www.bwconfidential.com The inside view on the international beauty industry October 9-22, 2014 #99

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The buzz 2 Changes at the top News roundup here’s been a string of management changes at beauty Netwatch 6 Tcompanies and retailers in the past few weeks, from the announcement that The Nuance Group ceo Roberto Graziani Beauty blogger review would leave the company, World Duty Free Group ceo José Maria Palencia is stepping down and the departure of Douglas’ Interview 7 perfumery director Manfred Kroneder, to the news from L’Oréal Unilever International business that Barbara Lavernos would leave her position as head of travel manager travel retail to become evp operations at the group and will be replaced Rosalyn Frayna by Vincent Boinay. However, perhaps one of the most significant management Insight 9 changes is Coty ceo Michele Scannavini’s departure from the company. Scannavini had UK prestige beauty market spent 12 years with Coty, was named ceo in 2012 and took the group through its IPO last year. He will be replaced by Coty chairman Bart Becht on an interim basis until a new ceo Show review 12 is found. Analysts viewed the news as negative given that Coty is in the midst of a major MakeUp in New York restructuring effort focused on product categories and regions and has embarked on a cost- cutting program. In addition, the company has had a tough time recently and has suffered Store visit 14 declining sales. Crème de la Crème, The change at the top also comes just months after Coty’s chief financial officer Sergio Tallinn, Pedreiro left the company. Group ceo Bernd Beetz also left Coty in 2012, shortly after Becht became chairman. In a conference call, the group put the emphasis on business as usual and said that Scannavini’s departure is not indicative of any unforeseen problem or financial issue and that it would not result in a change of strategy or priorities. But as one analyst pointed out, maneouvring the group through a new structure in a tough market with a new ceo will not be easy. Meet the BW Confidential team at: Oonagh Phillips Editor in Chief l TFWA World Exhibition, Cannes, Oct 26-31 [email protected] l Luxe Pack , Oct 27-29

l Cosmoprof Asia, Nov 12-14 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz Strategy Stay informedwithourdailynewsheadlinesonwww.bwconfidential.com News roundup overall retailspace atbothairportsbymorethan 100%. Dufry hasalsobeenawarded additional retailspaceof1,670m agreement, Dufry will continue Airportto operate and duty-freeat Siem Reap retail International at both airports Airport until in Cambodia. 2020. • RichardRendek,ceoofNuance’sNorthAmericanbusiness, willstepdown. Based on the new • AlessandraPiovesanawillleadNuance’sandDufry’scombined businessinAsia. Russia andFrance. • Dufry’sRegion1,EMEAandAsia,willintegrateNuance’s operations inAsia,India, commercial officerofNuance. a separate unit under the leadership •Nuance’scurrentoperationsinEurope,excludingRussiaand ,willreportas of Andrea Belardini, who include thefollowingpoints;seewww.bwconfidential.comfor moredetails. will remain global chief structure willbeinplaceuntilitisreviewedthefirstquarter of2015.Themainchanges a new company structure for theFollowing itsacquisitionofTheNuanceGroup,travelretailerDufry hasintegration announced phase of the two companies. The new matching foundationtechnology. founded in2013.Itsaysitsmaininterestacquiringthecompanywasforcolor- effect inJanuary2015.ThebeautylicenseiscurrentlyheldbyP&G. French groupL’Oréalsigned a beauty license with sports brand Puma that will go intowelcoming Chanel as a Coty shareholder.growing colorcosmeticscategory,”hecommented.Becht added that he looks forwardgreat to opportunity for Coty to furtherof Western strengthen European its countries leadership whereto Coty’sposition Coty coloris in seeking thecosmetics large to bolster andportfolio. countries. its presence“The Cotycompany’s provideschairman leadership a and interim positions ceo Bart in aBecht number says thatChanel hasagreedtoenterintoexclusivenegotiations. Bourjois is complementary from Chanel in exchange for 15 US-based Coty millionhas submitted Class Aa Cotybinding shares, offer valued to acquire at around color $239m. cosmetics brand Bourjois In other news, Dufry has renewed its concession contracts at Phnom Penh International In othernews,Dufryhasrenewed itsconcessioncontractsatPhnomPenhInternational L’Oréal has also acquired Sayuki Custom Cosmetics, a California-based make-up brand Bourjois, which was founded in 1863, is sold through 23,000 doors in more than 50 n n n n n

L’Oréal appointsVincentBoinayheadoftravelretail Michele ScannavinileavesCoty Dufry mapsoutorganizationalchanges L’Oréal signslicensewithPuma,acquiresSayukiCustomCosmetics Coty makesbidforBourjois At aglance... www.bwconfidential.com -October 9-22,2014 #99-Page 2 n 2 (17,975ft 2 ), increasing its CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz Retail at $113m. retailer as it enters the end-of-yearSeptember. holiday The newperiod. transaction stakewill providein Sears a Holding.much-needed This financial follows by EdwardLampert,ceoofSearsHoldingsandESLInvestments, whichowna48.5% ESLboost Investments’ to the ailing loan of November. Thedealisexpectedtoraiseup$380m,ofwhich $168mwillbefunded $400m to the retail group in US-based SearsHoldings is to sell a 51% stake in Sears Canada to its shareholders by News roundup 1,000m Sophie Behaghel (Flair) and AngélineThe collectionwascreatedbyup-and-comingperfumersMathilde Bijaoui(Mane),Anne- Leporini (Robertet). the company’sfifthsinceitwasfounded,iscalledJeunesCréateurs, orYoungDesigners. shopping complex,nearParisairportRoissyCharlesdeGaulle. flagship stores and hotel lobbies and is already in use in spaces including the Aéroville of anewpatentedtechnologyconceivedforspacesbetween250m French scenttechnologycompanyScentyscelebratedits10 The contestrunsthroughDecember30 formula. Contestantscanalsoviewothercreationsbybrowsingthroughavisualgallery. jury of Mane perfumers and the images andmusicalongwiththeingredients.Thewinner fragrance will be formulas awarded area perfume analyzedtheir made bytop, witha base his and or hearther notes. interface providesarangeofessencesandingredientsfromwhichcontestantscanselect The contest also involves choosingcan be enteredcolors, onlineanimated on Mane’screate website their or byown downloading fragrance formula.a tablethouse ManeislaunchinganonlinecontestcalledFindYourEssenceallowingvisitorsto Findapplication. Your Essence, The created In abidto“bringinternetusersclosertheworldoffragrance”,France-basedfragrance by digital agency Shakebiz, sales directorEurope. vp and regional general manager joined IFFasvpsalesprestigefragrancesNorthAmerica.alsonamedSabryaMeflah EAME fine fragrances. She wasspecialty formerly fragrancesfine fragrance North America. Former Givaudan executiveposition,” commentedIFFvicepresidentglobalfinefragrancesBertrandLemont. Frederic Pignault has therefore we are increasing ouras focus the primaryin this growtharea under opportunity the Specialtyleadership for the Fragrances ofFine a fullyFragrances and dedicated Prestige categoryUS-based fragrancehouseIFF has Fragrances. created in North two America,“Specialty divisions Fragrancesin its North has American been identified business: Spanish beauty group Myrugia inbacked 2001. by private-equity companyinvestment LBO France. consortium Puig acquired is managed Payot beauty groupPuighassoldFrenchskincarebrandPayottoaofinvestors.The by when Italian it bought businessman Andrea Surliuga and was n Following the deal, Sears Holding will retain 12 million shares of Sears Canada, valued Scentys also launched a new fragrance collection for use with its diffusers. The collection, Previously vp of sales North America, Lorenzo Cavallaro has been named vp sales In line with its strategy of focusing on its fashion and fragrance businesses, Spanish 2 (10,763ft n 2 ). Called S’Clean, the technology is for use in shopping malls, large ). CalledS’Clean,thetechnologyisforuseinshoppingmalls,large th . www.bwconfidential.com -October 9-22,2014 #99-Page 3 th anniversary with the launch 2 (2,690ft 2 ) and ) and News roundup

n n n The luxury goods and beauty industries will begin to weigh up their lost sales in Hong Kong during the Golden Week holiday, following street protests there. Many stores in key shopping districts were forced to close early or entirely during the protests. The Golden Week holiday is a key shopping period for Hong Kong, which draws thousands of tourists from mainland China. Reports The buzz say that due to the protests, Hong Kong saw a 30% drop in tour groups from mainland China.

French department store group Galeries Lafayette is to open a store on the Champs Elysées in Paris. The retailer announced that it is in exclusive negotiations to take over the lease of the 9,000m2 (96,875ft2) space that formerly housed Virgin Records, which closed in 2012. Galeries Lafayette says that the deal should be signed by the end of this year. The new store will be a second Paris flagship for the retailer, in addition to its location on the boulevard Haussmann. In June, the retailer said it plans to open a store in Milan, .

People

Coty ceo Michele Scannavini has left the company. Coty’s chairman Bart Becht is to become interim ceo until the group finds a new ceo. Becht will remain as chairman of the company once a permanent successor has been appointed. Scannavini has been with Coty for 12 years and was at the helm to take the group public through a listing on the New York Stock Exchange last year.

L’Oréal has appointed Vincent Boinay managing director travel retail, succeeding Barbara Lavernos. Boinay, who has been with L’Oréal since 1992 and held several positions in travel retail, was most recently global retail director of L’Oréal Luxe. Lavernos, who was named general manager of L’Oréal Luxe travel retail in 2012, is to become executive vice president operations (sourcing, production, supply chain) and a member of the group’s executive committee. She succeeds Jean-Philippe Blanpain.

German retailer Douglas Holding’s director of perfumery division Manfred Kroneder is to leave the company. Douglas Holding ceo Henning Kreke is to temporarily take on the role until a successor is found. Kroneder has been with the company for more than 15 years. n n n News roundup

n n n Data The global natural and organic personal-care market saw double-digit growth for the sixth year running, according to market research company Kline

The buzz & Company, and is now worth close to $30bn in manufacturers’ sales. By region, Asia and Brazil are the fastest-growing markets for natural products, with sales up around 15% in 2013. Europe is the second-largest region for natural personal care, and accounts for around 25% of global sales. The category saw a 6% increase in Europe, while the natural segment in the US grew by 7%.

While prestige make-up sales in Europe’s prestige foundation sales* continental Europe suffered in the growth August 2014 first half of this year, the category Country % growth August 2014 performed better in the month of vs August 2013 August, according to figures from France +23 market research company the NPD Italy +18 Group. Facial make-up performed particularly well for the month, with UK +15 foundations seeing growth of 23% +9 in France and 18% in Italy. Source: NPD BeautyTrends (prestige brands sold in selective distribution) *Value sales

Trade shows SoGeCos/Bologna Fiere, organizer of Italian beauty packaging trade fair Cosmopack, hosted the first edition of its Cosmopack New York Symposium for packaging suppliers and buyers from September 22-23. Organized with Italian cosmetics associations Cosmetica Italia and Polo Tecnologico della Cosmesi, the event sought BW Confidential to showcase Italian-made products with the aim of promoting business opportunities 4 avenue de la Marne between Italian suppliers and North American buyers. Participants at the two-day forum 92600 Asnières sur Seine, France [email protected] of roundtables, workshops and networking meetings included 50 Italian packaging and Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 supplier companies, and 50 buyer attendees spanning supply-chain procurement and www.bwconfidential.com ISSN: 2104-3302 product development to retail. “We are very pleased with the feedback received from Publisher: Nicolas Grob both buyers and suppliers. We organized 240 meetings,” says BolognaFiere president Editorial Director: Oonagh Phillips [email protected] Duccio Campagnoli. In response, the company plans to launch a larger event next year. Deputy Editor: Alissa Demorest [email protected] In addition to offering companies the opportunity to meet in New York, the event was Editorial Coordinator & Assistant: intended as an information platform and included talks from industry experts on topics Katie Nichol [email protected] such as US regulatory issues and distribution. According to Contributors: Tina Clark, Alex Wynne, Renata Ashcar, Mayu Saini, Raphaëlle Choël, Franca Zanovello, a consultant based in Connecticut, there Corinne Blanché Subscriptions is strong demand for Italian-made products in the US, but 1 year: electronic publication (20 issues) + many foreign companies are not prepared for the market’s print magazine (4 issues) + daily news: €499 or US$699 complexities. On distribution in the US, C.O. Bigelow [email protected] Advertising Apothecaries president Ian Ginsberg stressed that the US [email protected] retail market is fragmented and that Amazon is changing the BW Confidential is published by Noon Media 513 746 297 RCS Nanterre face of distribution. “Don’t come here if you don’t know who Copyright © 2014. All rights reserved. Reproduction in whole or in part without your customer is. We are pretty fragmented and you will want permission is strictly prohibited. to isolate where to find [your consumers],” he commented.n

www.bwconfidential.com - October 9-22, 2014 #99 - Page 5 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Beauty blogger review BW Confidential reports on what the bloggers are saying about beauty

Bloggers are taking interest in the emergence of 3D make-up trends, which include 3D decorations for nails and jeweled items for eyelids and lashes. While bloggers say that these products are impressive from a design standpoint, they wonder how wearable they

Netwatch really are.

Previews of Shupette, the limited-edition make-up line by Karl Lagerfeld for Shu Uemura, has attracted quite a bit of attention from bloggers. The line, inspired by Lagerfeld’s cat, is praised for its packaging and is expected to be a hit with cat lovers. Bloggers are also intrigued by the colors.

UK-based brand Pixi’s Glow Tonic has been a sell-out, say bloggers, following the hype about the exfoliating facial toner that has shown up on the blogs. The product has a watery texture and is liked for its refreshing action that is said to make the skin glow. It is also said to be easy to integrate into a skincare routine.

The no make-up look continues to be a subject of interest on the blogs and was much in evidence at the New York fashion shows this season, say bloggers. The look especially stood out at the Marc Jacobs show, where models walked the runway wearing no make-up at all. The views expressed in this section are those of bloggers and do not represent the opinions of BW Confidential

BW Confidential The inside view on the international beauty industry

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170X297.indd 1 23/09/14 16:27 Unilever International business manager travel retail Rosalyn Frayna

The push for new categories Interview Unilever is looking to develop its Toni&Guy Hair Meet Wardrobe haircare brand in travel retail, which it introduced to the channel last year. Unilever International business manager travel retail Rosalyn Frayna tells BW Confidential how she plans to develop the brand and why more space for haircare in travel-retail stores is needed

How have your brands been performing in travel retail since they were launched? Toni&Guy Hair Meet Wardrobe is a premium hair fashion brand and is doing well in terms of creating excitement in-store, as it is a new brand for a new category. It debuted in Ngurah Raj Bali International Airport, which was followed by further expansion in the Philippines, Paraguay, Auckland and Christchurch, New Zealand, and Bangalore, India. The brand has been in travel retail for about a year and we are pleased with where it is in terms of growth. However, we are focused on expanding the reach to strategic travel hubs and [The haircare category destinations, which will help to strengthen the brand’s presence in this channel. By the end of the year, Toni&Guy will be in 25 airports and in-flight duty free “in travel retail] will across Asia Pacific, the Middle East, Europe and the Americas. grow exponentially if Consumers are receptive to the availability of premium haircare in travel retail and are willing to try the products. Often, they even spend time with our style given the space and a consultants, and will have a new look before boarding the plane. This is a first- special section within ever in the travel-retail space. We are currently running a campaign about the Waterless Wash with Dry the perfumes and Shampoo, which is something that most travelers are willing to stop by and try cosmetics category as it is especially suited to travelers on the go.

What are your priorities for your brand in travel retail, and how do Unilever International you see it developing in this channel? business manager travel retail Ideally, the brand should be allowed some space to let consumers try the Rosalyn Frayna products, engage with our style consultants, watch and learn from the how-to ” videos and allow us to showcase the latest campaigns. We have found that travelers are very receptive to trying Toni&Guy Hair Meet Wardrobe products. Our target consumers are hair fashionistas, male or female of all ages. Our consumeers who are already familiar with the brand know and

trust the quality of the products. We want to meet the needs of our n n n

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n n n consumers, especially when they travel. We see travel retail as an important avenue to reach out to our urban savvy travelers; these travelers are people who care about fashion and who are ready Interview to spend on this. Toni&Guy Hair Unilever also launched Pond’s in travel retail. Will you bring other “Meet Wardrobe is a brands from the group’s portfolio to the channel? premium hair fashion Unilever is a global company with more than 400 brands, 14 of which generate sales in excess of €1bn a year. We are constantly reviewing the needs of our brand and is doing consumers and the market conditions for suitable Unilever brands and products well in terms of to be included in the travel-retail channel. Currently we are focusing on growing our premium haircare brand, Toni&Guy, creating excitement by expanding in relevant markets across the globe. in-store, as it is a new

What is the potential of the haircare category in travel retail, and brand for a how do you see it developing in the future? new category Haircare already exists in travel retail, but the products are part of a multi-brand offering. Haircare as a separate section within the perfumes and cosmetics area is something new for retailers. Toni&Guy, being the first dedicated haircare brand to enter travel retail, is creating the awareness that this is an overlooked, Unilever International but important category with huge potential for growth. business manager travel retail More consumers are looking into adding steps to their regular wash and Rosalyn Frayna” wear hair routine, and bringing home professional salon-quality products. This category will grow exponentially if given the space and a special section within the perfumes and cosmetics category. n

s Unilever hopes to garner more space in travel retail to run s Unilever is looking to expand the Toni&Guy special events, involving demonstrations with shoppers brand to strategic travel hubs

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UK prestige beauty market On an upward trend Beauty is seeing good growth in the UK, especially in prestige. BW Confidential analyzes the state of the market

he UK is currently showing the strongest growth rates for premium beauty in Western TEurope. The prestige market saw sales rise 6% in the year to June, according to NPD, with the strongest increase coming from make-up, at 12%. Fragrance sales climbed 5% and skincare rose by 2%. According to NPD Beauty UK director June Jensen, overall prestige market growth for 2014 is expected to be around 7%. In 2013, however, the total market (prestige and mass combined) saw sales growth of only 2.8%, according to Euromonitor International, but prestige outdid mass, with a growth rate of 3.4% (compared with 2.3% for mass). “UK premium beauty is a resilient category and indexes higher than UK trade as a whole, suggesting that the appetite for affordable aspirational Even though luxury beauty is showing no signs of abating,” says industry expert Imogen Matthews. we’re“ out of the The market is buoyed by low interest rates and rising property prices, which are fueling optimism in the UK economy. “There’s that feel-good factor of recession, the GDP growth,” says The Fragrance Shop ceo Sanjay Vadera. But despite this, average Briton consumers do not necessarily have more spending power than during the recession. “Even though we’re out of the recession, the average Briton doesn’t doesn’t have any have any more money [than before],” says Jensen. more money Make-up driven by celebrity credentials [than before] The make-up category has been boosted by brands’ increased focus on in-store events such as makeovers, Jensen says, as well as by social media and celebrities, which are attracting consumers to certain looks. The boom in eyebrow products, for example, is credited to supermodel Cara Delevingne’s distinctive look. NPD Beauty UK director June Jensen Skincare’s low growth rate is down to a combination of factors, partly due to a high ” basis for comparison against the innovation-driven growth of the past few years. It could also be a result of new European regulations banning five parabens in products sold from July 2015, meaning skincare brands have to tweak their formulas and are therefore not launching new products, according to Elemis managing director Séan Harrington. “Every brand in the marketplace has had to reformulate,” he says. n n n

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n n n Improved growth in the category is expected in the mid-term as new formulations again begin to boost the market. “I believe that by the end of next year, we will see a turnaround in skincare,” says NPD’s Jensen. Insight

Discounting still a key concern High on many brands’ list of concerns over the past few years has been retailer discounting, especially in fragrance. This is expected to continue, with consumers waiting for special offers or the launch of value packs before making their purchases, especially ahead of the Christmas holidays. Nevertheless, some in the industry see this practice as a normal part of business and say it attracts new consumers to prestige and helps brands liquidate older lines. “There is a consumer out there that used to be a mass fragrance consumer,” says Vadera. “It’s a [discount] market that can work and is working.” The Fragrance Shop has seen its sales increase by 11% this year so far, he reveals. In this context, fragrance launch activity is now seen as even more essential. “New fragrance launches are extremely important in driving growth and are helping to keep prices high as new launches tend to be priced higher and are less susceptible to discounting,” Matthews explains. Classic fragrances are also seeing strong growth, according to NPD. But aside from the discounting trend, retailers are increasingly adding mid-priced brands to attract a more diverse consumer base. Department-store operators Selfridges, Debenhams and John Lewis have all added new lower-priced brands to their offer in recent months. “Prestige is blending with mass, and women are looking for a good product, but not necessarily an expensive product,” observes industry veteran and Beautymart co-founder Millie Kendall. Mirroring changes in fashion, women are mixing their purchasing more, buying from a range of prestige, masstige and mass brands. More consumers are buying into premium brands for the first time as the price differential, especially in fragrance and make-up, is less significant than in the past. “It’s not a hardship to upgrade,” says Kendall, who observes that overall, the same products drive sales at Beautymart’s branches in Harvey Nichols and TopShop, despite the stores having very different consumer profiles, and that young British UK beauty and personal-care market 2013 by category* girls are migrating to designer beauty brands more Category 2013 % change than ever before. sales $bn 2013/2012 The fastest-growing brands on the market so far this Color cosmetics 2.50 +1.0 year, according to NPD’s Jensen, are Benefit, MAC and Liz Earle. They are being fueled by a combination Fragrance 1.94 +5.2 of factors, including their specialist positioning, Haircare 2.39 +4.1 in-store activity, focus on education, social media Men’s grooming 1.64 +2.3 prowess and launch activity, she says. Skincare 3.31 +1.9 Mass beauty & personal care 9.80 +2.3 Retailers put bigger focus on beauty Premium beauty & 4.51 +3.4 In retail, Debenhams claims to be the prestige beauty personal care market leader. The retailer opened its revamped Oxford Street flagship in London in February, with its Total beauty & personal care 16.93 +2.8 biggest ever beauty hall. John Lewis, the next largest Source: Euromonitor International *Retail sales price department-store beauty player, according n n n Total includes additional categories not listed

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n n n to Mintel data, has been putting an increased focus on beauty, which industry players say is paying off. “If anyone’s changed their profile in beauty and done a good job of it, it’s John Lewis,” says Kendall. Insight Boots, meanwhile, has been boosting its position in premium beauty, and said it saw particularly strong sales in the category in the year to March thanks to expanded distribution for premium ranges and store refits in its biggest outlets. Meanwhile, Marks & Spencer’s addition of Your Beauty halls featuring exclusive brands from around the world has industry observers watching closely, but not all are convinced of the concept’s potential to resonate with M&S’s consumer base. The concept is currently in an estimated 140 of the retailer’s 800 stores. Prestige is blending At the upper end of the market, retailers continue to work to further differentiate and enhance the in-store experience. “We’re noticing a real shift in the sort of experience “with mass, and our customer is looking for,” says Selfridges beauty buyer Mark Tranter, who cited niche women are looking and exclusive fragrances as key growth drivers. “There is a drive towards having a luxury retail experience where bespoke and personalization are key. Anything that helps to bring for a good product, customer experience to the forefront will stand out in a crowded marketplace.” but not necessarily an Harrods is taking a similar stance, and launched its Salon de Parfums in September with dedicated spaces for 11 niche and exclusive brands as well as bespoke and expensive product personalization services.

More brands look to standalones Beautymart co-founder Despite their evident importance, the main retailers are increasingly seen by brands as just Millie Kendall one part of their strategy as they look to other distribution avenues, including standalone ” stores. “The ability to deliver viable innovative and visionary concepts is very difficult with the business equation offered by retailers today,” says Elemis’ Harrington, who is looking to open around eight concept stores in London in the near future. “Brands are looking to take more control of their own destiny through more development of concept stores in individual locations.” Increasing numbers of prestige brands, including Chanel, Burberry and Dior, have also taken the London standalone route over the past couple of years. LVMH-owned Benefit even took over one of the city’s pubs, turning it pink and offering treatments and giveaways during the Fifa World Cup. The pop-up concept proved so popular that it was extended for the rest of the summer. In addition, the well-documented decline of the UK high street during the crisis has led to a Treatments on the rise glut in available retail property. This is a boon for Demand for service and treatments is growing in the national retailers like The Perfume Shop and The market. “Consumer demand for treatments has increased Fragrance Shop, with the latter planning to open dramatically over the past three years,” says Harrington. a further seven doors to add to its current 162 “We are experiencing strong like-for-like growth in all our in the run-up to Christmas, but also for brands retail portfolio, but most of that is coming from promoting looking to open standalones. more treatments and driving frequency of visit.” With such a focus on experience becoming He highlights a rise in demand in treatments for men in prominent in the UK market for both retailers particular, a trend that is backed up by a recent survey from and brands, those that can embrace the Debenhams that found British men in their thirties now potential and deliver a high-experience offer spend an average of £100 ($159) per month on beauty through all available touch points are likely to products and treatments, while men in their forties spend continue to be the market winners for some time £70 ($111). to come. n

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MakeUp in New York Color on show BW Confidentialreports on what was seen and heard at the fourth edition of MakeUp in New York, which was held from September 23-24

he fourth edition of MakeUp in New York registered record attendance, up T40% on 2012 figures with more than 2,300 visitors. This year, the show also attracted 25 new exhibiting companies for a total of 78. The show was highly regarded by exhibitors and visitors for its specialist approach and the quality of the attendees. “It is a good sized show; it is focused and you get quality meetings,” says Baralan USA Arrowpak senior account manager Paul Anderson. “It’s a great show, there is a lot to see and there is a lot happening,” added Doug Thornley, president of raw materials supplier Impact Colors and a visitor to the show. MakeUp in New York’s organizers say the event’s accessible format has been key to attracting attendance by top management. “Some companies have been deserting trade shows because of lack of time, but they come to MakeUp In New York,” says co-founder Jean Yves Bourgeois. Furthermore, the presence of American exhibitors has been growing.“Four years ago we started off with a strong showing of European companies, but there are now more and more American companies from full-service, packaging and formulation,” comments Bourgeois. There were also more companies from Asia, notably South Korea. In terms of trends, the demand for multi-functional products was prominent, MakeUp In New York while novel transforming textures were popular. There was also interest in Held from: September 23-24 customizable products. “The supply chain is getting shorter and customers Exhibitors: 78 want to be in charge,” points out ArtCosmetics USA president and ceo Fabrizio Visitors: 2,300, + 40% vs 2012 Buscaini. A spokesperson at HCT Packaging also highlighted a growing demand Visitor profile: 42% Europe; from companies for more full-key services from suppliers. n n n 40% Americas; 18% Asia

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n n n Seen in show Sampling company Orlandi has launched a lipstick capsule sampling product, Touch Ups (pictured), which is billed as a fully biodegradable, patented, single-use system that does not affect the feel and application of the product. The compact product is also said to be convenient and cost- effective. The company also showed its iApply innovation, which is a single- use make-up sampler that transforms into an applicator, making the product Show review easy to apply.

Popular products at Northwest Cosmetics Labs included a foundation powder container with a silk screen, which helps dispense the right dosage of powder with a brush. The company also presented Glacial Facial (pictured), which is a serum-like mask that bubbles when applied to the skin, leaving a refreshing foam texture that is said to offer instant anti-wrinkle and moisturizing benefits.

Cosmetic brush and accessory company Anisa International introduced a line of konjac and hydrophilic sponges (pictured) which can be infused with green tea, turmeric and bamboo charcoal to offer additional skincare benefits. At the show, the company also hosted a live make-up demonstration using its Nude Sweep brush collection.

US-based manufacturer Topline showed a collection of cosmetics comprising Custom Lip Artist Palettes, which feature a hybrid powder formula for the lips, and an Air-Tight Crayon (pictured), which is a mini chubby stick for eyes or lips in bullet shapes. The crayons also feature new formulas including Foil Lips for metallic lip color and Sheer Color Gloss Lip Color with pH-adjusting pigments.

Polish company Nuco showcased an array of new make-up formulas, including Fluffy Metal Lustre (pictured), which is described as a lightweight, airy eyeshadow with a metallic finish. It also showcased Sponge-to-Silk Eye Color, which features a spongy texture that is said to be fun and easy to apply.

Italian company Lumson has released a colored version of its APP Airless Plastic Packaging. The new P-Colors line (pictured) comprises a clear PETG plastic bottle with a colored airless pouch inside, which can be mass colored for a more striking visual appeal.

Among its new pen innovations, pencil specialist Faber-Castell introduced Dynamic Do-All Concealer (pictured) boasting 20% active ingredients that comes in a Chubby Mechanical Pencil format. It has a propel-repel mechanism that requires no sharpening, and a 10mm lead, which the company says is ideal for defining and filling. n

www.bwconfidential.com - October 9-22, 2014 #99 - Page 13 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Store visit

Eastern beauty Lithuanian prestige retailer Crème de la Crème opened its fourth store this summer. The retailer has ambitious plans for the Baltic states and beyond

restige beauty retailer Crème de la Crème has expansion on the cards. The -based Pcompany opened its first foreign store and its fourth in total in August in Tallinn, Estonia. The idea behind the Crème de la Créme stores is to offer hard-to-find brands in a luxury atmosphere. The new boutique, which covers 60m2 (646ft2), offers more than 800 skus, stocks niche brands including Editions de Parfums Frédéric Malle, Diptyque, By Kilian and Caron and make-up brand By Terry. In terms of further expansion, Alteus, the company that owns and operates Crème de la Crème, plans to open two stores in Vilnius, Lithuania before the end of the year and a store in Riga, next year. “Our strategy is to cover these three Baltic states—Lithuania, Estonia and Latvia—by offering modern and luxurious boutiques selling the best haute parfumerie brands,” explains Andrius Remisevskis, partner at Alteus. “Fragrance represents the core of our offer at more than 70% of sales, followed by make-up, which is growing fast. We are also investing a lot in skincare,” he continues. He adds that fragrance sales are growing by double digits at the chain, while premium haircare is also a high-growth category. Crème de la Other markets are under investigation. “A number of potential investments are under Crème, consideration with a venture capital fund to develop the concept in other countries in Central l Location: and Eastern Europe,” says Remisevskis. The retailer aims to have a network of 10 stores within Tallinn, Estonia the next two years, mainly in upscale shopping malls. These locations will be bigger than the l Size: 60m2 (646ft2) existing doors and will include services, such as skincare treatments. Crème de la Crème will l On offer: More than also develop its online boutique, which will feature only full-priced products, Remisevskis 800 skus of points out. n hard-to-find brands

www.bwconfidential.com - October 9-22, 2014 #99 - Page 14 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Store visit

s Fragrance accounts for 70% of the retailer’s sales, while make-up is the fastest growing category

sCrème de la Crème currently operates four stores in the Baltic states and aims to have 10 doors within the next two years

www.bwconfidential.com - October 9-22, 2014 #99 - Page 15 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL BW Confidential The inside view on the international beauty industry

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