THETHE BUSINESSBUSINESS OFOF BEAUTYBEAUTY

THE FRAGRANCE ISSUE

“FASTER, FURTHER, FREER” The Beetz Goes On How Coty CEO Bernd Beetz is refashioning the fragrance powerhouse into a beauty behemoth. and THE SWEET SMELL OF SUCCESS IN THE U.S.? THE INSIDER’S GUIDE TO THE FIFI’S BREAKING INTO THE BRAZILIAN MARKET

BB1105-COVER.b;19.indd 1 5/4/11 5:05 PM THE FRAGRANCE FOR TREASURED MOMENTS

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Penélope Cruz WWD BEAUTY INC. 3 contents “WE DON’T WANT TO FOLLOW TRENDS AS MUCH AS Departments CREATE THEM.” —Jacques Polge, CORNER OFFICE 8 Master Class: Jacques Polge Inside the mind—and nose— of Chanel’s master . 18 12 When Harry Met Laura On the trail of love with Laura and Harry Slatkin. 13 Flash Point Hitting the town with beauty’s titans.

8 BEAUTY BULLETIN 14 Light, Bright Dazzling colors infuse the latest launches. 18 An Insider’s Guide to the FiFi’s From who’s wearing what to where to park,

RSTOCK; RUNWAY BY THOMAS IANNACCONE; JACKEL BY BONNIE SCHIFFMAN BY JACKEL THOMAS IANNACCONE; BY RUNWAY RSTOCK; everything you need to know before you go. 29 21 The Smell Test How well do you know Features your fragrance facts? CONSUMER CHRONICLES 30 The Age of Ambivalence While marketers are cheered by rising 22 Miami’s Booming Beauty Scene scent sales in the U.S., they still Hitting two of Miami’s biggest malls to check must contend with reestablishing the out the fragrance buying experience. category’s relevance for a new generation of users. 24 Stats: 2010’s top 10 fragrances in the U.S. 32 Smallville Small in size but big in ambition, niche fragrance 26 Shopper Stalker: Greenwich, Conn. brands are shaking up the European landscape. Who’s buying what in the tony Connecticut town. 34 The Power Within Brazil’s burgeoning middle class is fueling a beauty boom. But will international brands be able MISC to catch up to the supercompetitive local leaders? 42 38 The Player In the last decade, chief executive offi cer 06 Pete Unplugged Bernd Beetz has transformed Coty Inc. into a fragrance WWD’s executive editor of beauty powerhouse. Now, he’s ready to take on beauty’s top fi ve. on how some savvy brands are reinvigorating their businesses by reinforcing the mother ship. 42 Private Lives: Prima Ballerina Hitting the barre scene with ON THE COVER: Ingrid Jackel. Coty chief executive offi cer Bernd Beetz photographed for WWD Beauty Inc in his offi ce at 2 Park Avenue by Michael Nagle. FRAGRANCE BOTTLE PHOTO BY LACEY; POLGE COURTESY OF CHANEL; TRUMP, CAMPBELL BY STEVE EICHNER; MICROPHONE BY ANDREY EREMIN/SHUTTE BY EICHNER; MICROPHONE STEVE CAMPBELL BY OF CHANEL; TRUMP, COURTESY POLGE LACEY; BY PHOTO BOTTLE FRAGRANCE

WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2011 FAIRCHILD GROUP. ALL RIGHTS RESERVED. during your subscription term or up to one year aft er the magazine becomes undeliverable, you are ever dissatisfi ed with your subscription, let us know. You will receive PRINTED IN THE U.S.A. VOLUME 201, NO. 105. Saturday, May 21, 2011. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks aft er receipt of order. Address all editorial, business, and production one additional issue in May, June, November and December, two additional issues in February, March, April and August and three additional issues in September and correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630- October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared 5883. For reprints of articles, please contact Scoop ReprintSource at 800-767-3263 or via e-mail at [email protected]. Visit us online at www.wwd.com. To Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Offi cer; Robert A. Sauerberg Jr., President; John W. Bellando, subscribe to other Fairchild Fashion Group magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully Chief Operating Offi cer & Chief Financial Offi cer; Jill Bright, Chief Administrative Offi cer. Periodicals postage paid at New York, NY, and at additional mailing offi ces. screened companies that off er products and services that we believe would interest our readers. If you do not want to receive these off ers and/or information, please Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY label. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

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EDWARD NARDOZA EDITOR IN CHIEF, WWD EDITOR’S LETTER PETE BORN EXECUTIVE EDITOR, BEAUTY JENNY B. FINE EDITOR

JENNIFER WEIL EUROPEAN EDITOR Eau de Success ANDREA NAGEL MASS MARKET BEAUTY EDITOR JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR MOLLY PRIOR BEAUTY FINANCIAL EDITOR s we were putting together this, our fi rst fragrance issue, I asked FAYE BROOKMAN CONTRIBUTING EDITOR Ron Robinson, the founder of BeautyStat.com, to canvas his BELISA SILVA EDITORIAL ASSISTANT members and ask them what drives their fragrance purchases. MAUREEN MORRISON-SHULAS DEPUTY COPY CHIEF While some talked about buying into the gestalt of a specifi c ART brand or celebrity and others talked about the appeal of the BARBARA SULLIVAN ART DIRECTOR GINA NASTASI ASSOCIATE ART DIRECTOR bottle,A most of the answers centered around the emotional appeal of scent. “What makes me buy a fragrance is, of course, how it smells, but more so how CONTRIBUTORS SAMANTHA CONTI AND NINA JONES (London), MILES SOCHA (Paris), it makes me feel,” said Carol H. “I feel better about myself when I smell good. I KERRY OLSEN (Milan), MARCY MEDINA AND RACHEL BROWN (Los Angeles), love trying new fragrances and it’s a pick-me-up, especially if I’m not having a MELISSA DRIER AND SUSAN STONE (Berlin), AMANDA KAISER (Tokyo)

good day,” wrote Dana K. A contributor named MJ wrote: “To me, fragrances PHOTO are very evocative of specifi c times and places, even people. I like to get a new CARRIE PROVENZANO PHOTO EDITOR fragrance to embody an event or time of my life. Whenever I smell that scent, LEXIE MORELAND, ASHLEY LINN MARTIN ASSISTANT PHOTO EDITORS ERIN FITZGERALD PHOTO COORDINATOR I’m transported in time to the special moment.” ROBERT COHEN PHOTO FACILITATOR No one is better at creating compelling stories around fragrance franchises PHOTOGRAPHERS JOHN AQUINO, GEORGE CHINSEE, STEVE EICHNER, KYLE ERICKSEN, THOMAS IANNACCONE, ROBERT MITRA than this issue’s cover subject, Coty chief executive offi cer Bernd Beetz. Over the past decade, he has transformed Coty into a fragrance powerhouse by BEAUTY INC ADVERTISING creating a three-pronged strategy consisting of celebrity, designer and lifestyle ALISON ADLER MATZ PUBLISHER, BEAUTY INC brands. Now Beetz has set his sights on dominating in skin care and makeup CYNTHIA BONIELLO BEAUTY MANAGER JILL BIREN WEST COAST DIRECTOR as well, with the goal of becoming a top-fi ve beauty company by 2015. As Molly ALLISON JOYCE WEST COAST MANAGER Prior reports in “The Player” on page 38, those who know the ubercompetitive ODILE EDA-PIERRE ACCOUNT MANAGER, PARIS executive say he is more than up to the challenge. To those companies already SAM TODD, BEAUTY SALES ASSISTANT in the top fi ve, including Beetz’s friend and tennis partner, Estée Lauder Cos. MARKETING/CREATIVE SERVICES Inc. chief executive offi cer Fabrizio Freda: Consider yourself warned! HEATHER GUMBLEY EXECUTIVE DIRECTOR, CREATIVE SERVICES JANET MENAKER MARKETING DIRECTOR No one knows better than Beetz the challenges of the U.S. fragrance market, DANIELLE MCMURRAY SPECIAL PROJECTS DIRECTOR but as Pete Born writes in “The Age of Ambivalence” on page 30, the picture KRISTEN M. WILDMAN EXECUTIVE DIRECTOR, EVENT MARKETING JENNIFER PINCUS DIRECTOR, INTEGRATED MARKETING is growing rosier. A year of strong launches has helped propel sales to almost ANJALI VIRMANI ASSOCIATE DIRECTOR INTEGRATED MARKETING prerecession levels. Now, the question is whether marketers can reestablish BRIDGIT MAZZA SENIOR MANAGER, INTEGRATED MARKETING the category’s relevance with a generation of young consumers who aren’t JAMIE RUDOLPH MANAGER, EVENT MARKETING JESSICA INTRONA ASSOCIATE MANAGER, INTEGRATED MARKETING predisposed toward wearing scent. KRISTIN MOONEY ASSOCIATE MANAGER, EVENT MARKETING Holding equal amounts of promise and challenge is Brazil. On the one side, DANIELLE K. STEWART COORDINATOR, INTEGRATED MARKETING LEIGH ALCOTT MARKETING COORDINATOR you have a fast-growing middle-class population with an inherent affi nity for beauty, particularly scent. On the other, you have punishingly high duties, PRODUCTION GENA KELLY EXECUTIVE DIRECTOR, MANUFACTURING & DISTRIBUTION an underdeveloped infrastructure and retail network and an extraordinarily CHRIS WENGIEL GROUP PRODUCTION DIRECTOR competitive local landscape, as I discovered while reporting “The Power KEVIN HURLEY PRODUCTION DIRECTOR Within” on page 34. Find out what the future holds for international brands JILL BREINER ASSOCIATE PRODUCTION MANAGER eager to make inroads in this developing nation. CIRCULATION What is a fragrance issue without an ode to the FiFi’s? As the Fragrance DAN DYNAN EXECUTIVE DIRECTOR JOHN CROSS ASSOCIATE AUDIENCE DEVELOPMENT DIRECTOR, PLANNING AND OPERATIONS Foundation’s annual awards head back to Lincoln Center on May 22, we JAMES ROSSI MARKETING DIRECTOR present our fi rst insider’s guide to the event. Curious about what some of RICHARD FRANZ CIRCULATION/SALES DIRECTOR beauty’s most stylish executives are planning on wearing? Eager to plot the easiest route for your driver? Wondering what the industry’s favorite FAIRCHILD FASHION GROUP WILL SCHENCK CHIEF REVENUE OFFICER wordsmith, Procter & Gamble’s Don Loftus, might advise when it comes to SUZANNE REINHARDT VICE PRESIDENT, FINANCE & OPERATIONS making acceptance speeches? You’ll fi nd all of DAN SHAR VICE PRESIDENT, GENERAL MANAGER, DIGITAL MELISSA BRECHER ASSOCIATE PUBLISHER, MARKETING that and much more starting on page 18. Just MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT as the best fragrances aim to transport, so, DAN SCHEFFEY DIRECTOR OF CORPORATE COMMUNICATIONS too, do we with each KAREN CHIU BUSINESS DIRECTOR DEVON BEEMER FINANCE DIRECTOR issue of WWD Beauty TANYA DAVIS BUSINESS ANALYST IncI . Drop me a line at JANET JANOFF GENERAL MANAGER jenny_fij ne@condenast. NANCY BUTKUS CREATIVE DIRECTOR comc and let me know howh we’re doing. PETER W. KAPLAN EDITORIAL DIRECTOR —JENNY B. FINE

At the sources: Roses GINA SANDERS PRESIDENT & CEO in Chanel’s Grasse fi elds. PHOTOS COURTESY OF CHANEL COURTESY PHOTOS

BB1105-PG004-FOB-EdLetterMast.a;16.indd 2 5/4/11 4:49 PM MACY’S 6 WWD BEAUTY INC pete unplugged

Being Good to Mama By reinforcing their core business with aspirational add-ons, savvy marketers are satiating the thirst for new while protecting the original franchise.

or years, the beauty industry has marched to the incessant of a sku for sensitive skin, called Sensitive SD, as an adjunct of the core SD drumbeat of newness. According to conventional wisdom, range. Citing research that shows 66 percent of women think of themselves as a company has to constantly launch new products in having sensitive skin, the company kept the two major ingredients of its niacin- order to hold its market share and therefore its space at driven formula and added other elements to soothe irritated skin, often a side retail. But after a decade of raining product introductions, effect of wrinkle-fi ghting products. “There are two objectives,” says Scalamandre, particularly in the fragrance market, there is talk by some “rewarding your current users and bringing in new users. We are very focused marketers of a growing need for a new brand of newness— on building the core. It is the engine of the company.” launches that echo the heartbeat of the franchise. She adds, “With the cycle of new launches, the base of the business is not The familiar ring of classic names resonates louder growing.” Scalamandre maintains that this strategy does not cannibalize the than ever with recession-jittery consumers, or so the theory goes. Newness is business, since the sales of the new item tends to be incremental. According to Fas necessary a tonic as ever, but the real objective now seems to be all about Chrysallis, the revitalized part of the brand has shown a 48 percent growth year to offering the kind of newness that builds the core. date, with 9 percent of that growth driven by the new sensitive Manufacturers are creating new forms of the skin sku. The company is also adding a sunscreen. In January, original product, more accessible prices and sizes and “We try to give them a 2-oz. size of the skin care, priced at $69, was offered to entice promotional tactics that relate to the essential values a reason to stay loyal. new users, who might have been repelled by the $135 price of the brand. The goal is to present something that In a market that is of the regular 5-oz. sku. The company also put out a 15-ml. attracts new users, but also rewards loyal customers sample size, priced at $15. It contains a three-week supply. with something different that demonstrates overcrowded, dilution is Scalamandre notes that “it is harder to get the attention of attributes they already appreciate. not the solution,” says consumers” without mounting a stream of launches. “How Veronique Gabai-Pinsky, global brand president Veronique Gabai-Pinsky. do you make it new,” she asks rhetorically. The answer lies in of the and Designer Fragrances Division line extension sku’s, like the sensitive skin product, smaller at the Estée Lauder Cos. Inc., has built up Donna sizes and more affordable prices. Promotion and sampling Karan’s Cashmere Mist from 11th place to fi fth in are other powerful tools. StriVectin has addressed the the rankings by pursuing this kind of strategy. Over the years, she has offered Achilles’ heel of the skin care business, namely the need to implore the customer the original fragrance in different forms. In the past, she marketed an eau de to buy and use the product diligently in the hope of one day seeing a difference. parfum. This year, a whipped will be offered, as a mousse that can be At point of sale in Toronto, the brand has installed a ModiFace virtual makeover sprayed on the skin. It is meant as a way of provoking fresh interest in the brand device that is designed to show a customer what she will look like after eight for those who already use Cashmere Mist. “We try to give them a reason to stay weeks of using the product twice a day. loyal,” says Gabai-Pinsky. “It’s the juice and the brand. My whole thing is about In targeting the base, it is critical to know who the consumer is, Scalamandre building the brand.” says, noting that StriVectin has the names of hundreds of thousands of its She notes that simply feeding the voracious appetite of the market for consumers. They are segmented into six groups. The heaviest users belong to newness by perhaps launching a limited edition fl anker is ultimately defeating, one of two groups called the Suburban Fashionistas and Selfmade Women. and dismisses the tactic as “diluting your message.” She adds, “In a market that “Understanding the consumer base is really critical today,” she adds. is overcrowded, dilution is not the solution.” Marc Rey, president of International Designer Collections at L’Oréal USA, Her formula is to “recruit, retain and revive” with advertising. maintains a list of rules for those who are careful “not to kill the dream” of the This philosophy doesn’t just pertain to fragrance; it applies to skin care fragrance business. and color cosmetics as well. “It’s about keeping current users and getting new Among them is the commandment to keep promotional tactics pertinent to users,” says Jill Scalamandre, chief marketing offi cer of Chrysallis, a division the values of the brand. “We are selling aspirational products,” he says. “The of Catterton Partners. While citing examples in competing color cosmetics image can’t be about price and promotion.” One bright example was the Acqua companies, she turns to her own StriVectin antiaging skin care brand, which for Life promotion to push ’s Acqua di Giò and Acqua di Gioia. Scalamandre has been rehabilitating—stockkeeping unit by stockkeeping unit— The promotion was aimed at providing 40 million liters of clean drinking water, and relaunching from the inside out. $1 worth of water donated for every bottle of fragrance sold. “It is aspirational,”

Chrysallis added a subbrand to the line in late February with the introduction says Rey. “It’s not a big pink slash with 30 percent off.” LARA TOMLIN BY ILLUSTRATION

BB1105-PG006-FOB-Pete.a;8.indd 2 5/4/11 6:32 PM © K. Järinen / PGM – Fotolia.com 8 WWD BEAUTY INC corner office MASTER CLASS Chanel’s Premier Perfumer It shouldn’t be easy to follow in the footsteps of No.5. But in 33 years at Chanel, master perfumer Jacques Polge seems not to have broken a sweat. BY ALEXANDRA MARSHALL

acques Polge, master perfumer at Chanel, is rare among leading noses, both for his longevity and track record. Upon arriving at the house in 1978, he was only the third perfumer in Chanel’s history. A few years later, he produced , whichJ has since become iconic, and he’s followed with a string of other successes like Allure, , the Les Exclusifs range, and last year’s Bleu, which should keep the house in top-fi ve sales seemingly for eternity. Perched on the highest fl oor of the company’s headquarters in Neuilly, where he rules an in-house lab— one of the few left in perfumery that both creates and manufactures—Polge shares his view from the top.

How have you seen the business evolve since you joined Chanel in 1978? Unfortunately, I’d say have become trivialized today. There are too many! It’s become so easy, everyone is launching one. But they’re also trivialized where they’re sold, or when you open a magazine now, it’s full of perfumes. We try to fi ght against that here, but we’re also directed by the waves of the market. That’s just how it is. Also, now we only speak of global perfumes. There used to be an American perfumery that had different criteria than in France. Traditionally in France, good taste meant having some discretion. In America, and I’m speaking “Perfume is a poetic form. It’s a language that in broad strokes here, the idea was more that perfume uses neither words nor images, and yet it’s one was something expensive, and so you should really smell everyone can speak in their own way. [Jean] it. Today, brands have replaced national traditions, and Cocteau said, ‘I sculpt the invisible,’ and brands do their fragrances for the whole world. Has your creative process changed a lot? that’s an idea that works for me, too.” I’m not sure it’s changed, but I know more now about JACQUES POLGE, MASTER PERFUMER, CHANEL Chanel and where I think we’re going than when I joined. It’s something I feel much better about than I used to. Our creative strategy is always to look within the roots of the company, and when I started, the only fragrance we IN BRIEF were really selling was No.5. Now we have Coco and Coco Mademoiselle and others, too, so that’s great. But here, Though he studied literature and English in Aix-en-Provence, not far from where he grew up, Jacques every new fragrance has to be different, and occupy a space Polge turned away from academia to study at the Roure perfumery school under Marcel Carles. He where there is no fragrance. So the process is always new. moved to New York three years later, to work for Roure-Bertrand-Dupont (the company that would And we’re constantly trying to fi nd better and newer raw become .) Two years later, in 1978, he became the head perfumer at Chanel. Since then, he materials, ones that only we have. has created 26 fragrances, with two more out this fall: a women’s scent for the limited edition Les What was the last new ingredient that blew your mind? Exclusifs range called Jersey, in honor of one of ’s favorite fabrics, and No.19 Poudré, a We’ve found some new musks that are very interesting, rethinking of the original No.19, with added notes of iris.

and we are working a lot at the (CONTINUED ON PAGE 10) OF CHANEL COURTESY PHOTO

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(CONTINUED FROM PAGE 8) moment on iris, which is a very important ingredient in No.19 Poudré. We have It’s never fi nished. Sure, at one point you have to stop, but if they let me…let’s our plantations in Grasse, with rose and jasmine, and we’re trying to fi nd new just say I can easily imagine a perfumer working on the same fragrance his whole qualities in those. But we’re also trying to reproduce what was done 40 years ago, life, like the painter Pierre Bonnard, whom they caught at the museum trying that nobody does anymore. Iris, for instance, is a very special product. It has a long to retouch his canvasses. In another sense, perfume is never done because we processing time. You plant it. Then you remove the roots and dry them for three manufacture our catalogue constantly, and we use a lot of natural ingredients, years to augment the irone, or the scent principle. Then you put it through some so we also have to control a lot for consistency. And then if we fi nd a new raw other processes so that only the purest part remains. No one does that anymore, material that complements something we already have, maybe we’ll do a variation. because no one has the time. Sourcing iris is also diffi cult. So much of it comes In that sense, a fi nished perfume isn’t ever really “fi nished” either. We had Coco from China now and it has a different scent. In this way, it’s not that we’re always and then 10 years later, Coco Mademoiselle. doing totally new things, we’re also maintaining the artisanal side, and doing what What’s your favorite fragrance not created by you? no one does anymore. That combination gives us a result that no one else has. I will never denigrate my confreres, but I’m not going to advertise them, either! And with your lab, you have greater control. You are somewhat unique That said, we all love the fi rst perfumes made by the great houses, like in that, no? or Coty, because that’s the beginning of it all. There’s a type of conversation that Though Monsieur Beaux created No.5 in 1921, the company has had a fragrance happens in perfumery. When Coty did de Coty, Guerlain did . arm since 1925. Since then, Chanel has always created its own products. In that If we try to name all the fragrances with a relation to Shalimar, we’d be in the sense it’s unique. There are other companies now that have their hundreds. I will say there’s a perfume by own labs, like Dior, and Hermès. Then there are others who closed Schiaparelli that’s now gone called Shocking. theirs, like Lanvin. Guerlain has their own, but they haven’t made I worked for the company that made it every single scent there. We buy products from fi rms like IFF and before I was at Chanel and it still interests , too, of course. There are lots of ways of working. But I me. It has a lot of patchouli and every time I can say we’re the only company that has both had its own lab and work with patchouli, I think of it. made all its own scents since the beginning. What about favorites among your own? What’s a perfumery trend you don’t love? I’d say Allure for women, because it’s very Those fragrances they call “marine scents.” I’ve never liked those. simple and when I smell it on a woman it’s They discover two ingredients that people say smell like the sea, very pleasant. It has great potential, though but to me, the sea never smelled like that! “Trend” is a diffi cult unfortunately, I’m not criticizing, but the word. We don’t want to follow trends as much as create them, but company doesn’t push it compared to others. it’s true that perfumes are very allied to fashion and You can’t push them all. I’m also very fond of fashion dictates trends. We had minimalist fashion Égoïste. It’s a perfume for men like no other at the same time that perfume started to return because of that accord between spice and to very pure fl orals like L’Eau d’Issey and Estée sandalwood. It was derived from Chanel’s Lauder’s Pleasures. Perfumes do follow fashion. Bois des Îles, a women’s scent, and it wasn’t a Even if they’re supposed to stay relevant for big success, but I think people remember it. much longer? Do you have to protect your nose? If you Absolutely. The complicated part for us is we have Roses grown in Chanel’s Grasse fi elds have a cold, do you not show up for work? so much to choose from. Monsieur Lagerfeld does (above) and Polge’s lastest creation, No, I’m here! I take no precautions. When (left ). six collections a year and we create a totally new we’re sick, of course, we’re handicapped, perfume, not a variation, maybe once every 10 years. but oddly there are some things you smell Speaking of trends, you have avoided unisex then that you don’t when you’re well. With a little experience, a perfume entirely. formula is something you can read, too, like a musician can read music. Also, I I fi nd unisex interesting, but it’s true, it’s not a don’t take precautions because though I might propose perfumes, it’s everyone direction that we have taken. That said, there’s been else who judges them and makes them a success. You have to guard against a considerable evolution of what we call feminine scents and masculine scents. becoming too specialized. None of that is as simple as it used to be. How much masculinity do we put in You studied poetry. Do you see a connection in that to what you do now? a feminine fragrance, and vice versa? That changes. Sycomore, one of the Les Perfume is a poetic form. It’s a language that uses neither words nor images, and Exclusifs, has lots of vetiver, and vetiver has usually been considered a masculine yet it’s one everyone can speak in their own way. [Jean] Cocteau said, “I sculpt the scent. Though it was conceived as a women’s fragrance, a lot of men are wearing it, invisible,” and that’s an idea that works for me, too. too. If I had wanted to make it for men, I’d have done it slightly differently, but I’m What do you do to relax? pleased as long as people like it! Nothing at all! Relaxing is important. Do you believe in mentors? How do you work within the pressure of a massive enterprise and stay When I was young, there were older and professors who impressed me creatively free? a lot, but I wonder if it’s possible to have a mentor, really, in this métier. There’s You’d better stay free! You know for me, ultimately I don’t see an opposition no nose that resembles another. I’d say we have affi nities for each other. It’s a between commercial and noncommercial. Good perfumes are perfumes that sell. I small world. Then again, my son now works for IFF, developing fragrances for have no problem with that. But at the same time, you have to start with a perfume other fashion houses, and I have helped others start, as well. If I fi nd someone I you love. Even if no one else does, at least you do! think seems intelligent, I’ll push them to do fragrance. Someone who works well, What’s something a perfumer should never be? works well. I don’t want to make a comparison that sounds pretentious, but Pablo Sure of himself. Picasso would have been a success at whatever he did. He could surely have been a Why? great banker. Being sure of yourself and doing creative work is a fatal combination. You always

How do you know when a scent is fi nally fi nished and ready to be released? have to doubt. OF CHANEL COURTESY CHINSEE; ROSES GEORGE BY PHOTO PRODUCT

BB1105-PG008(10)-CO-Masterclass.a;9.indd 3 5/3/11 5:28 PM Skincare Story #124 FIRST SIGNS OF AGING MEET CARLA Carla felt she was too young to have lines. But visible signs of aging can show up surprisingly early. It’s never too soon to start a serious skincare routine. HER SOLUTION OLE HENRIKSEN TRUTH SERUM helped smooth Carla’s lines with its high-powered vitamin C complex, which repairs—and protects against—free-radical damage.

SEPHORA COLLECTION AGE DEFY MOISTURE CREAM SPF 15 further safeguarded her skin with a broad-spectrum SPF, while hydrating with moisture-magnet HydroSenn+.

Your solution awaits at Sephora. Stop in for a free sample and consultation, and share your story at sephora.com/go/beautytalk. 12 WWD BEAUTY INC corner offi ce

TRUET LOVE ON THE MOVE

When Harry Met Laura BETSY OLUM has been named general manager, beauty and Married for close to 20 years, Laura and Harry Slatkin are home fragrance merchandising strategy BETSY OLUM luminaries. Here, how their love bloomed—and why it almost didn’t. for HSN. Olum, who LauraLLau Slatkin: He was we just brought public Sam & Libby Shoes and the company will report to HSN chief ddatinga a friend of gave everyone a Sam & Libby T-shirt with pictures of shoes all executive offi cer MINDY GROSSMAN, mine.m I thought she over it. I tossed that into my suitcase. I was good to go! was most recently senior vice president waswa wasting her time. H.S.: We gambled, but I had no interest. At 9 p.m. I said, of marketing for Sephora, a role she HHarry Slatkin: I “Let’s go back to our rooms, get into something more held for 10 years. Former L’Oréal USA couldn’tco stand Laura comfortable and watch a movie together.” executive JACK WISWALL has come out whenw I fi rst met her. L.S.: Get into something comfortable? All I had was my Sam of retirement to become chief operating L.S.:L Two years later, & Libby T-shirt. Harry knocked at my door, and there he offi cer of Bond No. 9, where he will I was chairing a stood: monogrammed pajamas, a Sulka robe, velvet slippers work with founder and president charitycharity eventevent and we needed and a waft of cologne trailing behind him. LAURICE RAHME on the new an additional chair…someone H.S.: Out of the bathroom came Laura in her T-shirt. I “I Love NY” license, as well as suggested Harry. For the sake thought to myself, “I need to work on her lingerie.” A trip to Bond’s organizational structure of the charity, I agreed to meet Montenapoleone and La Perla was added to my list. and sales development. JACK WISWALL him for drinks. I remember L.S.: We watched Home Alone 2: Lost in New York. We lay Plans call for ultimately that night like it was yesterday. down, and Harry put his arm around me. From that moment launching 15 I Love NY He looked so handsome…so on we stayed frozen. Neither of us moved an inch all night. fragrances, with the fi rst three slated gentlemanly…I remember saying H.S.: On the way home, we stopped for coffee and there was a for fall...ELIZABETH MORELLO has to myself, “hmmm…”. blind man selling heart-shaped key chains that said “I Love been named senior vice president, H.S.: We became You.” I bought one and leaned over and kissed brand marketing and merchandising Laura and Harry Slatkin best friends. We did Laura. She smiled. at Birchbox, the online subscription on their wedding day, top, everything together. L.S.: That following Friday I invited beauty retailer. Morello, who was most and today, above. We went out to Harry over for a romantic dinner. recently group vice president of dinner…we went to the movies. Three months later we were engaged. cosmetics at Macy’s Inc., will In the summertime, we drove H.S.: That amazing foundation of oversee brand relationships back and forth to the Hamptons friendship has enabled us to work and the company’s e-commerce together. I called her every night; together, overcome challenges and off erings...CAREY GRANGE

we became very, very close. I was a keep us happily married for 19 years. has been appointed president ELIZABETH S MORELLO popular bachelor at the time—I still L.S.: For Valentine’s Day this year I of Temptu, where she will had all my hair. And after every blind gave Harry a heart-shaped box from help develop a multichannel distribution date, I raced home to talk to Laura. Tiffany and inside was the key chain. strategy for the airbrush makeup brand. L.S.: I developed a huge crush on I still have it after all these years. The Grange, who reports to ceo MICHAEL Harry but never said anything “I Love You” has faded a bit, but not BENJAMIN, was most recently executive

for an entire year. I waited for Laura’s latest project: in our relationship. vice president at Murad. Harry to express an interest. But Nest. nothing ever happened. One day Harry asked me if I wanted to go CATCHING UP WITH to Atlantic City for the weekend. I Iconic Fragrance thought, “This is very serious, he’s asked me to go away with him for the weekend.” So I went shopping—I bought Créateur Chantal Roos a beautiful new dress and a very sexy silk negligee. I got Chantal Roos has built successful fragrance franchises for decades—those of a manicure… pedicure...I had my hair done. I was all set. Yves Saint Laurent, Issey Miyake and , to name just a few. Nothing happened. I was very upset. I vowed I would get Now, a new designer is in her sights: Diane von Furstenberg, with whom she is Harry out of my head. It was time to self-protect. working on building a beauty empire. Roos is readying a von Furstenberg fragrance in partnership H.S.: That year I was honored at the Bachelors’ Ball. Laura with ID Beauty for an October launch, and plotting out other categories (including color cosmetics was my date. We had a great time. The next morning, and skin care) for the designer. “If a person is iconic in their own world—which Diane is—the a good friend called and said, “Harry, I was going to set fragrance has to be the same,” says Roos. The decision to sign a licensing agreement with ID you up with my friend but I can’t. I saw you dancing with Beauty was logical, says Roos. “It’s not possible to do every aspect,” she says. “We wanted to Laura and I can tell by the way she looks at you.…Laura work with an experienced company who would allow us to handle the concept and creative parts.” is in love with you.” I hung up the phone and I said to While Roos always seems to have her fi nger on the pulse of what’s next, she doesn’t proclaim myself, “Wow! I’m in love with Laura.” I decided right to have a crystal ball for predicting the future. “Timing is key for anything—to tell you what the then I wanted to change the relationship so I asked Laura market will be in 10 years would be very arrogant,” she says. There are a few things she always if she wanted to go to Atlantic City for the weekend. looks to for market indications, though: “Decoration, architecture and fashion. You have to live in L.S.: I was happy to go because I wasn’t doing anything that the world and observe the big things as well as the small.” —JULIE NAUGHTON weekend anyway. I worked on Wall Street at the time and PRODUCT PHOTO BY GEORGE CHINSEE; SLATKINS BY PATRICK MCMULLAN; WISWALL BY JOHN CALABRESE; MORELLO BY JOHN SWANDA; ROOS BY CORBI BY ROOS JOHN SWANDA; BY MORELLO JOHN CALABRESE; BY MCMULLAN; WISWALL PATRICK BY CHINSEE; SLATKINS GEORGE BY PHOTO PRODUCT

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FLASH POINT Dress for Success Worldwide Gala TUESDAY, MARCH 29, 2011 Bobbi Brown and Maureen Case turned Manhattan’s Chelsea Piers into a Caribbean Hideaway for the Worldwide Gala put on by Dress for Success, the organization that provides clothing for disadvantaged women reentering the workplace. “The beach is my happy place,” explained Brown of the theme for the event, which honored Dress Barn, Goldman Sachs & Kim Colville Maureen Case and Joe Spelling Niecy Nash SunHee Grinnell Co. and Ogilvy & Mather. The 1,000-plus attendees helped raise more than $1.8 million for Dress for Success. Happy place, indeed.

What’s your go-to piece of clothing? “My go-to piece of clothing is a great blazer, because it instantly makes you feel pretty and confi dent, and can dress up any outfi t.” Bobbi Brown BOBBI BROWN Annelise Peterson and John Demsey Muriel Gonzalez Lauren Bush and Amy Astley

March of Dimes Beauty Ball MONDAY, APRIL 11, 2011 In her sultry black gown, Vanessa Williams wowed at the 36th annual March of Dimes Beauty Ball. But it was the $875,000 raised for the March of Dimes ($75,000 over the evening’s goal) that really blew the crowd away. CVS’s Mike Bloom was honored as retailer of the year, while Meredith’s Jeannine Shao Collins received the Beautiful Apple Award and industry veteran Jean Hoehn Zimmerman received the Volunteer Par Excellence Award. Aurelian Lis Louis Desazars and and Rachael Bennett Nancy Schmidt Alex Bolen Vanessa Williams

For the time-pressed, how do you advise getting into volunteering? “Everyone can fi nd a few hours a week or month for something beyond the call of duty.” JEAN HOEHN ZIMMERMAN Jean Hoehn Zimmerman Cos Policastro Karen Fondu and Mike Bloom Nicolas Mirzayantz Thia Breen and Laurie Dowley

The Hot Pink Party THURSDAY, APRIL 14, 2011 Sting was nearly overwhelmed aft er inviting all the ladies at the Breast Cancer Research Foundation’s Hot Pink Party—who included Kelly Rutherford and Elizabeth Hurley—to join him onstage when he played “Desert Rose.” The writhing mass fi lled the Waldorf-Astoria’s Grand Ballroom stage to capacity at the annual party, which raised $4.3 million for Evelyn William Lauder Lauder’s 17-year-old breast cancer charity. “I’m getting lucky Sting and Elton John Pamela Baxter and Elizabeth Hurley tonight,” Sting said with a laugh as he surveyed the crowd. Proud new papa Elton John performed several of his hits, too, including “Your Song.”

What piece of advice do you have for new parent Elton John? “Dear Elton, Since you’re so good at parenting, how about a few more like Zachary?” Christophe de Villeplée, Evelyn Lauder EVELYN LAUDER Fabrizio and Mary Freda and Leonard Lauder Lynne Greene and Nicolas Mirzayantz. PHOTOS BY STEVE EICHNER STEVE BY PHOTOS

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Clockwise from top: Clean Summer Escape, $49; Emilio Pucci Vivara Variazioni Verde 072, $59; DuWop IcedTeas, $22 each; Deborah Lippmann Yellow Brick Road, $16; Super Lustrous Lip Balm, $7.99; Givenchy Gelée d’Interdit Smoothing Gloss Balm, $26.50 each; Paris Satin Oil for Body and Hair, $58; Dior Addict Crystal Gloss, $27 each; Hermès Un Jardin Sur Le Toit, $125; Mark Ibiza Light, Bright Sol, $18. Come summertime, who wants to be bogged down with weighty issues? Not beauty companies, certainly, many of whom are combining transparency with bright colors in their summer launches. It’s a winning combination, to be sure, eye-catching at the counter and utterly covetable. Givenchy’s Gelée d’Interdit is a balmlike, wax-free gloss whose clear formula allows the pigments to take center stage, while celebrity manicurist Deborah Lippmann hit upon transparency to create the perfect yellow nail lacquer, a shade she swears is wearable by all thanks to its jelly fi nish. Originally scheduled to launch later this year, Lippmann moved its debut up aft er being besieged by requests when the color was worn by Lady Gaga at the Grammy Awards. And if the current crop of summer beauty products is any indication, it looks like Gaga’s not the only one with nothing to hide.

PHOTOGRAPH BY GEORGE CHINSEE

BB1105-PG014-BB-Opener.a;14.indd 2 5/3/11 5:18 PM HALLE™, HALLE BERRY™, Bellah Brands Inc. www.halleberryfra g rances.com 16 WWD BEAUTY INC beauty bulletin

MAKEUP LAUNCH WINDOW FRAGRANCE

YSL VOLUPTE SHEER CANDY COLLECTION What’s In Store This collection of six candy-colored lip A look at the month’s most balm/lipstick hybrids covetable product launches. off ers plumping and smoothing benefi ts, BY BELISA SILVA plus the immediate visual reduction of fi ne lines. $30

GIORGIO ARMANI EYES TO KILL Proprietary SHADOW COLLECTION technology Inspired by hues found in Italy’s natural landscape, these blendable two-tone delivers THE CAUDALÍE FLEUR DE GUCCI GUILTY pigmented shadows feature a proprietary 24-hour crease- BY LOLITA LEMPICKA VIGNE, ZESTE DE VIGNE, FOR HIM Color Fil technology, said to deliver 24 proof wear. Conceptualized by THÉ DES VIGNES Inspired by a hours of crease-proof color. $32 Lolita Lempicka’s eldest Capturing the feeling of confi dent risk-taker daughter, Elisa, this dawn, noon and dusk at with a dark side, this fresh scent has violet Caudalíe’s Smith Haut fuses Italian lemon, wood, black cherry and Lafi tte vineyard, these green leaves, lavender licorice fl ower, housed in were created by Anne Flipo, and cardamom atop a bitten-apple-shaped and Jacques a base of woods and SMASHBOX fl acon. $82 Cavalier, respectively. $38 amber. $73 LIMITLESS LIP STAIN AND COLOR SEAL BALMS One part pigmented SKIN & BODY CARE color, one part shade-sealing balm, Smashbox’s fi rst lip stain promises eight hours of hydration and feather-proof wear. $21 Donna Karan’s best-selling Cashmere Mist now fi ghts cellulite.

SISLEY PHYTO-SVELT DONNA KARAN ARTDECO CAVIAR CHANTECAILLE PALMER’S DAILY GLOBAL INTENSIVE CASHMERE MIST PERFORMANCE BIODYNAMIC FACIAL LOTION ANTI-CELLULITE ULTIMATE CASHMERE CONCENTRATED LIFTING SERUM SPF 15 DR. BRANDT PORES NO CONTOURING BODY SCULPTING AND CAVIAR BODY Containing 88 percent The cocoa butter- MORE PORE REFINER CARE FIRMING BODY SERUM botanical ingredients, based brand’s new HINT OF TINT Alkekengi calyx and SERUM Fruit extracts, this stimulates DNA line includes this This multitasking tinted soya extract improve Scented with the cult caff eine, guarana repair with fl ower- moisturizer, blended primer shrinks pores BARE MINERALS elasticity; rosemary, fragrance Cashmere and hyaluronic derived peptides, with antioxidants, and has a matte fi nish. PRETTY AMAZING LIP sage and lavender add Mist, this has caff eine acid help disperse raspberry stem cells evening primrose Flaxseed and tea tree oils COLOR COLLECTION moisture. $210 and creatine to smooth the buildup of fat and hyaluronic acid. and milk proteins for absorb shine and provide Available in eight shades, and fi rm. $50 deposits. $40 $210 gentle hydration. $15 antibacterial benefi ts. $45 this range combines the velvety texture of lipstick with the shiny fi nish of gloss. A specially designed wand ensures color is HAIR CARE evenly dispersed. $16

Bumble and bumble launches its fi rst line to enhance shine.

TOO FACED SIZE DIOR 5 COULEURS LIFT WELLA BRILLIANCE RENE FURTERER BUMBLE AND BUMBLE ORGANIX QUEEN MASCARA Dior’s fi rst eye shadows SHAMPOO FOR FINE/ OKARA RADIANCE BB SHINE ON (AND REJUVENATING IN PITCH BLACK with antiaging skin NORMAL HAIR ENHANCING SPRAY ON…) FINISHING CHERRY BLOSSOM Featuring a ginormous care ingredients have Wella’s new revitalizing Okara extract, derived SPRAY GINSENG MIRACLE corkscrew-shaped brush hyaluronic acid and shampoo adds life to from soybeans, stars in A glossing spray with DEFIZZANT CREAM and superlengthening vitamin E. Available in fi ne hair with a blend this protein-rich mist, a lightweight silicone Featuring the scent of formula, this has four color variations, each of polymers and a which also contains formula, this controls cherry blossom extract keratin, panthenol and has a universal base (in proprietary Liquid hamamelis extract to fl yaways, infuses and ginseng, this locks vitamins C and E to curl the center) that serves as Crystal Technology. $13 keep color pigments moisture and imparts in moisture to rebuild a lid-lift ing primer. $60 and condition lashes. $21 intact. $26 shimmer. $25 damaged strands. $6.99 MITRA ROBERT BY PHOTOS

BB1105-PG016-BB-LaunchWindow.a;10.indd 2 5/3/11 5:20 PM ADVERTISEMENT

Recognizing Excellence Lai Chu has provided outstanding service to Lancôme clients in Luxury Service at Macy’s Herald Square for 9 years. MEET LAI CHU MURAWSKI, LANCÔME BEAUTY ADVISOR AT MACY’S HERALD SQUARE, NEW YORK

WHAT’S YOUR FAVORITE PART OF BEING A BEAUTY ADVISOR? The ability to make women beautiful with Lancôme. Everyone has beauty within, but beauty products can bring out more confi dence, and make her feel good about herself.

HOW DO YOU BUILD RELATIONSHIPS WITH YOUR CUSTOMERS? I’m always honest with them when I advise them, and I follow up with them after their visit with a phone call. I also try to call them several times a year to keep in touch and let them know what’s new at Lancôme. But the most important thing in the relationship is honesty, caring and building trust.

WHAT ADVICE WOULD YOU GIVE TO A NEW BEAUTY ADVISOR? Know your products. Listen carefully, and sell the right products to the right clients. Listen to what they are telling you. It can be about their lifestyle, and what areas they aren’t happy with. We have a lot of good products to show them for their needs.

WHEN A WOMAN COMES TO THE STORE, WHAT CAN YOU GIVE HER THAT SHE CAN’T GET ANYWHERE ELSE? The service. Service is very, very important. Women can see a lot of information on the internet, but they still don’t understand how to apply, and they need more explanation. And personal contact is important. Listening, the facials, the makeovers, and recommending the right products for them.

WHAT ARE YOUR CAREER ASPIRATIONS? One day, I would like to be as successful as Ramzy. (Ramzy Burns, Lancôme Vice President, National Sales) “The most important WHAT DOES THE LANCÔME BRAND MEAN TO YOU? thing in the relationship Lancôme is equal to beauty, equal to confi dence, equal to success. is honesty, caring and building trust.”

The L’Oréal Luxury Division is proud to partner with WWD Beauty Inc to recognize, each month, exceptional customer service in luxury beauty. THE 2011 tk WWD BEAUTY INC FIFI AWARDS An Insider’s Guide to theFiF i’s From what to drink to who’s wearing what (plus a pop quiz to test your knowledge of the art and science of fragrance), our defi nitive guide to this year’s FiFi Awards.

DONDO LOFTUS’ TOP FIVE TIPS ON HOW TO ACCEPT A FIFI Here,He Donald J. Loft us, the Procter & Gamble Prestige leader wwhoh also happens to be an accomplished writer, reveals his stage-winningsta strategies for a witty acceptance speech.

GET UP THERE…FAST!: When your award is announced, get up on

1. that stage as fast as possible. It’s already been a long night. You can kiss everyone you know once you are off the stage. Diane von Furstenberg DON’T ACT SURPRISED: No one is buying it. You know you

2. expected to win. We all know you expected to win. BER/SHUTTERSTOCK KEEP IT BRIEF: It’s already been a long night. Don’t thank everyone 3. you’ve ever known by name. Group them together. For example: “Thank you everyone I’ve ever known.” That should cover it.

Jean Paul Gaultier THANK THOSE WHO WILL BE VOTING NEXT TIME: 4. You should be covered with Step 3, but know that if you miss someone, they will probably vote for someone else the next time.

MENTION DON LOFTUS: If you could include me in your list

5. of “thank yous,” I will also vote for you next year.

A MAKEUP PRIMER Melissa Silver is the go-to makeup artist for industry execs like Lynne Greene and Gina Drosos. She’s already booked for the big event, but agreed to share her top tips for award-winning makeup.

● Warm up your complexion, while staying cream liner, powder blush over cream blush— harmonious with the rest of your coloring, anything to give extra staying power. so that you don’t look washed out under the ● Contouring and highlighting the cheeks, stage lights or in pictures. Bronzer is key. nose and jaw really does make a diff erence, ● Eyes are always a focus. False lashes are particularly in photos. very important. I use individual clusters ● Waterproof mascara is an absolute must. as they really emphasize the eyes without (It holds a curl better, too). looking heavy. ● Don’t forget the body—arms, elbows, hands ● I’m very big on layering—powder shadow and legs should be moisturized (nothing high

over cream shadow, powder or pencil over shine), and any little marks discreetly covered. GER GREGORY BY BRUSHES ANDREY EREMIN/SHUTTERSTOCK; BY MICROPHONE D’ERRICO; DAN BY GAULTIER NICK MACHALABA; BY PHOTO FURSTENBERG

Elizabeth Hurley and Hugh Grant

BB1105-PG018(20)-BB-Fifi.b;30.indd 1 5/4/11 4:50 PM Every day, in 180 countries, P&G Beauty & Grooming brands deliver and delight. From healthy, radiant skin and conditioned, shiny hair to the latest fragrance expression and salon hair coloring experience, P&G Beauty & Grooming products make beauty breakthroughs accessible to women and men around the world.

©2011 P&G THE 2011 FIFI AWARDS (2) Solid Gold Fashion Flash Half the fun of the FiFi’s is seeing who’s wearing what. Here, we asked some of the industry’s most stylish execs for a sneak preview.

➊ “I decide at the last minute. I spend my life planning and I need a few moments not to overthink, but to enjoy. I gravitate toward pieces that are chic and light. I want to look my best for the designer I am wearing.” —VERONIQUE GABAI-PINSKY, global brand president, the Estée Lauder Cos. Inc.

➋ “Inspired by our fragrance nominee, J’Adore L’Or, I’ll be Tommy Hilfi ger and Donna Karan wearing a gold sequin motorcycle jacket that I got at a small boutique in Paris, with a long beige silk skirt by Haute Hippie. All my accessories will be head-to-toe Dior. Shoes, bag and jewels.” —TERRY DARLAND, president, Dior Beauty (3) Isaac Mizrahi (6) Chanel ➌ “I’m wearing Isaac Mizrahi couture. Because the theme is an urban garden, I was looking for something that has a fl oral feel and Isaac had the dress, very beautiful, simple, tea-length, fl oral.” —ROCHELLE BLOOM, president,

➍ “Since our fragrance Bang is nominated, I’ll be wearing Easy Access a Marc Jacobs Collection cocktail dress—black, short, As the fashion director of Lincoln and fl ouncy with a vibrant and colorful fl ower accessory Center whose responsibilities include from the spring collection.” —LORI SINGER, vice president, (1) Donna Karan overseeing the staging of New York global marketing, Coty Prestige Fashion Week, Stephanie Winston Wolkoff knows the ins and outs of the venue for this year’s FiFi’s, ➎ “I like to think that I’m no stranger to daring, yet classical, particularly when it comes to easy fashion choices. This look from Giorgio Armani’s spring 2005 access. Her drop-off place of choice: collection is one of my favorites, especially with its bold Chinese 62nd Street at Columbus Avenue or scripted black-and-white tiers. Like the FiFi’s, it is glamour in Jaff e Drive, which dips below street level right in front of the LC campus and unforgettable.” —CAROL HAMILTON, president, on Columbus Avenue. In terms of luxury products division, L’Oréal parking, the Lincoln Center Garage, located directly under the campus, ➏ “For me, there is no other option. Black, always black.” is most convenient, she says. Of the —CHRISTINE DAGOUSSET, executive vice president, three entrances, the one on 62nd between Columbus and Amsterdam is Chanel Fragrance and Beauté closest to the tent in Damrosch Park. (5) Giorgio Armani Evelyn, Leonard and Aerin Lauder.

(4) Marc Jacobs

Andrea Jung and William Lauder

Lynne Greene and Philip Shearer The Bar Star Each year, Ann Gottlieb helps create specialty cocktails for the FiFi’s, based on the year’s nominees. Her pick for this year: The Guilty (as in Gucci), made with peach nectar, a touch of fresh raspberry and Champagne. Says Gottlieb, “They go down sooooo easily.”

BB1105-PG018(20)-BB-Fifi.a;29.indd 2 5/4/11 4:28 PM WWD BEAUTY INC 21 THE WINNERS IN THE WORLD OF BEAUTY POP QUIZ The Smell Test WILL BE REVEALED In 1994, the Fragrance Foundation conducted its fi rst certifi cation program for fragrance sales specialists. What started with 10 FRIDAY, MAY 20 participants from a handful of retailers has blossomed into a biannual program, in which 800 to 1,000 people complete rigorous coursework covering the history and science of fragrance, as well as selling techniques, and are given a test at the end. The highest scorer is awarded a coveted FiFi. The cost to take the course is about $150, and those who have completed it found the eff ort well worth it: Their productivity rises exponentially, with brands and retailers reporting double-digit sales increases in the doors where they have certifi ed sales associates. Wonder how you’d fare on the exam? Here, a sampling of questions covering the main topics.

6. During a woman’s teenage years, what is her THE 1. What is the earliest recorded aromatic? primary motivation for wearing fragrance? A. Frankincense A. To defi ne territory. ENVELOPE B. Galbanum B. To relieve stress. C. Myrrh C. To attract men. D. Spikenard D. To do the appropriate thing. PLEASE

2. To “fi x” a perfume is to: 7. True or false? Fragrance packaging may have . . . A. Add essential oils. an adverse effect on the success of a fragrance in B. Add a characteristic aroma. the marketplace. C. Equalize the rate of evaporation. A. True It’s been called the Oscars of D. Substitute a synthetic ingredient B. False the beauty industry for a reason. for a natural ingredient. 8. When did the synergy of scent and • industry leaders 3. Which of the following statements presentation, including the color and • celebrities is true about the middle of a fragrance? texture of the package, plus the color BY GEORGE CHINSEE; KARAN BY THOMAS IANNACCONE; JACOBS BY JOHN AQUINO; JOHN AQUINO; BY JACOBS THOMAS IANNACCONE; CHINSEE; KARAN BY GEORGE BY SHIRONOSOV/SHUTTERSTOCK; WILLOW SMITH BY STEVE GRANITZ/WIREIMAGE; HISTORIC BOTTLE BY ROGER VIOLLET COLLECTION/GETTY IMAGES VIOLLET COLLECTION/GETTY ROGER BY BOTTLE HISTORIC GRANITZ/WIREIMAGE; STEVE SMITH BY WILLOW SHIRONOSOV/SHUTTERSTOCK; A. It is made of the most volatile ingredients. of the liquid itself, become part of • the best in beauty B. It makes a blend of fragrance into a the marketing for most fragrances? —as voted by harmonious balance. A. In the 17th century. C. It is made of underlying tones of fragrance B. In the 18th century. CEW’s beauty insiders. and is responsible for its lasting qualities. C. In the 19th century. D. It is made of the most long-lasting D. In the 20th century. ingredients. 9. What is the most signifi cant reason that 4. Our sense of smell is most acute between glass remained the container of choice for most the ages of: perfumeries? A. 1-12. A. Because glass can be made into so many B. 13-19. interesting shapes/forms. C. 20-40. B. Because glass can exhibit a wide range of D. 41-60. design effects. C. Because glass retains the integrity of the REGISTER NOW! fragrance composition within the bottle. 5. At what age do most girls D. Because glass-making ingredients are begin using fragrance? inexpensive and easy to obtain. CEW.ORG A. 8 B. 11 10. According to one study, wearing a fragrance for emotional reasons is far greater among C. 13 Friday, May 20 D. 15 women in which age group? A. Teens and 20s Waldorf =Astoria, New York City B. 30s C. 40s 11:00 AM Cocktails D. 50s and older 12:00 PM Luncheon & Awards answers: 1-C; 2-C; 3-B; 4-C; 5-B; 6-A; 7-A; 8-D; 9-C; 10-A Presentation HISTORIC PHOTO BY PAUL POPPER/POPPERFOTO/GETTY IMAGES; MYRRH AND ESSENTIAL OIL BY MARILYN BARBONE/SHUTTERSTOCK; BABY BY DMITRIY BY BABY BARBONE/SHUTTERSTOCK; MARILYN OIL BY AND ESSENTIAL MYRRH IMAGES; POPPER/POPPERFOTO/GETTY PAUL BY PHOTO HISTORIC JUNG, LAUDER PHOTO BY STEVE EICHNER; LIMOUSINE BY CHARLIE HUTTON/SHUTTERSTOCK; COCKTAIL BY ANNAVEE/SHUTTERSTOCK; MIZRAHI RUNWAY ANNAVEE/SHUTTERSTOCK; BY COCKTAIL CHARLIE HUTTON/SHUTTERSTOCK; BY EICHNER; LIMOUSINE STEVE BY PHOTO JUNG, LAUDER

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Sephora at Aventura Mall, 19501 Biscayne Boulevard Bal Harbour Shops, 9700 Collins Avenue

UNDERCOVER SHOPPER Miami’s Booming Beauty Scene Two of the nation’s top shopping centers for sales per square foot—the Aventura Mall and the Bal Harbour Shops—are located within a short drive of each other along South Florida’s coast. REBECCA KLEINMAN visited each to see how they stack up.

s someone who’s lucky enough to live just a Having enough sense to go on a few blocks from the South Beach Sephora, weekday and call ahead for the best SEPHORA I usually don’t venture far for my beauty point of entry to Sephora—the Miami, needs. But the opening of Sephora’s fl agship mall is ginormous—I was told the USA AVENTURA MALL at Aventura Mall piqued the reporter in me. new store sits directly below the Pristinely maintained, Sephora’s AI decided to make the schlep, as well as check in at a favorite food court. Five Guys Burgers and new South Florida fl agship in haunt, Saks Fifth Avenue at Bal Harbour Shops. Fries is NOT what I had in mind to the bustling Aventura mall is a I rarely visit Aventura Mall and you’ll soon understand why. begin my fragrance journey, so I tried beauty lover’s paradise. Depending on the time of day, construction and general not to breathe while making my way South Florida I-95 snafus, the drive there could take anywhere through an insanely diverse crowd of Jewish SAKS FIFTH AVENUE from 45 minutes to half my adult life. That a bus with an ad grandparents, every Latin American nationality and BAL HARBOUR SHOPS for Aventura, which have been showing up all over the place teenage boys with Stevie Wonder-length cornrows. Located in luxe Bal Harbour, lately, rode tandem seemed like a good sign. Fast-forward Oddly in the waft of fast food, the mall has situated a bath Saks’ exclusive brand lineup risking life and limb to change lanes for the center’s narrow and beauty cluster around the escalators with The Body and stellar service has entrance off Biscayne Boulevard and three near accidents in Shop, Kiehl’s, MAC and Crabtree & Evelyn. The abundance timeless appeal.

the parking lot, and I had arrived, frazzled yet determined. of natural light and contemporary art in front of Sephora put CLARK SADLER ROBERT BY PHOTOS

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a much-needed skip in my step. This 7,300-square-foot Considering so many stores sparkle with the latest decor Sephora absolutely sings, from its black-and-white striped and exquisite merchandising—100% Capri, Lanvin, Oscar entrance to the slight neon “S.” The gleaming black and de la Renta, to name a few—I hope Saks Fifth Avenue glass facade lends an almost temple of beauty quality. follows suit with a gorgeous makeover like its sister store Though skin care lies immediately to the right and at The Gardens Mall in Palm Beach Gardens, Fla. The cosmetics to the left, an overwhelming potpourri of a latter’s spacious departments, natural light and clean, thousand scents hits customers fi rst. Afraid my sensitive contemporary decor always put me in the mood to shop. nose would give out on me, I headed straight to the huge Back at Bal Harbour, the entry of Pompeian tiny fragrance section in the rear, easily spotted with its large- mosaic tiles presents a touch of fl air amongst neutral BEAUTY ADVISER scale, colored photos of fl oating perfume bottles. cherry wood cabinetry and travertine fl oors. Music CONFIDENTIAL This being my fi rst foray into shopping for fragrances from the adjacent shoe department trickled into the at any Sephora, I was surprised by the democratic quieter beauty section, and the high ratio of salespeople The Art of Selling display sans the usual marketing tricks to steer to customers guaranteed quick attention to anyone consumers. Aside from special displays for Chanel, meandering through the compact space. Fragrance Chloé and Dior’s J’adore, brands The majority of fragrances I’ve been selling fragrance for seven years

were meticulously arranged The selection at Saks. sit in the far right section of and have worked with many diff erent alphabetically without any trash tthe fl oor. More scents are brands. Because fragrance is a luxury, or a speck of dust to be found. interspersedi within each not a necessity, and due to the recession, While Lily Allen and Eighties brand’sb cosmetics display, so we have defi nitely seen a dip in sales. pop piped from the speakers, I it’si a welcomed task for a pro Customers that would come in and buy perused the selection and waited shoppers who loves the thrill three or four fragrances at a time now buy for the section’s salesman to ofo the hunt. Good thing Bal one, and much less oft en. fi nish with another customer. HarbourH caters to Brazilians I compare the art of selling fragrance He soon greeted me, with as whow are just that. to selling wine. It is a bit psychological— neat an appearance (including Since promotions for Bond gauging a customer’s mood, tastes, not a single hair out of place) as NNo.9 New York’s Madison personality, likes and dislikes. I’ve learned his wares. I said I’d like to pick SqSquare Park, new and exclusive that people don’t generally know what out a Mother’s Day gift that to Saks according to the store’s they want when they come to the counter. wasn’t too overpowering—I’m It’s amazing how a single advertising,d graced the windows My job is to get them to trust me. still scarred from the Giorgio good salesperson can make all and escalator landing, I fi gured Our customers don’t like to be days—or adolescent. After asking the diff erence, and I had three it would be a good start. The bombarded by blotters or salespeople me a few questions about my in just one trip. pleasantly upbeat salesman spraying things on them. I like to make mom’s tastes, such as her favorite spritzed me from a neon pink eye contact, smile, ask them how their fl owers, he got to work. bottle and demonstrated how the day is and if they’d like to try a new scent. Regarding his fi rst suggestion, Very Hollywood fl acon’s bright green rose bracelet decoration transforms Oft en, I will, with permission, spray a by Michael Kors, he said its gardenia and powdery into a brooch. Having embarrassingly admitted my last scent onto customers’ wrists, tell them to combination reminded people of their grandmother but in new fragrance was Chance, he got really into my perfume- continue shopping and return if they like it a sophisticated, retro way. The pretty bottle makes a sweet Luddite situation with four additional scents including side aft er it blends with their body chemistry. gesture in itself, and I could imagine it sitting in my mom’s notes like, “This one won a FiFi award last year.” Ninety-eight percent of the time they pink bathroom in the Florida Keys. He sprayed and politely He worked in unison with a saleswoman who also come back to me. handed me more scent strips for Gucci’s Flora, Chloé’s Love wasn’t pushy. She turned me onto Martin Margiela’s I generally spend about 20 minutes and Rose and Marc Jacobs’ Lola. Untitled, also new and exclusive to Saks, and a tulle- with a customer and my average sale is Passing me a coffee canister to clear my palate, he embellished bottle of Jeanne Lanvin. $300. Our shoppers are savvy, and when chattered about Sephora in general, such as new items, At By Kilian’s glossy booth as boudoir, yet another they smell something they want to know bestsellers and this store’s size compared with other U.S. warm saleswoman—as I mentioned, there were a lot!— the notes, the quality of the oils and the locations and its annual sales. When I checked with spoke with a friend’s honesty. “Men prefer their women to history of the brand. I can always tell corporate, he wasn’t too far off. He may be deservingly due smell sweet. Tell your mom to buy you a bottle of Kilian which scent a customer loves by the one for a promotion, because after offering me a sample of my for your birthday since it’s $225, and then you buy the that puts a smile on her face. choice, he threw in a $250 contest card and asked me to fi ll Laura Mercier for $50.” My usual clientele is comprised of in his name in the online survey. She explained the founder’s pedigree and the difference successful, sophisticated women from I never felt rushed, as I have so many times at other between his scents versus others, adding that real perfume, New York and the Tristate area. We have retailers. When I said I didn’t plan to buy that day, not though expensive, lasts longer, so it’s a wiser investment. a good amount of tourists also, but not even the faintest look of disdain crossed his face. In I liked, too, how she pinpointed her top pick from each many male shoppers. Men tend to ask a region famous for poor service, it was a refreshing brand. Unfortunately, we never made it to Jo Malone for the newest fragrance from a particular attitude, one that would even make me consider braving because I was drenched in fragrance by then, and my nose brand or for our top-selling scent. Women “Aventorture,” as locals call it, again. couldn’t go on no matter how many coffee beans I sniffed. are more about fi nding something special, By now you’ve probably guessed that I’m not a mall rat, It’s amazing how a single good salesperson can make something that no one else has. which is why the low-key, intimate Bal Harbour Shops is all the difference, and I had three in just one trip. No [EDITOR’S NOTE: This was written by a the only center I’d dare go near on a Saturday. Parking in wonder this department is a bustling destination for the fragrance salesperson at a specialty store

PHOTOS BY ROBERT SADLER CLARK SADLER ROBERT BY PHOTOS the fairly full garage, I looked forward to window shopping. international jet set. chain in the Northeast.]

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SELFRIDGES WHAT’S SELLING WHERE Tom Ford Neroli Portofi no Eau de Parfum, (165 pounds, or $269) “Tom Ford’s new Neroli Portofi no is our current bestseller in Fragrance Selfridges, Manchester. The Tom Ford Private Blend range as a From Mexico to the Middle East, whole is exclusive to Selfridges in Manchester and it is this exclusivity Manchester, a look at the best-selling scents ● England that our customers are always around the world. keen to buy into.” —Mark Tranter, Cannes, fragrance and beauty buyer ● France Herzliya, Israel SUPER-PHARM ● LADY MILLION, BY PACO RABANNE (249 Mexico City, shekels, or $71) Mexico ● “People love it because of its diamond design, which is very alluring, and the fragrance, which Israelis love because it ● fi ts the climate. It’s light Singapore TANGS ORCHARD and pleasant.” —Gali PALACIO DE HIERRO DIOR FOREVER AND Berger, spokeswoman FLOWER BOMB BY EVER (90 Singapore VIKTOR & ROLF dollars, or $72) (2,100 pesos, or $178) “Launched in 2006, this has maintained “This scent is fascinating TAIZO and it’s an exclusive brand, Portrait of a Lady from its classic charm which we give a lot of Editions de Parfums Frédéric and is therefore still support to.” Malle (150 euros, or $214.35) a favorite among —Adriana Lizarraga, “This fragrance is a bestseller loyal customers.” beauty business director because its personality makes —Stenifer Tan, it an aphrodisiac. Feminine and assistant manager, sensual, men are crazy about beauty merchandising it.” —Didier Pinier, president

STATISTICS The Top 10 Scents in the U.S. Fragrance sales were up 1 percent in the U.S. in 2010, driven in part Top Retail Channels by newness. In the fi rst quarter, launches represented more than 80 percent of new sales, then retreated a bit, before returning in the For U.S. Fragrance Sales critical pre-holiday period with designer introductions bringing a buzz to the category, according to Karen Grant of The NPD Group.

DEPARTMENT STORES 32%

SPECIALTY STORES 27%

MASS MERCHANDISERS 16% 1. Chanel Coco Mademoiselle 1. Giorgio Armani Acqua di Giò Pour Homme 2. Estée Lauder Beautiful 2. Giorgio Armani Armani Code DIRECT SALES 3. Dolce & Gabbana Light Blue 3. Chanel 14% 4. Chanel No.5 4. Dolce & Gabbana The One for Men 5. Donna Karan Cashmere Mist 5. Dolce & Gabbana Light Blue Pour Homme DRUGSTORES 6. Estée Lauder Pleasures 6. Polo Blue 10% 7. Thierry Mugler 7. Gucci by Gucci Pour Homme Men’s 2010 Men’s

Women’s 2010 Women’s 8. Juicy Couture Viva La Juicy 8. Jean Paul Gaultier Le Male FOOD STORES Top 10 Fragrances* Top 9. Euphoria 10 Fragrances* Top 9. L’Homme Yves Saint Laurent % 10. Clinique Happy 10. Ralph Lauren Polo Black 1

*Source: The NPD Group Source: Kline & Company Inc. PRODUCT PHOTOS BY ROBERT MITRA; ROSE BY MIAO LIAO/SHUTTERSTOCK MIAO BY MITRA; ROSE ROBERT BY PHOTOS PRODUCT

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TRESEMMÉ DRY SHAMPOO $5.49 LAURA MERCIER TINTED CAUDALÍE EAU DE “I have greasy roots and dry ends, MOISTURIZER SPF 20 IN BEAUTÉ BEAUTY so I love to use this dry shampoo in ALMOND $42 ELIXIR $46 SEPHORA between washes,” says Kempf. NIVEA A KISS Containing vitamins C “This freshens my EYEBROW GEL $10 OF MOISTURE and E and sun protection, face in the morning,” “This helps me keep ESSENTIAL LIP CARE Daniel likes this because says Daniel, who also my bushy brows in $2.99 it provides coverage but applies this hydrating place,” says Daniel. “My absolute favorite lets her skin breathe. “It’s spritz in the evening Chap Stick,” says not heavy, which I like,” aft er showering. Kempf. “I reapply she says. multiple times throughout the day.”

YSL TOUCHE TARTE LIGHTS, ÉCLAT IN #2 $40 CAMERA, LASHES “This is one of my MASCARA $19 favorite products “I’ve been using this of all time,” says mascara for a few Daniel. “It doesn’t months now and I’ve cake under my noticed my lashes SCÜNCI NO DAMAGE eyes and I love how are growing faster,” 18–PIECE IN BLACK it brightens my says Daniel. $2.99 entire face.” “I always need hair ties,” says Kempf. “These are great because they don’t pull out my hair.” NEUTROGENA BODY OIL LIGHT SESAME FORMULA $12.99 CREST PRO-HEALTH “I use this aft er a TARTE PARK AVENUE TOOTHPASTE $3.95 shower to soft en PRINCESS $29 “I use Crest my skin,” says “This is my fi rst toothpaste all the Kempf. “I love how time trying this time,” says Kempf. it makes my legs bronzer,” says Daniel, “I’ve been using look.” who was moved to this one because it purchase thanks to whitens but is safe for a quick tutorial given sensitive teeth.” by a Sephora sales associate. “I like that it’s not sparkly.”

$29.18 $165.78 Total Spent Total Spent

GREENWICH, CT SHOPPER STALKER

What’s in Madison’s Bag What’s in Lisa’s Bag Madison Kempf, a 19-year-old art history Mother of two Lisa Daniel took advantage of student at NYU, was spotted picking up free time between carpool pickups to dash into prescriptions and beauty essentials at the Sephora. “I had a 20-percent-off coupon I’ve CVS near her parents’ home in Greenwich. “I been meaning to use,” says Daniel, who, as a go to school in New York City, but come back Sephora insider, is frequently sent coupons to Connecticut for dinner with my parents or and promotional e-mails. Hailing from nearby to see friends,” says Kempf, a self-described Stamford, Daniel runs Privatestyles.com, an “makeup-aholic” and budding world traveler. online clothing boutique. When it comes to Although she tends to avoid drugstores for beauty, she isn’t one to experiment much. “I skin care, makeup and fragrances, Kempf, know what I like,” she says. “I’m not someone who has visited Monaco, Scotland, Turkey who will try something I’ve never heard of.” and Greece, relies on them for everyday Naming her favorite brands as Phyto, Clinique supplies and travel-size items. “I buy most of and Caudalíe, Daniel likes products that have my personal care items at drugstores,” says Shopper: Madison Kempf, 19 pleasing textures and smells. “Sephora is one of Shopper: Lisa Daniel, 34 Kempf, whose favorite brands include Nars, Date/Time: 4.14.2011, 2:30 p.m. my favorite stores because of the selection and Date/Time: 4.14.2011, 1:12 p.m. Store: CVS Store: Sephora Kiehl’s and Bumble and bumble. Kempf’s daily service,” says Daniel, who was particularly taken Location: 99 Greenwich Avenue Location: 75 Greenwich Avenue beauty regime includes face wash and eye with the sales associate who shade-matched cream morning and night, and black eyeliner and Nars bronzer before leaving the her new Tarte Bronzer. “I love when a guy can recommend makeup based on what house. “I like stores like CVS because I don’t stay as long and am less likely to he’s wearing.” The bright “Glee”-inspired Sephora by OPI nail polish caught her

overspend,” says Kempf. “I can do some serious damage in Sephora.” —BELISA SILVA eye, too. “My daughter would love it,” she says. —B.S. JOHN AQUINO BY MITRA; SHOPPERS ROBERT BY PHOTOS PRODUCT

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BB1105-PG029(30-37)b-WELL-Fragrance;20.indd 2 5/6/11 3:01 PM The FRAGRANCE 30 WWD BEAUTY INC Issue The Age of Ambivalence Fragrance sales in the U.S. are up, but the industry must still contend with a category whose usage is shrinking. BY PETE BORN

owered by fall’s red-hot launches, the $2.5 marketing. Sephora amped up its fragrance presentation, beginning in the West billion U.S. fragrance market is turning a Coast stores. Best-sellers are presented and the customer is offered fragrance corner with the probability of a strong fall choices organized by mood. If she wants to feel sexy, there’s Boyfriend by Kate in the offi ng, thanks to a bumper crop of Walsh. “Telling the richest story is very much part of our strategy,” says Rothstein. designer fragrances. But after years of steep “We see ourselves as storytellers.” decline, the market remains mired in problems This budding renaissance began with a relatively small but powerful launch lurking beneath the newly optimistic surface. lineup in the fall, led by Bleu de Chanel, which ranks number one in the U.S. men’s This turnaround in the making seems to have been market; Gucci Guilty from P&G on the women’s side, and Acqua di Gioia from triggered by a shift in thinking of fragrance manufacturers and Giorgio Armani and Ralph Lauren’s Big Pony quartet of men’s scents. Chance Eau retailers alike, both of whom are beginning to test the waters of a Tendre from Chanel, which ranks number 11 year-to-date through March, and fundamental change in strategy. Manufacturers are focusing more Marc by Marc Jacobs’ Daisy Eau So Fresh from Coty have made a sizable impact. closely on classics, which are largely driving sales in this consumer Calvin Klein Beauty is said to have done well overseas after stumbling in the U.S. atmosphere of recessionary uncertainty. Thus, the frenetic Fall promises more of the same. Deborah Walters, senior vice president and launch pace has cooled and newness is being framed in terms gmm of cosmetics and fragrances at Saks Fifth Avenue, says, “It’s like a glorious of core brand values, providing offerings with a familiar res- dream. The industry is stepping up with fabulous creativity.” She ticks off a long onance. “Everyone has gotten sharper in the execution of launches,” says Donald line of designer launches, many of them Saks exclusives, as well as a full menu of J. Loftus, leader of Procter & Gamble Prestige. He was referring to an apparent in-store events. “It’s taking it back to the art of fragrance.” Saks also is ramping up scaling back of introductions to produce more impact—a concept championed by its social media campaign and training store personnel to cross sell polymorphous P&G—and giving more visual display weeks in the department stores to existing brands like Jimmy Choo in different parts of the store. and classic brands. Loftus notes that last year, P&G launched one women’s and one “We are riding a wave of strong launches,” says Karen Grant, vice president and men’s fragrance. “We’ve had years when we’ve launched 18 fragrances,” he says. As a global beauty industry analyst of The NPD Group. For the entire fragrance category result, there has been a noted uptick in innovation in the market, and “we are much in the prestige market, March showed a 6 percent gain. That’s a heartening fi gure, more positive. It is a good signal for Christmas.” given that February was up 5 percent, compared with a 3 percent drop for the same The other pivot point has been at retail. While manufacturers generally agree month in 2010. February’s increase broke down into a 5 percent rise for women’s that a lackluster retail environment is half the industry’s problem, stores, notably scents and a 7 percent gain for men’s. That follows a 7 percent gain in January. For Nordstrom and Sephora, are answering the call by putting more emphasis on scent, 2010, the category gain was a meager 1 percent, although that was considered an either by adding selling space or reinvigorating the approach on the fl oor, or by achievement considering the 10 percent plunge in 2009. producing a crisper, cleaner and far more imaginative merchandise presentation. This clearly is a new year. “Each month, the numbers keep being positive,” After surveying its customers, Nordstrom has made some strategic adjustments, Grant says. “At the rate we are going, we should be able to surpass the 2008 [pre- according to Laurie Black, executive vice president and general merchandise man- recession] level.” ager of cosmetics. “We were able to grow the fragrance business in a really big way,” Better yet, there is a pleasant surprise inside the glowing package. A key statistic she says, ticking off a number of changes, notably the store’s approach to sampling, shows a sharp upsurge in the sales of “juices,” or the pure fragrance stockkeeping demonstration and training. Now a customer is handed a fragrance sample as she units, not the ancillary body products or the value-driven gift sets. The dollar vol- enters the department and only one scent is sampled at a time. The store instituted ume of women’s juices was up 9 percent for February, while gift sets were down 6 a Sample Saturday event in October with a positive result. The fragrance models, or percent. The increase was more dramatic on the men’s side, where sales of juices rotators, that vendors usually count on to push sales have been restricted to being were up 16 percent and gift sets were down 13 percent. “What’s encouraging is that on the fl oor—only for the day of an event, like a trend show or a fragrance festival. the fundamentals are coming back,” says Grant. “The consumer is coming in for the Probably the most impactive change is Nordstrom’s decision to train all the sales true fragrance experience, as opposed to coming in for a deal. personnel so that they’re knowledgeable enough to sell all the brands. Referring to “I think this will be a healthy year for fragrance,” she continues. “Last year was the consumer survey, Black says, “Our customer wants to work with a salesperson fl at. The momentum is picking up with each month.” who knows about all the brands—rather than just a few.” That means all the associ- The optimism isn’t limited to the prestige market. Fragrance sales in the mass ates will be Nordstrom employees, and vendor-hired demonstrators will be limited market are up by 1.6 percent for 2011 year to date, with a 2.4 percent boost in to special events. In what looks like a seismic break with past practice, the policy is women’s, while men’s remained basically fl at at a plus 0.2 percent, according to expected to be in operation by summer. the Symphony IRI Group. This is an improvement over last year, when women’s Sephora also did a detailed survey of its consumers via its Beauty Insider Web fragrances were down 1 percent and men’s slid by 2 percent. Victoria Gustafson, site. “She told us she wants to engage in the category and wants it made less vice president of Strategic Insights and Beauty Vertical at IRI, says “the category complicated and more exciting,” says Sharon Rothstein, senior vice president of that has been declining for the last four years stabilized in 2010 and is actually

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doing well year to date versus last year. Units are down, but per-unit price ARTISANAL BRANDS ARE FINDING A WELCOME increases [are] keeping the category afl oat.” RECEPTION IN EUROPE’S OVERLY SATURATED The fragrance category at mass is driven by celebrity scents. Women’s FRAGRANCE MARKET. By Kerry Olsen brands scored a 10.8 percent increase for the fi rst four months of this year, while men’s moved ahead by 3.2 percent. Three women’s celebrity brands— n Europe, the niche fragrance market continues to gather steam in a Beyoncé from Beyoncé Knowles, Halle Berry Reveal and Mariah Carey’s saturated industry heaving with big-budget launches and shaken by Lollipop Bling—generated a combined $2.8 million in sales growth in the the recession. fi rst four months of this year, Gustafson notes. The stars in men’s celebrity Offi cial sales data for the European niche perfumery business were [Tim] McGraw Silver and Usher. In men’s and women’s, the lifestyle and is diffi cult to pin down, but Silvio Levi, the Milan-based owner of designer categories were either down or barely ahead. distributor Calè Srl and founder of the trade fair Esxence, estimates maintains its own tracking system, which allows the com- the sector in Europe could be worth as much as 7.19 billion euros, or pany to further segment the category. Joel Ronkin, executive vice president and around $10.4 billion at average exchange rates. He arrived at that general manager of Arden, sees an improvement in the prestige market and the fi gure by looking at Europe’s seven top countries in terms of beauty prestige priced fragrances distributed in mass channels. Of the latter, he reports sales—Germany, France, Italy, the U.K., Spain, The Netherlands and a 2 percent increase in sales of department store fragrances sold in drugstore Poland—which had a total beauty turnover of around $74 billion in chains and a 5 percent increase for prestige brands in big-box retailers. 2009, according to Unipro, then estimating niche perfumery’s part of the pie as around This rosy outlook is a sharp departure from past experience. Grant says 1.4 percent of that sum. that with the exception of the booming celebrity category, the prestige fra- European department store retailers have embraced niche brands, spurred on by grance market has been dwindling since 2001. “We have had a decade of their success in the U.S. In the U.K., House of Fraser, Harvey Nichols, Liberty and decline,” she says. Another source indi- Harrods have all beefed up their artisanal off erings. The French department store cates that the prestige fragrance busi- Printemps is set to revamp its beauty hall, say sources, extensively increasing its “We are riding ness declined 13 percent in dollar vol- existing space for niche scents, while the Italian stores Coin and Rinascente are set to ume in the last fi ve years and dropped open new areas for artisanal brands this year. a wave of strong 26 percent in unit sales. “During the recession, no one wanted to play with their money, and the same launches,” says Ava Huang, senior vice president of applied in the beauty world. As a result, there’s a new era of customers who want U.S. marketing at Coty Prestige, says something authentic,” says Tracy Van Heusden, senior beauty buyer at House of Fraser, NPD’s Karen Grant. there’s been a dramatic downturn in the which opened an in-store concept called Apothecary in its Glasgow store as part of a amount of dollar volume generated by multimillion-pound beauty hall refurbishment. The concept, which carries brands like sa “Each month, the fragrance introductions from 2006 to fl orist Jane Packer’s fi rst fragrance line and the Brit brand Berkeley Square, is set to roll 2010. In women’s, there was a 28 percent out to all of its 61 stores. pa numbers keep being drop in launch volume and a 43 percent A consumer backlash to the bevy of mainstream scent launches and a desire for ca drop in men’s. This deep erosion oc- individuality is fueling the niche sector. Straightened times have produced a new breed positive.” curred despite steady price increases of of savvy consumers demanding unconventional notes. to 2 to 3 percent between 2008 and 2010. “There is a common desire and wish to be distinct. The mass market is no longer ha This year, however, the business is being driven by strong designer scents, delivering on this promise to be diff erent,” says Claus Noppeney, Ph.D., research she says. Coty launched Daisy Eau So Fresh, a fruitier, bubblier version of the professor, Bern University of the Arts & Bern Business School, who recently analyzed no Marc by Marc Jacobs scent, in February, and it now ranks in the top fi ve, out- the scent-making process in niche perfumery for a project funded by the Swiss in selling the original Daisy. Quoting NPD fi gures, Huang says Eau So Fresh had Science Foundation. a 2.3 percent share for March and the original had a 1 percent. Taken together, By occupying top spots at Harvey Nichols, By Kilian and Escentric Molecules bear Gr they ranked number three behind Coco Mademoiselle and Chance. While all out the professor’s research. “Neither advertises, both have limited distribution, but ne these marketing theories are interesting, Huang says in the end it boils down our customers are incentivized by this,” says Hannah Phillips, beauty buyer. “By Kilian’s Ma to putting forward a solid project with a compelling story. But the missing fragrances tell a story, and all of the bottles can be refi lled at a reduced cost. It detracts piece is retail. She advocates improved training of sales personnel in the stores from the ever-throwaway culture.” so to make the retail environment more aspirational. As a result, such brands engender more loyalty than mass marketed products. wh One explanation for the long decline is a falloff in usage. The fragrance sup- “Customers of true artisanal fragrances are far less transient than those of mass,” wa plier Firmenich commissioned an in-depth study of the U.S. fragrance mar- says Gina Ritchie, beauty buyer for Liberty. “Our customers are deeply loyal to their ket, which was previewed at the WWD CEO Beauty Summit in May 2010. fragrances and enjoy them being more under the radar. Fragrance is currently our of It shows that the size of the U.S. fragrance market shrank by half-a-billion fastest-growing category and as we specialize only in more niche artisan fragrances, we dollars from 2000 to 2009. In 2000, there were 400 fragrance launches and are fully dedicated to them.” giv 70 million units of fragrance were sold at an average price of $43 a bottle, “It’s part of a global return to timeless quality and appreciation of craft smanship,” Ev producing a market volume of $3 billion. Nine years later, there were 800 agrees Space NK founder Nicky Kinnaird. “If you are buying something special, you Fra launches generating sales of only 42 million units with an average price of $60 want it to be unique to you rather than ubiquitous.” Ku a bottle. As a result, the market shrank in 2009 to $2.5 billion. One such brand is the Swedish-based Agonist. Inspired by Nordic culture and ha Firmenich dissected the market by looking at different consumer groups. climes, the label creates scents from natural ingredients packaged in unique glass bra There were heavy fragrance users of four days a week or more, non-heavy us- sculptures by the Swedish glass artist, Asa Jungnelius. co ers of three days a week or less, and lapsed users of one year, two to fi ve years Another emerging brand is Nasomatto, or “crazy nose” in Italian. Created by and more than fi ve years. Then there’s the group who never used fragrance. perfumer Alessandro Gualtieri, it is intended to invoke emotion. Absinth, for example, wh The study found that the average age when people stopped using fragrance is is a riff on hysteria and irresponsible behavior. an 26. One disquieting fi nding was that 33 percent of 18- to 24-year-olds, known The Paris-based Nez a Nez takes a visual approach to fragrance. Hiroshima Mon of as Millennials, have never worn fragrance. Debra Butler, vice president of cre- Amour blends ingredients like yuzu, sake, cherry nut and beeswax, for example, and is W

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ative marketing at Firmenich, says one conclusion that can be drawn from the study is that the industry has been catering to the wrong group, the heavy users. That faction accounts for only 33 percent of the market. The non-heavy consumers represent 45 percent and the lapsed users another 13 percent. To- a gether, those two categories combine for 58 percent. y By focusing on the most frequent users, the industry has tended to em- phasize heavy and strong scents based on thoughts of seduction. Butler maintains that a more modern way of thinking is needed and should be applied to the non-heavy user. This group is looking for lighter scents of higher quality—which is why fragrances priced above $75 constitute the r fastest-growing category—and are easier to wear on a daily basis. She notes that if the industry is only selling seduction, it will lose the age group when y maturity sets in, with the advent of marriage and family. If the non-heavy d user could be coaxed into applying fragrance once more a week—from three times to four—“we could make a very large wave,” she says. und Christophe de Villeplée, vice president of global fi ne perfumery and hy- giene beauty at International Flavors and Fragrances, disagrees with the no- tion that young people are tuned out. “I don’t think the young generation is less interested,” he says, pointing to the phenomenal success of ’s Axe and Lauren’s Big Pony. “I think the offer is less interesting for them.” He adds that the brands have done a good job in rekindling consumer in- to terest by promoting classics, but de Villeplée joined others in saying that “we need to rework the retail environment.” Veronique Gabai-Pinsky, global brand president of Aramis and Designer Fragrances at the Estée Lauder Cos. Inc., agrees that the industry has to ser, deal with fundamental problems. “On the surface, we are starting to see a a glimpse of growth again, but that hides a different kind of reality,” she ke said by its creators to work as a love potion. says. One of her suggestions: “Finding new ways to talk about the beauty of roll Humiecki and Graef’s aim is to create contemporary yet unconventional eaux de brands.” In essence, marketers need to reach out to the loyal customers of parfum, like Askew, a riff on anger concocted with reassembled vetiver, birch bark tar, their classic brands by offering newness that relates to the qualities the con- cardamom and Egyptian mimosa. sumer already appreciates about the brand. For instance, Lauder markets a eed Swiss nose Vero Kern worked in the pharmaceutical industry before switching gears lighter version of DKNY’s Be Delicious in the form of an eau de toilette that to attend perfumery school. In 2008, she launched Vero.Profumo, mixing traditional was promoted with an ad mimicking a comic book, created by a pop artist. er handcraft qualities with a high-tech touch. “We need to continually back classics with new introductions, only if the Levi created Cale Fragranze d’Autore with the aim of telling stories through olfactory newness is relevant to the consumer,” says Gabai-Pinsky. yzed notes. A recent launch, Fulgor, was inspired by storms he witnessed while on a road trip Kathy Widmen, chief marketing offi cer of Elizabeth Arden, points out that in Death Valley, for example. in the women’s top 10 ranking last year, only one brand was new. She notes Revived by Simon Brooke, a great-great-grandson of the founder, the English house that it is important to balance the constant need for newness against the pow- Grossmith takes original formulas from its archive and adds a contemporary twist. Its er of loyalty that the classics engender. “We focus on our pillar fragrances,” t new off ering, Betrothal, is based on an 1893 scent created for the marriage of Princess Widmen says, noting that Arden relaunched its Red Door fragrance with a an’s May of Teck to George V. 20 percent increase in growth. Arden hopes its upcoming launch of the fi rst cts The rise of these brands and others like them is redefi ning the way fragrance is Taylor Swift fragrance in the fall will furnish another pillar. sold. “It’s not just about bringing in new brands, but creating an area and ambience Marc Rey is the president of International Designer Collections at L’Oréal where customers can play,” says Van Heusden. “It’s a fashion pulse area; we don’t USA. His recipe for revival: “Leverage our designers” to “maintain and grow want it to become staid.” the apparition and the dream” that is the fragrance world, “never compromise “It’s important that a fragrance store ceases to be a mere display of bottles and more on the juice,” create imaginative promotions that run to the heart of the brand, of an olfactive experience,” agrees Celso Fadelli of Intertrade Europe. resist launching product for the sake of sales momentum, invest in your old we With growth, however, there’s a glut, and the sector’s popularity is inevitably brands and “stay relevant for consumers.” He says that Big Pony drew young giving rise to an infl ux of new entries. “People think niche is heaven, the new Eden. people into department stores and amounted to the biggest men’s launch of ” Everyone is rushing to the market, but time will tell who survives,” says perfumer last fall in the number of units sold, behind Chanel’s Bleu in dollars. Francis Kurkdjian, who opened Maison Francis Kurkdjian in September 2009. Although For its part, Chanel has more reason than ever to celebrate. “We never had Kurkdjian, who creates scents for other brands as well as his own, believes consumers such a good business,” says Christine Dagousset, executive vice president have tired of the incessant launch schedule, he highlights the tremendous success of of fragrance and beauté in the U.S. Coco Mademoiselle is number one in brands like Paco Rabanne’s One Million. “It’s not about mass market versus niche, but women’s for the year to date through March, followed by Chance at number consumers looking individually at scents,” he says. two and No.5 at fi ve—all this in addition to Bleu at number one in men’s. Large or small, both represent a more emotional approach to perfumery, and it’s this However, Dagousset notes that, “If we take Chanel out, the market is declin- le, which is particularly resonant with European consumers. “Perfume is an emotional art ing. We have to go back to the core values of the dream and the quality of and there’s a lot of plonk out there,” says Michael Edwards, the author of Fragrances the experience,” she says. “Right now it’s all about quality for the money,” of the World. “It is the perfumer or the creator’s experience that you are experiencing. she adds. “We really have to go back to what fragrance was created for—the is When you’re talking about niche fragrances, you’re talking about sensory experiences.” dream and seduction.” ■

BB1105-PG029(30-37)b-WELL-Fragrance;20.indd 6 5/6/11 3:01 PM The FRAGRANCE 34 WWD BEAUTY INC Issue The Power Within With an exploding middle class who has a natural inclination for fragrance, the Brazilian beauty scene is booming. But will international brands be able to overcome huge obstacles and catch up to the supercompetitive local players? BY JENNY B. FINE

he Brazilian beauty market is undergo- one, two and three, respectively. The fi rst two are direct-sales companies, while O ing a major transformation—and U.S. Boticário operates close to 3,000 franchised stores in Brazil, but isn’t considered tra- and European companies are in danger ditional retail. When it comes to the fi ne fragrance market, Ferenc says 70 percent of being left behind. of the market is via direct sales, with Natura accounting for 50 percent of that fi gure Already one of the most challeng- and Avon, which has about one million representatives in Brazil, 20 percent. ing markets for international beauty In a country as large and culturally diverse as Brazil, direct sales has become the brands to sell in, because of high duties most powerful channel in beauty, one with a very distinct character versus in the rest on imported goods and a lack of retail of the world. “Direct sales in Brazil isn’t really someone coming to your door, like the infrastructure, the landscape looks set to Avon lady,” says Mayr-Harting. “It is woven into the fabric of your life. Your Avon or swing even more in favor of local fi rms Natura consultant is the same person who does your hair or nails, or a she’s a friend who are aggressively pursuing ways to at work who you have lunch with. So every time you go to the nail salon, you look at take advantage of the country’s ever-ex- the brochure, place an order, and when you go the following week, it’s there. It’s not panding opportunities. a stranger coming to sell you something,” he continues. “It’s people who you know “Brazil is booming,” says Felix Mayr- and interact with and that’s the power of it.” Harting, executive vice president of fi ne fragrances worldwide of Givaudan. “You’ve That dynamic leaves non-direct brands in a conundrum. “Access to the market is got an economy that continues to grow and a stability in politics that is embedded a real question,” says Mayr-Harting. to consumer confi dence.” Whereas in most developing markets, the local companies generally don’t pos- Already the country is number three globally in terms of beauty sales, behind the sess the same sophistication in product development or marketing prowess as in- U.S. and Japan. As the latter grapples with the aftereffects of the devastating earth- ternational brands, that isn’t the case in Brazil. “One very real issue for international quake and tsunami, some observers say it’s possible that Brazil will be the second- brands is the strength of the local companies,” says Mayr-Harting. “They really know largest market by the end of the year. the market. They are incredibly established and respected brands. So you’ve already “The Brazilian beauty and cosmetics market has exploded in the last few years,” got a supercompetitive market in Brazil.” says Carlos Ferreirinha, president of MCF Consultoria & Conhecimento, a luxury “What is truly different about Brazil is the quality of the management of the local goods consultancy based in São Paulo. “Brazil as a country has been growing on companies,” agrees Armand de Villoutreys, president of the perfumery division of average of 5 percent in the last 10 years. But beauty and cosmetics are growing on Firmenich. “They were all created about 30 years ago and today are multibillion- average 12 percent, outpacing the overall market.” dollar companies. The quality of management, vision, leadership, strategy is abso- Fueling the growth? The rise of the middle class, which is drastically changing lutely amazing and truly different.” consumption patterns when it comes to beauty. “Until three years ago, the middle The market share competition looks set to heat up even further this year, as the class wasn’t that important in Brazil,” says Ferreirinha. “We were a country of ex- Boticário Group launches its fi rst foray into direct sales with a brand called Eudora. tremes. Extreme wealth and extreme poverty. In the last three years, the middle class Meanwhile, Belcorp International, based in Peru, and Orifl ame, based in Stock- has become the leading consumption class in Brazil.” holm, also have plans to enter the direct-sales market this year. “Direct sales for the Dionisio Ferenc, regional general manager for LatAm fragrances at IFF, estimates next few years is going to be really interesting,” says Eder Ramos, ’s president that about 30 million people have moved into the middle class over the last three to of scent and care for Latin America. “Boticário has launched a new company. Avon four years. “Thirty million people constitutes a country in a lot of geographies,” he has announced plans to double sales. As new players arrive, it means it will not be so points out. “Right now, the level of unemployment in Brazil is the lowest in history, easy for the retail companies to come and take market share.” infl ation is reasonable and the purchasing power has improved drastically.” As an adjunct, the online market is growing ever stronger, too. Brazil is already the That’s the good news. But as interviews with the major fragrance suppliers who are country with the highest online expenditure in Latin America, says Ferenc. “People most fi nely attuned to the ever-changing nuances of the market revealed, the picture here are very used to buying through the Internet,” he says. “The average [online] isn’t as rosy for international brands, who must wait for a viable retail structure to be sale last year was close to $200. That’s because of electronics, but in the past two constructed even as the local companies—already dominant—tighten their grip on years, this is changing, and increasingly we see other categories becoming important.” the country. Moreover, the historically high duties imposed on imported goods show The strength of the direct-sales market hasn’t stopped retail players from making no immediate signs of being lowered. inroads, and bringing beauty along with them. In the mass market, a market share That means that the local companies, which already control more than 60 percent war has erupted between three giants: Pão de Açúcar, Wal-Mart and Carrefour, as of the market overall, have a prime opportunity to further increase their market share. each looks to dramatically expand its footprint. Founded in 1948, Pão de Açúcar The largest beauty brands in Brazil are Natura, Avon and O Boticário, numbers has more than 1,300 stores, including hypermarkets, supermarkets, specialty stores,

BB1105-PG029(30-37)-WELL-Fragrance;16.indd 7 5/4/11 6:19 PM BB1105-PG029(30-37)b-WELL-Fragrance;20.indd 8 5/6/11 3:02 PM BB1105-PG029(30-37)-WELL-Fragrance;16.indd 9 —Armand deVilloutreys they use.” to theproducts a specialrelationship beauty addictswith “Women hereare GROSS DOMESTIC PRODUCT: ETHNIC GROUPS: people ofMiddleEastern descent. Japanese, Indigenous people and Japanese, Indigenouspeopleand BRAZIL BY THE BRAZIL BY THE LIFE EXPECTANCY: Italian, German, Spanish, Italian, German,Spanish, Source: U.S. Department ofState PER CAPITA GDP POPULATION: NUMBERS (as of2010) African, Portuguese,

190 million : $10,900 73.1 years $2.2 trillion $2.2 5/4/11 6:19PM

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cash-and-carry stores, gas stations and drugstores, the last BOUNTY HUNTERS on imports. “We have high taxes for everything,” says Ferreir- a channel in which chief executive offi cer Enéas Pestana is inha, who is a co-founder of ABRAEL, a Brazilian association particularly pursuing as a means to increasing the company’s As home to one of the world’s most of luxury companies. “But in the last 10 years, there has been beauty business, according to Ferreirinha. diverse ecosystems, Brazil represents pressure from all sectors on the government to fi x that. There is Wal-Mart entered Brazil in 1995 and today has 480 stores a bonanza of ingredients for fragrance high hope with our new president, and an understanding that over fi ve formats: hypermarkets, supermarkets, cash-and- suppliers. “Twenty-three percent of our within the next three to eight years, we will see an improve- carry, soft discount and membership clubs. In terms of beauty, planet’s biodiversity is in the Amazon ment, which will enable us to improve our retail formats.” hypermarkets are its primary beauty outlet, says a spokesman, and it’s been virtually unexplored,” says Maybe. What is indisputable, however, is how the emerg- while supermarkets, soft discount and membership clubs Michel Mane. “There’s an extraordinary ing middle class is rewriting the rules of consumption hab- have an extremely limited assortment and cash-and-carry has sense of things you’ve never been its and product preferences for fi ne fragrance. “Penetration limited to none. In terms of growth, she says expectations for exposed to, because they are endemic to of fi ne fragrance has gone from 54 percent to 62 percent in organic growth include 23 million to 24 million new square those ecosystems, and if you don’t go only three years,” says de Villoutreys. “Women here are beauty feet in the retailer’s current markets, including signifi cant in- there, you have no idea they exist.” addicts with a special relationship to the products they use.” vestments in soft discount formats in Mexico and Brazil. More companies are making the The North and Northeast regions have the highest con- Carrefour is very strong, too—Brazil is one of its largest commitment to explore, particularly as sumption of fi ne fragrance, at about 55 to 60 percent, ac- markets. Its fi rst store opened in 1975 and today has more Brazilians themselves become more cording to Ferenc. In the central region, around São Paulo, than 170 stores and a thriving e-commerce business. emotionally invested in their heritage. that fi gure is closer to 50 percent and in the South, it is lower. The growth of these channels is good news for mass play- “A recurrent and expanding theme “It’s not directly related to economic factors,” he says. “There ers like L’Oréal, Unilever and Procter & Gamble, all of whom is how Brazilians increasingly see is also the emotional connection of the Brazilians with fra- have fi rmly established their presence in the country. “Distri- themselves refl ected in the products grance. In the north, fragrance is associated with religious bution is becoming ubiquitous,” says Michel Mane, president they crave,” says Christophe Maubert, matters. People use lavender to clean their houses and their of Mane Americas. It’s a dynamic that works for the mass president of Robertet. “They are looking spirts. In the northeast, people take two to three showers a market, Mane points out, for companies that are able to gen- for this ‘Brasilidade’ or Brazilianess day. Although penetration is only 55 to 60 percent, the level erate enough sales to manufacture locally and thus avoid high found in product concepts marked by a of consumption is high because those who are using it are import duties. “If you don’t manufacture in Brazil,” he says, relaxed, tropical, slightly nostalgic vibe.” using it in a high amount.” “forget it. It’s impossible to import products from outside of For its part, Firmenich is working on Olfactive preferences are evolving rapidly. While splashes Brazil, in terms of service and profi tability.” eight sourcing initiatives, says Armand still remain extraordinarily popular and freshness is a key attri- While some brands have explored opening free-standing de Villoutreys. “Brazil is going to be bute, experts say that tastes are becoming increasingly sophisti- stores in Brazil, the great hope of the prestige market is a source of perfume ingredients like a cated. “There are changing infl uences,” says Mayr-Harting. “As Sephora, which bought 70 percent of Sacks.com.br, the lead- lot of exotic countries, such as India, more prestige products come in and are recognized, that drives ing site for prestige beauty in Brazil, in July and rebranded Morocco and Indonesia,” he says. “It will more daring, more opulence, and richer fragrances, so families it Sack’s Presented by Sephora. Starting next year, Sephora also be a source of inspiration.” like orientals and fl oral orientals have become more successful.” will open brick-and-mortar stores in Brazil, fi rst in São Paulo Brazil has enacted strict regulations While European and American designer names are reso- and Rio de Janeiro. Sephora declined to reveal its strategy, al- to improve sustainability and ensure nant (“People aspire to those brands,” says de Villoutreys), ce- though according to Ferreirinha, plans call for 50 doors over local communities benefi t from the lebrity scents fall fl at. “Our consumption behavior is very much the next fi ve years. ingredients being harvested. Even so, aligned with the Americans, but our lifestyle is more Euro- “The market today is very fragmented, mainly composed of the Amazon remains a bonanza for pean,” says Ferreirinha. “Brazilians love to be entertained with small chains of perfumeries and a limited department store suppliers ever on the hunt for new events and by creating different experiences. Brands that do offering,” says Paula Larroque, senior vice president of Latin ingredients and stories. Says Mane, that have an advantage.” America for Sephora Americas. “Sack’s is the market share when asked about the future, “It’s just IFF’s Ferenc points to some recent successful launches leader, which is why we knew acquiring it marked a clear op- a matter of time and how much you can here as an example, such as Natura’s Amó Amasso (amasso portunity to immediately acquire market presence, size and dedicate to going to these ecosystems roughly translates to “sexy hug” in Portuguese), which aims to customer access in Brazil.” and visiting diff erent communities to inject sexuality with a bit of humor, and O Boticário’s Malbec This year, Sephora is focused on broadening the product of- learn about their traditional knowledge men’s cologne, which is the best-selling mass cologne in Brazil fering of Sack’s, and will launch a number of brands online and how they use biodiversity for their and uses a special maceration technique developed for wine during the last quarter of 2011, among them, Sephora Collec- well-being and beauty routines.” making. “These companies are innovating in terms of having tion, Benefi t and Make Up For Ever. stories in the fi ne fragrance market,” says Ferenc. “Real sto- In terms of categories, Larroque notes that fragrance accounts for more than ries, like the story of enfl uerage or of wine making. The companies here are really half of all prestige sales. The retailer is looking to develop makeup and skin care. exploring the emotional platforms based on their knowledge of consumers.” “Makeup has been growing in the past years, but it is still not meeting its full Like other markets, newness fuels fragrance sales. “The Brazilian market is get- potential,” says Larroque. “A larger makeup offering combined with better dis- ting into the same incredibly fast cycle of launches that we’ve seen in the U.S. tribution channels will increase penetration. Skin care is the smallest category in and Europe,” says Mayr-Harting. “One sees a tremendous speed to market and a the Brazilian prestige market,” she continues. “This is due to the small product of- tremendous number of launches.” fering, which, combined with high retail prices, has discouraged consumers from Considering the natural affi nity for fragrance, it’s no wonder. “This is a senso- purchasing in a category where a great deal of understanding is required to select rial country. When you walk on the beach, you can smell the perfume on the hair the appropriate products.” of the women,” says Ferenc, who points out Brazilian women buy products in one Doubtless that will change as the country develops and external forces become kilogram (more than two pounds) packaging. “Shiny skin is very important, so stronger, which is expected to happen quickly as Brazil will play host to the World body cream has the highest worldwide penetration here and also an extremely Cup in 2014 and the Olympics in 2016. Experts agree that President Dilma Vana high level of perfumation,” he continues. “Beauty is extremely important in Brazil Rousseff has shown herself receptive to lowering the punishingly high levies imposed and people are willing to invest.” ■ PHOTO BY TUI DE ROY/MINDEN/NATIONAL GEOGRAPHIC STOCK GEOGRAPHIC TUI DE ROY/MINDEN/NATIONAL BY PHOTO

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P

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Avid sportsman Bernd Beetz is harnessing his competitive energy to propel PLAYERCoty into a top-fi ve beauty behemoth. ernd Beetz is a fi erce competitor, as Fabrizio Freda knows all too well. The two business titans—Beetz is the chief executive offi cer of Coty Inc., Freda is the president and ceo of the Estée Lauder Cos. Inc.—met as young executives at Procter & Gamble Co. These days, the two have a standing tennis match when their schedules allow, which has given Freda a unique insight into his friend and business competitor. “Bernd is relentless on the tennis court,” says Freda. “He is a very competitive man. To score a point with him takes a long time because he never gives up. He brings that same competitive spirit to business.” Indeed. Over the past decade, Beetz has transformed the once-struggling Coty into a fragrance powerhouse with $3.6 billion in sales. His goal now is to nearly double sales by 2015 and create a global beauty behemoth competitive in all major categories. The aim is to catapult Coty from its rank as the 13th big- gest beauty fi rm, according to the 2010 WWD Beauty Inc Top 100, to within the top fi ve. Beetz’s friend Freda currently occupies the fourth spot. It’s an audacious goal, to be sure, and it is perfectly in keeping with Beetz’s modus operandi. “It’s faster, further, freer,” he says, when asked about the strategy. “In 2001, when I joined Coty, the company was barely on the map, and now we are one of the world’s larg- est fragrance companies and a leader in global beauty....When you see opportunity, you MOLLY PRIOR BY Bmove. We have the same strategy that we’ve had for 10 years. We are boringly consistent: MICHAEL NAGLE We wanted to be the leading player in fragrance and that’s what we’ve accomplished. We want to become a strong number-two player in color cosmetics worldwide…and we want to be a stronger player in skin care.” PHOTOGRAPHED BY

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THE ACQUISITIONS

To that end, in late 2010 alone, Coty bought OPI Products Inc., Philosophy deliver on execution, and to move quickly and aggressively to exploit opportunities.” Inc., Chinese skin care company TJoy and the German beauty brand Dr. Scheller Coty’s aggressive efforts to round out its product portfolio and decrease its reli- Cosmetics AG, which includes the makeup line Manhattan. “We saw this oppor- ance on fragrance have sparked persistent speculation that the fi rm’s owner, the tunity to strengthen the footprint and we realized it.…If [other] things present Ludwigshafen, Germany-based Joh. A. Benckiser GmbH, a private holding com- themselves to further strengthen our strategy, we are going to be there,” he says. pany, has ambitions to take the company public. In January, a cash infusion by Beetz notes that Philosophy is the number-four prestige skin care brand in the two private equity fi rms, Berkshire Partners, based in Boston, and Rhône, which U.S. market, and TJoy is among the top 10 skin care brands in China. has offi ces in New York, London and Paris, kicked up chatter of an initial public “That was a beautiful, on-strategy opportunity that we could not miss,” he says. offering once more. A future IPO could provide a logical exit strategy for Rhône The acquisitions intentionally shifted Coty’s portfolio toward cosmetics and skin and Berkshire, which counts Bare Escentuals among its former investments. The care. Prior to the latest round of purchases, fragrances accounted for 62 percent of recession may have derailed any such plans in the past several years, but one fi - Coty’s product portfolio for the fi scal year ended June 30. Color cosmetics made up nancial source, who asked not to be named, says an IPO could come as early as 23 percent, with sun care accounting for the remaining 15 percent. The four acqui- 2012. “It’s very present in their minds,” says one Wall Street source. sitions decreased Coty’s reliance on fragrance by 7 percent to 55 percent, swelled “Coty has diversifi ed its business across every measure: by geography, with Dr. color cosmetics by 3 percent to 26 percent and increased skin care from 4 percent Scheller Cosmetics in Germany and TJoy in Asia; by brands, both owned and to 10 percent. The share of toiletries was reduced by 2 percent to 9 percent. licensed, and by category, notably skin care and cosmetics,” says Kelly McPhillia- This isn’t the fi rst time Beetz has bolstered the company with a series of shrewd my, managing director in Consumer & Retail Investment Banking at Wells Fargo signings and acquisitions. He arrived at Coty in 2001 when it was a small fra- Securities. “In addition, through Philosophy, Coty is tapping some of the fastest- grance company with $1.4 billion in sales. The following year, he lit the celebrity growing channels out there, including Sephora, Ulta and TV shopping.” fragrance category on fi re by signing megastar Jennifer Lopez, and in 2005, he McPhilliamy adds, “The next step is to capitalize on what Coty has built.” engineered the $800 million acquisition of Unilever’s prestige fragrance division, Despite the whirl of industry speculation, Beetz says, “At this time, Coty has no Unilever Cosmetics International, which added a crown jewel to the mix, the Cal- plans to go public.” vin Klein fragrance license, and brands such as and Chloé. Two years later, Coty acquired DLI Holding Corp., which was best known for its Sally Han- sen brand, also for an estimated $800 million. eetz’s competitive spirit lends itself equally well to mastering Nearly every current and former Coty executive interviewed says the appetite a host of off-hour pursuits. He is an avid sportsman, who in for big deals is one defi ning aspect of Beetz. John Galantic, who today is the presi- addition to playing tennis, rows, runs, golfs, rides horses and dent and chief operating offi cer of Chanel Inc., worked for Beetz in Rome while skis—all with equal vigor, say friends. An investment banker at P&G in the early Nineties. He later joined Coty in 2001, serving as president of who knows Beetz well also nods to his tenacity. “He comes Coty Beauty U.S. until departing for Chanel in 2006. from P&G, he’s German and he excels at every sport that he’s “While I was at Coty, Bernd led a major turnaround—more a revolution than an ever played. He’s not type A. He’s A-plus,” says the banker. “He evolution—as sales went from around $1 billion to almost $4 billion, and growth expects from everyone what he expects from himself.” in profi t and cash fl ow followed,” says Galantic. “Through new brand creation in Beetz’s approach stems from his past stints at luxury power- fragrance as well as acquisitions, Coty went from a niche, mainly mass fragranceB house LVMH Moët Hennessy Louis Vuitton and mass stalwart P&G. At LVMH, player to a more diversifi ed, multichannel company. The culture of the company he oversaw the perfume and cosmetics division and served as president and ceo changed as well, from fairly traditional to much more oriented on creativity, build- of Christian Dior. Prior to that, he spent 20 years as a marketer with P&G, work- ing new business models and calculated risk taking. Bernd’s accent on speed to ing as a managing director of businesses in Switzerland, Italy, Turkey and Germa- market and rapid execution drove development of a lean and agile organization.” ny. Beetz, who was born in Heidelberg, Germany, fl uently speaks four languages, Galantic continues, “Bernd is a master of staying focused. He picks the two to three namely German, English, French and Italian. must-win areas that build the most value and keeps the entire organization concen- That worldly view informs Coty’s global perspective. Its products are sold in

trated obsessively on these priorities. He has built a strong team and trusts them to more than 90 markets worldwide and 68 percent of its sales are done outside MITRA ROBERT BY PHOTOS PRODUCT

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North America. In the year ahead, Coty plans to expand its reach in high-growth The ceo also is particularly pleased with the performance of fragrance in the markets, including China, Brazil, Russia and India, says Beetz, “which collectively luxury designer tier, which he dubs “ultraprestige.” make up almost one-fi fth of the world beauty market—equivalent in size to the “Even my rosiest expectations got overshot by the success of ultraprestige. Marc American beauty market.” Jacobs, Vera Wang and Balenciaga are doing extremely well,” says Beetz. “We are “Coty has the ability to attract and select the best licenses, and it has the inno- going to continue to develop that segment. It’s going to be the trend for the next vation, marketing and distribution infrastructure to maximize the success of its few years.” launches around the world,” says McPhilliamy. “Its global approach allows Coty to Beetz shies away from the status quo and encourages his management team to capitalize on the growth in fragrances outside the U.S. and demonstrate to U.S. do the same. Early on, he recognized the need to align Coty with a philanthropic retailers the international appeal of their brands.” mission. In 2003, the chairman of Coty, Peter Harf, asked Beetz to allot some of- Beetz, with his experience and marketing acumen, has been instrumental in fi ce space to his daughter, Katharina, as she established the U.S. arm of DKMS, creating that appeal. “I’m a marketer. I like to shape products toward the market- said to be the world’s largest nonprofi t bone marrow donation registry. Harf, who place,” he says. “In that sense, my willingness and intuition is helping the organi- lost his fi rst wife to leukemia, founded DKMS in Germany in 1991. “Bernd gave us zation. J.Lo is one example.” the opportunity to start DKMS and get it off the ground quickly,” says Katharina Signing the star not only resurrected the moribund celebrity fragrance catego- Harf, who now runs the organization in an offi ce across the street from Coty’s ry, it also signifi cantly expanded Coty’s reach into the prestige sector at the time, headquarters. In 2006, Coty formalized its partnership with DKMS, and every and was a gamble that set Coty on the path to becoming a leader in fragrance. It year since has hosted a star-studded fund-raising gala for the cause. also underscored Beetz’s deep ambition. “We don’t think conventionally,” says Beetz. “We have a truly cosmopolitan or- A more recent example is the Playboy fragrance franchise, which is sold glob- ganization. We all have different backgrounds. We are probably the most diverse ally in mass distribution. organization there is in the beauty industry, and our thinking is very positively Recalling the initial concept for the scents, launched in 2008, Beetz says, “I had infl uenced by that.” a problem. Axe was becoming very successful and hindering our growth in [the He describes his management style by saying, “I am very hands-on, but I leave men’s] area. I needed something that would be successful in that positioning. I people a lot of room in the framework that I’ve set to really bring their fullest went for a solution there.” impact.” He adds, “At Coty, people try out things. I see it as a metaphor for let’s be He says the idea for the Playboy fragrances, which he developed with Steve Mor- open to new ideas, and they make a fantastic success out of it.” moris, senior vice president of global marketing for Coty Beauty, the fi rm’s mass The breathing room Beetz gives shows confi dence in his team, says one banker market arm, was initially shot down. who has worked with the executive. “It takes a lot for a ceo not to get dirt under “Everybody thought it was the dumbest idea, but they trusted my instincts before his nails,” says the banker. “It speaks volumes about the structure [Beetz] created. and we tried it and it’s a fantastic success,” says Beetz. Today the Playboy franchise is You can’t get in the weeds. You have a business to run.” estimated to reach $400 million in retail sales within the next two years, according That approach should serve Beetz well as he works to elbow his way into the to industry sources. Beauty Establishment’s top fi ve and oust one of the players who resides there to- “Our internal expression was ‘Go from boy to Playboy.’ It was the idea that we day—namely, L’Oréal, P&G, Unilever, Lauder and Avon. “It’s not like you can say, would trade up the Axe user,” recalls Mormoris. “And probably in some cases, trade ‘I want to be in the top fi ve,’ and expect the big guys to roll over,” says one source down a prestige fragrance user, because we created a very high-quality olfactory on Wall Street, who adds that Coty has to decide what category it wants to domi- structure for the Playboy fragrances” at a value price point, between $8 to $12, that nate and pick off the leaders. “He’s got to fi ght Lauder, which is doing really well, a young man just getting started into the fragrance category could afford. “It was an and L’Oréal and P&G, which are huge companies. But single-minded companies example of where we created a new business model and another new segment in fra- can go after big companies.” grances and we were not just completely seduced by the prestige segment of the mar- The source says Coty may choose skin care as the market share battleground, ket,” says Mormoris, who joined the company 10 years ago on the same day as Beetz. but the company’s key brands thus far have a largely regional focus—Philosophy is Mormoris says one week after they started at Coty, the pair signed model Kate U.S.-centric, TJoy is a Chinese brand and Lancaster is most successful in Europe. Moss, who happened to be at a low point in her career, as the face of Rimmel. “Ultimately, Coty is going to have to rely on acquisition, but the question is what At the time, Rimmel was a leading cosmetics line in the U.K., but hardly known else is out there to buy?” says the banker. “The whole industry has been picked over.” in the U.S. market. Moss’ iconic face helped galvanize the makeup brand, which Be that as it may, those who know him say Beetz is just the man to hone in on made its U.S. debut in Wal-Mart Stores Inc. in 2000, and expanded distribution opportunities unseen by others. “He’s a risk taker,” says Cristina Carlino, founder across mass beginning in 2004. of Philosophy. “You see that in an entrepreneur, but not often in a ceo who has so “Since 2002, the brand has more than doubled in size, and it is now a global much responsibility under him.” Carlino adds, “He has instinct, intuition and vi- brand and the number-two brand in unit share in the world,” says Mormoris. sion.…He acquired four companies last year. That should be a signal to everyone.” ■ Over the last decade, Mormoris has been instrumental in driving the celebrity fragrance category, with a stable that includes Beyoncé, Halle Berry, Faith Hill and Tim McGraw and the upcoming Lady Gaga fragrance. Beetz is committed to the category, and Coty has continued launching celebrity concepts even though the category has lost some of its luster with retailers and sales have slowed. In the Bernd Beetz’s Game Plan for Coty: 4 Key Points prestige markets, women’s celebrity scents ticked up 1 percent in 2010, with total Rise Through the Rankings: Beetz’s goal is to make Coty a top-fi ve beauty celebrity scent sales sliding 14 percent, according to The NPD Group. company, and double its sales by 2015. Still, Beetz maintains, “There is lots of mileage for celebrity brands: In new, Deemphasize Fragrance: Coty’s four most recent acquisitions decreased the emerging markets like China, India and South America, and in the male terri- company’s reliance on fragrance by 7 percent to 55 percent of total turnover. tory, where there are less celebrities than [in the] female [segment]. There are Trust Your Gut: Beetz is a shrewd marketer who relies on instinct as well as ways in which we can reinvent the celebrity branding model, which will be more analysis. Case in point: the Playboy fragrance franchise, a brand questioned subtle and not always feature the celebrity themselves in advertising, but be more by some, but which is expected to reach $400 million in sales in two years. symbolic. It is as fertile a segment as fashion, idea fragrances, car fragrances or Trust Your Team’s Gut: Beetz doesn’t believe in micromanaging. Instead, he

PRODUCT PHOTOS BY ROBERT MITRA ROBERT BY PHOTOS PRODUCT any other branding that suggests beauty.” gives his team leeway to execute their vision within the framework he’s created.

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Prima Ballerina “I don’t need to be RACHEL BROWN checks out the barre a dancer like I was at 18. scene with ceo INGRID JACKEL. My objective is just to n a recent Saturday as ballet class at dance well and enjoy it.” the Academy of Music and Dance —INGRID JACKEL Oin Pasadena, Calif., wound down, Ingrid Jackel held her face to her knee for a deep stretch after practicing pliés, arabesques and jetés. Her lean body clad in a black leotard and shrug, her hair pulled into a tight bun, she looked every part the prima ballerina that many young girls dream about becoming. In fact, Jackel was once one of those girls. Thirty years before Jackel took the helm of Physicians Formula Holdings as chief executive offi cer, she was on the path to becoming a professional ballerina. It was a goal forged in her hometown of Toulouse, France, where she fell in love with dance at the age of four. Much to her dismay, Jackel’s parents advised against pursuing ballet for her career. “They explained that I should keep it as a hobby, because it’s fun and provides me , while, if I was gearing up to make it a profession, it could become not quite as fun,” Jackel says. “The likelihood of success at a high level is slim. One in a million are really successful, and that was my parents’ concern.” Jackel went on to attend business school, and though she left ballet behind, it was never totally out of her system. “I learned a tremendous amount from ballet, about discipline, rigor,” she says. “When you commit to something, you commit fully and that means making sacrifi ces.” As ceo, Jackel has put those lessons to use, guiding Physicians Formula to a leadership position. Missing the outlet that dance provided, though, she decided to jump back in. “Mentally, it’s really healthy when I dance because I get completely concentrated,” she says. “I’m so focused there’s no way I can think of anything else. It’s the one hour when I can actually not think about Physicians Formula.” In her second go-round with ballet, Jackel has picked up more life lessons, the biggest one being that taking a risk is worth any personal embarrassment. “I had to kick myself to go,” Jackel says. “There’s a fear of your own image and the memory of what your body could do 20 years before. I was really afraid of that, but I had to get over it. I don’t need to be a dancer like I was at 18. My objective is just to dance well and enjoy it.” So far, so good. “You can tell it’s really made a big difference. I don’t whine or bitch Ingrid Jackel at age 10... …and today. as much,” she laughs as her assistant nods

his head nearby. BONNIE SCHIFFMAN BY PHOTO

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