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BW Confidential's THIS WEEK in BEAUTY www.bwconfidential.com The inside view on the international beauty industry October 18-31, 2018 #176 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside The buzz 2 Staying sharp News roundup he need to stay fresh, exciting and Netwatch 6 Tfocused on newness in retail was clearly illustrated this week by the news Social media monitor that US-based department store Sears was filing for bankruptcy. Interview 7 In its heyday, Sears was seen as an Natura vice president of direct innovator and has even been called sales Erasmo Toledo the 'Amazon of an earlier era' by some industry observers. However, Sears lost Insight 9 its sharpness some time ago and is Indonesia now paying for it sorely. First came the competitive onslaught of Walmart in the 80s, while the rise of e-commerce and Amazon in Show review 12 particular, dealt another hard blow. Luxe Pack Monaco Despite its (some say lackluster) efforts to digitalize the company, Sears failed to re-create the innovative edge it once had for Store visit 17 today's consumers. Some cite a lack of investment, others a lack of SK-II Future X Smart Store ideas—either of which would have been enough to waver at the hands of Amazon. Such examples give a whole new meaning to the importance of staying relevant in today's market. Oonagh Phillips Editor in Chief [email protected] Get the essential beauty news of NEWthe week in one quick-read email every Friday with BW Confidential's THIS WEEK IN BEAUTY ALSO IN VIDEO A video highlight of the week's key news headlines in just under a minute News headlines daily on www.bwconfidential.com @BWCbeautynews News roundup At a glance... n Sears files for bankruptcy n Bogart acquires Distriplus Group The buzz n L'Oréal creates organic skincare brand Stay informed with our daily news headlines on www.bwconfidential.com Retail US-based department-store operator Sears Holdings, the parent company of department stores Sears and Kmart, has filed for Chapter 11 bankruptcy. As part of restructuring efforts, ceo Edward S. Lampert has stepped down and been replaced with a department named Office of the Ceo, which will manage day-to-day operations. Lampert will remain chairman of the board. Sears has received senior priming debtor-in-possession (DIP) financing of $300m from its senior lenders and is negotiating a further $300m in subordinated DIP financing with its largest stockholder, ESL Investments. The company’s Sears and Kmart stores, including online and mobile platforms, will continue to operate. Some 42 previously announced store closures are expected to be completed by November 2018, and the company will close another 142 stores near the end of this year. France-based beauty company Bogart Group is to acquire Distriplus Group, the number-two fragrance and cosmetics retailer in Belgium. The acquisition will provide Bogart with 200 doors under the two retail brand names of Planet Parfum and Di. Distriplus Group also has its own logistics platform, and at 2017 year-end, had 1,064 BW Confidential employees and posted turnover of €192m. 17 rue Louis Rouquier With the Distriplus Group, Bogart will have a network of 357 stores in four countries 92300 Levallois-Perret, France [email protected] (France, Israel, Germany and Belgium), generating consolidated turnover of more than Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 €300m. The company says that the acquisition will provide strong commercial synergies www.bwconfidential.com for its distribution business and enable it to step up the distribution of its own brands. ISSN: 2104-3302 Publisher: Nicolas Grob Editorial Director: Oonagh Phillips [email protected] Walgreens Boots Alliance is to acquire a minority stake in online beauty retailer Journalist & Copy Editor: Katie Nichol [email protected] Birchbox in a move it says will help strengthen its beauty offering and build its prestige Journalist: Monica Defrances portfolio. The collaboration will see Walgreens Boots Alliance create dedicated Birchbox [email protected] Contributors: Sophie Douez, Alex Wynne, retail areas within selected stores, as well as offer a curated Birchbox shop via its online Renata Ashcar, Mayu Saini, Corinne Blanché, Naomi Marcoulet, Kevin Rozario, Tina Milton platforms. The initial pilot will include 11 Walgreens locations across major US cities, Subscriptions rolling out from December through early 2019. 1 year: Beauty Insight (20 issues) + Print Magazine (4 issues) + This Week in Beauty + Daily News + Collector’s Guide: €549/US$769 [email protected] German beauty retailer Douglas has unveiled its revamped flagship store in Frankfurt. Advertising 2 2 [email protected] The five-story, 2,377m (25,155ft ) store positions itself as a prime beauty destination and BW Confidential is published by Noon Media is part of the retailer’s #Forwardbeauty strategy. The basement, ground and first floors 513 746 297 RCS Nanterre Copyright © 2018. All rights reserved. house men’s and women’s fragrances as well as color cosmetics, while skincare brands Reproduction in whole or in part without can be found on the second floor. This floor is divided into different themes: n n n permission is strictly prohibited. www.bwconfidential.com - October 18-31, 2018 #176 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n ‘Natural’, ‘Lab’, offering dermatological and doctor brands and ‘Korean'. The store also offers beauty treatments in dedicated booths, plus a personalized skincare concept from Skinmade. The third floor is dedicated to beauty services. French brand Cartier unveiled a pop-up store in Paris to celebrate the launch of its new The buzz fragrance Carat. The store plays host to Mille Facettes, an immersive installation that aims to be an artistic interpretation of Carat, which was inspired by the colorful light that is dispersed in a diamond. Visitors receive a photo and video of the experience by email, which can be shared on social media. For each purchase, consumers will receive a sample of the fragrance filled at the Carat fragrance fountain. Smaller-size samples are available for free. There will also be a juice bar and a bottle engraving service, and an artist will create portraits of shoppers using the seven colors that represent the seven flowers in the scent. The Paris pop-up is open from October 12 until November 4, 2018. Cartier also unveiled a fragrance pop-up in New York’s Soho district at the end of September, which will run until November 4. France-based Qiriness has opened a pop-up store in Paris. Open through February, this is the skincare brand’s first standalone physical store. The store stocks Qiriness' full skincare range, along with its gift sets for Christmas 2018 and recently launched products. Separate in-store spaces are dedicated to monthly beauty workshops and 15-minute facials, both complimentary. The pop-up may be followed by a permanent store if and when the right location is found Strategy Shares of some of luxury and beauty’s biggest names fell last week due to what is being termed a crack-down in China on travelers returning from abroad loaded with merchandise. The said crack-down targets the daigou trade, whereby Chinese travelers stock up on branded items abroad to re-sell at home. Analysts say, however, that fears over the crack-down’s impact on the luxury and beauty industry are exaggerated, as Chinese officials periodically increase their scrutiny on travelers. News of a possible crack-down has added to uncertainty over the potential impact of a US-China trade war on the industry, as well as what some industry watchers see as a slowdown in spending by Chinese consumers. Asia Pacific-based retail and distribution group Luxasia is expanding into Australia and New Zealand (ANZ) through its acquisition of a majority stake in fragrance and beauty distributor Pacific SMM. Following the n n n Selection of active ingredients that, applied in skin care formulations, can complement facial exercises to achieve a healthy and toned complexion. © 2018 The Lubrizol Corporation. www.lipotec.com Sin título-1 1 21/08/2018 15:17:06 News roundup n n n acquisition, Luxasia’s presence extends to 14 countries. Luxasia plans to bring more skincare and cosmetics brands to Australia and New Zealand to complement what it calls a ‘fragrance-heavy’ offering by Pacific SMM. The company will be renamed Luxasia Oceania Pty Ltd. The buzz An Ontario judge has ordered the removal of Deciem founder Brandon Truaxe as ceo and board member of the Canadian skincare company, according to reports. Sources say Deciem co-ceo Nicola Kilner has stepped in as Truaxe’s replacement on an interim basis. Truaxe made headlines after posting a video to Instagram on October 8 saying he was shutting down all operations. He also accused his colleagues of criminal activity. On October 11, Truaxe revealed through Deciem’s Instagram account that Estée Lauder Companies (ELC) was taking legal action against him, claiming that he was running Deciem in a manner “that unfairly disregards the interests of Estée Lauder”. ELC has a minority stake in Deciem. CK Hutchison, the parent company of retail group AS Watson, has teamed up with Chinese social-media platform Meitu to combine beauty, social media and retail. Meitu will partner with AS Watson Group and CK Hutchison-owned Hong Kong telecom subsidiary 3 Hong Kong in a bid to build what it calls a new business model that integrates social media and retail. The partnership will include several services, including customization using photos, a Magic Mirror and social media. The new MeituDIY customization service for 3 Hong Kong customers will enable users to edit photos through the Meitu app and print them directly on items such as mobile phone cases, clothes, umbrellas or tote bags.
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