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The Business of Beauty AN ISSUE OF

DREW BARRYMORE on Beauty, Balance & Empire Building INSTA-GLAM! Social Media’s Megastars INNOVATION NATION ’s Edgiest Indies

THE 2015

VISIONARY BEAUTY INC OF THE YEAR AWARDS JEAN-PAUL AGON L’Oréal’s Leader Reimagines the Future All eyes on you. Jennifer Lopez

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PRIMER MASCARA A Leader. A Legend. A Friend. IFF Salutes Jean-Paul Agon. 2015 Visionary WWD Beauty Inc. Award. CONGRATULATIONS to the WWD BEAUTY INC 2015 Award Winners! it’s been a beautiful year!

itcosmetics.com IN THIS ISSUE

THE 2015 BEAUTY INC 12 AWARDS Drew Barrymore’s beauty empire WWD Beauty Inc’s annual editors’ choice is abloom. business-to-business awards honor the beauty industry’s best and brightest people, products and innovation from 2015. Our coverage starts on page 42 with “Man In Motion,” DEPARTMENTS an in-depth interview with this year’s Visionary of the Year award recipient, Jean-Paul Agon, the chairman and chief executive officer of L’Oréal. 10 16 22 34 Milky Way Shopper Stalker Skin Renegade 42 THE VISIONARY AWARD Spring’s soft color Who’s buying what Salvation Beauty Wave palette takes its cue in one of ’s Surveying spring’s Former Vogue U.K. 49 PRODUCT from the clouds. busiest shopping skin-care innovations. beauty editor areas. Anna-Marie Solowij 49 CREATIVE INFLUENCER 12 24 on London’s of-the- Master Class: 18 Mane moment indie creators. 50 AD CAMPAIGN Drew Group On Attractions Barrymore A new wave of market- The latest launches in 58 51 CORPORATE SOCIAL The Flower Beauty ers is ditching focus hair care target a slew Stat Dept. RESPONSIBILITY founder is in full groups and turning of antiaging issues. Online beauty pur- expansion mode. straight to social media. chasing in Europe is 51 NEWCOMER 26 small, but growing. Gilding the Here, L2 examines 52 RETAILER Scissors Amazon’s beauty sales in three major At Manhattan’s Salon markets. 53 DISRUPTOR Ruggeri, an eclectic collection of furniture, 53 INDIE accessories and art coexist with the core 54 DIGITAL INNOVATOR hairstyling business. 55 LAUNCH 27 The Year of 55 MARKETER the Influencer Tribe Dynamics 56 BRAND ranks 2015’s standout On the cover: 26 social media stars Jean-Paul Agon, by platform and chairman and chief Art abounds executive officer in the chic category. of L’Oréal, was photo- new Salon graphed exclusively Ruggeri. for WWD Beauty Inc by Mark Mann.

WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2015 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 210, NO. 32, Friday, December 11, 2015. WWD (USPS 689-960, ISSN 0149-5380) is published weekly, with one additional issue in February, March, June, October, November and December, and two additional issues in April and August by Fairchild Publishing, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 475 Fifth Ave, , NY 10017. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at wwdPrint@cdsfulfillment.com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a subscription term and/or the way the product is delivered. Address all editorial, business, and production correspondence to WWD, 475 5th Ave, 15th Floor, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse permissions, please e-mail [email protected] or call 800-897- 8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WWD IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

6 WWD BEAUTY INC © MICHAEL KORS, LLC. V EA C 'S ACY M AT LE B A L I AVA MICHAELKORS.COM #FLASHYOURGOLD AND MACYS.COM AND EDITOR’S LETTER EDWARD NARDOZA EDITOR IN CHIEF, WWD

PETE BORN EXECUTIVE EDITOR, BEAUTY JENNY B. FINE EDITOR JENNIFER WEIL EUROPEAN EDITOR JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR MOLLY PRIOR BEAUTY FINANCIAL EDITOR FAYE BROOKMAN CONTRIBUTING EDITOR ELLEN THOMAS EDITORIAL ASSISTANT MAUREEN MORRISON-SHULAS CHIEF COPY EDITOR DANIELLE GILLIARD, DAVID PODGURSKI, MAXINE WALLY COPY EDITORS CONTRIBUTORS LINDA RUBES (ART), SAMANTHA CONTI (LONDON), MILES SOCHA (PARIS), CYNTHIA MARTENS (MILAN), MARCY MEDINA (LOS ANGELES), LEADERS MELISSA DRIER AND SUSAN STONE (BERLIN), AMANDA KAISER () PHOTO ASH BARHAMAND PHOTO DIRECTOR JENNA GREENE SENIOR PHOTO EDITOR OONA WALLY BOOKINGS AND PRODUCTION EDITOR IN CHANGE KATRINA BROWN PHOTO EDITOR EMILY TAYLOR PHOTO STUDIO COORDINATOR GEORGE CHINSEE, STEVE EICHNER, THOMAS IANNACCONE PHOTOGRAPHERS BEAUTY INC ADVERTISING EAN-PAUL AGON HAS SPENT HIS ENTIRE PAUL JOWDY SENIOR VICE PRESIDENT, GROUP PUBLISHER career at L’Oréal, joining the company as a STEPHANIE GEORGE PRESIDENT AND VICE CHAIRMAN PAMELA FIRESTONE ASSOCIATE PUBLISHER 24-year-old product manager straight out CARLY GRESH BEAUTY DIRECTOR JILL BIREN WEST COAST DIRECTOR of the elite HEC Paris business school and MARJORIE THOMAS EUROPEAN SALES REPRESENTATIVE OLGA KOUZNETSOVA ACCOUNT MANAGER, ITALY rising steadily through the ranks. But as JOANNA BLOCK SENIOR CLIENTS SERVICES MANAGER EMANUELA ALTIMANI SENIOR SALES COORDINATOR, ITALY chief executive officer of the world’s largest PASCALE RAJAC ADVERTISING ASSISTANT, J ANNIE BELFIELD, RACHAEL DESANTIS, TINA SCHLISSEL CLIENT SERVICES MANAGERS beauty company for the past nine years, Agon DIGITAL/MARKETING/CREATIVE SERVICES has shown that he is a resolute leader oriented firmly SHANNON NOBLES MARKETING DIRECTOR CASS SPENCER CREATIVE DIRECTOR, MARKETING toward the future—not the past. ¶ First he created an CASSIE LEVENTHAL DIGITAL MEDIA STRATEGIST AMY KEISER DIGITAL SALES PLANNER audacious goal—to add one billion new faces to L’Oréal’s PRODUCTION customer base—then he strategized an equally bold plan KEVIN HURLEY PRODUCTION DIRECTOR PROVIDENCE RAO PRODUCTION MANAGER to fulfill it. He was one of the first to recognize the PREPRESS PRODUCTION potential in rapidly emerging markets ALEX SHARFMAN DIGITAL IMAGING As such, Agon was the clear choice DAVID LEE CHIN ASSEMBLY in Asia and Africa, and understood WWD Beauty SUMMITS & EVENTS when it came to naming AMBER MUNDINGER VICE PRESIDENT, NEW VENTURES & GM early on, as well, the importance of Inc’s Visionary of the Year for 2015. In MARY ANN BACHER EXECUTIVE EDITORIAL DIRECTOR KIM MANCUSO DIRECTOR, ATTENDEE SALES developing a deep understanding what has shaped up to be one of the most ALEXIS COYLE SPONSORSHIP DIRECTOR AMELIA EWERT DIRECTOR OF EXPERIENTIAL MARKETING of diverse cultures and rituals in transformational years in the history of the beauty industry, a year that saw the CONSUMER MARKETING ELLEN DEALY VICE PRESIDENT & SENIOR EXECUTIVE DIRECTOR order to better develop products establishment of the digital elite and the PEGGY PYLE CONSUMER MARKETING DIRECTOR suited to their inhabitants. Agon has emergence of the new Indies, Agon has JANET MENAKER SENIOR DIRECTOR, DIGITAL MARKETING & STRATEGIC DEVELOPMENT JOHN CROSS PLANNING & OPERATIONS DIRECTOR also shown himself to be an early shown that a large company is capable of RANDI SEGAL SENIOR DIRECTOR, INSTITUTIONAL SALES leading in times of intense change. And SUZANNE BERARDI SENIOR ONLINE MANAGER adopter in the digital revolution, be TAMRA FEBESH SENIOR MARKETING MANAGER as you’ll read in “Man in Motion” on page LAUREN BUSCH ASSOCIATE MARKETING MANAGER it immersing himself in the culture 42, he is far from finished. FAIRCHILD PUBLISHING LLC MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS of Silicon Valley or acquiring brands, Doubtless Agon is familiar with most & DIRECTOR OF BRAND DEVELOPMENT of the winners of the WWD Beauty Inc DEVON BEEMER FINANCE DIRECTOR like NYX, that are at the forefront RON WILSON DIRECTOR OF EUROPEAN OPERATIONS of using social media to create Awards this year. They are an eclectic group representing both established FAIRCHILD PUBLISHING LLC IS A DIVISION unassailable consumer connections. brands and recent additions, but what OF PENSKE MEDIA CORPORATION they have in common is an unwavering JAY PENSKE CHAIRMAN & CEO emphasis on innovation, be it in prod- GERRY BYRNE VICE CHAIRMAN uct development, consumer experience, GEORGE GROBAR EXECUTIVE VICE PRESIDENT, STRATEGY AND OPERATIONS digital communications or retail execu- PAUL WOOLNOUGH EXECUTIVE VICE PRESIDENT, BUSINESS AFFAIRS tion. As always, our awards are editors’ CRAIG PERREAULT SENIOR VICE PRESIDENT, BUSINESS DEVELOPMENT TODD GREENE GENERAL COUNSEL & SVP HUMAN RESOURCES choice honors; to select our winners, we MICHAEL DAVIS CHIEF OF VIDEO STRATEGY consulted retailers, industry analysts and NELSON ANDERSON VICE PRESIDENT, CREATIVE KEN DELALCAZAR VICE PRESIDENT, FINANCE our own news coverage throughout the STACEY FARISH SENIOR VICE PRESIDENT ENTERTAINMENT & PUBLISHER, DEADLINE year to compile a roster that we believe GABRIEL KOEN VICE PRESIDENT, ENGINEERING had the most significant impact on the TARIK WEST VICE PRESIDENT, HUMAN RESOURCES LAUREN GULLION DIRECTOR OF HUMAN RESOURCES & CORPORATE COMMUNICATIONS beauty industry in 2015 and beyond. On JONI ANTONACCI DIRECTOR OF OPERATIONS behalf of everyone at WWD Beauty Inc, I’d ROBB RICE GROUP DESIGN DIRECTOR YOUNG KO CONTROLLER like to congratulate Agon and all of this CHRISTINA YEOH SENIOR PROGRAM MANAGER year’s winners. You are an inspiration. EDDIE KO DIRECTOR, ADVERTISING OPERATIONS MATT WILLIAMSON DIRECTOR OF IT OPERATIONS & PRODUCTION —Jenny B. Fine DEREK RAMSEY SENIOR PLATFORM MANAGER

8 WWD BEAUTY INC “BEAUTY IS A NEVER-ENDING QUEST” - JEAN-PAUL AGON

MACY’S SALUTES THE WWD BEAUTY INC. AWARDS AND CONGRATULATES VISIONARY OF THE YEAR HONOREE JEAN-PAUL AGON BEAUTY BULLETIN

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1. Wet n Wild Cruelty- Free Makeup Brushes, $1 to $3. 2. Philosophy Renewed Hope in a Jar Microrenewal Hydrating 2 Mist, $30. 3. Météorites Voyage Powder Compact, $74. 4. Givenchy Poudre Lumiere Originelle, $57. 5. Givenchy Mister Scrub, $31. 6. Givenchy 4 Nail Le Vernis, $23. 7. MAC Studio Eye Gloss, $22. 8. Givenchy Ombré Couture in Bleu Celeste and Jaune Aurora, $26. 9. Yves Saint Laurent Face Palette Collector in Gypsy Opale, $60. 1 5 10. Pixi by Petra Hydrating Milky Mist, $15.

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10 9 The Milky Way

After a holiday season filled with blaring metallics, spring’s cooler color palette of milky pink, blue, green and yellow hues is a welcome reprieve. This year’s launches include cream eye shadows in chalky shades from Givenchy, a Guerlain illuminating compact comprised of airy micro pearls and Yves Saint Laurent’s Gypsy Opale, a correcting palette anchored in soft yellow and light lilac. “Colors with a white-based tone feel especially cloudy and light,” says Yves Saint Laurent Beauté creative director of makeup Lloyd Simmonds. “That’s all anyone wants for spring, anyway.” — ELLEN THOMAS

10 WWD BEAUTY INC PHOTOGRAPHED BY CLAIRE BENOIST , ts leaves no lash behind. leaves 5 lash-transforming benefi 5 lash-transforming Power Mini Brush Power

© 2016 Revlon while our Choosing the one has never been so simple. Choosing the one has never REVLON.COM OLIVIA WILDE WEARS BLACKEST BLACK formula delivers delivers formula ULTIMATE ALL-IN-ONE ALL-IN-ONE MASCARA ULTIMATE high-impact Our innovative, in the eye. love Look NEW

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SIMULATION OF PRODUCT RESULTS ON LASHES ENHANCED WITH LASH INSERTS © 2015 Revlon HE setting is the Surrey Hotel’s posh Presidential Suite in the heart of Manhattan’s TUpper East Side, but when Drew Barrymore comes bursting through the door, her glamsquad in tow, there’s nothing stuffy about her. Wearing jeans, a sweater and brown suede Ugg boots, she briskly directs her team where to set up, changes into something more suitable for photography and gets down to business. ¶ That Barrymore is as focused as she is famous is no surprise. This is a woman who gets things done. In the last year alone, she’s starred in a movie, produced another, writ- ten a book (her third), all while overseeing her growing business concerns, including Flower Beauty and the launch of Flower Eyewear, and being a very present—and passionate—mother to her two young daughters. ¶ Barrymore fre- quently talks about the flexibility afforded by running a business versus the time drain presented by movie production, but she does see some similarities between the two. “Color is tough. It’s like movies in that you put in so many weeks, months and years MASTER CLASS of work for something that can feel short-lived and then it’s right back to work,” she says, snapping MULTIPLE her fingers. “But I’m OK with that. I like the do-the-work aspect.” Bar- rymore’s hands-on approach seems EXPOSURE to be paying off: Industry sources indicate Flower’s sales continue to blossom at Wal-Mart, and as the She may be the ultimate hyphenate (mother-actor-producer-writer), but Drew Barrymore is fully focused on building Flower Beauty into a lifestyle empire. company gears up for 2016, plans call for the launch of e-commerce BY JENNY B. FINE and international expansion.

12 WWD BEAUTY INC PHOTOGRAPHED BY MARK MANN

BEAUTY BULLETIN

Flower Beauty has been in stores for What kind of time frame are you looking something that is very direct. I love when more than three years. How do you at for the growth of the company? One you are looking at a photograph and it’s describe the growth? new category a year? just a moment. In a beauty campaign that is It’s really good roots for the tree we That would be ideal. That would be a really hard and tricky. Women are looking want to grow, which will include mul- prolific pace. I would be up for that chal- for a connection. I am not looking for aus- tiple branches. The branches change with lenge. I’m not going to take on anything tere, and I’m not looking for an unrealistic interests as I evolve as a person. There are that isn’t going to get my full attention. scenario. When I’m looking at photography, branches, like hair or accessories, which I’m thinking that’s a moment. I’m being seem like natural progressions and I have What is your role? drawn into that person. That’s very difficult opened my mind up to things I had no idea I am a detail freak. I care about the to pull off in color cosmetics. I would be opening my mind up to when I process, about each and every aspect, from started Flower Beauty. marketing to execution to product category How do you envision your customer? to style, color and componentry. But I still I think she’s like me. Which sounds very What was it about this process that get to wake up with my kids. It’s a good insular, but I think she has good taste, she opened up the world for you? lifestyle for the mom I want to be. knows the difference between quality and How much I loved design and market- something made haphazardly. She wants ing and messaging. The brands that really You’ve got the book, the movies, the lovely things that make her feel good, but speak to me have a feeling of aspiration beauty. How do you balance everything? doesn’t have to shell out crazy money. It’s over sophistication and joy over functional- I work at home a lot and I pack in trying to capture moments just the way I’m ity. Such brands make me feel really good. windows of work. I’ll do a three-hour chunk trying to present a moment in marketing. They are a certain price point. And they while the kids are napping or someone is at market themselves really well. Their con- school. Or there are days when I’m gone all This moment that you see in a photo- tent and curation is something that makes day but then I know the next day I’ll get to graph, how do you feel in that moment? women feel good. have huge windows with them. Beautiful. And that’s not what I feel like in daily life. I feel like a mom who’s schlep- How do you choose which categories you Would you ever not work? ping her kids around and is tired and run- want to play in? I don’t know if I’m capable of not work- ning from here to there. That is the differ- As a company we do a lot of research, ing. But I also want to show my daughters ence between aspiration and sophistication. but you can only pay attention to trend and that a good work ethic is important. It’s I’m not sophisticated. I have knowledge and market research so much because the cus- positive that I show them that work is fun. taste that can be very sophisticated, but my tomer will always surprise you. Trends are lifestyle is very steeped in reality. going to change. People’s tastes are going to What is the biggest challenge of con- I love the word aspiration because change. The economy is going to change. I structing this lifestyle? aspiration can still be realistic, but it’s like chose eyewear because I saw a discrepancy When I first had both of my kids I the better version of you and your life and in Wal-Mart’s Vision Center where I didn’t stopped caring about work. People would it is empowering. When you feel good about see a designer feel. There was a lack of come up to me and be like, “We need yourself you project something that is far design, and a femininity that was missing. this—it’s on deadline.” I was like, “Are you more confident and empowered and joyful From top: Empire building: serious? I don’t care. I have no interest in then when you are scrambling and not feel- Do you see the Flower universe expand- Barrymore’s recent work.” I stopped thinking about anything ing your best. ing beyond Wal-Mart? projects include the but my kids. And you actually get worried— expansion of her It is really important to not do a one- makeup line, a foray will my passion and focus ever come back? What’s the hardest part of cosmetics? size-fits-all mentality. I am incredibly happy, into fragrance and And then it does. Slowly but surely, you Just keeping up year-to-year on innova- especially in the categories we are in, and I eyewear and a new start to become your own person again with tion. Innovation is what all of the buyers book, her third. would like to be in a few more, at Wal-Mart. a mind and ideas and room for thought. want, so I’m trying to keep ahead of the They are great partners, and you cannot do I also think nobody does anything in this curve in mass in four feet of space. We don’t volume like that in many places. life alone, and if you don’t surround your- have the volume that some other companies self with great people you could have all of have, so we are in there fighting to get the Do you pick categories based on what the great ideas in the world but they won’t latest, and it’s tricky. But when you build they don’t have? be able to get executed. If you work with relationships you get let in on a lot of stuff They have a lot. There is pretty much great people, you’re being inspired and you and if you really stay on top of it then you everything there. If I wanted to go into tele- inspire them. You do it as a team and things can be ahead of the curve. visions and gardening I can still do it there. get done a lot more effectively. They have kids, they have patio furniture, I’m not going In terms of volume growth, are you they have linens—they have everything. But You’ve just been on a book tour for Wild- where you hoped to be? to take on flower it’s a matter of what can we bring to them “ . Does interacting with women Every year is a revelation, a disappoint- and what categories make sense. As good anything help you come up with product ideas? ment and an illumination. Every year is partners, we go to them first about a lot of that doesn’t That helps me more with the market- something really good that I didn’t expect things. Then they have the right to take it ing and the tone. This year I want to do and something more frustrating than I on or not. They have been very transparent get my full something that is very warm and ingrati- anticipated and every year I have learned with us and we are very loyal with them. attention.” ating and fuzzy and still has chicness but something. ■

14 WWD BEAUTY INC HYDRATION the key to skin that glows from within

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*stratum corneum layer ©Neutrogena Corp. 2015 BEAUTY BULLETIN

SHOPPER STALKER The Buy Side

Kiehl’s Men’s Must- Haves Collection, $39 ELLEN THOMAS heads to Herald Square to scope out an established 1. Fuel Energizing beauty retailer and find out how a newcomer on the block stacks up. “Luckily the sales Moisture Treatment associate helped 2. Facial Fuel me pick the lashes, Energizing Face Wash 2 because I wouldn’t 3. Close Shave Squadron know,” says Turner. Brushless Shave Cream H&M Buffer 4. Facial Fuel Energizing and Blusher Scrub Skin Buffer Brush, $8 5. Ultimate Man Body Scrub Soap 1

Amishay was using Burt’s Bees, but 3 wanted something more hydrating. H&M in Hypnotise, $6 H&M Lash Glue, $5

5 4 “This gives a good glow,” says the shopper. Kiehl’s Ultra Facial Oil-Free BareMinerals Get Gel Cream, $26.50 “I like the new Started Complexion brush and primer,” Kit in Medium Tan, $49 Amishay says about 1. Flawless Application Face Brush repurchasing 2. Mineral Veil Finishing Powder this product. 3. BareMinerals Original H&M 4. BareMinerals Matte Foundation Sunrise Glow 5. Warmth All-Over Face Color Solar Flair 6. Prime Time Foundation Primer 3 Bronzing Powder, $10 1 2 H&M Foundation and Brush, $7 6 Dermablend Turner wanted to see Quick Fix how H&M’s brushes Concealer compare to her in Beige, $25 arsenal of NYX tools, and she liked the two-in-one factor. H&M Precision 4 Sponge, $4 5 “I’ve seen YouTubers What’s in What’s in blend foundation and “This looks concealer with [a similar Devorah’s Bag? like it covers Nahsiah’s Bag? sponge], so I wanted to try it out,” says Turner. TOTAL SPENT: everything,” TOTAL SPENT: $151.88 says Amishay. $42.38 NOV. 9, 5:07 P.M. MISSION: NOV. 6, 5:48 P.M. MISSION: Macy’s FIND A NEW H&M BIRTHDAY 151 WEST 34TH ST FOUNDATION 1328 BROADWAY SHOPPING TRIP

EPHORA WAS TOO CROWDED, so graphic design student Devorah AHSIAH TURNER dashed into H&M on Friday after work, determined SAmishay, 25, headed to Macy’s to find a sales associate who could help Nto find a new top for her 23rd birthday celebration at Times Square’s her select a new foundation and concealer. “I want [for them] to know Bowlmor Lanes. The party outfit didn’t pan out, but Turner stumbled what they’re talking about,” says Amishay, who spends about $2,000 a year on upon the retailer’s new beauty department and picked up a slew of products makeup from NARS, Smashbox, Cover FX and . With the help of instead. Turner, who studies finance and interns at CBS, started wearing makeup an associate, Amishay ultimately purchased the same BareMinerals kit she’s used in the past year, after getting hooked on YouTube beauty gurus ItsMyRayeRaye for years. “I wanted to try out the one for acne, but [the] salicylic acid would be and Glamtwinz. She doesn’t pay attention to brands and shops mostly at drug- too hard on my skin,” she says. Unsatisfied with her current skin-care routine, stores, but will occasionally splurge on a bold at MAC (her go-to shade Amishay hit up the Kiehl’s counter—another suggestion from the sales associ- is Rebel.) “I’m still learning,” Turner says, “so I don’t want to buy a product that ate—for . “First she recommended another brand, but it didn’t look doesn’t work.” Though she relies on YouTube reviews for recommendations,

appealing,” Amishay says. “I have to like the packaging—that’s so important.” she’s optimistic about her impromptu haul. “I trust H&M, so I’ll give it a try.” CHINSEE GEORGE BY PHOTOS PRODUCT

16 WWD BEAUTY INC ADVERTISEMENT RECOGNIZING EXCELLENCE IN LUXURY SERVICE L’ORÉAL LUXE IS PROUD TO PARTNER WITH WWD BEAUTY INC TO RECOGNIZE LANCÔME BEAUTY ADVISOR KAY HALL FOR EXCEPTIONAL CUSTOMER SERVICE IN LUXURY BEAUTY.

In partnership with WWD Beauty Inc, Lancôme, a brand of L’Oréal Luxe, recognizes Beauty Advisors who best exemplify the L’Oréal ideals of cus- tomer service in luxury beauty. In this issue we honor Lancôme Beauty

Advisor Kay Hall of Macy’s, Friendly “The greatest reward is making my Center, Greensboro, NC. customers happy.”

Six years ago, after decades in the corporate world, Kay Hall found herself at the Lancôme counter working primarily with women for the fi rst time. “What a wonderful change!” she says. “In this environment, our “Beauty is warmth. It’s radiance clients can truly be our friends. It’s a from the inside out.” helpful, caring place. The corporate experience taught me how to plan, but here I learned how to really connect.”

Absolue is Kay’s favorite beauty product. “It’s so luxurious and so effective for mature skin. My Absolue “Every minute, I try to help people customers are proof. Their friends feel happy with themselves.” come to me looking for the Absolue effect.”

Go to: lancome-usa.com/careers to learn more about Kay’s commitment to luxury service.

“Teaching a customer about makeup is its own reward.” KAY HALL LANCÔME BEAUTY ADVISOR MACY’S, FRIENDLY CENTER GREENSBORO, NC W

HEN BRANDY HOFFMAN AND PATRICIA Santos crisscrossed the globe establishing new markets for the skin-care brand Alg- enist, they fantasized about breaking down the walls between executives and consum- ers. “We saw too often product decisions are made behind closed doors of conference rooms,” says Santos. Now the duo are flinging open the doors with the launch of their own venture, Volition Beauty. The beauty counterpart to merchan- dise creation crowdsourcing concepts like Threadless or CafePress, the San Francisco- based Volition seeks suggestions for prod- ucts from consumers and behind-the-scenes cosmetics creators and, after vetting the sug- gestions for feasibility, quality and safety, lets consumers vote on whether they’d be willing to purchase them. At the moment, it takes 500 to 1,000 “yes” votes for an item to be manufactured by Volition Beauty, and its first crowd-approved skin- and body-care products, including Detoxifying Silt Gelée and Moringa Silk Body Oil, went on sale, priced from $40 to $45, on November 11. “We had a hypothesis that, if we gave con- trol to the people who are using the prod- ucts, they would come up with ideas to solve problems, and we have been blown away by some of the ideas they have come up with,” says Hoffman. Volition isn’t the only beauty company IN DEVELOPMENT turning to crowdsourcing for product devel- opment. For a growing number of brands, the concern isn’t too many cooks in the kitchen. It’s too few. In an age in which consumers GROUP ON are constantly communicating with brands, marketers are increasingly soliciting consum- ers’ opinions directly, inviting them to par- Forget focus groups. When it comes to product development, ticipate in product development in person more and more brands are turning to crowdsourcing. or electronically. BY RACHEL BROWN “I believe in democratizing beauty,” says Emily Weiss, founder and chief executive offi- cer of the Web site Into the Gloss and skin- care brand Glossier. “The next generation of successful consumer brands will be built digi-

18 WWD BEAUTY INC ILLUSTRATION BY ELLEN PORTEUS

tally, in tandem with their consumers. Brands A large personal-care conglomerate may ticipate in the physical product development that maintain a ‘we’ll make it, you’ll buy it’, spend hundreds of thousands of dollars on to have a voice,” says Park. elusive and exclusive presence will increas- quantitative and qualitative assessments Julep releases some 300 products a year ingly be seen as stuffy and old-fashioned.” to garner such consumer insights. Small and only crowdsources for unique products. Divya Gugnani, cofounder of Wander companies don’t have that kind of cash. “You can’t crowdsource everything because Beauty and founding partner at Concept to Crowdsourcing “is a much more efficient you will end up with nothing,” says Park. Co, views crowdsourcing as a logical exten- process because you are not taking a big bet “Only ask questions when you really want to sion of social media interaction. “People are on the product and hoping for the best. At a listen to the input.” so quick to tweet you or Instagram. It’s so small company, you don’t have the funds to Not all companies are organized to easily much easier to get direct, immediate feedback redevelop it and relaunch it two years later,” crowdsource. Collaboration across multiple about what [consumers] like or don’t like says Wohrle. departments is essential. “This doesn’t work over social media,” she says. “Being in touch in a company where marketing, inventory with your customer makes for the best brand ROWDSOURCING CAN planning and product development don’t experience because you really cater to them.” funnel product invest- work completely hand in hand,” says Park. Wander Beauty has leveraged its social ment to sure winners. “When we have a major product launch, we media relationships by asking fans to share “We know for a fact have cross-functional teams that meet weekly their opinions about in-the-works shades on when [customers] want so we can be moving together.” its Instagram account, and the account of Ca product. It seeds the It’s also tough without active communities. and brand cofounder Lindsay Elling- market so that there is Julep has 10,000 members of its so-called Idea son, who has nearly 770,000 followers on the assurance products are going to be success- Lab who regularly offer input, while Truth in platform. The company received almost 200 ful,” says Hoffman. Aging attracts approximately 380,000 visi- comments on an Instagram post showing four Julep ceo and founder Jane Park started tors monthly to its Web site. “It takes years shades of that asked followers to crowdsourcing its ergonomic Plié Wand with to create a real community of people who are share their favorites. A Champagne hue was a display ad that cost a few hundred dollars genuinely engaged.…That’s hard for others to the most popular and was part of an Exqui- to gauge if its idea to revamp the nail-polish replicate,” says Wohrle. site Eye Liquid Shadows duo that launched brush had legs. “It was super cost-efficient. When Weiss wrote a post on Into the Gloss on QVC in September. We were just measuring clicks on that ad titled, “What’s Your Dream Face Wash?,” it In addition to social media, Wander and seeing if people were interested,” says drew 377 replies that formed the basis of Beauty sends lab samples of potential prod- Park. After the clicks signaled it should forge a brief provided to the chemist concocting ucts to up to 150 people and gives them about ahead, Julep summoned customers over Glossier’s face wash. The deluge of feedback a week to reply to survey questions. “You need Facebook to join it—for free—at Ideo, the was possible because more than one million a lot of votes. Having 10 people vote on some- Palo Alto, Calif., design firm, where it was beauty enthusiasts populate the site and thing is not crowdsourcing,” says Gugnani, evaluating polish-brush prototypes. “The product line’s community. who tweaks formulas based on feedback. leading concept was knocked out after five Gregg Renfrew, founder and ceo of After sending out surveys for its upcoming minutes of watching people using different Beautycounter, says tapping the direct-sales Flash Focus Hydrating Foundation, Wander tools,” recounts Park. brand’s customers and consultants for infor- Beauty discovered users said they were too Julep hosted three further rounds of mation can help it predict how a product will sheer. “We were shocked because we thought consumer-product testing in California and sell. Eighteen months ago, Beautycounter it had enough coverage,” Gugnani says, “but Washington, and embarked on a crowdfund- surveyed its community on product desires the general trend is that people want more ing campaign that raised $125,000 to pay for and a sunscreen stick was high on their list. coverage, especially in a stick formula.” the initial production run of the Plié Wand. “We bought deeply into that, and we sold Marta Wohrle, the founder of the ratings You can't “We met our [fund-raising] goal within 24 out immediately. Previously, you had to take and review site Truth in Aging, ventured crowd- hours. It was 100 percent funded in terms a position based on trends that you thought into product development after conducting a “ of the minimum we needed to get manufac- would occur and go deep into inventory, and source survey with 10,000 of its members that con- turing across the finish line,” says Park. “The hope it would work,” says Renfrew. “[Now], tained questions about products missing from everything whole product design process from begin- we know in advance of launching a product the market. About 1,000 people responded; because ning to end took three months. It’s one of our how it is going to perform, and we are 99 among the insights—that there is a lack of then you bestsellers now.” percent accurate.” effective hair-growth products for women. Julep adjusted its strategy for its Lip While some brands shun crowdsourcing Wohrle subsequently produced Truth will end up Mousse. It sent out e-mails to ascertain if for fear that it will give competitors a sneak Vitality Advanced Complex. During the devel- with nothing. customers would want to test the product; peak of products prior to release, Park says opment process, she distributed it to roughly Only ask 80,000 replied. The brand selected 500 who speed-to-market counteracts such issues. “We 200 people who used the product for three received spinning and gliding versions of the are faster than the bigger companies,” she months and filled out questionnaires every questions applicator. The gliding version triumphed. says. And as for angering consumers whose month. In reaction to their critiques, the scent when you Julep then turned to Instagram to drive fol- ideas aren’t heeded? Park has found consum- of the hair-growth product was one of several really want lowers to a branded landing page, where the ers are satisfied when their voices are heard elements modified. company collected votes on shades and sug- regardless of product outcomes. “When you Truth Vitality now has six stockkeeping to listen to gestions for shade names. They racked up let people into the process,” she says, “they units for hair and skin priced from $25 to the input.” 14,000 of the former and 2,100 of the latter. are invested in the results, even if they don’t $279 sold on Tuth in Aging’s Web site. —JANE PARK “That was a way for people who didn’t par- get their way.” ■

20 WWD BEAUTY INC MOONLIGHT PRIMER

HEV | INFRARED SKINCARE AGAINST MODERN TECHNOLOGY MAKEBEAUTY.COM BEAUTY BULLETIN

SHELF LIFE: SPRING PREVIEW Skin Salvation From acne to dehydration, a slew of solutions for common issues are addressed this season in innovative new forms. By Ellen Thomas

1. Dr. Dennis Gross Single Use Ferulic + Retinol Acne 1. BareMinerals 1 Wrinkle Recovery Blemish Remedy An evolution of the Peel, $88 for 16 Innovative technology Acne Treatment Gelee red-hot sheet mask Clinical-dose retinol combines 1 , $22 trend, convenience sloughs away dead with traditional Salicylic acid and sea reigns supreme. cells, repairing ingredients. salt combine to treat and retexturing skin. and prevent breakouts. 3 2. Kleenex Exfoliating 2. Neutrogena Rapid Cushions, $8 for 12 Clear Stubborn Acne 4 A water-activated Daily Leave-On Mask, cleanser is built into $8.50 multilayered fabric 2 A benzoyl peroxide- rounds to buff and based formula is said polish skin. to reduce blemishes within hours. 3. Kate Somerville 2 Eradikate To-Go Acne 3. Arbonne Clear Treatment, $22 for 12 Future Soothing The brand’s sulfur- Overnight Mask, $34 based best-selling Marine algae is said acne compound now to absorb sebum combats pimples via overnight, balancing pre-treated swabs. oily, acne-prone skin. 4. Benefit The 4. X Out Xtra Porefessional Instant Clean Brush, $55 Wipeout Mask, $32 for 8 Guthy-Renker’s teen- Clarifying serum focused device has releases onto a pore a bacteria-resistant 3 strip for targeted 4 silicone brush head that treatment on the T-zone. deep-cleans dirt and oil.

Firming Hydration 3 1. GlamGlow The latest Exotic ingredients 2 GravityMud Firming 1. SkinActive star in this lineup Treatment, $69 tout ultimate Ultra-Lift Miracle of tightening Icelandic sea kelp adds quenching in a variety Wake-Up Cream, $17 products. elasticity and transforms of textures. A glycerin-infused gel the peel-off mask from formula combats signs white to vivid chrome as it of fatigue and brightens dries on the face. 1 dull skin. 3 2. Tatcha Luminous 4 2. Kiehl’s Ultra Deep Hydration Firming Facial Deep Moisture Eye Serum, $95 Balm, $56 Okinawa red algae Edelweiss flower helps reduce puffiness extract binds water to 1 and plump fine lines. the skin in a soothing balm texture. 3. Fresh Black Tea Age-Delay Firming 2 3. Pixi H20 Serum, $85 Skindrink, $24 Fermented black tea Encapsulated water improves elasticity is said to instantly and smooths out the plump skin as cooling skin’s texture. aloe vera soothes. 4. Perricone MD 4. First Aid Beauty Re: Firm, $155 Ultra Repair Hydrating A solid gel-to-serum Serum, $36 formula utilizes alpha Hyaluronic acid boosts lipoic acid for moisture, while colloidal a resurfacing effect oatmeal provides relief

4 on skin texture. for irritated skin. CHINSEE GEORGE BY PHOTOS

22 WWD BEAUTY INC

BEAUTY BULLETIN

SHELF LIFE: SPRING PREVIEW Mane Attractions Hair care is the new , as the season’s most innovative products combine ingredients and technology targeted to scalp and hair health. By Ellen Thomas

Oils Primers

Spring’s slickest A slew of pre- launches nourish and treatments bring the idea hydrate distressed of primers to hair. strands.

1. Kérastase Elixir 1. Pillow Proof Ultime Volume Blow Dry Express Beautifying Mist, $58 Treatment Primer, $24 This bi-phase spray oil Deposits a thermal thickens fine hair while overlay that protects adding shine. strands and reduces blow-dry time. 2. Dove Regenerating Nourishment Oil-in- 2. Living Proof Serum, $6 Timeless Pre-Shampoo Red algae and keratin Treatment, $26 replenish moisture and Proprietary ingredients strengthen split ends. target age-related thinning and lock in 3. L’Oréal Paris color. Extraordinary Oil Lustrous Oil Serum, $7 3. StriVectin Hair A six-oil blend including Ultimate Restore coconut, argan and Densifying Foaming sunflower smooths Treatment, $44 damaged hair. StriVectin’s NIA-114 technology improves hair thickness. 1 1 3 3 2 2

Color- Shampoo Treated The latest New additions for in — color-treated hair wet and dry. include customized coverage.

1. Pantene Expert 1. L’Oréal EverPure Age Defy Shampoo, $5 6-in-1 Cleansing Advanced Pro-V Molecular Balm, $12 technology fights a host A rosemary mint of aging hair symptoms, botanical blend from grays to thinning and provides longer-lasting dryness. color for up to 32 washes. 2. Unwash Dry Cleanser, $28 2. John Frieda Pure volcanic ash Root Blur, $20 refreshes hair and A dual-shaded root- absorbs excess oil touch-up palette between washes. customizes color for a near-perfect match. 3. Oribe The Cleanse Clarifying 3. Color Shampoo, $44 Lustre Dry Cleaner, $39 A detoxifying foam A powder-based mousse removes dirt cleansing liquid cleans and oil from hair; sea hair without kelp extract unclogs stripping color. scalp pores. 1 CHINSEE GEORGE BY PHOTOS 3 1 3 2 24 WWD BEAUTY INC 2 YOUR EMOTION IS OUR FRONTIER

www.mane.com BEAUTY BULLETIN EVERYONE HAS AN OPINION. MAKE YOURS COUNT.

SERVICE STATION Gilding the Scissors

Gregorio Ruggeri and Craig Longhurst transform their new salon in New York’s NoMad into an oasis of art and beauty.

UCKED AWAY IN MANHATTAN’S NOMAD, TSalon Ruggeri—opened by hairstylist Gregorio Ruggeri and his partner of 20 years, interior designer Craig Longhurst—harks back to the original meaning of the word. “We always wanted to do a salon in the true sense, where people used to gather round and discuss things,” Longhurst says. The duo imagined the space as a chic respite from city life, JOIN CEW where clients can draw inspiration from their sur- roundings. To that end, the space is chock-a-block with art and sculpture, including a current exhibit of BY JANUARY 31 work by Australian photographer Daniela Federici, and an eclectic arrangement of midcentury- modern furniture sourced by Longhurst from TO BE ELIGIBLE TO VOTE auction houses and flea markets, all avail- able to purchase. Also on the menu: jewelry IN THE 2016 BEAUTY and hair accessories the duo designed in collaboration with the costume jewelry house Ciner. “It’s not a blank white INSIDER AWARDS space, [where] you hear the rat-a- tat-tat of a hairdressing salon,” says Ruggeri, who oversees a team of five stylists and colorists. Adds Longhurst, “We never want to be stagnant. Every time a client comes in, there is something different.”—E.T.

SALON RUGGERI 254 FIFTH AVENUE, NEW YORK, 10001 212.229.2094 CEW.ORG CHINSEE GEORGE BY PHOTOS BEAUTY BULLETIN

SOCIAL STUDIES THE YEAR OF THE INFLUENCER

Beauty’s Social Media Winners for 2015

Social media was a key sales driver for beauty in 2015, particularly in the color cosmetics category. While content creation in general continues to explode, Instagram was by far the key growth platform, according to data compiled by Tribe Dynamics, which uses a proprietary algorithm to measure the earned media value for brands and influencers across myriad platforms. The EMV for Instagram increased 904 percent in 2015 versus 2014, while blogs netted only a 26 percent increase. As well, a new community of influencers has emerged, based primarily in the U.S. and U.K., but with a global reach. As for next year: Tribe’s cofounder Conor Begley predicts an exponential increase in Snapchat. “It won’t be as big for the influencers,” he says, "but it will be big for the brands in the way they tell their story.”

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

TOP 10 BEAUTY BRANDS Anastasia MAC NYX Too Faced Benefit Tarte Make Up Nars L’Oréal Paris Beverly Hills $289,375,765 $140,972,023 $126,924,094 $111,787,710 $111,230,291 $108,617,997 For Ever $101,562,756 $94,248,541 $289,634,046 $105,534,337

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

TOP 10 SKIN-CARE BRANDS

Lush Neutrogena Soap and Glory Shea Moisture Murad Kiehl’s EOS Glamglow $43,554,603 $35,389,954 $18,349,729 $14,420,806 $12,623,551 $12,104,086 $11,065,332 $9,156,871 $8,872,317 $8,509,189

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

TOP 10 HAIR-CARE BRANDS Redken Garnier TRESemmé Shea Moisture Pravana Pantene Bumble and GHD Olaplex Oribe $14,575,035 $13,998,281 $12,713,561 $12,104,086 $9,580,545 $8,667,434 bumble $7,487,750 $7,353,567 $6,008,495 $8,097,425

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOP 10 SOCIAL MEDIA BEAUTY INFLU- ENCERS Nicole Amrezy Kathleen Lights Nikkie Tutorials Beauty by Samantha xoBeauty LustreLux Jessica Jones Vegas Nay Guerriero $28,300,000 $24,338,888 $20,536,800 Carli Bybel Ravndahl $12,154,391 $10,728,534 $10,650,000 $10,215,128 $30,074,413 $15,760,292 $12,969,725

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

TOP 10 CELEB SPOKES- PEOPLE BY BRAND Olay Estée Lauder Burberry Pantene Cover Girl YSL Beauté Ciaté La Mer MAC Redken Katie Holmes Kendall Jenner Suki Selena Gomez Katy Perry Cara Olivia Palermo Olivia Palermo Miley Cyrus Suki $3,074,495 $2,676,700 Waterhouse $1,484,424 $1,101,779 Delevingne $752,105 $565,380 $550,895 Waterhouse $1,793,440 $779,666 $490,615

Instagram YouTube Facebook Blogs Twitter Pinterest

TOP BRANDS BY SOCIAL MEDIA PLATFORM Anastasia Beverly Hills MAC MAC MAC MAC MAC $201,377,960 $115,941,012 $26,892,460 $16,128,638 $7,277,800 $6,477,840

Source: Tribes Dynamics

WWD BEAUTY INC 27

BB1215-PG27-GATE_STATS.indd 34 12/3/15 3:44 PM ADVERTISEMENT

CONGRATULATIONS TO JEAN-PAUL AGON

Your L’Oréal USA Family Salutes You

® ADVERTISEMENT

MORE SUSTAINABLE Launched in 2013, L’Oréal’s Sharing Beauty With All program is the company’s global commitment to produce, develop and innovate sustainably.

2020 COMMITMENTS

60% Reduction Water Carbon Waste consumption emissions

y 2020, L’Oréal will innovate so that 100% of its products will have an environmental or social benefi t and carbon emissions, An emblematic raw material and a fl agship ingredient of many L’Oréal products, shea is at the Bwater consumption and waste per fi nished product will be re- heart of a responsible sourcing program in Burkina Faso. duced by 60 percent. One of the key commitments of the Sharing Beauty with All program is educating consumers about products’ environmental and social profi les, and empowering every consumer to make sustainable consumption choices while enhancing the beauty of the planet. Additionally, 100% of L’Oréal’s strategic suppliers will be participating in its supplier sustainability program.

GLOBAL PROGRESS

In 2013, L’Oréal launched Share & Reduction Care, a global benefi ts program L’Oréal sources several renewable raw materials from 50% since 2005 in CO2 Brazil, including babaçu oil and murumuru butter. that guarantees all employees a L’Oréal partners with the COPPALJ agricultural Increase in universal standard of healthcare, cooperative, which employs women as babaçu-nut 22% production since 2005 gatherers, which helps 800 families from the social protection and training, Lago do Junco region. wherever they are in the world. ADVERTISEMENT

MORE UNIVERSAL L’Oréal fuels its growth in emerging markets by addressing the differences among its consumers around the world and adapting global brands and products to local needs.

91% Of L’Oréal’s business is now outside of 140 78k+ France

Countries Employees 35.5% present in worldwide Western Europe

24.9% Global HQ Paris North America

USA In 2014, L’Oréal USA created the Since L’Oréal’s 2014 Multicultural Beauty acquisition, NYX has Spain Division to expand seen unprecedented Burgos biomass its expertise in this growth thanks to plant enabled rapidly growing innovative digital the factory to consumer segment expertise reach carbon neutrality in 2015

Beauty for All “L’Oréal’s mission is to bring the best of beauty to all consumers, whoever they are, wherever 8.6% they are, wherever they shop, whatever country they live in.” —Jean-Paul Agon Latin America

Brazil Acquired in 2014, Niely is the Brazilian leader in hair color and hair care

Brazil Launched in 2013, the Matrix Biolage Advanced Repair Inside range was specially designed for Acquisitions of local brands Brazilian consumers, An important driver of L’Oréal’s growth is its ability to iden- who need stronger hair tify and scale emerging local brands with global appeal restoration products and potential. Recent acquisitions have included Carol’s Daughter, , Essie, NYX and Urban Decay in the U.S., Magic in China and Niely in Brazil. ADVERTISEMENT

JEAN-PAUL AGON’S VISION: “WE WILL KEEP ON INVENTING THE NEW L’ORÉAL OF THE 21ST CENTURY: MORE UNIVERSAL, INNOVATIVE, DIGITAL AND SUSTAINABLE.”

7.3% China Acquired in Eastern China in 2014, Europe Magic grew China solidly in the key La Roche-Posay skincare mask established itself in market the region thanks to One billion new consumers its dermatological L’Oréal is set to double its expertise in consumer base in emerging pollution, a key markets by 2020 issue for Chinese consumers Indonesia L’Oréal launches Garnier Men Turbo Light Oil to Egypt specifi cally address the In 2015, L’Oréal skin-lightening needs dedicated its fi rst 2.6% of Indonesian men in a factory in Egypt humid climate Africa, 21.1% near Cairo Middle East Asia, Pacifi c 3,700+ $1B+ India Present in India since 1994, L’Oréal is Researchers Annual the fastest growing worldwide investment in beauty company research and thanks to Garnier, innovation L’Oréal Paris and Africa New York Dark and Lovely is the number one hair care brand on the continent MORE KEY

Research & INNOVATIVE Innovation Hubs L’Oréal invents the future of beauty through its industry-leading Global Zone investments in scientifi c research and innovation. Sales in 2014 ADVERTISEMENT

L’OREAL HAS A STRONG BELIEF THAT DIGITAL AND BEAUTY ARE A PERFECT MATCH

ONLINE SALES E-commerce will pass 1 billion euros in 2015— equivalent to the sales of L’Oréal’s fi fth largest market worldwide.

DIGITAL INVESTMENT L’Oréal’s global digital media spend increased from 2% in 2008 to 15.7% in 2014.

MORE DIGITAL Through digitalization, L’Oréal has the ambition to profoundly transform its relationship with consumers.

INVESTING SEIZING THE PERSONALIZING IN DIGITAL OPPORTUNITY OF BRAND ENGAGEMENTS TALENT E-COMMERCE WITH CONSUMERS L’Oréal is partnering with digital training L’Oréal is rapidly changing with the global Through digital, each of L’Oréal’s brands specialist, General Assembly, to build retail environment and development of are reinventing the way they commu- an online learning platform to educate new ways to shop. “We’re at the beginning nicate with their consumers, fostering L’Oréal marketing teams on the latest of a fantastic retail revolution, where deeper connections, richer interactions, trends, tactics, and new technologies in digitalization is at the core of shopping and a more precise understanding of their digital marketing. experiences.”—Lubomira Rochet beauty needs and expectations.

18% Growth in L’Oréal’s Lubomira Rochet—the fi rst 2014 Chief Digital Offi cer in the industry, appointed in 2014. ADVERTISEMENT

2015 WWD BEAUTY INC. VISIONARY OF THE YEAR BEAUTY BULLETIN

RETAIL SAFARI RENEGADE BEAUTY WAVE

ANNA-MARIE SOLOWIJ, cofounder of BeautyMART and the former beauty editor of British Vogue, takes Beauty Inc on an insider’s tour of London’s latest must-sees.

34 WWD BEAUTY INC PHOTOGRAPHED BY CHRIS GLOAG CONGRATS TO THE 2015 BEAUTY INC AWARD WINNERS!

INDULGE YOUR TRESSES. ;IÁPPIZIV]3+<FSXXPI[MXLI\SXMGJVEKVERGIWERHFIRIÁXW]SYV LEMV[MPPPSZI&IGEYWILIEPXL]LEMVMWLETT]LEMV BEAUTY, PURE AND SIMPLE.

ogxbeauty.com | ogxbeauty BEAUTY BULLETIN

London’s beauty counterculture is resolutely indie in taste for hip-hop who PRODUCTS Skin and Tonic London spirit, renegade in attitude. In this town, the mainstream makes in her Small-batch skin-care parents’ shed. But it’s Barely Cosmetics brand Skin and Tonic is quick to embrace the alternative: it’s what makes us a chic shed and the Founded by Irish-born, sources ingredients from British. This spirited approach provides myriad choices products that come out Hollywood-trained Nicole all over the world then of it—golden bullet- McEvoy, these latex-free brings them back to for beauty consumers, with department stores that shaped lipsticks and skin-care and makeup Hackney where they are celebrate and support outsiders to indie locations that mascaras—are garnering sponges packaged in neat distilled, processed and rave reviews and global Ziploc pouches raise the made into between 50 welcome big brands. We call it a mash-up, and it’s what fans. She also operates bar in terms of quality and 100 hand-numbered makes London beauty so special. Here, the people and a mobile Lipstick Lab, and modernity. Barely bottles per production. visiting beauty editors Cosmetics sponges The range is small—just places on my radar screen. and anyone else who are used wet so as not eight stockkeeping units— PEOPLE fancies co-creating their to soak up and waste but perfectly formed. Brit for 2016 include a global beauty when the own shades. Bestsellers product. Especially clever Beauty Oil with omega- rollout? chains are taken off," are Di La La, a renegade is the chisel-shaped black rich chia and borage Sharmadean Reid Wah-nails.com. says Leonard. vampy black; Mas Definer Sponge that is seed oils, plus neroli Proof of Sharmadean Beautypapers.com Marina, a surprisingly great for contouring, eye and vitamin E, is a fave. Reid’s status is half- Maxine Leonard flattering cobalt blue, makeup application and Skinandtoniclondon.com a-million Instagram Makeup artist, former Florence Adepoju and Milkshake (named erasing mistakes. ¤ followers and an MBE beauty director of MDMflow was created for the Kelis track) that thisisbeautymart. [Member of the Order of Wonderland magazine and by Florence Adepoju, gets more pink every com/brands/barely- the British Empire] from now newspaper editor a London College of time you press your lips cosmetics the Queen for services and publisher, Leonard is Fashion cosmetics together. to the nail and beauty the force behind Beauty science alumna with a MDMflow.com Roots & Bulbs Pure industry. The Central Papers, the challenging Skin by Wendy Rowe Saint Martins graduate and intellectual biannual A beauty drink co-created burst out of college in that’s free of the familiar by Burberry makeup 2008 with a fanzine and constraining beauty director Wendy Rowe and followed by a pioneering tropes. It launched this her favorite juice brand, nail art salon, called Wah summer with a roster of Roots & Bulbs. Rowe’s London, one year later in visionary contributors skin nutrition know-how London’s edgy Dalston including hairdresser influenced her choice of district. Vogue named Christiaan, skin-care superfood ingredients: 1. Sharmadean Reid her one of the “15 people editor Nichola Joss, coconut water laced with 2. Maxine Leonard who will define the arts nutrition editor Rosemary turmeric and alfalfa to 3. Beauty Papers in Britain.” Did I mention Ferguson, designer Bella work from within to reduce 4. Skin & Tonic her Wah London product Freud and model Anja inflammation and acidity. 5. Barber and Parlour range is sold in 250 Boots Rubik. “There is nothing Rootsandbulbs.com 6. Florence Adepoju stores and that plans more inspiring than

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36 WWD BEAUTY INC The Airbrush Makeup Innovation INSTANT, EFFORTLESS SKIN PERFECTION. www.temptu.com/pro

Available at: Bloomingdales, Nordstrom, Net-a-Porter, Cos Bar BEAUTY BULLETIN

PLACES 64-66 Redchurch St., E2 Albert Museum housing Celestine Eleven Hiroshi Fujiwara’s Tokyo- pastel colors as the latest 7DP; barberandparlour. intriguing objets. The This fashion boutique based bath, body and hair trend in London. Perfumer H com Aromaphone dominates that’s also a library, home fragrance brand. Pop-up braid bars by Perfumer H belongs to the the room—it’s a scent apothecary, tea bar 151 Curtain Road, EC2A Hershesons in Topshop new breed of experiential Content Beauty/ trumpet that diffuses and yoga school with 3QE; goodhoodstore. (they were first to do a creative retail spaces Wellbeing fragrance into the air beauty rooms feels com blow-dry bar), The Braid that celebrates and Content Beauty/Wellbeing alongside its more like it should be in New Bar in Selfridges and demystifies the workings squeezes an awful lot diminutive counterpart, Mexico rather than Burlington Arcade Keash Braids in Boxpark of perfumer Lyn Harris’ into very little space. the Chalk Room Diffuser, Shoreditch. Alongside Brit The world’s first-ever are fueling the trend. laboratory. The result is It’s every natural and a silky tablet of etched designers including J. W. shopping arcade, which part sitting room, part organic skin-care fan’s chalk. On the shelves are Anderson and Meadham during Victorian times The Hole Truth shop, part-study-cum- destination for globally beauty products made Kirchoff, the apothecary housed milliners and What started with a few Sixties-school-science-lab sourced emerging brands from seaweed harvested dispenses products from fancy-goods shops on influential magazine with Harrison’s dog, Pop, including Absolution, from the Kent coast Dr Jackson’s, Butter the ground floor with editors dropping by guarding the door from RMS Beauty, Pai and Tata and with GPS Elixir, Karuna and Jao. prostitutes on the upper Maria Tash’s New York his own velvet chair. Harper. An on-site clinic coordinates that will take Aesthetician-in-residence floors, is in the midst boutique for a little bit of 106a Crawford St., W1H offers complementary you to the places that Nichola Joss is known for of a revival. Ever since ear decoration in between 2HZ; perfumerh.com medicine and natural- inspired the scents. her “Inner Facial,” in which Chanel opened its shows has turned into beauty treatments. 106 Shoreditch High St., the face is massaged from beauty boutique here, a cross-pond frenzy for Barber & Parlour 14 Bulstrode St., W1U E1 6JN; haeckels.co.uk inside the mouth. the arcade is fast multipiercings. Tash The hip Barber & Parlour 2JG, beingcontent.com 4 Holywell Lane, EC2A becoming fragrance popped up at Josh Wood’s (an offshoot of the Soho 3ET; celestineeleven.com central with Penhaligon’s, Atelier during London House group) combines Haeckels Boxpark Frédéric Malle, Roja Fashion Week servicing Cheeky Parlour, a fast Named after Ernst Boxpark is the world’s Goodhood Dove and By Kilian all those with a penchant for and furious hair and nail Haeckel, the German first pop-up mall made One of the best indie- taking up residence. decorating their tragus, bar headed up by Josh biologist and naturalist, from shipping containers. fashion boutiques in 51 Piccadilly, W1J 0QJ; rook, conch, orbital, helix, Wood of Atelier renown, Haeckels is a Three years in, it’s now London, this also has a Burlington-arcade.co.uk daith or lobe. with a barber shop, café, wunderkammer lined attracting mainstream great selection of cult restaurant, bar and with old packing cases beauty brands including beauty and grooming TRENDS Dark Tidings cinema. from the Victoria and Smashbox, Estée goodies from , London’s more Lauder, Bedhead by Tigi, Comme des Garçons Braid Parade experimental beauty 1 Diptyque and Kiehl’s. fragrances, Dr Jackson’s, Cornrow, fishtail, stylists (remember, we 2-10 Bethnal Green Road, Rodin, Sans [ceuticals], undercut, French—braids did weird hair colors E1 6GY; boxpark.co.uk Sacha Juan and RetaW, have taken over from first), have been slicking on vampish lip colors 2 from burgundy to black for a few years now. But suddenly this summer the counterintuitive (for summer) shade went from underground to red carpet, spearheaded by Rihanna. Now, with A/W’s Gothic romance it’s (almost) mainstream.

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38 WWD BEAUTY INC

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THE 2015 BEAUTY INC AWARDS

From the dominance of the digital elite to the emergence of the new Indies, 2015 was a transformational year for the beauty industry.

ILLUSTRATION BY TIM BOELAARS

BY PETE BORN PHOTOGRAPHED BY MARK MANN MOTION MAN IN OF THE YEAR VISIONARY VISIONARY WHERE HE GOES, OTHERS FOLLOW: BY FEARLESSLY VENTURING INTO UNCHARTED TERRITORY—BE IT EMERGING MARKETS OR IN THE DIGITAL REALM—JEAN-PAUL AGON IS FORGING NEW PATHWAYS TO SUCCESS FOR THE GLOBAL BEAUTY INDUSTRY.

EAN-PAUL AGON IS AN EXPLORER AT HEART, oday’s mall visit is indica- tive of how Agon keeps as he traipses across untested markets, tapping the pulse of the global industry. Store visits dou- into unfamiliar cultures, seeking out differences ble as reality checks and in human behavior and shaping a new world of Teven as inspirations for future acquisitions, lead- beauty consumerism, both in the flesh and online. ¶ ing to insights not easily made in the C-suite. “It’s not based on numbers; it’s Agon, the chairman and chief executive officer of based on what you see in the store,” Agon the world’s largest beauty company, is waging a says. “What I see is a market that has changed more in the past three years than J quiet revolution by trying to add one billion new in the past 30 years,” he continues, noting in particular the rapid fragmentation and faces to L’Oréal’s customer rolls, faces not usually segmentation of the businesses. associated with the headquarters in Paris and New York. ¶ “It will A new kind of consumer has emerged, one with different expectations, Agon says, mean creating a new L’Oréal,” says Agon, who can easily be in Kenya and digital is a completely new game. The veteran executive—he started his career at or Silicon Valley or Mumbai or sailing his boat through the Greek L’Oréal—is clearly energized by the evo- Islands. His impact on beauty—both on L’Oréal and the industry lution. “The market today is much more exciting,” he says. “There is a new type of overall—has been equally as far-flung, as others follow the global competition. Innovation has to be much faster. You have to be much more agile, pathways he forges. ¶ A recent autumn day found Agon in the U.S., much more nimble. leading a squad of 20 executives, some from France, on a reconnais- “I am more optimistic than ever because the beauty market has great perspectives,” sance mission into northern New Jersey mall country. Agon continues. “We see with the evolu- tion of consumers around the world, the Methodically they moved through Gar- retail chain that L’Oréal acquired nearly a use of beauty products will just grow. It’s den State Plaza in Paramus, pausing to hear decade ago as he began his tenure as ceo. amazing—the growth of the makeup mar- managers give a rundown on their busi- That Agon is acutely interested in the for- ket, which is very linked to the digital era,” nesses, or to huddle around a competitor’s tunes of The Body Shop, despite its diminu- Agon says, pointing to the simple example counter and trade notes, as the group cara- tive size compared to the L’Oréal empire—it of the practice of taking selfies. “The more vanned from one brand to another through comprises just 3.9 percent of the total busi- that people take photos of themselves, the Macy’s, Sephora, Kiehl’s, The Body Shop, ness—is typical of the hands-on ceo. more they care about the way they look. Nordstrom and Neiman Marcus. Store visits “He stays close to the business,” says There are some basic trends right now that are a long-standing inbred habit of genera- Karen Fondu, president of L’Oréal Paris USA, are really in favor of the development of tions of L’Oréal executives, but Agon pursues who worked with Agon when he led L’Oréal beauty products worldwide.” the practice with renewed gusto. USA from 2001 to 2005. Citing his “commit- Agon is equally as bullish on the oppor- Business is generally good, at least in the ment to excellence, incredible energy and tunities afforded by emerging countries, prestige market, and he mostly cheers the strategic insight,” Fondu says, “There has noting that he spends about 40 percent of teams on. He becomes clearly elated over never been a meeting when I didn’t walk out his time traveling. “What you see every- the news that The Body Shop’s sales trend saying, ‘Why didn’t I think of that?’” where is a real appetite of women in these has leapt off the balance sheet following an “He has a great vision for the company, countries for beauty, even more than in August renovation. for brands and for the way of working as your so-called developed countries,” he says, “I always said I was sure this would be well,” says Frédéric Rozé, president and ceo musing that perhaps African women have successful,” Agon says of the often sluggish of L’Oréal USA. the keenest appetites for beauty products.

44 WWD BEAUTY INC Women in South Africa change their hair- and detailed interview recently. Noting that styles on average 8.5 times a year, Agon he redefined the company’s fundamentals says, and those in Kenya do it as much as in 2009 and 2010, he says, “The mission 14 times a year. we defined was [one] as beauty for all… bringing the best of beauty to all consum- ut the uncharted terrain ers wherever they are, wherever they shop, he compulsively explores whatever company they live in—men and is not just cosmetics sell- women, all ethnicities, everything.” ing floors or chunks of He was raising his flag atop a founda- geography. In late Octo- tion built by Owen-Jones, who first decreed Bber, Agon led his entire that L’Oréal should be truly multiethnic 1 executive committee on a and offer all schools of beauty—European, one-week tour of Silicon Valley. “We want to American and Asian. Agon’s vision takes be at the forefront of the digital revolution globalization down to the grass roots and AGON ON THE MOVE in the beauty industry,” Agon says. colors in a new world. “In many countries Agon has been given good marks for all over the world, more and more con- Jean-Paul Agon criss-crossed the globe opening making inroads into the digital space. “He sumers want products and brands that are new markets and explorig opportunities. understood that everything is going to relevant to them,” Agon says. “Sometimes change very quickly,” says Robert Salmon, the big brands don’t feel relevant for each a retired L’Oréal veteran of 37 years, whose consumer. Sometimes consumers turn to last position was in the inner manage- local brands that they feel understand ment circle as vice president of strategic them better. planning. “The universalization idea is a way to “L’Oréal has caught up with its peers and compete with the local [brands] because probably somehow positioned itself ahead,” we want to make sure that our brand, even agrees Celine Pannuti, an analyst at J.P. if it’s an international brand, is also at the Morgan Cazenove. “The digital revolution same time relevant market by market. Each

is a cornerstone of the group’s strategy that year it proves to be even more right.” 2 fits well with its entrepreneurial culture.” Agon’s first proposals made six years Agon also was an early pioneer on the ago now echo across the industry with 3 frontiers of corporate responsibility and competing marketers referring to the need sustainability. Carol Hamilton, the newly for “local relevance.” He explains the way named group president of L’Oréal Luxe the theory works in practice, using L’Oréal USA, remembers trying to gather support in Paris as an example, which Agon says is 2002 for her Ovarian Cancer Research Fund the number-one beauty brand in the world program, when Agon was still freshly at the with sales of more than 5 billion euros helm. “He was the first ceo to embrace phi- [$5.3 billion at current exchange]. The lanthropy and really understand it,” Hamil- brand’s product catalogue is very different ton says, citing Agon’s Sharing Beauty With in France versus India versus China versus All program, which includes sustainability Brazil. “It’s not always the same products, targets and philanthropic programs. “He’s it’s definitely not the same formulas,” Agon brought global leadership and then expan- says. “It’s the same brand, the same vision sive leadership beyond business results of beauty, the same psychographics in terms 1. In India... through his understanding.” of consumers, but it is adapted to the local 2. Kenya... 3. South Africa... But it is Agon’s worldview and his rein- needs because a woman in Rio doesn’t have 4. France... vention of globalization that sets him apart the same needs or desires or dreams as a 5. And Greece as 4 from the pack. Like other young executives woman in New York or Shanghai or Mum- a young exec. at L’Oréal, he toiled for much of his career bai, so you need to have big brands that in the shadow of his predecessor, Sir Lind- have a global appeal and a global equity. 5 say Owen-Jones, who took a French-ori- But then you need to be able to adapt the ented export company and built it into a brand continent by continent.” global monolith and industry leader. He adds, “The new game is that consum- Agon went a step further in 2011, when ers all over the world want great products; a few months after adding chairman to his they want innovation, but they also want ceo title, he unfurled a doctrine of “univer- relevance. By definition, it’s difficult to be salization.” This coincided with creating a with one formula in our industry [and be] goal of adding one billion new L’Oréal con- relevant to everyone.” sumers, doubling the company’s customer In order to produce all this relevance, base, by 2020. “It’s going to be a universal L’Oréal has created a network of research

Photos courtesy of Jean-Paul Agon Jean-Paul of courtesy Photos company,” Agon says during a wide-ranging and development hubs stretching from the

WWD BEAUTY INC 45 U.S. to France to Japan to China to Brazil the differences between people, the differ- to India and finally South Africa, which is ent habits, the different attitudes to trans- in preparation. late that into trends or products or ideas.” Agon recently went on a tour of Kenya, AGON’S IMPACT During a period of ups and downs for South Africa, Angola, Ghana and the Ivory the global beauty industry, the strategy is Coast. “That’s the future of beauty, too,” working. Since Agon became ceo in 2006, A look at L’Oréal’s annual turnover during he says. overall sales derived from new markets Analysts applaud the strategy. “He made Jean-Paul Agon’s tenure as chief executive officer have grown to 39.6 percent of L’Oréal’s total L’Oréal more global and local at the same and the growth in new geographies. 2014 turnover of $29.94 billion. “All these time, to conquer new consumers in emerg- new markets have become the number-one ing markets with beauty products from region of L’Oréal, which was not the case $29.94 billion L’Oréal, but at the same time to tailor 10 years ago,” he says. products to address the different needs and Asked how many new consumers L’Oréal 30 meanings of beauty in emerging markets,” $19.84 billion has acquired of that one billion target, Agon Pannuti says. “That is the concept of ‘uni- replied, “We don’t know the number exactly versalization,’ which resonates even more at 20 day by day because by definition we can’t the moment, when there has been increas- count them. In the past five years [since

ing pressure in emerging markets because 10 the goal was announced], we probably have consumers are coming back to core values, gained something like 150 million, 200 mil- core identities and in some instances relate lion customers.” 0 better with local brands.” He adds, “There are a little bit every- 2006 2007 2008 2009 2010 2011 2012 2013* 2014* where, mostly in the new markets. The he spark that touched off * The 2014 figures do not include , growth we are having is due to new con- universalization was the which accounted for 826 million euros in 2013. sumers. If you take China, it’s obvious. I call to attract another Source: WWD Beauty Top 100 started China in 1997, so we did zero busi- billion consumers. “All of ness [then]. We are going to do this year this is very consistent,” more than two billion euros—probably 100 Consumer Products 49.7% 2014 Agon reflects. “It means 52.8% million new consumers to the company T 28.6% 2005 the L’Oréal we will see L’Oréal Luxe since we launched in China. 25.2% now is a completely different L’Oréal, where Professional Products 14% “China has become our second country,” we will have as many Chinese consum- 14.5% Agon says, noting that new consumers have ers as Americans and as many Indians as Active Cosmetics 7.7% also come from India, Mexico, Indonesia, 6.9% Europeans. Thailand, Turkey, Colombia and Peru. “That’s also why I insisted five years ago He also says whenever L’Oréal has made on this idea of a billion new consumers— acquisitions, those brands have brought

because I understood that it was something SALES BY DIVISION new consumers along with them. Those very simple to make everyone internally at include Nice & Lovely in Kenya, which L’Oréal understand exactly that the new Agon estimates sells 40 million units a L’Oréal, we have to build it. It’s going to be year, netting out to maybe 20 million new different, but in order to build it, we need consumers. everyone mobilized. We need the mobili- International experts point out that in zation of scientists in R&D to understand order to prosper in the emerging world, the that now we don’t do hair care or skin care company also has to diversify its manufac- for Caucasian people, but we do it for Latin turing capacity by building plants that can American, Asian and African people. So it make products that retail for as little as $2 is different.” each. Agon says that the last four factories Hamilton says, “He’s totally a global that L’Oréal built are located in emerging leader. Jean-Paul has transcended French SALES BY GEOGRAPHIC ZONE markets, including Indonesia and Russia. culture. He is truly fascinated with and The company has been decentralizing embraces local culture. He doesn’t try to 4.8% Africa and the everywhere. Only 9 percent of L’Oréal’s 2.6% Middle East gloss over the differences, but to under- 4.8% Eastern Europe global sales are done in the home market stand them and use them to drive the busi- 7.3% of France, and 75 percent of the business is ness. When you are with him you feel that 6.1% Latin America done outside the eurozone, according to the 8.6% he understands the world in a very big 9.7% Asia Pacific company. The U.S. has become more impor- way. That is something he brought to the 21.1% tant in the last five years, with gains made 27.2% North America company. It also allows him to see things 24.9% by brands such as L’Oréal Paris, Maybelline through local eyes.” 47.4% Western Europe and Garnier, as well as key acquisitions like Agon says, “You need to have this pas- 35.5% Urban Decay, Clarisonic and NYX. The U.S. sion and this curiosity because it’s all about Source: L'Oréal market is 25 percent of the total business curiosity, the curiosity about understanding of L’Oréal worldwide, which is as much,

46 WWD BEAUTY INC “The problem is that we have to represent the brand so that it looks new and it doesn’t look like the old Body Shop,” Agon says. “That was The Body Shop of our moth- ers or the Millennials’ mothers and they want their brand. I was really enthusiastic when we saw the store in the mall because it’s exactly that. When you enter, you don’t have the impression that it’s the brand of the Seventies that has been refreshed. You have the impression that this brand has been created the week before.” Agon admits The Body Shop “is not growing at the same pace as the company, but I would bet that next year or the year after, we will be back in the average rhythm of L’Oréal.” His other acquisitions have received much higher marks. Jack Wiswall, a former president of the Designer Fragrance Divi- sion who retired from L’Oréal USA in 2006, says one indication of Agon’s passion for the business and drive is his love of giving birth to brands. “He loves building businesses,” Wiswall says. “He loves to get these smaller compa- nies. That is a change from [Owen-Jones] because OJ was really the man who wanted brands that the world knew. Jean-Paul wants brands that he can nurture and make huge around the world.” But for all of the talk of brand-building, what makes Agon smile the most broadly is the topic of the consciousness raising pro- grams he has initiated. Instead of having exactly, as the total eurozone. “We are more ies, it’s not with traditional TV anymore. a Champagne-fueled party in 2009, when a dollar company [than a euro company] Even a brand like NYX has integrated digi- L’Oréal turned 100, teams of employees because there are many other markets that tally everywhere. When they invent new around the world organized community are linked to the dollar—China and Hong products, they discuss the ideas with their projects, such as repairing roofs in Peru Kong,” Agon says. bloggers and vloggers.” The new and helping children in Thailand. The event When that monetary linkage is factored Digital is also an effective medium for “game is that was such a success, that it is being repeated in, 40 percent of the business is done in hair marketing. “If you want to change your consumers as Citizen Day. In one of the more unusual dollar-oriented countries. , you just go on the Internet and all over moves, Agon also initiated an Ethics Day. He see examples and how-tos, tutorials and organized a Web chat with 45,000 or 50,000 eating at the heart of the what products to use. It’s fantastic,” he says. the world employees and fielded questions. Agon says U.S. expansion is the West When Agon became ceo in 2006, Owen- want great the employees sent in 1,000 questions on Coast with its promise Jones was in the process of acquiring The products; ethics and he managed to get through 150. of a digital future. “Cali- Body Shop, which some financial analysts It pays off. According to the company, fornia is a place where have taken a dim view of. One financial they want L’Oréal has been named by Ethisphere as Bthere is a lot of creativity source called the move “terrible,” but the innovation, the world’s most ethical company six times. and new ideas probably retail chain’s fortunes appear to be turning, but they Asked what is the one achievement he linked from everything that is happening as indicated by the New Jersey mall tour. wants to be known for during his tenure, [there] from Silicon Valley to Hollywood. It Agon explains that it is a tiny proportion also want Agon refers to his dedication to sailing. “I is especially true of makeup. Urban Decay of the business and therefore manageable. relevance.” consider myself to be the skipper of the and NYX Cosmetics are two California- He also maintains that young Millennial L’Oréal boat,” he says. “We are crossing a based companies and they have a new type consumers are seeking the five qualities large ocean sometimes with easy weather of creativity and freedom, which is digitally in a brand that The Body Shop happens to and sometimes with difficult weather. My based and very exciting,” Agon says. represent, including natural ingredients, responsibility is to skipper the boat and He continues, “Makeup is very digital ethical principals, environmental aware- bring the crew to new horizons.” today and if you want to touch beauty junk- ness, efficacy and value relative to price. —With contributions from Jennifer Weil

WWD BEAUTY INC 47 THE 2015 BEAUTY INC AWARDS Honoring the year’s most innovative people, products, trends and places. PRODUCT OF THE YEAR

MASS PRESTIGE

HAIR FRAGRANCE HAIR FRAGRANCE OGX Argan Oil Elizabeth Bumble Burberry of Morocco Arden Fine and bumble My Burberry Donald Robertson Quick! What’s the Fragrance Mist Surf Infusion Eau de Toilette If Donald Robertson were a number-one-selling To the risk-taker go the Collection song, he’d be “Love Shack” shampoo and conditioner rewards. Burberry raised Body mists have provided provided a master class by The B-52’s: slightly zany, in mass channels? It some industry eyebrows mass retailers with a in how to energize a supercolorful and utterly isn’t Suave, Pantene when it took its fragrance whiff of optimism in perennial bestseller and irresistible. Robertson, or Fructis. That honor and beauty license in- an otherwise weary simultaneously ride whose official title is creative goes to OGX, which has house two years ago. fragrance category. the wave of emerging director at large, The Estée posted high-double-digit But the results are proving “They were our biggest product trends. Surf Lauder Companies, is also gains throughout 2015, the naysayers wrong. fragrance success of the Infusion combined the an illustrator nonpareil who according to IRI. OGX Beauty revenues rose year and really resonated sea salt-infused formula has exploded on Instagram conditioner sales are 4 percent in the first half with our shoppers,” of Bb’s Surf Spray with (@drawbertson), with more than double that of of 2015, on top of a 26 said a source at a mass a cocktail of tropical oils 165,000 followers. But the next competitor. “It is percent increase in 2014, retailer. The mists offer such as coconut, mango he’s expanded far beyond our strongest performer,” to about $285 million at lighter versions of Arden’s seed and passion fruit social media, from acting as said a retailer from a current exchange. Key to popular nameplates such to soften and condition. artist in residence at Violet major drug chain. OGX’s its success: My Burberry as Curve, Sunflowers The result produced Grey to creating an entire success is being driven fragrance, of which the and Lucky You and have soft, beachy waves—a merchandising platform for by a focus on compelling eau de toilette version easy-to-swallow price concept that pumped the Chelsea boutique Story to ingredient stories and launched in the spring tags, below $10. The up both landlubbers and conceiving lipstick launches fragrances. Among the with characteristic buzz combination has enabled oceanistas alike. for Smashbox. Robertson most popular—this year’s and an attention to detail mass retailers to compete has ushered in an era of launch of Argan Oil of SKIN CARE that carried all the way against specialty chains creativity and imagination Morocco, which made through to the counter like Bath & Body Works. Givenchy where stasis used to rule. the still-strong demand experience. And while traditional for argan oil accessible Le Soin Noir “Something that was once mass fragrance sales are to consumers across MAKEUP promotional has now become expected to be down for Masque channels. an art event that connects calendar 2015, retailers Dentelle Temptu Air brands with customers,” he predict body mists Call it the ultimate tool MAKEUP Many talk about says. “It’s a whole new way will produce at least for the selfie era: Six combining the runway of reaching out and creating Maybelline a 7 percent gain. years after launching with retail but Givenchy a commotion.” Robertson a professional-only OF THE YEAR Lash actually achieved it this credits Leonard Lauder and airbrush machine, Temptu Sensational SKIN CARE year with Le Soin Noir John Demsey with giving him introduced a consumer- Masque Dentelle. Call the freedom to pursue his Full Fan Effect Neutrogena friendly version in August. it the most luxe sheet creative vision and then apply Sleek, compact and Mascara Hydro Boost mask ever: Inspired by it to the company’s various super-light (it weighs less Without blinking, mass Water Gel house designer Riccardo brands. “I am very antifocus than a pound), Temptu market retailers quickly Tisci’s use of facial group and I always have Water, water everywhere: Air is also super simple named Maybelline’s embellishments on been,” he says. “Instagram is The ultimate hydrator to use: slip a pod into the Lash Sensational Full the runway, Givenchy’s the ultimate truth.” was singled out by handle, be it foundation, Fan Effect Mascara as product developers retailers from Ulta to bronzer or blush, choose the best makeup launch created a black lace floral Walgreens as the biggest a setting and—voilà— of the year. And the face mask that comes skin-care trend of 2015. picture-perfect skin in numbers support their individually packaged Helping to fuel hydration an instant. Retailer and enthusiasm with IRI with a serum containing as a category was consumer response was data for the 52 weeks black algae sap and oat Neutrogena’s Hydro Boost equally as fast. “We knew ended Sept. 6 revealing and kigelia extracts. Such Water Gel, the number- it would be a hit, and it the item is already the chicness doesn’t come one new item in skin has exceeded all of our sixth top-selling mascara cheap, of course—the care according to data expectations,” said David in multiunit channels selling price is $330 for INFLUENCER CREATIVE from Nielsen. Shoppers Olsen, vice president (against some heady four masks—but the eager to tap into the new of global beauty and competition), with sales point of difference the generation of water- grooming at Net-a-porter. surpassing $30 million. mask brought to retailers based and hyaluronic acid “The feedback from What is it about Lash and Givenchy alike was products enthusiastically customers is that it is Sensational that’s created priceless. embraced the gel-based convenient and easy to such, well, fanfare? The moisturizer, helping to use—some even say life- secret is a special brush keep Neutrogena in pole changing.” that unfolds layer upon position for skin-care layer of lashes for a full sales.

ILLUSTRATION BY ULI KNORZER BY ILLUSTRATION fan effect.

PHOTOGRAPH BY CLAIRE BENOIST WWD BEAUTY INC 49 AD CAMPAIGN OF THE YEAR

Estée Lauder That Estée Lauder signed Kendall Jenner, one of the hottest young celebs of the style world, in a bid to increase its relevance among Millennial consumers is not so eye- popping for an industry built on image. But how the brand has since capitalized on the social media phenom that is the Jenner juggernaut—such are the strategies that business school case Kendall Jenner studies are made of. The had a red-hot brand has effectively impact on Estée harnessed Jenner’s vast Lauder's sales. following of 58 million people and counting, executing initiatives online and off designed to broaden its appeal. From Jenner’s specially created matte-red lipstick that has become the top-selling shade on Lauder’s e-commerce site to in-store appearances to promote Modern Muse , for which Jenner is the face, Lauder has proven that it has the chops to make one of beauty’s key heritage brands also one of its hippest. MASS Lauren Brindley Group Vice President and PRESTIGE General Merchandise Shashi Batra & Manager, Beauty and Credo Beauty , Walgreens In just a few months on While consumers today the job, Lauren Brindley are more aware than is making her mark on ever of what they put on Walgreens, overseeing their bodies as well as the further rollout of in them, natural beauty Boots’ proprietary brands has remained largely the CORPORATE to 2,000 more doors as domain of the health-food well as a test of major store. Until now. Credo Boots beauty branding in Beauty, the brainchild Houston. She’s already SOCIAL of industry veteran getting great reviews Shashi Batra, moved the from colleagues and category into the realm suppliers alike. “As we of luxe retail experience, RESPONSIBILITY increase our focus on launching online and beauty and personal care, with a 1,300-square-foot Lauren brings strong store on San Francisco’s OF THE YEAR customer-led leadership Fillmore Street. The and industry experience,” timing couldn’t be said Linda Filler, better: globally, natural Walgreens’ president of Sundial Brands on the streets of New personal-care sales retail products and chief Sundial Brands is lauded York, the company’s climbed 10 percent last merchandising officer. for its embrace of brands, including Shea year to almost $33 billion, Brindley may be new to corporate responsibilities Moisture, are now retailed according to Kline & the U.S. and Walgreens, as much as it is credited at major chains from Co., a figure expected to but she’s no stranger to with ushering in fresh Target to Walgreens. hit $50 billion by 2019. Boots, where she helped thinking in merchandising Giving back has been a Credo stocks about boost the retailer’s for the multicultural hallmark of Sundial. Not 100 brands, including market share in premium market. Founded by only are the items made Vapour, Ilia, Tata Harper beauty and fragrances by Richelieu Dennis, his from natural, certified and RMS Beauty. One of upgrading the shopping mother and his college organic and ethically OF THE YEAR its most popular online experience and attracting roommate, Nyema sourced ingredients, the features is Healthy Swaps, desirable brands. As Tubman, Sundial hit a company adheres to what which suggests natural Walgreens solidifies its chord with consumers Dennis calls “community beauty replacements for hold on the market with looking for skin and hair commerce,” a purpose- mainstream products. its Rite-Aid acquisition, care created to address driven model that builds While naturals is still look for Brindley to the concerns of a variety stronger communities relatively small compared continue to bring that of hair textures and skin and better business. to the conventional merchandising magic colors. Originally sold Ten percent of its Shea market, Batra is thinking Stateside. Moisture proceeds go to big: “We are going to women-led businesses differentiate ourselves or to support the Sofi with merchandise, Tucker Foundation. The education and the foundation, named after physical environment, Dennis’ grandmother, the and create a specialty creator of the formulas beauty destination,” he Sundial uses today, said at the opening. “It provides financial grants is what the natural-food to organizations that markets have done for seek to economically grocery shopping, except

NEWCOMER NEWCOMER Sundial has empower women. Thus in beauty.” pioneered the far, more than $5 million concept of has been awarded, "community primarily in the area of commerce" women's education and with brands like entrepreneurship.

ILLUSTRATIONS BY ULI KNORZER BY ILLUSTRATIONS SheaMoisture.

WWD BEAUTY INC 51 MASS including e-commerce, gained 10 percent during Target the year. That’s exactly Over the past couple the path that chief of years, Target has executive officer Mary overhauled its entire Dillon has strategized. beauty department in “We are not complacent,” a bid to redefine the RETAILER she said earlier this year. mass market shopping “We’re always going to experience. But that was be in a mode of testing simply to set the stage of OF THE YEAR and experimentation. what was to come. In the We can’t stand still.” The last year, Target expanded chain expects to drive its premium skin-care comparable sales in the assortment, anchored by range of 8 to 10 percent AmorePacific’s this year and aims to range from South reach 1,200 doors by Korea, and broadened 2019. The effort is paying its offerings of naturals off. “It’s the best box out and multicultural beauty there,” said Oppenheimer and grooming products. analyst Rupesh Parikh, Among the additions: calling it the go-to lines such as Nuxe, S.W. place for suburban Basics of , beauty enthusiasts. “It Charles Worthington continues to enhance its London Salon at Home, merchandising, which is Carol’s Daughter and one of the keys to their Walker & Co. brands. The success.” retailer also signaled its intent to double down DIGITAL in beauty, acquiring the Sonia Kashuk brand after Net-a-porter more than 15 years as its Who says there’s fashion exclusive retail partner. and there’s beauty and The move creates a never the twain shall platform for Target to meet? Since launching strengthen its product the beauty category design and development three years ago under skills, and could mean the direction of David more proprietary lines Olsen, vice president are to come. Said Brian of global beauty and Cornell, chief executive grooming, the high- officer of Target, “This style e-commerce site acquisition solidifies a key Net-a-porter has carved differentiator within our out a thriving beauty beauty business.” business. Its approach: Rigorously curate the PRESTIGE best products from the most luxe lines, an Hermès approach that seems to Parfumerie be working. It’s amassed Axel Dumas represents more than 380,000 the sixth generation beauty customers of his family to lead and counting, with an Hermès, but there’s average household nothing old-fashioned income of $300,000 about his approach to and higher. Net-a-porter retailing. In September, has also been successful Hermès opened a next- in attracting a global generation Parfumerie in clientele, with 40 percent Manhattan’s Brookfield of its sales coming from Place, its first store the U.S., 40 percent devoted solely to beauty from the U.K. and Europe and also its first to use and 20 percent from extensive interactive the Asia-Pacific region. digital displays. Why New And while still small in York? Aside from the fact of downtown and what openings. “Based on early SPECIALTY to expanding its presence terms of some more that the U.S. is one of they are doing here at reaction, it could possibly across the U.S. In 2014, established retailers, Hermès’ largest fragrance Brookfield Place, we be a concept we would sales reached $3.24 Net-a-porter has proved it markets, Brookfield thought it was a great roll out to other parts of Ulta Beauty may already billion, a 21 percent can move the merch—just offers luxury neighbors space to do the first the U.S. and perhaps even be one of the fastest- gain over the prior year; ask Hourglass, whose and plenty of foot traffic. perfumerie,” said Robert other parts of the world.” growing retailers in the total same-store sales, Ambient Palette, all 1,000 “With the revitalization Chavez, U.S. president, U.S., but it’s just picking of them, sold out in one

who didn’t rule out more up speed when it comes day flat. CLAIRE BENOIST BY PHOTOGRAPHS

52 WWD BEAUTY INC AmorePacific AmorePacific didn’t just ride the craze for South Korean beauty products this year—it was the K INDIE wave. Over the past five years, the Seoul-based group’s sales have soared, OF THE YEAR from $1.84 billion in 2009 to $4.47 billion in 2014, an increase of 143 percent. Its proprietary cushion compact, first launched in 2008 and now available across its spectrum of 13 brands, posted growth of 1,000 percent year-on- year in 2014 alone, with more than 26 million units sold globally. And that’s before AmorePacific started licensing the technology to others such as L’Oréal and Dior. Other trends it’s helped

OF THE YEAR kick-start include water- based gel moisturizers. While the majority of the company’s sales have been in Asia, this year it said it intends to amplify its U.S. presence, with the goal of being a top 20 brand by 2020. If 2015 is any indication, the company is well on its way. DISRUPTOR

Charlotte and continued success of Charlotte Tilbury has Tilbury been incredible,” echoed From her flaming red Net-a-porter’s David hair to her penchant for Olsen. As for Tilbury sky-high platform pumps, herself, the exuberant her celebrity clientele to makeup artist has made her fashion show roster, it clear she’s only getting everything about makeup started, noting that she artist Charlotte Tilbury is wants to be a leader, not larger than life. And that a follower. “Unless I can includes the sales results do it better,” she declared for her namesake product earlier this year, “I don’t line, which launched in the want to do it.” U.K. in late 2013 and in the U.S. last year. Retailers report that the skin-care and makeup brand has exceeded expectations and is gobbling up market share from more established competitors. “The brand has exceeded our expectations in every way,” said Patricia Saxby of Bergdorf Goodman. “The launch

WWD BEAUTY INC 53 DIGITAL INNOVATOR OF THE YEAR

MASS PRESTIGE According to The NPD Group, for the first half of Dove Anastasia 2015, Anastasia Beverly Dove harnessed the Beverly Hills Hills was the 14th-ranked power of digital to expand Talk about David brand in prestige color its Self-Esteem Project outwitting Goliath: cosmetics. Its growth in into ever more areas this Anastasia Beverly Hills online sales is equally year. That the brand can was the most-liked beauty as impressive: For the produce a tear-inducing brand on Instagram by same period, the brand video is well-known, and far in 2015, not bad for ranked number 10 in total it did that in 2015 with the 18-year-old label makeup sakes, up from its “Love Your Curls” founded by brow guru number 22 in 2012. tribute, before taking Anastasia Soare, who has the campaign viral with successfully activated SPECIALTYI its immensely popular a cadre of followers to curly-hair emojis. But post about her brand. Glossier it also tackled one of Soare was an early Call it the perfect the biggest issues in The most adopter on the platform Millennial mash-up. cyberspace—namely, plugged-in and today posts at least Glossier, a play on online bullying—with a brands in beauty. once every three hours “dossier,” and created by multimedia campaign Clockwise daily. The brand has been Into the Gloss founder that launched during from top: Dove, particularly effective Emily Weiss, was borne Hollywood’s biggest event Anastasia Beverly in using Instagram out of Weiss’ desire to of the year. The brand Hills and Glossier. to expand consumer combine community, issued a call to action awareness—and retailer content, product creation to consumers on Oscar interest—beyond its core and commerce. The night, using the Academy brow category and into results, a tightly edited Awards red carpet to kick contouring, lip color and skin-care lineup, have off its #SpeakBeautiful more. The strategy has captured the attention of campaign. Designed to paid off in terms of sales, the entire industry. “We’re combat the culture of which industry sources trying to create one criticism about physical indicate have quadrupled. holistic beauty experience looks that permeates where you can be inspired social media, the by other women, both the campaign launched with people we’re interviewing a concurrent TV spot and the community and Twitter campaign. contributing to the According to research conversation,” said Weiss, from Dove, last year earlier this year. Glossier women sent more than launched online on its own five million negative Web site, but Weiss has tweets about beauty and shown herself willing to body image. While the think outside the screen brand declined to connect for distribution, too, with the #SpeakBeautiful pop-up shops and more, campaign with sales and has partnered with trends, Dove was able to the likes of Net-a-porter assess that two weeks and Nasty Gal, too. Said after the Oscars, there Weiss: “We’re looking to were 43 percent fewer provide context around negative tweets about the commerce experience beauty versus the same in a way where [the two-week period the year customer] feels heard before. and represented.” PHOTOGRAPH BY CLAIRE BENOIST; ILLUSTRATION BY ULI KNORZER BY ILLUSTRATION CLAIRE BENOIST; BY PHOTOGRAPH

54 WWD BEAUTY INC LAUNCH OF THE YEAR MASS over time,” said John that isgoing to cycle out commit to atrendy color don’t have to overly are affordable. People wide range of colors that great pigmentationina amazing formulas with opportunity is to have saw agap where the kit—within ayear. “We single item to $40for a mostly from $5 for a lipsticks, etc., priced units—blushes, shadows, hundred stockkeeping has rolled outseveral in thebeauty sector, it equivalent of fast fashion Millennials inmind. The was created with sold online. ColourPop cosmetics. And it’s only hottest category, color brands inbeauty’s of thefastest-growing but in2015, itwas one been inconceivable, model would have ColourPop’s business Five years ago, ColourPop daughters,and Taylor, Ally time withherteenaged business to spendmore by stepping back from the CoverFX—but itwas only MAC before cofounding builder—she was at veteran beauty brand- Jenny Frankel may bea Nudestix PRESTIGE site andtryanew brand.” willingness to go ona Web converged to change her is following—this has and theinfluencers she she isbuyingandwhere, purchasing behavior, what year,consumer’s “The Laura Nelson earlier this Kathleen Lights. Said influencers suchas YouTube andInstagram collaborations with in creating product drive sales, particularly in usingsocial mediato pop, hasbeenits prowess makes thebrand, well, sister Laura. What really Seed Beauty withhis Nelson, whofounded good thing.” disruptive, butthat’s a said Frankel. “We’re have avery clear vision,” stake inNovember. “We acquired a30percent Consumer Growth in 2016 and Alliance is expected to double Nudestix’s doorcount is having agrowth spurt: Though young, thebrand its social mediaprofile. faces, andalso manage and Ally are thebrand’s well asForever 21. Taylor QVC andBluemercury, as Sephora, Urban Outfitters, NK, before rolling outto It launchedatSpace Nudestix was theresult. fast andportable.” would be “easy, makeup pencilsthat the idea for minimalist Frankel came upwith traditional beauty brands, lack of engagement with concept. Inspired by their that shehitonhernewest effortl ess, MARKETER posting 9percent growth. total measured market, The NPDGroup for the brand, according to number-four skin-care Philosophy was the six monthsof 2015, the results: For thefirst thinker to appreciate don’t have to beadeep health andwell-being. You that supports mental a philanthropic platform extensive sampling and launches, supported by succession of targeted on thatpromise witha this year, thenmadegood Scalamandre said earlier journey of self-renewal,” brand constantly ona “Philosophy isa female empowerment. original message of skin-care heritage and focused onPhilosophy’s good slogans andinstead emblazoned withfeel- bath andbodyproducts she scaled back onthe Inc. to rebuild Philosophy, Scalamandre joinedCoty veteran marketer Jill building. So when go onlyso far inbrand- Inspiring andcutesy and Senior Vice President Chief Marketing Officer Philosophy Scalamandre Jill PRESTIGE OF THEYEAR exchange rates. of foreign currency excluding theimpact live, gaining 6percent, where andRevlon in its consumer segment, reversed sales declines recent quarter, Revlon consumers. Inits most to beresonating with The campaign seems to digitalto philanthropy. brand’s moves, from TV permeates allof the 2014. The mantra now Square inNovember digital billboard in Times flipped theswitch onits shortly before Revlon motivator,” said Delpani for. “Love isauniversal Revlon andwhatitstands complete repositioning of really acampaign; it’s a Through hislensit’s not On” campaign was born. Revlon andthe “Love Is “love” withintheword discovering theword the winningidea after brand, Delpani unlocked positioning for theRevlon came to creating anew innovation. So whenit with apenchantfor himself asamarketer in thec-suite, buthesees Lorenzo Delpani may sit Executive Officer President andChief Revlon Delpani Lorenzo MASS WWD

BEAUTY INC 55 MASS PRESTIGE NYX and YouTube influencer set. But NYX isn’t only It Cosmetics Success hasn’t gone to focused on beauty Its tagline may be “Real its head. Although it’s addicts. Whether it’s an Beauty. Real Results” now owned by L’Oréal, exponential increase in but the amazing growth NYX continues to mine its space at Ulta or the trajectory of It Cosmetics its edgy, indie past opening of its own stores is the stuff dreams are and create ever-more (plans call for five stand- BRAND made of. Founded by innovative ways to drive alone units in California by Jamie Kern Lima and sales and attract new yearend), NYX continues her husband, Paulo, customers. It conquered to strengthen its ties with OF THE YEAR in 2008, the brand is the digital realm long everyday consumers, expected to ring up before most of its peers too. The debut of its own $300 million for 2015, had a social media stores harks back to the according to industry strategy, and today is still roots of NYX, which was sources. The secret to a darling of the Instagram started in a 600-square- It Cosmetics’ success foot space in California lies in Lima herself—her by Toni Ko. But make needs drive the brand’s no mistake: This is a problem-solution company focused firmly approach to product on the future. development and her empathetic connection with consumers on QVC harks back to the days of Leslie Blodgett and Bare Escentuals. But the brand has proven equally as successful in-store as on- air. In less than two years, It has expanded into all Ulta doors and increased its space there from six to nine feet. Come January, it will launch a new mascara, fittingly called Superhero. If this year is any indication, look for it to fly off shelves. PHOTOGRAPH BY CLAIRE BENOIST BY PHOTOGRAPH

THE STAT DEPT. EuroZone.Com

E-commerce for beauty is small but growing in Europe. Recently, L2 examined beauty sales on Amazon.com (Europe’s largest e-tailer) in three key markets: the U.K., Germany and France. Here are some of its key findings.

AMAZON’S SHARE OF ONLINE BEAUTY SALES OFFICIAL BRAND DISTRIBUTION ON AMAZON (%) by Region in 2014 by Region

Total Market Mass Prestige U.K. 12%

24 U.K. 60 40 36 64 U.S. 11% 76

Germany 6%

33 4% Germany 58 42 48 52 France 67

7 23 France 37 63

77 93

DISTRIBUTION OF DISCOUNTS ON OFFICIAL LISTINGS

L2 reports that brands with official distribution have significantly lower third-party merchant postings in all three markets. But in the U.K., the majority of official listings for beauty display an offer discount, while only 35 percent do in Germany and 13 percent in France.

U.K. Germany France

No Discount 28% 65% 87%

Less than 25% 35% 18% 10%

25% to 50% 28% 14% 3%

Greater 9% 3% 0% than 50% Source: L2

58 WWD BEAUTY INC GRAPHICS BY CARLOS MONTEIRO

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