The Beetz Goes on How Coty CEO Bernd Beetz Is Refashioning the Fragrance Powerhouse Into a Beauty Behemoth
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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 lancome.com Penélope Cruz WWD BEAUTY INC. 3 contents “WE DON’T WANT TO FOLLOW TRENDS AS MUCH AS Departments CREATE THEM.” —Jacques Polge, CORNER OFFICE Chanel 8 Master Class: Jacques Polge Inside the mind—and nose— of Chanel’s master perfumer. 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 FASHION 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. 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MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. BB1105-PG003-FOB-TOC.a;17.indd 2 5/4/11 6:57 PM 4 WWD BEAUTY INC 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 Abottle, 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.