s 10th Anniversary and Armendinger worked with the retail team. The tion kicked off when L’Oréal chose to partner introduced a video of 12 current students and Presidents of the three major beauty with FIT in hosting the February 3rd panel graduates in an IDEO-structured brainstorm industry associations supported the other discussion of “100,000 Years of Beauty,” session on the topic of Product Innovation. teams – Cosmetic Executive Women head and continued on February 5th at the annual This was the first installment of a 10th Carlotta Jacobson working with the leadership Executive Mentor Luncheon, when L’Oréal Anniversary video project, which included a group, the Fragrance Foundation’s Rochelle Executive Vice President Beatrice Dautresme 10th Anniversary video of past Capstone Bloom mentoring the fragrance team, and presented a $10,000 gift to the program from projects, both produced by 2007 graduate Lezlee Westine of the Personal Care Products the L’Oréal Corporate Foundation. Douglas Bender, and made possible by a gift Council supporting the beauty team. In April, The Fragrance Foundation chose from the Personal Care Products Council. Student presentations reflected insightful its 2010 FIFI Finalists Breakfast event to The Council further paid tribute to the FIT synthesis of extensive research along with recognize ten current and former FIT Master’s Master’s program at their annual Capitol Hill creative contemplation of 2020 needs, desires, alumni for their outstanding contributions Day on June 9th, which focused on job and possibilities. The emerging influence of to the fragrance industry. As Fragrance creation and the advancement of women in the Millennial generation – and the possibili- Foundation President Rochelle Bloom ex- business, and included the FIT Master’s ties of technology, digital and social media – plained, “Each person has been recognized Program as an industry effort to develop informed the recommendations and creative because they are shining examples of the talent. The Council also profiled a graduate of ideas. role FIT’s program has filled in maximizing the program, Rebecca Heck (class of 2007). Graduates urged the industry to move from the potential in each of its students, giving Ms. Heck, Director of Fine Fragrance traditional marketer-defined offerings, hierar- them the tools to not only expand their own Technical Development for Firmenich in chical organizations, and one-way communica- careers, but to deliver significant added value North America, is currently serving as tions to a consumer-centric view recognizing to the corporations that sponsored them.” Co-Chair of the program’s recently established customer needs and values and leveraging In addition to the FIFI breakfast tribute, the Alumni Association. n technology in new ways to address them. Fragrance Foundation published a retrospec- Written summaries of the graduates’ tive article on the history of the Master’s presentations can be found on pages 4-11, with Program in the Spring issue of its newsletter, additional photos on page 12. n The Fragrance Forum.

Alumni Receive Career Advice from Collective Brands’ Rubel

LVMH’s Magic Room lit up again on May 4 shoes and accessories and a subsidiary of Nike, with the faces of alumni from FIT’s Master’s Inc. During his tenure, the company doubled program and Wharton’s Jay H. Baker Retailing in size and expanded its global foot-print. Initiative captivated by the latest in a series of Rubel joined Payless ShoeSource, a specialty outstanding breakfast speakers, Matt Rubel, retailer dedicated to democratizing fashion Chairman, President, and CEO of Collective in footwear and accessories, as President and Brands. Collective Brands includes leading CEO in June 2005. In July 2007, he led the footwear brands Payless ShoeSource, Stride acquisition of the Stride Right Corporation and Right, Sperry Topsiders, and Saucony athletic the formation of Collective Brands, the new shoes. Other recent speakers have included corporate parent of both companies. Under Polo Ralph Lauren’s David Lauren, former his leadership, Collective Brands has evolved Burberry CEO Rose Marie Bravo, and J. Crew into a global enterprise with a portfolio of Collective Brands CEO Matt Rubel, 2nd from right, Group CEO Mickey Drexler. iconic brands reaching consumers through flanked by Wharton’s Erin Armendinger (far left), Rubel began by outlining his career, primar- wholesale, retail, e-commerce, licensing and Wharton alumnus Caroline Stern, and Professor Kanlian (right) ily in fashion and apparel but including a stint franchising channels. in beauty, and spanning luxury and mass. A Highlights of Rubel’s career advice included: University of Miami MBA, he began his career n Open your gaze to a broadened world of who matter know who you are. with Bonwit Teller, followed by ascending roles possibilities. n Don’t just work for friends; you must believe with Coke Clothes, Tommy Hilfiger, Revlon, n Take one step at a time. Each new role in the business. and Pepe Jeans. should leverage your existing knowledge n Empower the teams under you, and inspire From 1999 to 2005, Rubel was Chairman, while enabling you to grow and not get them to innovate and achieve. n President and CEO of Cole Haan, a leading stuck. marketer of high quality men’s and women’s n Position yourself carefully. Make sure those

2 Volume 2, Issue 2 | Summer 2010 NPD Executive Provides Her Takeaways on Recent Retailing Conference by Karen V. Grant, Vice President and Global Industry Analyst, NPD Group (member of FIT Industry Advisory Board)

With recent retail sales declines fresh in mind, state of consumer sentiments post- FIT’s Cosmetics & Fragrance Master’s degree recession. We still need to understand program and Wharton’s Jay H. Baker Retailing whether where we are now reflects last- Initiative joined forces on April 21 for a conference ing fundamental changes or temporary in FIT’s Katie Murphy Amphitheatre entitled recessionary changes – evolution or “Refocusing Retail: Back to Basics or Back to the revolution. Drawing Board?” Conference closing remarks n Karen told what makes Wegmans so were provided by Karen Grant, Vice President much more than “just a supermarket.” and Global Beauty Industry Analyst for The It is a destination, a “company about NPD Group. Ms. Grant is a member of the FIT people.” The love and enthusiasm are Master’s degree program Industry Advisory Board translated into a shopping experience Left to right, Professor Kanlian, IDEO keynote speaker and a previous contributor to our Leadership in that offers each shopper amazing service Ryan Jacoby, FIT President Dr. Joyce F. Brown, and Wharton’s Erin Armendinger Action newsletter. Her conference takeaways are and “something truly different.” provided below. n Kelli showed how a focus on differen- tiation has made the difference for the Why does the industry need to think about stores within Disney theme parks. Going refocusing retail? The #1 reason women tell far beyond T-shirts and key chains, each NPD that they use beauty products is because environment integrates the emotional it “makes me feel better about myself” and experience with retail and is designed “makes me feel confident.” To those ends, the with the thought: what does this product emotional integration with retail is critical to deliver to me? the success of retail and beauty. Whether we n Dawn visualized how her team translates adopt the ideas presented at the forum radi- the color and richness of the outside world Youth Market Panel, left to right, Alexandra Wolfe, Jeff cally or incrementally, the forum provided bold into the retail shopping experience. The Gordinier, Kit Yarrow, and moderator Marc Gobe examples and ideas to inspire and drive new objective is to create environments that thinking and innovation. bring the “seasons of retail” inside and Ryan Jacoby of IDEO, in his keynote, orchestrate a journey, captivating from the highlighted the need for a “human-centered moment you enter, while grounding each approach” to retail. Fundamentally, people location in functionality based on adherence – our needs, desires, even mysteries – don’t to fundamentals of human interaction. change that fast. But, the world around us does. Consumer shopping patterns continue to Panel II: The Youth Market: How to revolve around occasion-based need states (the Approach Them as Consumers and shopping method/purpose), motivations (the Employees? why they buy), and choice (the what they seek, both in terms of product and service). Today, Moderator: Marc Gobe, author of Emotional Innovative Retail Panel, left to right, Kelli Coleman, Karen Shadders, moderator Wendy Liebmann, and innovative brands and retailers have stopped Branding 2.0. Dawn Clark selling, they inform and engage. To address the Panelists: Jeff Gordinier, editor of Details changing world around us, we must visualize and author of Gen-X Saves the World; Kit technology. It affects the way they interact and prototype what we want the change in our Yarrow, author of Gen Buy; Alexandra Wolfe, and compute. Their process is less cognitive environments to look and feel like. Ultimately, TheDailyBeast.com. and more emotional. They are a different there are 3 MUSTS – we must: know our psychological animal and they need to be customer, love our customer, and… yes, make n Jeff contrasted the differences in mental- recognized. They expect less hierarchy and great stuff. ity between Boomers, Gen-X, and Gen-Y a lot more emotional intensity, stimulation, (Millennials). The workplace currently coex- and passion in their relationships with their Panel I: Innovative Retail: How to Make ists with Boomers staying longer into their brands. Retail a Destination for Consumers retirement years, and not ceding leadership; n Alexandra reported how Millennials want Gen-X sandwiched between the leadership reinforcement for their choices and shop- Moderator: Wendy Leibmann, WSL Strategic generation and a new energy from younger ping experiences. Through technology, they Retail. employees, trying all the while to find work/ feel entitled to know everything, including Panelists: Karen Shadders, Wegmans Food life balance; and Millennials nipping at the even the thoughts of celebrities, and can Markets; Kelli Coleman, Disney Theme Parks; heels of those above, with the expectation now be their own celebrity. With that, they Dawn Clark, NBBJ architecture/design firm. that everything should be translated on their want to promote their lifestyle, their views, terms. themselves, and each twist and tweet. They n Wendy kicked off the discussion by ground- n Kit mapped the psychological difference want to make a brand their own while still ing the audience in the facts regarding the in Gen-Y. This generation grew up with belonging to the club. n

Volume 2, Issue 2 | Summer 2010 3 We are pleased to provide here papers by the four Capstone project teams summarizing their May 19 presentations. Due to space constraints, detailed bibliographies and some supporting visuals have been omitted here but are available in downloadable versions of these papers appearing in the program’s section of the FIT website: http://www.fitnyc.edu/cfmm. These papers are works of the graduating students, and any reproduction or use of this material requires their written permission.

The Future of Beauty: Redefining the Conversation

Authors: Marta Cammarano, Mariangela won’t look for a “one size fits all,” but rather for further enhance her shopping experience, she Gisonda, Jennifer King, Nichole Kirtley, Beatriz something unique that reflects her distinctive will be able to snap a picture of a product and Loizillon reality. Her greatest luxury will be time for instantly receive information on its ingredi- herself; organization and functionality in her ents, ratings, and carbon footprint. Moreover, Group Mentors: Lezlee Westine and Kathleen life will be key. She will look for solutions that she can pick up her product within a two-hour Dezio, Personal Care Products Council will help her manage the complexity of her life, time slot at the location that is most convenient reduce her workload, and give her more time for her. However, we cannot forget the human What Will Beauty Look Like in 2020? to focus on what’s really important. Brands element, and if she prefers, she will find her There are the obvious trends such as an must therefore shift from telling to assisting personal beauty concierge waiting at the store increasingly aging population, globalization, her, focusing on helping her make the most of for her to experience the product. technology innovation, and environmental her life and supporting her in her search for Brands will communicate back to the con- concerns. These are already here and will comfort and problem solving. sumer and address her unique beauty needs definitely continue to impact beauty. However, by utilizing her detailed information on the the biggest change in 2020 will be redefin- Beauty Will Be Reciprocal iBeautyFINDER. This will be an opportunity ing the communication with consumers. In In 2020, the shift from telling the consumer for brands to interact with her on a more per- 2020, women will no longer want to be told what she needs to servicing her will have sonal level. There will be constant communica- what to look like. The narrow Western beauty occurred. Brands will communicate authenti- tion, a real conversation, between brands and ideal of “young, thin, and blond” will no longer cally as the 2020 consumer is looking for real the woman of 2020. By reaching far beyond hold true. Instead, women will want and will beauty aspirations. This reciprocal relationship the utilitarian function, this new type of service require being part of the conversation, rather and new form of interaction will enhance her will build a different relationship between than just the recipient of the message. shopping experience and abide to her practical brands and consumers, one that is more down and sensible rules. to earth and less reverential. Beauty Will Be Real Technology will unquestionably play a great Today, women constitute almost half of the role in the conversation with the consumer. It Beauty Will Be Responsible U.S. workforce and control 73% of household is expected that, in 2020, we will have 32 times Dove’s Real Beauty campaign, launched spending. At the same time, women handle the technological capabilities that we have in 2004, started the conversation around the majority of household chores and childcare today. Consumers are increasingly researching ‘real beauty’ by challenging the definition of responsibilities. Between building careers, information and conversing on the internet, beauty through its use of non-models in their managing a home, and parenting, women’s and most do so prior to making purchases. In a advertisements. The campaign continues to to-do lists are growing increasingly longer. world where applications exist to help you with educate young girls to counteract the limiting Women are finding that increased opportuni- anything, the beauty industry will have created and unattainable beauty set forth by advertis- ties often come at a cost: their personal happi- one exclusively for the woman of 2020 – the ing and the media. The 2009 Newsweek article, ness. While the difficult task of balancing work iBeautyFINDER. The iBeautyFINDER will “Generation Diva,” highlighted the beauty and parenting is here to stay, by 2020 women make her beauty discoveries interactive and media’s influential strength, pointing out that will have made one great discovery: they are no personal. She will input her unique details and girls 11 to 14 years old are subjected to some longer beholden to perfection. Surveys show preferences, including ingredient allergies and 500 advertisements a day, most of them featur- that 18 to 30 year old women, who grew up see- favorite colors, and create several profiles based ing flawless beauty. According to a University ing their mothers exhaust themselves trying to on her different “beauty personalities” – from of Minnesota study, staring at those airbrushed have it all, are realizing that having it all does diva to CEO. images from just one to three minutes a day not necessarily mean doing it all. The iBeautyFINDER will be able to advise can have a negative impact on girls’ self- In 2020, increased complexities and pres- her on the best products for her based on esteem. sures of life will call for pragmatism rather factors such as the water content of her skin, In 2005, according to The NPD Group Inc., than perfection. This new woman will no the weather forecast, or her current moods. the average age a woman began using beauty longer obsess over little things. She will be This will ensure that her new red lipstick or products was 17; today it is 13. Experian Market more likable, more reliable, and more real therapeutic night cream is just right for her. Research shows that 43% of 6 to 9 year olds than previous generations. She will embrace Her iBeautyFINDER can even make every day are already using lipstick or lip gloss, 38% her perfectly imperfect self, realizing that it’s a “good hair day” by recommending the right use hairstyling products, and 12% use other really all about how she defines herself at any product based on her environment. In addi- cosmetics. In addition, new statistics from the given moment in time. She will see herself as tion, beauty retailers will match her desires American Society for Aesthetic Plastic Surgery an individual and will strive for a sense of per- against their product database to offer her the reveal that cosmetic surgery procedures personal identity outside her multiple roles. She best solutions and bid for her business. To formed on those 18 and younger have nearly

4 Volume 2, Issue 2 | Summer 2010 doubled over the past decade, and an article rochemicals used in beauty product formula- ing and moisturizing regimens, as well as the published by the YWCA states that 69% of tions. Furthermore, Grail Research states that importance of sun protection. In addition, people 18 and older are in favor of cosmetic 80% of consumers cite “natural” as the most students will be taught about ingredients and surgery. important green attribute for cosmetic/toiletry how to read labels. Products donated by beauty The Millennial generation is one “that products. companies will help students practice proper primps, dyes, pulls and shapes, younger and Consumers are also increasingly concerned habits. with more vigor than ever before. Girls are with how companies and products impact the In the fifth grade, students will participate salon vets before they enter elementary environment. According to Grail Research, in the Responsible Consumption module. U.S. school.” The disturbing fact is that girls need 93% of consumers feel that a company being consumption of food and personal care prod- to be concerned with education and personal green is important to their purchase deci- ucts has become a physical and environmental development, not beauty, at this early age in sion. However, most are either not aware or threat. Here, students will be guided through a life. By the time tweens reach their later years, cannot recollect companies’ green initiatives. product’s life cycle, from conception, through they’ll think unattainable perfection can be Consumers also value brands that support distribution, and onto disposal, with the goal purchased, rather than appreciating their natu- causes – 85% of Americans have a more posi- of intelligent reduction. Students will learn ral self. Pop star, Heidi Montag, had ten elec- tive image of a product or company when it the impacts, both positive and negative, of tive surgeries in one day at the young age of 23. supports a good cause. Consumers are looking consumerism with the objective of becoming If today’s role models are mostly airbrushed for information and need to be educated on more informed consumers. and surgically altered women, isn’t it time that our industry’s safety, sustainability, and philan- The last module, Holistic Health, intersects we make beauty more responsible? thropy efforts. students in the sixth grade. The focus is on “Beauty Cares” Campaign: The future will According to the US Census Bureau’s 2008 health and beauty from within, appropriately not just be about responsible self-image but Annual Survey, manufacturers of beauty following Personal Care and Responsible also about responsible social image. It is time products consumed less than a third of the Consumption. With a growing multi-ethnic for the beauty industry to communicate its kilowatt hours of electricity relative to the aver- population and the continued growth of the position and commitment towards a safer, age of other U.S. manufacturers. As for safety, Asian economies, students will be exposed to more socially responsible and sustainable to- FDA statistics confirm that cosmetics are one both Eastern and Western care methodologies. morrow. As individual brands, we are all linked of the safest categories of products used by Students will learn about digestion, a central to the reputation of our industry, and our Americans: With more than 11 billion personal concept of Eastern medicines, and how it collective image must resonate with the images care products sold each year, only 150 adverse affects the way they look and feel. Social and our companies and brands are trying to build. experiences (mostly skin rashes or allergies) emotional aspects, topics that will increasingly It is easy to understand the social implica- have been reported. The industry is also very be part of traditional health by 2020, will also tions surrounding beauty, as we are constantly involved in philanthropy and contributes twice be incorporated. surrounded and influenced by it. How we look as much to charitable causes than any other With the Beauty Industry’s support of is indisputably linked to how we feel. Since the industry. Each year, beauty companies donate EDUCARE, all parties will benefit. EDUCARE beginning of time, women have been striving over one million individual products and will result in: increased conversation and to beautify themselves. Beauty is social, fun, raise more than $2 million for cancer patients clarity surrounding the value of beauty care as and indulgent. Most importantly, beauty is through the Look Good Feel Better Program. health care; earned trust and respect for the about power and aspiration. We believe that if Since the majority of consumers are not aware beauty industry; informed decision-making we look better, our lives will be transformed. of these facts, isn’t it time that the beauty and intelligent consumption; and ultimately This is not just perception; there is concrete industry told its side of the story? self-confidence as each child learns how to at- evidence that attractive people receive many Beauty Care’s EDUCARE: EDUCARE will tain “their best self.” After the national success advantages in our society. At its core, beauty is be an in-school initiative designed to educate of EDUCARE, the focus will shift to future elevating, empowering, and caring. Our indus- students ages nine through twelve on the consumers in developing markets. try helps women feel smarter, more confident, value and impact of beauty wellness on health. and more human. To communicate this, the During these years, students are mature Conclusion “Beauty Cares” initiative will be launched to enough to be exposed to these concepts and yet As the industry approaches the future, highlight the beauty industry’s efforts around impressionable enough to develop healthy hab- our communication strategies must change the three core topics most relevant to the its. The program will consist of three modules between all parties – consumers, brands, and consumer of 2020 – safety, sustainability, and – Personal Care, Responsible Consumption industry. Conversations must be more real philanthropy. This will be achieved by expand- and Holistic Health – starting in the fourth while maintaining aspiration. The dialogue ing the current “Beauty Cares” campaign. grade and concluding with the sixth grade. must be reciprocal, and the brand must listen Safety is an important topic for the next EDUCARE will be an extension of traditional to the consumer to keep her engaged and decade. Consumers’ interest in cosmetics that in-school health programs and build upon loyal. Finally, the conversation must be more are good for them will continue to increase their physical and nutritional lessons. responsible. If, as a collective of brands, the as beauty and health are increasingly linked. The first module will teach fourth grade hope is truly for a more prosperous tomorrow, According to Datamonitor, 28% of consumers students Personal Care. Topics surrounding future consumers must be more grounded in currently deliberately avoid certain cosmet- grooming and good hygiene will be addressed the benefits and possibilities of Beauty. n ics or toiletries because of fears over certain at a time when children are beginning to ingredients, and 39% are somewhat or experience hormonal changes. Students will extremely concerned about parabens or pet- learn how to care for their skin, develop cleans-

Volume 2, Issue 2 | Summer 2010 5 The Future of Fragrance

Authors: Shiri Sarfati, Lisa Negrelli, Jessica 2020 students will be able to identify scents Classic brands dedicated 12-18+ months Wolfe, Monika Ziobro that occur in nature, develop a scent language for the creation of a fragrance. The develop- and understand why they prefer certain scents. ment process is critical and cannot be rushed. Group Mentor: Rochelle Bloom, The Fragrance Social Network: 1.2 billion people, or 20% Ingredient materials need aging, and proper Foundation of the world population, are between the ages evaluations on blotter and skin are paramount. of 15 to 24 years old. Of this population, 96% Much of today’s development process has been Introduction have joined a social network. The average condensed to just a few months, leaving less Fragrance sales have been trending down- Millennial, those born 1982 to 1995 and now time for the creative process to flourish, and in ward since 2001, despite a brief peak in 2006 15 to 28 years old, has 426 Facebook friends. turn adversely affecting quality. due to celebrity fragrances entering the mar- Because of this exposure on social networks, Quality is important today and even ket. Companies have launched new fragrances the future of fragrance is through word of more important to the next generation. The as a desperate attempt to engage the consumer. mouth utilizing digital media. Consumers will Millennials are 76 million strong and rival the The recent recession only made a bad situation tell their fragrance stories in their own words 80 million baby boomers. Born in the technol- worse, as consumers began opting out of the online. By 2020, consumers will finally be able ogy age, they are risk takers, smart, educated category altogether. to describe what they smell and will have a and socially enlightened. They care about In 2009 there were over 1,100 fragrance fragrance vocabulary through scent education. ingredients and product quality and integrity. launches globally, and over 300 of those TV Network: The Food Network, HGTV, The They rate an appealing scent to be most im- launches were in the United States. The Style Network and CNN have been instrumen- portant in their purchase decision, followed by United States mass and prestige fragrance cat- tal in boosting awareness for chefs, design- quality and then price. egory was down nearly 8% (global sales were ers, and 24-hour news. Consumers are well Millennials rate scent highly and own more down nearly 4%). The industry had entered educated about cooking and where ingredients fragrances than the general consumer, 8 into a launch-frenzy, yet sales continued to come from through The Food Network. Direct versus 6. They like to purchase fragrance for decline. selling networks, such as QVC and HSN, are themselves, and 91% of them said they like to Consumers are confused, overwhelmed selling an increasing amount of fragrances on receive fragrance as gifts. and frustrated, resulting in them going back television through storytelling and describ- In 2020, this consumer will have the most to familiar brands they trust. Seven out of the ing the fragrance. Television will be the new buying power of any generation. top ten prestige fragrances are classics, having platform for fragrance awareness, education, Molecules: This new generation is tech- launched ten or more years ago. The strength sampling and purchase in 2020. nology-driven. New tech scents will offer safe of the connection the consumer has with these alternatives to ingredients that are regulated brands is unfazed by the industry’s insistence Eau Juice and will appeal to this new generation. New on newness. Ingredient Story: Ingredient stories are used molecules will offer olfactive stability, substan- This paper will explore four concepts that to connect with the consumer in industries tivity and an expanding palette of ingredient will connect the consumer to fragrance – emo- from air care to ice cream. Companies such materials for perfumers. tionally through education and storytelling, as Haagen-Dazs are calling out the ingredient Just as the food industry is touting molecu- tangibly through quality product and compel- story in advertising and marketing, connecting lar gastronomy, the fragrance industry should ling ingredient stories, creatively through an with the consumer tangibly through relatable publicize the advancements in tech scents as interactive retail experience, and daily through ingredients and taking them on a sensorial “eau molecules.” The word “synthetic” cur- technology. journey to where ingredients are sourced. rently utilized in the fragrance industry has Introducing Eau Share, Eau Juice, Eau Space Luxury fragrance brands and specialty a negative connotation to the consumer and and Eau Tech. retailers’ brands are outperforming the overall does not describe fairly the science behind prestige market. These two segments are these ingredients. By promoting molecules, the Eau Share hitting the emotional notes that resonate so industry can move beyond the negativism the Education: A study at Harvard University deeply with consumers. From Jo Malone and word “synthetic” brings to the industry. found that volunteers exposed to rose scent Frederic Malle to Bath & Body Works, specialty while sleeping after studying were able to and niche brands are engaging the consumer Eau Space remember the studied material without being with interesting ingredient stories. To appeal to Specialty stores are taking the lead in mak- exposed to the scent again. Another study consumers, fragrance needs to be made more ing shopping more exciting, providing a place showed that students who learn in a room tangible, and the ingredient story offers just where consumers can explore, discover, and scented with rosemary or lavender were far that. relax – a true destination. Other retailers are more likely to remember the information Quality: The top selling classic brands, with following suit and making major renovations studied when exposed to that scent again. The quality fragrance ingredients, remain on the to their cosmetic departments. But there is still sense of smell is being under-utilized in early top 20 list year after year. Today, many new not much change happening at the fragrance education. All other senses are incorporated launches spend their money on packaging, counter. into elementary education, except the sense of bottle design, merchandising, advertising, and Today’s retail environment for prestige smell. One’s smelling ability reaches a plateau talent, leaving very little for the product itself. fragrances is unexciting. Consumers are con- at eight years of age. By incorporating scent In the past, investment in the fragrance oil was fused, daunted by the abundance of brands and education in primary education classes, by two to three times greater than it is today. aggressive sales people armed with spritzers

6 Volume 2, Issue 2 | Summer 2010 and scent strips. The industry must create a connect with fragrance much like the wine like a printer or a scanner; just plug it in and space that is dedicated to fragrance, where the industry engages the consumers through vine- experience the aromas of the world. consumer can explore, try and experience fra- yard tours. It is a unique way of engaging the Scent TV: ScentTV launched a revolution- grance. Like Disney’s $1 million renovation per consumer through travel experiences. Disney ary Scented Web Broadcast portal that enables store project underway, the time is now to take stores offer travel services to their theme parks users to smell the scented content, including those risks and renovate the store experience. in-store. Fragrance retailers could pursue the movies, games, and music videos. Experiential Retail Space: The industry must same strategy. Scent Patch: The fragrance patch technology come together to create a dedicated area for Workshops and Classes: Industries like already exists. The patch emits fragrance to the consumers to experience fragrance. Eau Space wine and food are incorporating classes and body or an article of clothing. is a new retail platform for fragrance selling. workshops in order to teach consumers about Scent Ingestible: A team of Brazilian re- Eau Space is a flagship store concept, and parts certain wine regions or how to cook a healthy searchers has come up with a pill that replaces of the concept may also be interpreted online meal. Eau Space will incorporate fragrance unpleasant body odor with a much more pleas- as well as within other retail entities. workshops in-store and online. Consumers will ing scent. The idea came from certain foods, Lifestyle & Mood Categories: Fragrances be able to learn directly from a perfumer how such as garlic, asparagus and curry, which will not be categorized by traditional classifica- a juice is inspired or find their perfect wedding perfume the skin, urine, and sweat. tions, such as designer or celebrity, as they are day fragrance in a special class dedicated to The team just released the Fyber Sense pill currently, but rather by personal lifestyle and newly engaged couples. Workshops and classes that, once consumed, discharges through sweat moods. Consumers can more easily navigate will be an integral part of one’s shopping a lavender-like scent obtained from the herb these segment classifications, as they appeal to experience and will enhance the consumer’s coriander. It still needs more research before them on an emotional level. Building on rich appreciation for the industry. health authorities approve this pill for sale. research regarding how fragrance affects emo- Scent Cocktail: Today’s technique of fra- tional states, such a retail approach will result Eau Tech grance-making has greatly evolved, consisting in a much more engaged consumer. 2020 will be a year of innovative scent deliv- of many notes that capture the aromas of popu- Unedited Digital Reviews: Store shelves will eries. People can already chat, email, download lar cocktails. With drinks and fragrances being feature touch screens that offer unedited digi- music and watch video through the internet. so similar in craft, the infusion of top scent tal reviews of the fragrances, which consumers Now, imagine being able to smell one’s boy- notes with alcoholic cocktails will become a may read and comment on in-store and online. friend’s scent when receiving an email or smell unique way to brand fragrance. These trusted peer reviews are much more one’s favorite restaurant while booking a table. compelling to Millennials, who love to share The sense of smell is directly connected to Conclusion their fragrance opinions. emotions. The power of scent makes content Scent is part of nature and triggers one’s Fragrance Consultation Bar: Trusted advi- extremely compelling, offers a heightened olfactive memories. It enlivens one’s taste buds sors, or Scent Stylists, will be salary-based sense of reality and intensifies emotions such and it ignites one’s desires. It is the industry’s employees, not commission-based. They will as love or fear. responsibility to excite and re-engage consum- be what makeup artists are to cosmetics or While the scent deliveries below may seem ers. The time is now to embrace tomorrow’s estheticians are to skincare, certified by The like science fiction, the required technologies dominant cohort, the Millennials. They love Fragrance Foundation to recommend fragranc- already exist. It’s only a matter of time before scent, and fragrance needs to connect with es that the consumer would enjoy. At least they will become part of one’s daily life. them through story-telling, quality product, one Scent Stylist will be present in-store, and Space Scent: Las Vegas casinos, retail stores interactive retail space and innovative consumers may also send in questions to be like Abercrombie and Fitch, and hotel chains technology. n answered by a Scent Stylist online. Like a wine like The W are already fragrancing their spaces sommelier, Scent Stylists may be consulted as a way of branding. By 2020, every space will with for a deeper understanding of specific have a unique scent to cue the consumer. scents. Mobile Phone Scent: Companies like NTT They will be well-versed in fragrances and Communications, Samsung and Motorola all will be able to share with the consumer how hold patents on technologies that allow mobile to wear fragrance, when to wear which scents, phones to emit scent. Users will be able to FIT Master’s Program and how to layer one’s favorite brands and send and receive scent tones, experience scents Contact Information have fun while mixing and matching. when receiving phone calls and send scented Fragrance Pods: Fragrance pods will be attachments. CHAIRPERSON another aspect of the store’s interactive space, Internet Scent: Telewest Broadband, a UK Stephan Kanlian where scent, light and music come together. cable company, has released a new technol- 212-217-4306 Experiences that are tied to other senses make ogy that brings a third sense to the internet, [email protected] stronger, lasting connections for the consumer. allowing internet users to send and receive PROGRAM ASSISTANT Fragrance pods will allow the consumer to wonderful aromas while surfing the web. Kelelyn LeMay explore various scents in a dynamic sensorial The revolutionary technology enables people 212-217-4311 experience. to send and receive codes to special ”scent [email protected] Fragrance Escapes: Consumers will be able domes,” which mix liquid scents and spray www.fitnyc.edu/cfmm to book fragrance escapes to France, Morocco, them into the air around the PC. This unique or Bulgaria to see how fragrance is made and scent dome is made by TrisSenx, and it works

Volume 2, Issue 2 | Summer 2010 7 The Future of Leadership

Authors: Carly Guerra, Lea Koussoulis, Caroline Ornst, Marixsa Rodriguez

Group Mentor: Carlotta Jacobson, Cosmetic Executive Women

Current State of Leadership The current state of leadership and organizational model are outgrowths of the Industrial Revolution. There are multiple layers establish- ing power through rules and processes. People report to the office, sit at their desks, and take direction from the leaders at the top. Not much Community: The top-down hierarchy will innovation. Employees will respect the leader’s has changed through the years because today’s transform into a boundless environment where honesty and be inspired and motivated to organizations continue to be too hierarchical. work is executed through conversation. perform. This type of structure is rigid and does not Company structure will not go away Transparency leads to trust. Trust is about foster creativity and passion from all members completely, it will only change from the way relying on others and having faith. Through of the organization. we know it today. There will be no layers of our research, we found that among the The digital age that we live in will continue hierarchy to break through in order to share Millennials today there is a lack of trust. They to enhance communication and business in- ideas. It will be an environment of constant have grown up during a time with no real role teractions. However, the current organizational information flow. With this new work struc- models and no true leadership. They have structure does not support this movement ture, we will see co-creation where the leader been let down by organized religions, financial and will not work in the future. This model is has to ask, “What do you think we should do?” institutions have crumbled, and they have becoming outdated because it was designed for Her co-collaborators, who will be working with watched their parents lose their life savings. the industrial economy, not the information her, not for her, will surround the leader. This The heroes to this generation are their parents economy. new leader does not necessarily have to be a and best friends because this is whom they see woman, but needs to demonstrate feminine as authentic leaders. A corporate title no longer The New Ecosystem – Community, traits of empathy in order to manage success- equates to leadership. Agility, Sustainability ful teams in 2020. An important characteristic of this new agile Companies need to create a new social Cross-functional teams will be considered tribe will be comfort with working remotely. contract with their employees that puts people tribes within an organization. Each tribe will Teleworking has been described as the new first and acknowledges the needs of its chang- be working on a specific company project. face of the agile workforce, and the employee ing workforce. Seventy-six million Millennials Ideally no longer will there be a product of the future is morphing into a “work-any- (born 1982-1995) are coming into the work- development department or a marketing where warrior.” Gartner Dataquest estimates force, and they bring with them a new set of department. Instead there will be representa- that over 14 million workers currently are values and digital knowledge that will trans- tives from product development and market- teleworkers, spending at minimum 20% of form our communities and the way we do busi- ing within one tribe. Tribes will be constantly their work-week outside the office. Within the ness. If companies could better inspire their evolving so all employees have the opportunity next four years, about one third of the U.S. employees, people would be more productive to work on different projects. As a result, there workforce will demand to telework. and creative. Simon Sinek wrote, “Inspired will be tribes where individuals are collaborat- Tomorrow’s organization will be unbound employees make for stronger companies and ing with one another on a project that they love and limitless. Companies will need to think of stronger economies.” in a fluid and open environment in order to creative ways to adopt new ideas from other Our solution is a new corporate Ecosystem, produce maximum results. industries into the world of beauty. Meet the which functions with 3 main attributes: Agility: In the future, only the most agile innovation odd couple: P&G, a more tradi- Community, Agility, and Sustainability. companies will be left to compete, and compe- tional corporate structure, and Google, a free tition will intensify as technology advances. We flowing culture, have collaborated to figure out need to embrace agility as the new paradigm what makes the other tick. Reaching outside for leadership. Leaders who are agile will al- like this is a powerful way to incubate new low for transparency, which will foster open ideas and recharge. communication and better connection within Sustainability: The workplace has changed the tribes. With Millennials entering the greatly in the last 10 years and will continue workforce, the workplace will be filled with to evolve at an even greater pace into the next risk-takers who are willing to experiment and decade. Employees are a company’s most jump into an idea feet-first without the thought valuable assets. Turnover rate for our industry of failure. The future workplace will need to is extremely high, and we are all competing to morph into a more fluid and porous environ- acquire and retain the best and brightest talent. ment, allowing for more experimentation and Passionate and engaged employees are key to a

8 Volume 2, Issue 2 | Summer 2010 company’s success and sustainability. But how Examples of how inc.@ has adopted the and forge new ideas. The collaborative forum do you foster this within your company? Ecosystem Model include: allows employees to click on topics and brain- Corporate social responsibility is impor- Working Remotely: inc.@ gives freedom storm over a live chat with their colleagues. tant, especially to the Millennials. It should and flexibility to their employees by encourag- meetingSpace, the next generation of work- be authentic, and it is about more than just ing them to work remotely. Even working for place meetings, shows all meetings happening donating money to a cause. Companies should other companies on shared time is seen as an in the company at any given time. Employees also encourage volunteerism through organiz- advantage, and inc.@ thrives off of the talent working remotely can click on any discussion ing events that will get employees involved and of their well-rounded and dynamic people. to join in. This gives transparency to activities make an impact in their community. inc.@ accommodates their remote workforce happening in the company and facilitates com- We spoke with Millennials and they shared through the Mobile Village, the next generation munication across the inc.@ community. what they are looking for from their compa- of office hotel space. Employees check in to Mobility: inc.@ has developed their own nies. They are not looking to be CEO over- the Mobile Village online before arriving at the mobile application to keep employees con- night. They want to be loyal and care about the inc.@ office. A concierge sets up a workstation nected to company resources such as theMir- company, but they expect the same in return. to meet the needs of the employee while they ror. Employees can join meetings via their They want opportunities to broaden their expe- are working at the office. Each workstation has mobile device and rience. Externships, international rotations of a digital wall that serves as the single point of stay connected to six months, and tribal rotations are ways com- access to all of inc.@’s resources. the inc.@ network panies can enable Millennials to try new things Fluid Workspaces: inc.@’s workspace in- from any remote without losing these people to other employers. frastructure enables collaboration. Yesterday’s location. The role of work has changed during the last cubicles have been replaced by fluid work- inc.@ is a several decades. Originally, work was a matter spaces. Lightweight screens replace walls to company that has of necessity and survival. Today, work is still divide space in an easily changeable manner. truly evolved to a necessity, but people are looking for more Tribes can cluster their workspaces together the Ecosystem Model through their workspace meaning from their work, without sacrific- for collaborative activities, and revert back to infrastructure and technology solutions. They ing work-life balance. 88% of employees say individualized spaces as needed. are poised to attract the best talent to lead them they have a hard time juggling work and life, New Roles: inc.@ has embraced a commu- successfully into the future. according to Aon Consulting. In a survey for nity-style organizational structure, and there The New York Times Job Market, 75% of the are new roles in the organization to correspond Conclusion respondents reported that workplace stress with this collaborative way of working. For The current leadership model is broken and impacted their decision to look for a new job. example, the Knowledge Facilitator works a new way of thinking is emerging. Do not be Technology should aid in getting the work within tribes to connect people with each other afraid to challenge the traditional structure. done smarter and faster within a reasonable and the resources that they need. This is an Companies need to innovate, inspire passion, timeframe, so people can truly enjoy their example of how traditional titles have been dis- foster trust, and embrace agility with their personal lives. carded in favor of a language that is less about employees in the workplace. n The combination of generations in the hierarchy and more about people’s talents. office will also require companies to develop The New Intranet: inc.@ has developed new programs that foster communication and theMirror, the next generation of the Corporate collaboration, despite the gap in technological Intranet. theMirror leverages the concepts of affinity. Reverse mentorships are a great way to Social Networking to bring employees together. foster this interaction, while both generations The site is comprised of tools such as blogs, a learn from each other and can better appreciate company wiki, and real-time chats. The news the other’s expertise. feed shows live updates from all of inc.@’s A leader who facilitates, educates, and employees, and enables them to easily keep inspires has the attributes to lead a successful track of their colleagues’ activities. On theMir- company. The important thing to remember is, ror, each employee has a page on peopleSpace, if leaders and companies do not evolve to meet an area where every employee shares his or her the needs of their employees in the workplace, portfolio of projects. innovateSpace is a place those employees will leave your company to on theMirror for employees to come together find one that does.

Solution Our solution is a model company called inc.@, the Beauty Company of 2020. inc.@ is a company that has adopted the community, agility, and sustainability modes of the Ecosystem. They have rewritten the social contract with their employees, and they place collaboration and creativity at the core of their people-centric culture.

Volume 2, Issue 2 | Summer 2010 9 The Future of Retail

Authors: Maura Cannon, Jennifer Marino, Other retailers that have successfully taken a through to this generation. Yumiko Nishikawa, Denee Pearson risk and been successful during these difficult Catch Me If I Fall: Millennials hide it well times include: but, after a lifetime of option overload and Group Mentors: Michele Serro, IDEO New Apple: iTunes removed the boundaries of being told “not to settle,” they often feel anx- York and Erin Armendinger, The Wharton time and location; ious about what to do and buy. They crave School Jay H. Baker Retailing Initiative Uniqlo: Brought fun, value and entertain- authenticity so they can make smarter pur- ment back into retail; chase decisions. We believe the future lies in Retail as We Know It Has Failed. Sephora: Removed the barricades in beauty being able to emotionally engage them in an “Retail as we know it has failed.” This critical and allowed consumers to play. honest dialogue to help retailers build a pas- quote from Marshall Cohen of NPD serves as a sionate community of loyal shoppers. wake-up call to us all. For the first time in more How Can We Evolve Further? Connect with Me: Millennials thrive in com- than 20 years, we watched U.S. retail take its As we think about the next 10 years of retail, munities and have a high need for validation. largest decline in 2009, decreasing by 7%. Last it is time to acknowledge the days of excessive The numbers speak for themselves: year alone, a staggering 10,000 retailers closed shopping are over. We need to better com- Facebook has 400 million active users that their doors while unemployment soared to municate our brands and truly connect with log-in 500 billion minutes per month; 10%. As best said by Wendy Liebmann of WSL our consumers. It’s time that we move retail Twitter is now registering 55 million tweets Strategic Retail, “Prices on everything were go- forward and embrace change. per day. ing up… Savings were non-existent. Credit was A perfect place to start is with the Millennial For retailers, this level of connectivity can maxed out. American shoppers were stretched Generation, also known as Gen-Y or the Echo make or break a business. Most importantly, too thin.” As a result, the shopping dynamic Boomers. They are currently between the ages consumers, not companies or brands, own the shifted. “Consumers were no longer living to of 16 and 32, born between 1978 and 1994. message. If we forget this fact, she will surely shop, but shopping to live.” They are the largest (83 million), most ethnical- tell all her friends about it on Facebook. ly diverse, and best educated consumer group No Boundaries: Time and place are becom- How Did Retail Get This Way? in U.S. history. ing irrelevant for this generation, that has It started with an artificial inflation of retail More importantly, this generation is an grown up with few borders, boundaries and growth that was fueled by the opening of more economic powerhouse. To put this in perspec- rules. Today, the concept of no boundaries is and more stores. This behavior was further tive, the Millennials represent $250 billion more about convenience than the experience. encouraged by the age of excessive credit-based in annual spending power and have a major Retailers that can combine both the experience consumer spending along with the immense influence on both the Baby Boomers and and convenience, while bypassing traditional affluence and grand scale of the U.S. market. Generation X. They will eclipse the spending borders, will win this generation. Stores were over-sized, overstocked and every- power of Baby Boomers by 2017. In order to Hi-Touch: Finally, Millennials are in search thing was on sale! When the economy spiraled, successfully target this group, retailers need of tangible products and real experiences consumers were forced to reduce spending and to understand that the game has changed and to balance their digital lives and keep them retail struggled to remain profitable. Retailers Millennials are playing by a different set of grounded. Retailers that provide a customer- sought to reduce their inventories in any rules and motivations. centric and personalized approach that merges way possible – resorting to heavy discounts, digital offerings with tangible products and coupons, doorbuster sales and GWP’s. In the The Millennials services will be in high demand. fight for survival, many retailers lost sight of Let’s take a closer look at this critical genera- Millennials are screaming out for retailers to their main purpose -- to entice, engage, and tion, that has grown up in a fast paced tech- challenge the norms, break the rules, and build entertain their customers. nological era which has changed the way they a deeper emotional connection. They want and think, learn and process information. expect YOU as retailers to put THEM at the Take a Risk or Play it Safe Catch Me If U Can: A key characteristic center of YOUR universe. During this vulnerable period, many retail- of the Millennials is that they are impatient ers chose to play it safe and not make any and get bored easily. More specifically, they Touchpoint Integration major shifts in their strategies. Interestingly, hate standing in lines, do not like too much In order to engage these consumers, the many of the winners were the ones that took information (TMI), expect instant gratifica- shopping experience must be an emotional a risk and broke down the barriers. This was tion, and demand flexibility in all parts of their journey. Every moment should be designed to best communicated at the recent WWD CEO lives. In fact, over half say they do not like to engage Millennials; however, it’s no longer as summit by Glen Senk from Urban Outfitters. be bothered by sales assistants when shopping simple as click or brick. We must engage them “We didn’t have a choice about taking risks. If in stores. through an integration of touch points. Let’s we had offered the things that we had offered At the same time, they are stressed out take a closer look at some of the examples we previously, the customer wasn’t going to buy trying to juggle an overwhelming number of feel are best in class… it. If it was in her closet, she was shopping her choices and tasks. To put this in perspective, Wet Seal iRunway: Wet Seal is a perfect closet. So the only way to capture the customer they change tasks every 3 minutes and send example of a common brick and mortar retailer was by giving her true innovation.” For this 1700 texts a month. With all this going on that transformed the in-store experience and retailer, the quest to provide innovation at retail around them, their attention span is extremely represents a no boundaries approach. showed real results in a tough economy. limited, which makes it very difficult to break Here’s how it works. While shopping

10 Volume 2, Issue 2 | Summer 2010 in-store, con- with a vending machine to sell the top selling Hand over the Keys: Consumers want to sumers can products available 24/7 on the metro platform. sit in the driver’s seat. It is imperative to trust use the Input Lululemon Athletica: Moving off-line to a your customers, and embrace and incorporate Style Tool successful retail store model, Lululemon’s their input. that enables impressive growth has been cultivated through 3 Second Rule: First impressions mean them to take its emotional everything. Retailers should strike the perfect a picture of connection balance of instant gratification and deep con- the price and hi-touch nection. Utmost attention needs to be paid to tag with their iPhone and yields thousands engagement the total integration of color, material, texture of outfit options created by fans. Consumers with consum- and copy, as this generation does not read but can upload the look to Facebook, email it, or ers. view. purchase instantly! This allows for new and This has Life Editor: Time is their most important enhanced meaning to the traditional retailer been ac- asset. Design and provide curated choices to “cross-selling” approach. complished by embracing what they stand for make their life easy and simple. Save them Polyvore.com: Taking the iRunway concept in everything they do and offering experiential from information overload. to the next level, the UK-based Polyvore.com shopping with a surprising twist at every turn, Experience, Bottled: The essence of retail shopping portal allows its members to put to- as well as holding events and yoga classes in its experience needs to be delivered as a smart- stores to engage consumers. phone application. Mobile phones are the most Red Bull: Even though this example is not important touch point for Millennials. a retailer, we mention it here since it is such a Expand Your Horizon: Retailers should good illustration of engaging the short atten- connect at all touch points. It is no longer tion span of over-taxed Millennials by creating about location or the choice between brick excitement. Red Bull decided to celebrate its and click. It is extremely important to know one-millionth fan on Facebook by hosting a limited time national scavenger hunt. The brand hid multi-packs of Red Bull all over the country and invited its fans to find them. This created an incredible amount of viral buzz for the brand and a larger base of loyal followers. gether fashion looks across 20 brands and vali- Conclusion date each other’s choices. It is a great example Learning from these best practices, what where the consumers are and be there with the of how indie brands can find a way to grow. can retailers do to achieve successful and appropriate offering of products and services. Its success lies in both an open dialogue sustainable growth for the next 10 years? The Considering how demanding these new con- among members (such as “Are shorts okay to Millennial consumer traits discussed in this sumers are, every touch point needs to provide wear?” and “What is the perfect black dress?”) paper will be even more amplified in the years the best shopping experience. as well as an unbiased and pressure-free to come. Going forward, we need to move The best in class examples mentioned above platform to play and ultimately purchase. This towards a more consumer-centric approach to connect with the consumers at all different crowd-sourcing way of styling has drawn 140 target this generation; otherwise, they may stay touch points. Now we have a broad spectrum million page views per month! away from traditional retail forever. of touch points – from online to brick and @Cosme: Another online community that Show Me, Don’t Tell Me: Millennials do not mortar – and the vitally important requirement has successfully turned into a brick and mortar like to be told how they should feel. Therefore, of integrating all of them. retailer originated as the largest Japanese con- imposing a brand on them would definitely In order to successfully target the sumer cosmetic review site (similar to Makeup turn them off. Retailers should provide the Millennials, technology can’t be just an add-on; Alley). @Cosme now operates 6 retail stores tools for them to figure out how they feel based it must be a critical part of the retail experi- in Tokyo on their own experience. ence. This will mean reaching out to consum- that feature Back to Reality: Honesty and transparency ers across all aspects of the spectrum. top ranked communicate authenticity. Retailers should be Change is the only constant. Embrace the consumer accountable for their actions. Millennials also change, and evolve with the consumers. n products. consider vulnerability as a sign of authenticity. This model Therefore, if there are any problems or flaws in helps busy their products or services, retailers should be consumers able to show the consumers that they can im- simplify their decision-making and validate mediately fix them rather than hide them. their choices. Friend Me: It is all about community. These stores are located conveniently within Retailers need to help the consumers con- the Tokyo metro stations, an unexpected retail nect and validate their choices through their space where consumers congregate daily. network. It is critically important to be a part of Earlier this year, @Cosme also opened a kiosk their community.

Volume 2, Issue 2 | Summer 2010 11 Leadership in Action: Recognizing Achievement

Capstone 2010 continued from page 2

Marixsa Rodriguez receiving Victoria’s Secret Scholarship Award winners, left to right, Shiri Sarfati, Yumiko Nishikawa, Beatriz Loizillon, Beauty Outstanding Leadership Award from Lea Koussoulis, Nichole Kirtley, and Marta Cammarano, with presenter Leslie Harris (far Victoria’s Secret Beauty President Shashi Batra right) from class of 2008. Ms. Nishikawa was also the recipient of the Outstanding Scholar and Department Medal Awards for the Class of 2010.

Estée Lauder’s Phebe Farrow Port presenting the Estée Lauder Companies Faculty Leadership Award Class of 2010 with Program Chair Stephan Kanlian to Adjunct Professor Pamela Vaile

Industry Leaders Mentor the Next Generation As has become an annual tradition, the dedicated industry leaders who serve as Executive Mentors to students in the FIT Master’s Program gathered on February 5th at the Magic Room atop the LVMH Tower, for an industry luncheon, and to celebrate the FIT Master’s Program’s hands-on leadership training through a curriculum-based Mentoring program, the only one of its kind in a graduate business program. Pictured at left are the current Executive Mentors, senior leaders from retail, marketing, publishing, consultancy, market research, industry associations, and fragrance development houses. The event is hosted each year by LVMH Perfumes and Cosmetics CEO Pamela Baxter, and Joanna Grillo, head of human resources for Parfums Christian Dior, both of whom serve on the FIT Executive Mentors gathered at annual Executive Mentors luncheon Program’s Industry Advisory Board. n

12 Volume 2, Issue 2 | Summer 2010