Puig Strengthens Fragrance Portfolio

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cosmeticsbusiness.com twitter.com/cb_beautynews 2 February 2015 NEWS Issue 3 Puig strengthens fragrance portfolio

Spanish fashion and fragrance company Puig has acquired two new fragrance brands. The third-generation, family- owned business announced on 23 January that it had acquired fragrance brands Penhaligon’s and L’Artisan Parfumeur from Fox Paine & Company. The two brands now join a number of successful premium Puig-owned fragrance names, including Prada Parfums, Comme Des Garçons Parfums, Nina Ricci, Paco Rabanne, Carolina Herrera and Valentino Parfums. Puig also holds the fragrance licenses for David Bustamante, Pull & Bear and Springfield. Terms of the Penhaligon’s HALAL-CERTIFIED COSMETICS GAIN and L’Artisan Parfumeur deals have not been disclosed. GROUND WITH GLOBAL AUDIENCE However, in a statement, Puig The market for Halal beauty products is predicted to grow at a CAGR of 13.67% noted: “Puig is committed to over the next few years, representing growth opportunities for brands and suppliers continue expanding its presence in the prestige he popularity of Halal cosmetics has been gaining popularity with non-Muslim consumers perfumery category. This gaining ground over the past few years, who associate Halal-certification as a mark of acquisition firmly positions Twith initial interest largely being sparked purity with cruelty-free processes. Puig in the growing exclusive, by Muslim women looking for products that As the market grows, scope is emerging for high end fragrance category.” adhere to their beliefs. ingredients and packaging companies to adopt British fragrance house

However, a new report from TechNavio has Penhaligon’s was established revealed that the Halal cosmetics market looks set The market is driven by higher in 1870 and today has its own to boom – and not just in markets where Islam is demand for safe cosmetics, powered“ stores in the UK, France, Hong the prevalent religion. “ Kong and Singapore, as well as The global Halal cosmetics market is predicted by Halal certification from Muslim distribution partners in “every to grow at a CAGR of 13.67% from 2014-2019, and non-Muslim countries major fragrances market”, representing huge growth opportunities for according to the company’s brands. According to the report, the market is Halal principles too. Just last year, ingredients Head of Global Marketing, being driven by higher demand for safe and company Croda announced that its UK Rawcliffe Matthew Huband. quality cosmetics, powered by Halal certification Bridge manufacturing site was now able to offer a L’Artisan Parfumeur Paris, from Muslim and non-Muslim countries. variety of Halal-approved cosmetic ingredients, meanwhile, was founded in Muslim consumers often choose to buy Halal, while speciality chemical manufacturer Evonik 1976 and operates retail an Arabic term that means ‘permissible’ or saw its Essen and Duisburg plants classified as boutiques in France. It also ‘lawful’, because the certification guarantees the Halal back in 2013. Meanwhile, cosmetics brands has a global presence. products do not contain alcohol, are not tested continue to seek out Halal certification across the The current Penhaligon’s and on animals and do not contain certain non- world: Talent Cosmetics became the first Korean L’Artisan Parfumeur team will permissible animal-derived ingredients. brand to gain Halal certification from the continue to operate both brands However, Halal-certified cosmetics are also Malaysian government just two months ago. led by Lance Patterson.

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UNILEVER SALES FIGURES TAKE A TUMBLE nilever has registered a 2.7% dip in total sales growth in emerging markets in Asia was just 2014 sales, falling to u48.4bn. And its 5.7% in 2014. Unilever’s results were boosted by Uoutlook was not particularly bright either. Dove Nutrium Moisture Body Wash and Brazil’s NEWS Unilever said: “We do not plan on a significant launch of Baby Dove. improvement in market conditions in 2015... But JP Morgan Cazenove noted its shares – we expect our full year performance to be similar selling at 2901p before going to press – are close CONTENTS to 2014 with the first quarter being softer but to a 12-month peak. “We see downside risks to growth improving during the year.” a share price at historical highs,” Analyst Celine Business: Swiss crisis impacts u Givaudan shares 4 However, net profits were up 5% to 5.5bn and Pannuti said. Unilever’s market share gain, she Unilever remains in a relatively strong position, added, “has lost steam, while it may face a more Trends: Cosmetics Business Markets able to take advantage of plummeting oil prices competitive environment. Having delivered best preview: global skin care 5 to save on raw material costs. Asian sales and in class top-line, we caution that top-line like- Retail: La Prairie opens flagship destocking in China could be concerning though: for-like [sales] could disappoint.” boutique in Paris 6

Expert Advice: Yvette Snowden on how to break into major markets 7 US packaging companies Digital: REN and Rankin team up for television advertisement 8 enter combination deal Two US packaging companies have entered into Innovation: An insider’s guide to aerosols in Mexico 9 a combination agreement in a transaction with a combined equity value of $16bn. Brands: MTherapy makes UK debut MeadWestvaco Corporation (MWV) and with Beauty Pods and Podlets 10 RockTenn will join together in a transaction, which People: Gallimore for NARS 11 is estimated to generate total annnual synergies The Final Word: Godrej UK’s Julie of $300m over three years. Lardieg talks NPD and lack of it 12 The combined company, the name of which will be decided upon when the deal is closed, News Editor Lucy Copp COSMETIC SURGERY IN DECLINE aims to become a leading global provider of Reporter Georgia Seago Breast augmentations, tummy tucks and nose consumer and corrugated packaging. It will have Sub-Editor Austyn King jobs have fallen out of favour in the UK, a combined net sales of $15.7bn and adjusted Freelance correspondents Sarah Cohen, Hannah Berry according to the latest statistics to be released EBITDA of $2.9bn. George, Adrian Holliday, Patricia by the British Association of Aesthetic Plastic The agreement was unanimously approved Mansfield-Devine Surgeons (BAAPS). by both companies’ Boards of Directors. MWV Production Designer Ross Murdoch Despite still retaining its spot at the top of the stockholders are said to recieve 0.78 shares of Art Editor Sibylla Duffy cosmetic surgery list in terms of popularity, the the new company for each share of MWV already Digital Production Nita Salem number of women having breast augmentations held. Meanwhile, RockTenn shareholders will be Editorial Director Erika Hatva plummeted by 20%. And it was a similar story for able to choose whether they want to recieve Managing Director Colin Bailey-Wood tummy tucks, or abdominoplasty, which fell 20%, either 1.00 shares of the new company, or cash in down one place in the popularity stakes from an amount equal to the volume weighted average HPCi Media Limited 2013. The number of women having rhinoplasty price of RockTenn common stock during a Unit 1, Vogans Mill Wharf, 17 Mill Street, London SE1 2BZ, UK also fell 20%, down to sixth place from fifth in five-day period. +44 20 7193 1279 2013. The shift in the number of these Steven Voorhees, Chief Executive Officer of procedures taking place was reflected in the RockTenn, said: “This transaction brings together Editorial +44 20 7193 9502 number of overall cosmetic operations performed two highly complementary organisations to create [email protected] last year. BAAPS reported that cosmetic a new, more powerful company with leadership Subscriptions +44 20 7193 1279 operations fell 9% overall from 2013. positions in the global consumer and corrugated [email protected] Rajiv Grover, consultant plastic surgeon and packaging markets. This is a terrific opportunity former President of the BAAPS, said: “The for shareholders, employees and customers of Subscription Details difference between 2013 and 2014 may seem both companies, all of whom stand to benefit The subscription includes surprising, but the dramatic double digit rise last enormously from the combination. Importantly, full digital access to the year was very clearly a post-austerity ‘boom’ and our two companies are also an exceptional cosmeticsbusiness.com website, cultural fit, sharing a commitment to exceeding as well as the weekly Cosmetics figures are simply returning to a more rational Business News and monthly level. It might seem counter-intuitive that as customer expectations and a focus on developing Cosmetics Business Markets plastic surgeons we could possibly welcome such innovative packaging solutions. Planning for the print magazines. a change, but we are pleased that the public are integration of these two companies has already now so much more thoughtful, cautious and started and we expect to expeditiously realise the educated in their approach to cosmetic surgery.” full value of cost synergies we have identified.” Articles published in this newsletter may only Grover added that aesthetic preferences Voorhees will serve as Chief Executive Officer be reproduced with permission. The publisher accepts no responsibility for any statements naturally evolve over time, with current trends and President of the new company, while John made in signed contributions or in those tending towards a ‘less-is-more’ look, Luke, Jr, currently Chairman and Chief Executive reproduce from any other where natural features are favoured. Officer of RockTenn, will become Non-Executive source. HPCi ISSN 2057-1984 media Read more at cosmeticsbusiness.com Chairman of the Board of Directors.

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WAHANDA ACQUIRES LEMON LABS NEWS IN BRIEF urope’s largest health and beauty working with the Lemon Labs team for the past The president of male marketplace, Wahanda, has acquired six months in building our consumer and business grooming brand Kiehl’s has ELemon Labs, a Lithuanian-based app apps, and the results speak for themselves. Last secured a multi-book deal development consultancy. week we broke through the 150,000 downloads with the Crown Publishing The acquisition was made as part of a strategic mark, and that number is growing 20% month Group. The first of the focus for Wahanda to become a mobile-first on month.” books, which focus on men’s company. Wahanda currently allows online “The future of Wahanda is in mobile, and we grooming and lifestyle clients to search for and are delighted the Lemon advice, will hit the market as make bookings for health Labs team is now officially part of Crown Senior Vice President Pam Krauss’ and beauty related services an integrated part of our spring 2016 list. and treatments via its technology team and can booking service at continue to lead our product More than 300 Henkel wahanda.com. thinking and development, employees across different Lemon Labs marks to ensure we deliver the best business functions have moved Wahanda's second possible mobile experience into the company’s new acquisition in recent for our users.” Shanghai management centre. months; in November last Tomas Dirvonskas, The modern office complex is located in the city’s fast-growing year, Wahanda acquired Co-Founder of Lemon Yangpu district, and has been German company Labs, said: “Wahanda’s designed to encourage a Salonmeister, after raising $26m in investment bookings show that 50% of all hair and beauty culture of cooperation and funding in 2014. Meanwhile, Wahanda also appointments are now made via a mobile transparency, featuring a variety acquired Salonium in 2012, a Lithuanian salon device.” He added: “By becoming part of the of workspaces. management system. Lopo Champalimaud, CEO in-house team we will be able to shape Wahanda’s and founder of Wahanda, said: “We have been product offering to an even greater degree.” Actor Bruce Willis is to prolong his contract with LR Health & Beauty Systems until 2019. The partnership BUDGET RETAILER POUNDLAND has already developed three REGISTERS SALES CLIMB fragrances, which are Budget retailer Poundland – which introduced its internationally marketed 100-sku Make Up Gallery colour cosmetics range through sales partners at the end of 2014 – has revealed a new set of and an online shop. The numbers that are not as polished as expected. collaboration started in 2010 Sales climbed 10.2% in the 13 weeks to 28 with the first fragrance, Bruce Willis. Two years later, December on a constant currency basis. But Willis presented his first actual sales came in at £328m, a 9.8% climb. But women’s fragrance, Lovingly, the brand’s numbers could be viewed with some and at the beginning of 2014 concern: overall growth has slowed since the 15% launched his third fragrance, rate claimed from the first half of the year. The trend for cosmetics that complement Personal Edition. The discounter would not reveal how much a healthy lifestyle is continuing to grow, beauty and personal care sales were worth, but according to analysts. Ina Mitskavets, UK-based natural and organic Poundland told CBN that sales of its Make Up Senior Consumer Analyst at Mintel, noted beauty distributor Pravera has agreed a sponsorship deal with Gallery have been “extremely successful” that young adults in the UK are continuing to develop healthier habits. “Intense English Netball as part of its (boosted by a positive write-up in Vogue). strategy to increase brand Make Up Gallery is the result of trials between economic hardship has forced young people to re-evaluate how they spend their awareness for natural make-up its own products and high-end competitors, money,” she said. “As a result they are brand benecos, one of the it said. An industry insider told CBN that increasingly shunning vices like smoking highest performing brands in its Poundland is completely serious about its beauty and drinking. Millennials are also growing portfolio in the UK. The efforts: “They’ve teamed up with Lornamead up more informed, with more than half agreement includes a series of (part of the Li and Fung group). They’ve got it citing that having good health is imperative advertisements and pull-out brochures in the official made properly and taken packaging cues from a to being successful and accomplishing Netball Magazine. number of brands. The prices are astonishing.” their goals.” This trend has prompted a Poundland, which floated on London’s stock flurry of NPD from beauty brands looking to tap into this growing market. One of the Botanically-derived exchange in 2014, plans to open 60 new stores in latest launches is activbod, which aims ingredients supplier the next 12 months and has more than 500 stores to appeal to fitness fanatics of both sexes. Floratech has announced currently. City analysts are divided on immediate It is specifically formulated to help the body Ross Organic, based in prospects. JP Morgan Chase raised its target price prepare for, and recover from, a workout. California, as its new to 381p, while Jefferies Group set the bar much The range comprises six non-gendered distributor in the western region of the US. The lower at 260p and put an Underperform rating on products at low-mid price points including skin coolers, muscle warmers and partnership aims to continue the stock. Just before going to press Poundland to help Floratech provide stock was selling at 342.2p. Some investors anti-redness treatments. Read more at cosmeticsbusiness.com its products to customers remain cautious on a counter-attack by big in the region. retailers such as Tesco and Morrisons.

NEWS IN BRIEF SWISS CRISIS IMPACTS GIVAUDAN SHARES he Swiss Central Bank abandoned its national currency movements of up to 2% or 3% India will host a new currency cap two weeks ago, in a move are generally considered big. Following the Swiss cosmetics trade show from August 19-21 this year. The Tthat stunned financial markets. move the CHF appreciated by close to 40%. Personal Care India Expo But the knock-on effect for some domestic Nicholas Ebisch from currency broker Caxton 2015, held in Delhi, is said to companies was particularly significant: Givaudan’s FX told CBN: “For me, it was a complete be India’s first international share price tumbled by more than 16% shortly surprise. No one saw this coming.” trade event catering to the after the three-year-old cap on the franc (CHF) Perfume and flavour company Firmenich personal care, cosmetics was made. may also be affected. However, it is important and home care ingredients, However, Analyst Adam Collins from to note the Geneva-based business does not have machinery and packaging Liberum said Givaudan is unusual among public shareholders. industries. Organised by UBM India, the event will export-orientated Swiss operators because it The Swiss move may be good news for also include a series of has little profit exposure to the Eurozone. Givaudan’s non-Swiss-based competitors, such as seminars and workshops. He said “[Givaudan] has only a very small German-based Symrise and US-based IFF, Eurozone profit base because of expensive making their products more price-competitive Packaging company Albéa has operations in the region such as the perfume in comparison. opened a new production site in school/fragrance clinic near Paris and R&D For smaller Swiss companies, “the move is Bottanuco, near Milan in Italy. centres, so movements in the Euro/CHF have disastrous,” Ebisch added. The $7m site comprises a negligible impact on profit margins and Before going to press Givaudan shares sold for 18,400sqm of space, 250 employees and a production absolute earnings.” 1,718 CHF. Earlier in January its shares sold for capacity of 160 million units per However, Collins said the move will affect as high as 1,943 CHF. year. It has been named the Eurozone revenues for Givaudan. Broadly, Read more at cosmeticsbusiness.com group’s European Center of Excellence for mascara, lipgloss and eyeliner. CHINA’S ECONOMIC GROWTH SLOWEST IN DECADES Yankee candle provider The sputtering pace of Chinese economic Jarden has announced its preliminary results for growth could be cause for alarm. China’s 7.4% Q4 and the full year. The growth rate in 2014 appears impressive, but in company expects net sales reality it is poor given China’s previous break- of at least $2.4bn for Q4 neck pace and its lowest economic clip since 2014. For 2015, Jarden 1990. How the country’s burgeoning cosmetics anticipates organic net sales players – such as Chinfie, Houdy, Herborist and growth to fall within its Jahwa – will perform remains to be seen. average target range of In order to understand the current economy, 3-5%. It expects to deliver High margins and low ship-to-weight ratios adjusted eps in the range a grip on the Chinese property market is needed. have made prestige beauty an attractive of $2.75-$2.90. Property isn’t just economically important but category for e-commerce, according to symbolically perceived as solid. In recent times, L2 Thinktank. Cosmetic packaging part many middle class Chinese house-hunters have Although the direct-to-consumer sales supplier The Marchesini Group been borrowing heavily in order to invest in of prestige beauty brands have become has announced growth of 11% property. But such borrowing has a profound important sources of revenue and customer in turnover in 2014, rising from effect on disposal spend. contact, brands’ own sites are no match for u222m in 2013 to u247m. The Demographically, Euromonitor has pointed the traffic driven by prestige retail partners. growth was all the more “Prestige department store and specialty poignant set against a troubled out that Chinese woman are increasingly store retailers are important e-commerce economy in Italy, where GDP financially independent, computer literate and partners for prestige beauty brands,” study was -0.4%. In 2013, Italian willing to spend. But beauty sales remain low author Eleanor Powers told CBN. “Key exports grew by 14%, while over compared with other emerging economies such players, including Nordstrom and Macy’s, the past five years they have as Brazil. The downturn in Chinese personal continue to make significant e-commerce risen 64%. The group has also care spend already began some time ago: overall and infrastructure investments to increase seen an increase in orders personal care sales plunged to $21.9bn in 2013 online sales and integrate them with their rising to 217 million in 2013. compared to $24bn in 2012, according to data bricks-and-mortar operations.” In terms of unique visitors, Macy’s sees from analyst Research In China. Mintel Analyst Specialty chemicals 15.84 million per month, Nordstrom has 8.6 company Clariant is to Jamie Rosenberg says Jahwa, which controls million and Sephora 2.72 million. In contrast establish an alliance with ten local brands, is one Chinese player that will the average brand recieves 0.12 million. sustainable technology emerge stronger from the situation, despite huge Eunice Byun, L2’s Vice President of company Beraca, acquiring pressure from P&G, Unilever and L’Oréal. beauty and consumer packaged goods, a 30% share in its Health and “It is highly likely that foreign products will told CBN: “The battle remains the same. It’s Personal Care division. The lose their appeal,” he noted, “and many Chinese about space and location but now both partnership aims to enhance consumers will favour Chinese products in part physical and virtual.” Estée Lauder’s early Clariant’s innovation focus on premium department stores is due to growing nationalism, but also because capabilities in the natural paying off in digital, added Byun. Read ingredients industry and buying quality will no longer mean buying more at cosmeticsbusiness.com widen its offering. foreign.” Read more at cosmeticsbusiness.com

MARKET REPORT PREVIEW

ANTI-AGEING AT FACE VALUE

This week’s Trends page provides a preview of the second issue of Cosmetics Business Markets, which will focus on global skin care. FACIAL CLEANSING FORMATS The global anti-ageing market was worth $122.3bn in 2013 Face wash is the most popular format of facial cleansing product according to Transparency Market Research, and for many across Europe, especially in Russia, used by 58% of women, and countries it remains the largest skin care category. Yet recent figures Italy, used by 49%. In Spain, wipes are more popular than any other show anti-ageing products experienced a slight decline in value cleansing format, used by 24% of women, while in Russia only 12% sales in France, Italy, the UK and even in Spain where, in an of women use this format 58 otherwise growing market, anti-ageing sales were flat. However, in Germany, which has a smaller anti-ageing category compared with 49 the size of its basic skin care category, anti-ageing products became a major growth sector in 2014, up 5.6% to w183.942 38 37 (source: IRI Germany). 35 Beyond Europe, one of the world’s fastest growing skin care 31 32 markets is Chile. Here, anti-ageing products shot up by 9.7% in 24 24 25 2013 (source: Canadean) fuelling the country’s overall growth in 21 22 1819 facial skin care. Anti-ageing products are expected to lead market 17 17 16 17 growth in the country over the next five years, rising 12.2% annually 13 13 14 13 11 12 11 12 to 2018. 8 6 Even in the mature markets, anti-ageing products remain highly lucrative categories. So why the slowdown in sales for some? Cosmetics Business Markets research reveals that the boom in BB Total France Germany Italy Spain GB Russia and CC creams and the emergence of skin perfecting creams that focus on even skin tone, minimised pores and illuminated skin have Facial wash/scrub Cleanser Wipes Toner/astringent stolen the limelight in many of Europe’s mature markets, while facial % Penetration (women) oils have also nourished the trend towards fresher and, ironically, younger formats. Source: Kantar Worldpanel

NEWS IN BRIEF

German retail giant Galeria Kaufhof has revealed how it is increasingly turning to e-commerce to generate profits. In a report by The Economic Times, the retailer revealed in 2013-2014 bricks-and-mortar sales declined by 0.3%, while its mail order and online shopping division grew by 5.5%. E-commerce rates have been rising gradually in Germany over the past four years, with drugstore sales of cosmetics specifically growing 67%.

Investment in UK shopping centres reached £5.6bn in 2014 – the highest level in nearly ten years. Research by CBRE revealed there was a 33% increase on the La Prairie has opened a new flagship boutique at 199 rue Saint £4.2bn transacted in 2013. Honoré in the 1st arrondissement in Paris. Among the ‘landmark The 2,000sqft boutique, which spans three levels, houses transactions’ last year was treatment rooms and sells the brand’s offering of skin, body care, Land Securities’ £656m foundation and fragrance products. purchase of Lend Lease’s The design of the boutique was partly inspired by a Parisian-style 30% stake in Bluewater. apartment and makes use of ‘tranquil’ colours such as grey, white and silver. The main floor features a ‘collection wall’ comprising L’Oréal USA’s Professional a walk-through of La Prairie’s products showcased by collection. Products Division has teamed Meanwhile, the brand has incorporated a number of digital features: up with StyleSeat, an online clients are able to use iPads to explore the products in more detail, platform for beauty services. while the brand’s latest news is projected onto a giant screen. The partnership allows Clients reach the second floor, where they are invited to undergo a consumers to buy L’Oréal personalised consultation prior to treatment, via a glass staircase. Professional products online, Laurent Leblond, General Manager for France, said: La Prairie’s success story continues. We “ which have up until now only are proud to inaugurate our first Paris flagship store that fully expresses the brand’s DNA while been available in salons and showcasing our products beautifully in a location so perfectly suited for La Prairie.” There are three spas. StyleSeat also allows exclusive treatments to the new boutique, including: La Prairie’s Parisian Beauty, La Prairie’s users to book appointments. Parisian Harmony and La Prairie’s Parisian Essence.

The British Retail Consortium has revealed its latest Retail Crime Survey A.S. WATSON TO ACQUIRE 50 Tesco steals the beauty show results. There were roughly DIRX DROGIST STORES three million offences Retail congolmerate A.S. Watson is due to One UK supermarket retailer in particular was against UK retailers in 2013- 2014, directly adding £603m acquire all 50 stores of Netherlands-based health seen to dominate this year’s Product of the Year to retailers’ costs. Fraud and beauty retail network Dirx Drogist. awards, recently held in London’s West End. increased 12% and accounts In addition to the acquisition of the stores, the Tesco’s brands scooped four cosmetic awards, for 37% of the total cost of majority of which are based in North Holland and voted for by more than 10,000 consumers. Its retail crime. Retailers cited South Holland, another five locations are said to winning products included Pro Formula cyber attacks as a ‘critical be in the pipeline. All of Dirx’s current employees Radiance Micellar Water, which won the skin threat’ to their businesses. will join A.S. Watson and the Dirx stores will care category, and Pro Formula Q10 Anti-Age continue under the store concepts of Kruidvat Day Cream, which won best moisturiser. Elizabeth Arden has launched its first direct-to-consumer or Trekpleister. Pro Formula Satin Smooth Ladies Razor e-commerce site in the UK and Gerard van Breen, CEO of A.S. Watson Health was named best in hair removal, and BD Trade ROI. The site is powered by The & Beauty Benelux, said: “We are delighted with Secrets Dream Shine Highlighter was selected Hut Group, which has provided this acquisition. The addition of these stores as a hero beauty item. the infrastructure and consumer expands our national coverage, making our Mike Nolan, CEO at Product of the Year, said: analytics to provide a tailored stores accessible to even more consumers. We “For newer, innovative items the process of experience. The launch is The are pleased to welcome the employees to our building trust is vital to success and our seal of Hut Group’s 25th brand launch. organisation. The stores will operate under the approval is essential as consumers report that they It powers more than 50 sites across its own health and banner of Kruidvat or Trekpleister. We are looking are 86% more likely to buy a winning item. This beauty brands with currency forward to having customers here benefit from badge of trust leads Product of the Year winners and language variants. our large range of bargain-price products.” across the globe to report more than a 10-15% Read more at cosmeticsbusiness.com average sales increase following their win.”

Where is eve snow distributed? It is available through 50 select Boots stores A POLISHED nationwide and we’ll be launching into another 30 over the next couple of months as well in-store PERFORMANCE at Space NK and online at Net-A-Porter. Eve snow has signed in the US. Tell us more... In two short years, nail brand eve snow has broken into two major We just signed our first US contracts with Net- markets amid fierce competition. Founder Yvette Snowden explains A-Porter US, where we’ll be one of its few global

beauty brands available via their UK and US What factors have been key channels. We’ve also signed with Space NK US, If you don’t believe“ to eve snow’s success? in your products or which has pushed back our launch to March. A unique USP, first to market “ products and luxury packaging. brand wholeheartedly, What tips would you give to new brands We launched into a very no-one else will thinking about approaching a retailer? crowded market with a USP Yvette Snowden, Founder, I would tell them not to give up and really within the nail category and I eve snow focus on creating great products which would think the customer’s need for more natural, have a unique selling point the retailers might nourishing nail products is why we’ve been able not already have in their assortment, therefore to grow so quickly when there are still new nail making the brand more attractive to the retailer. brands launching every month. Then, because we’re still quite a small team, we’re able to bring How do you source eve snow’s ingredients? products to market quite quickly – one of the new We source our ingredients from around the world products we launched earlier this year was our and the key thing is that we manufacture our first-to-market BB Base coat, which we proudly products in the UK, working with a UK won a Pure Beauty award for. Finally, it was always manufacturer. Prior to launching eve snow, I had important for me to make our customers feel done a lot of research into the nail care category special, as if they’re receiving a gift every time and I work closely with my manufacturer and they purchase eve snow. So whether the customer their in-house lab team into coming up with purchases any of our products via our own exciting new nail care products for eve snow. website or our retail partners, we invest in key POS and GWP to ensure the customer feels like How has UK manufacturing impacted costs? they’re receiving a gift every time. I wouldn’t say manufacturing in the UK is the most cost effective process. However, it was What challenges have you faced? always important for me to have the brand When I started eve snow, finding a good UK manufactured in the UK as we have some great manufacturer who would agree to my small suppliers in this country. I’m quite a control-freak quantity runs was the biggest issue. Once I was and it was important for me to oversee all areas of able to get over that hurdle, I was able to present production closely, which I couldn’t do if the the brand to key publications: once British Vogue factory was based in the Far East, for example. agreed to launch the brand, I secured funding from initial angel investors. How do you think the nail category is faring? I think there’s going to be a change in focus for How did you overcome these challenges? next year, whereas nail art and nail textures Persistency and determination. If you don’t peaked for the past two to three years. I think believe in your products or brand wholeheartedly, we’re going to see a change in focus to no-one else will. nail treatments. Read more at cosmeticsbusiness.com TOP 10 Eve snow’s top selling nail 2000% polish shades: Eve snow’s predicted percentage growth in revenue 1 Racey 2 Prima Donna 3 Wanderlust 4 Opium 80 5 Top Coat The number of UK stores eve snow will be available in by the end of this quarter 6 Harlot 7 Birthday Suit 8 Pixie 9 Poppy 2013 10 Film Noir The year eve snow was founded Source: eve snow Source: eve snow

NEWS IN BRIEF REN SWEDEN SALES SPIKE AFTER ADVERT kin care brand REN recently enlisted Korean cosmetics brand O HUI has launched a new photographer Rankin to direct a television campaign called Beautiful Scommercial to bring the brand’s Lips, which aims to help ‘performance, purity, pleasure’ ethos to life. individuals send messages Antony Buck, Chief Executive Officer of REN, to loved ones via a ‘digital has been happy with the response to the adverts lipstick’. Couples can record so far. “The advertising was developed primarily messages on the device that to support REN in Scandinavia, where the brand resembles a lipstick; the is available in around 1,600 stores and on track to messages are then activated becoming the biggest independent skin care to play when two sticks are brought together and touch. brand,” he said. “We appointed London ad agency Lucky Generals to produce the Dove has launched a new advertising and were delighted to have Rankin for a wide range of skin tones, ages and campaign encouraging women directing the ads. Initial results have been very personalities to be featured. with curly hair to embrace their encouraging with sales increases of around 100% Speaking about the project, Rankin said: natural waves. The Dove Hair: in Sweden where the advertising was first shown.” “I’m a big fan of REN, so was really happy to be Love Your Curls campaign and Having already aired in Sweden, where REN approached. We wanted to bring out the brand’s film features a selection of became the biggest TV skin care advertiser for playful side and so cast models that conveyed the stories that show young girls’ relationships with their curls. the second half of 2014, further exposure is now purity of the products. The campaign has launched planned across Norway, Denmark and the UK. “We also enlisted the help of puppies on set alongside the brand’s new Legendary photographer Rankin was deemed to capture some genuine reactions from our cast. range Dove Quench Absolute. perfect for the campaign. Shot in Rankin’s The end result is a campaign that’s honest, The campaign is using the London studio, the advert includes a mix of vibrant and spirited.” hashtag #LoveYourCurls. professional and amateur models, which allowed Read more at cosmeticsbusiness.com

L’Oréal Paris has launched what it says is the world’s first online international make-up Yves Rocher hits French artist contest on YouTube. Those that enter are in the television screens running for a u100,000 prize French naturals brand Yves Rocher returned to and the title of 2015 L’Oréal French television screens on 19 February, with an Paris Makeup Designer. advertising campaign to promote its new Sérum Contestants can enter from Végétal range. 13 countries including the The advertisements, which were devised by UK, US, Canada, Australia, Germany, China, Thailand, M&C Saatchi GAD and rolled-out by Vizeum Italy and Turkey. To enter, and Amplifi, consist of a 10-second ‘taster’ advert applicants must submit preceding a 30-second standard advert. 3-minute video tutorials. As well as running on all the major television channels, the company simultaneously ran adverts Soapsmith, a London-based on Facebook, in leading newspapers such as Le luxury soap, bath and body Figaro, Libération and Le Monde, the TV brand, has won QVC’s Find a programme 20 Minutes and on eight leading Beauty Brand competition, in association with CEW. The websites. It is estimated that in 24 hours, the campaign could have been seen by eight out of brand will now join QVC’s Unisex hair styling brand got2b has created portfolio of over 200 beauty its first how-to videos, showing style-savvy ten French women. brands. After being whittled consumers the techniques and products “This film, an ode to Cosmétique Végétale, down to six the finalists were needed to create the latest hair looks. Hosted is a total breakthrough when compared with the asked to present their products on the SchwarzkopfUK YouTube channel, communications of other cosmetic brands,” a in full glare of the TV cameras, there is one male-focused video (grunge representative from the company told CBN. judged by a panel of seven. spikes) and six celebrating the latest female “In effect, when it comes to skin care, they focus hair trends, including fishtail braids, textured their advertising mainly on the power of new Victoria’s Secret advertised ponytails, retro curls, top knots, smooth chic molecules, but Cosmétique Végétale focuses during NBC’s broadcast of hair and beachy waves. Designed to inspire the National Football and educate, the videos aim to present easily on a unique belief – that skin care is only effective League’s Super Bowl XLIX, achievable looks using got2b’s hair hero when it is well absorbed by the skin.” They which aired on 1 February. products. Each video takes the latest trends added: “One could speak also of a film that is The ad was part of the and adds a got2b twist. Indicating a bold equally a breakthrough in its form. There is no brand’s Valentine’s Day move into the digital sphere, the new star, no attempt at numbers showing high marketing efforts. The ad collection of how-to videos has enabled effectiveness, but a unique representation that is featured Victoria’s Secret got2b to develop interactive content very aesthetic, showing the processing of the ‘angels’ Candice Swanepoel, designed to inspire everyone to achieve plant, from the raw plant to the skin.” Lily Aldridge and Karlie expressive and impressive styles. Kloss, among others. The advert will run until mid-April in all 90 countries in which Yves Rocher has a presence.

An insider’s guide to the SUPPLIERS NEWS

Mexican aerosol market FERMENTATION TECH Lindal Group is a world leader in the design, Evolva and L’Oréal have manufacture and sale of aerosol product completed the first part of their components. Worldwide Marketing Director Philip R&D collaboration, which started in February last year. Brand explains why Mexico is looking so promising Through the partnership, his is an exciting time for the aerosol L’Oréal hopes to use Evolva’s industry in Mexico and throughout Latin fermentation technology to TAmerica, due to a confluence of factors. develop a yeast strain We recently announced our investment of optimised for sustainable and (PVM/MA) copolymers, allows $3.5+ million in our Mexican facility. In addition, cost-effective production of us to deliver a dynamic set of we launched local valve production, and acquired cosmetics ingredients. solutions to manufacturers, all rights to Lindal de Mexico. from a flexible to stiff hold.” Mexico is one of the biggest markets for personal care products in Latin America, and the country’s projected growth in overall LABELS GO aerosol demand holds great promise for us. GREEN Furthermore, the worldwide quest for packaging premiumisation In a bid to has come to the region and we foresee great acceleration here in reduce the the coming year for both domestically-consumed goods and those environmental made for export. The market for aerosol products is extremely impact of competitive and, as companies fight for market share, they require packaging greater product differentiation and ALL THAT GLITTERS... labels, Avery packaging premiumisation. The worldwide Fashion house Ghost has Dennison and We also cannot overlook the quest for packaging unveiled its newly designed gift L’Oréal Americas changing state of the Mexican “ boxes. In total, 500,000 boxes have joined forces. They have consumer marketplace, as well as premiumisation has were designed by Falconer identified using a thinner label the increase in exports. Industry come to the region, Print & Packaging, which was material can reduce their reports show that the nature of and we foresee great“ asked to source a material to impact on the environment. consumerism in Mexico has acceleration here in mimic a glittery handbag. L’Oréal has also been making changed dramatically. Nearly half use of Avery Dennison's of all Mexicans are under 30 years the coming year Greenprint method, to identify of age and, with a rise in the impact of raw material purchasing power, these younger consumers are more informed extraction, manufacturing and and open to innovative, high-value products. The development of the label’s end of life. alternative formats, such as half sizes, encourages trial of new products in the NO MORE DOWN TIME Mexican market. Aestheticians can now carry Another big trend here is the changing consumption pattern out non-invasive cosmetic among male consumers. Male Mexicans are increasingly aware of treatments that up until now personal care product benefits and are receptive to marketing THE PERFECT FIX have only been possible with from multinationals. This is particularly important to our overall Ashland has commercially surgery. Plexr allows growth projections. launched a new hair fixative, professionals to carry out The incremental increase in disposable income is certainly a big Advantage 4910 polymer. The blepharoplasty, face and body factor, but consumers here will continue to seek value for their polymer is said to be used lifts and removal of fibromas, money. For Lindal, this means delivering aerosol packaging that in more hairspray product naevi, verrucas and tattoos. helps build our customers’ brands and delivers a positive launches than any other hair It is said to be the first time end-user experience. fixative. A range of polymers aestheticians have been able These factors combine to create new demand for personal care can be used together with the to perform blepharoplasty products and aerosol packaging solutions. Advantage 4910 hair fixative without surgery. to enhance its qualities, for Read more at example adding humidity cosmeticsbusiness.com resistance benefits. Dennis TOP 5 FACTORS AFFECTING THE Hublitz, Sales Director of MEXICAN AEROSOL MARKET Ashland Specialty Ingredients, ✔ Packaging premiumisation said: “Including this polymer ✔ Compressed/half size formats within our portfolio of polymers ✔ Changing patterns of male consumption for hairspray, such as polyvinylpyrrolidone-based ✔ Incremental increase in disposable income polymers and methyl vinyl ✔ Increase in exports ether and maleic acid

brands

NEW PRODUCTS

1 PÜR MINERALS has unveiled 3 ORIGINS has launched collection takes inspiration from 7 ACQUA DI PARMA has its Liquid Veil 4-in-1 Spray KissZing lip crayons (£16 each), old-fashioned sweet shops, created a 20ml Leather Purse Foundation (£26). The spray is for soft, sheer colour. The crayon reflected in the colours and Spray version of its Rosa Nobile eco-friendly and designed to is formulated with a blend of packaging of the products, with fragrance (£84). Designed to deliver ultra-light, skin-perfecting natural butters and oils including soft pastel hues swirled in reflect the values of authentic coverage and includes the meadowfoam seed extract, together. The collection includes Italian traditions and created by brand’s Ceretin Complex. The mango seed butter and jojoba Face Color; Candy Cheeks; Drop Florentine craftsmen, the bottle formula also includes liquid extract to nourish lips. It is subtly Gloss; and W Color Mascara. is wrapped in soft pink calfskin crystals to provide the skin with fragranced with vanilla and mint Launch: out now embossed with the Acqua di increased moisturisation, while and has a light texture to provide Parma logo. The scent itself is the spray component is butane- comfort and glide. Available in 6 BENEFIT is set to launch blend of bergamot and mandarin free. The shades come in Light, five shades: Pink Charming, Roller Lash (£19.50), a mascara with top notes enhanced by Medium, Tan and Dark. Peach Peck, Coral Crush, that is designed to lift and curl pepper, a heart of Italian Launch: out now Rosemance, Peonies In a Pod eyelashes the same way curlers centifolia rose, violet, peony and Read more at and Begonia Blush. lift and curl hair. The mascara lily, and a base of virginia cedar cosmeticsbusiness.com Launch: out now features a patent-pending Hook wood, grey amber and musk. ‘n’ Roll brush with tiny hooks on Launch: out now 2 CLINIQUE has launched its 4 MTHERAPY has debuted in the bristles, which catch lashes, Read more at Aromatics in White collection, the UK. The new at-home beauty lifting and gently pulling them to cosmeticsbusiness.com headed up by a fragrance of system allows users to choose create curl. The ink-black the same name. Described as which anti-ageing serum they formula contains provitamin B5 8 O’RIGHT has launched a confident interplay of serene want to use that day, similar to and serin, known for their lash- Recoffee, a line of hair products woods, transparent petals and an coffee machine. It consists of conditioning benefits, and is made of 100% recycled coffee warm amber notes, the scent a Beauty Pod, which delivers said to provide a 12-hour grounds. The grounds are (from £50) opens with violet leaf, steam to the face containing curl-setting effect. collected from cafes and stores cistus and sichuan pepper, ingredients from the chosen Launch: March across Taiwan: each bottle before moving to a heart of rose Beauty Podlet. The steam Read more at contains a minimum of 98% water essential, orange flower technique is said to help the skin cosmeticsbusiness.com natural ingredients and grounds and patchouli. The base is made absorb the 20 ingredients cased from 16 cups of coffee. The up of amber gris, skin musk and inside the Podlets. bottles are also made of 100% benzoin. The are also two colour Launch: out now recycled coffee waste, while the offerings: All About Shadow 6- shampoo bottle is said to grow Pan Palette (£30) and Long 5 RMK has announced its s/s15 into a coffee tree if planted in the Last Glosswear in make-up collection, Vintage ground: it contains seeds built Crystallized (£16). Sweets (£14-£33). The nine-sku into the base. Launch: out now 5 Launch: out now

3 6

NARS has appointed make-up artist ANDREW GALLIMORE as its new UK Makeup Artist Ambassador. Gallimore brings over a decade of experience to NARS, having worked alongside photographers including David Bailey and Patrick Demarchelier. He has also worked with publications including Vogue, Dazed & Confused and Love. In his new role for NARS, Gallimore will showcase the brand’s product offering via his own artistry through editorial, media interviews and events. Gallimore said: “François Nars is a true visionary – make-up artist, photographer, creative director. I’ve long been an admirer of his work and I am excited to be able to contribute to this brand he has built.” Frederique Lampert, NARS’ Regional Executive Director for Europe, added: “Andrew’s affinity for bold, boundary pushing artistry marries beautifully with the philosophies François Nars established the brand with 20 years ago, which we still embrace today.”

THE LATEST APPOINTMENTS

LA PRAIRIE has made two senior level OWENS-ILLINOIS, a glass manufacturing SYNERON MEDICAL, a global aesthetic appointments. GREG PRODROMIDES company, has named VITALIANO TORNO device company, has appointed ILAN has been named Senior Vice President as Managing Director of O-I Europe. NACASCH to the newly created position Global Marketing, filling Lynne Florio’s Torno succeeds Erik Bouts and will of Chief Brand Officer. He will be position. He is responsible for the evolution report to Andres Lopez, President of Glass responsible for global marketing and of global brand equity, and the development Containers and Chief Operating Officer. branding of all Syneron-Candela products, of products and marketing programmes. Torno will steer the company through its with a strong focus on the growth of the Meanwhile, KIRSTEN HANGARTER has long-term asset optimisation programme. Body Shaping business in the US. been promoted to Vice President, EMEA region, succeeding Pascal Hyafil. JESSICA WRIGHT, star of reality show ANGIE INOUYE has been elected as The Only Way Is Essex, has been announced Chairperson of the California Chapter of YANAGIYA, a Japanese brand founded as the first abassador of WHITNEY MARIE. the SOCIETY OF COSMETIC in 1615, has named 20-year-old movie and Wright will model the brand’s range of clip- CHEMISTS (SCC). In her role, Inouye television actress UMIKA KAWASHIMA in hair extensions, made from 100% human will preside at all chapter and executive as the face of its new hair oil brand Brazilian Remy hair. The partnership committee meetings and will guide chapter Yanagiya Apricot Oil. The brand is said to started online last month and will also activities, including educational meetings have signed Kawashima due to her “cute feature in Whitney Marie’s spring/summer and scientific seminars. The chapter is said and pure image”. Read more 2015 campaign. Whitney Marie hair to comprise of about 700 members and is at cosmeticsbusiness.com extensions can be washed and curled. one of 19 nationwide chapters.

about their own skin and see their scars in a HOW CAN I KEEP A BRAND different way. Ultimately it’s all about nurturing Q brand advocates to encourage recommendation to ALIVE WITH NO NPD? support brand growth. Know your customer and keep spreading the word, says Julie Lardieg, Bio-Oil Senior Brand Manager at Godrej UK Be creative with PR Our brand awareness survey highlighted that

For most brands, Ultimately it’s all 18% of people who have heard about Bio-Oil

having a diverse about nurturing brand read about it in a magazine, demonstrating the A – and expanding – “ “ importance of press coverage. Our PR campaigns product portfolio is advocates to encourage need to be creative in order to give the press new something to be expected and recommendation to reasons to write about the same product year on encouraged. Investment in support growth year so we take a very integrated approach and NPD is all part and parcel of Julie Lardieg, Bio-Oil Senior Brand maximise all channels. creating a brand that remains relevant to Manager at Godrej UK consumers. But is this always the case and, if so, Invest in clinical trials should it be? Bio-Oil has been in the UK for over With just one product in the range, it’s important 10 years now and has become a household name to be confident in its performance. Over the years synonymous with helping to improve the we have gone beyond what is required of a appearance of scars and stretch marks as well as cosmetic product and conducted clinical trials uneven skin tone, dehydrated skin and signs of into how effective Bio-Oil is. These trials arm ageing. It’s just one product available in 60ml, health care professionals with the knowledge that 125ml and 200ml; the latter Bio-Oil may be able to help their customers, is the second biggest selling skin care product which plays a key role in our strategy: 9% of in the UK, according to IRI data. So how have people who have heard about Bio-Oil discovered we managed to build a brand around just one it via health care professional recommendation. product with no new product development to talk While some may consider not creating new about in a skin care market that is increasingly product skus a hindrance, we see the fact that we crowded and largely driven by innovation? have one product, tried and trusted by millions around the world, that delivers results and doesn’t Know your customer need to change, a definite strength. Understanding our customers and how they are Read more at cosmeticsbusiness.com using Bio-Oil has helped us to establish our position and make sure we’re two steps ahead of the emerging oils trend. While Bio-Oil is widely recognised as a treatment product for scars and stretch marks, we found that people use Bio-Oil in many different ways. It is a product for everybody with a skin concern, from teenagers to more mature consumers. This formed the base of our marketing strategy, which helped us to position Bio-Oil as a multi-tasking, everyday skin essential ahead of the oils trend in skin care.

Maximise peer-to-peer channels With such different target groups, we have a varied communication strategy in place, but it has one clear aim: harnessing the power of No1 peer-to-peer recommendation. Bio-Oil is the top selling scar and Almost everyone seems to have a Bio-Oil story stretch mark product in the UK to tell, whether Bio-Oil has helped to improve the appearance of a scar or it’s been used during pregnancy to help prevent stretch marks. Our strategy for Bio-Oil is about getting people to 34% share these stories. One in three who have heard Percentage of people that learned of Bio-Oil through friends or family of Bio-Oil found out about it from a friend or family member, which goes to show how vital recommendation is for our brand. It was a natural evolution for us to create a Submit your questions for the next Facebook page. We’ve forged a real community 16 The number of consumer awards The Final Word column by tweeting of over 200,000 fans by encouraging people to Bio-Oil won in 2014 Cosmetics Business @cb_beautynews share the stories behind their skin. We also using #TheFinalWord celebrate stories that will inspire and empower Source: (from top) IRI, 2014 Brand our Facebook community to think differently Awareness Survey and Bio-Oil

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