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www.bwconfidential.com The inside view on the international beauty industry April 17-30, 2013 #91

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The buzz 2 watch News roundup hinese companies are once again showing that they Netwatch 5 Care to be watched on the acquisition front. Chinese conglomerate Sanpower announced that it would take Beauty blogger review over UK-based department store House of Fraser in a move that has been described as the largest overseas Interview 7 acquisition in the retail sector by a Chinese business. It ceo Tim Warner is thought that Sanpower will expand House of Fraser internationally and bring the retailer to China. Insight 9 Another Chinese company to watch is Alibaba. The Korean brands in Hangzhou-based online giant recently took a stake in Intime, which operates 62 department stores in China. The move is intended Show review 12 to help Alibaba better convert online activity into offline purchases in shopping Cosmoprof Worldwide & Cosmopack malls and department stores, and better link offline and online worlds to create a more convenient shopping experience. Acquisitions at home are one thing, but Store visit 16 Alibaba also has strong international ambitions and plans to launch an IPO in the MAC Pro Fusion, San Francisco, US US this year. The industry may need to keep a closer eye on the doings of these Chinese companies and others, not only for their business in China, but also increasingly for their business in markets like the US and Europe.

Oonagh Phillips Editor in Chief [email protected] Meet the BW Confidential team at:

l China Beauty Expo, Shanghai, May 7-9 l TFWA Asia Pacific, Singapore, May 11-15 l Luxe Pack New York, May 14-15 l Beauty World Middle East, Dubai, May 27-29 l World Perfumery Congress, Deauville, June 10-12 l MakeUp in , June 12-13

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz Strategy Stay informedwithourdailynewsheadlinesonwww.bwconfidential.com News roundup Results Porsche Design Group terminated Design Group,whoselicensewasformerlyheldbyClarinsFragrance Group.Clarinsand their agreement in March thisUK-based DesignerParfums hasyear. signed a fragrance licensing agreement with Porsche to boost growth and concentrateAnalysts on key areas,say that such other as beauty.businesses first could major also restructuring be sold, as move the P&G issellingthreeofitspetfoodbrandstoUSgroupMarsfor$2.9bn.Thedealthe sincegroup AGlooks Lafley to reducetook over its fromsize Bob McDonald last year. de peauBeauté,andmasstigebrandZa. will continue developing its brand in the 65% shareoftheventureandSinarMasTunggalownsremaining35%.Shiseido market, as well as premium line clé PT Sinar Mas Tunggal, which will begin operations in July of this year. Shiseido owns a the 50mlwillcost¥12,000($118). international markets in September. The 30ml sizeimmune will besystem. priced The ¥8,000 product ($78) will and launch in inPower August Infusing and will Concentrate, roll out toa skincare item that is said to enhance the skin’s Beauty isalreadyinyou”. business in Japan. The Shiseido brand is also brandishingits international a new tagline: business “Because via its the Shiseido brand and ceoMasahikoUotaniinApril,JapanesebeautygroupShiseidoaimstoboost and is embarking on a revival of its As partofitsnewmarketingstrategyfollowingtheappointmentgrouppresident exchange rates.Netincomelast yearreached€176m,up2%on2012. €1.5bn. Like-for-like, sales wereSpanish beautyandfashiongroup Puig reported up by 5%.net Salessales ingrowth the periodof 1% inwere 2013 impacted to by currency Designer Parfums will continue distributing the brand’s existing fragrances. In othernews,ShiseidohasformedajointventureinIndonesiawithlocalcompany The Shiseidobrand’sfirstmajorlaunchunderUotani’sstewardshipisUltimune The group’s international business, which accounted for 51% of sales in 2004, The group’sinternational business,whichaccounted for51%ofsalesin2004, n n n n n n At aglance...

Invictus, Jourd’HermèswintophonorsatFrenchFifis Sisley opensfirstUSstore Sanpower GrouptoacquireHouseofFraser L’Oréal salesfall2.2%infirstquarter Puig salesup1%in2013 Shiseido presidentandceosetsroadmapforgrowth www.bwconfidential.com -April17-30, 2013#91 -Page 2 n News roundup

n n n made up 86% of sales last year. In 2013, Puig claimed an 8.6% share of the global selective perfumery market, ranking the company sixth worldwide. The company aims to reach the number-three ranking and a 12% share of the market by 2020.

French group L’Oréal saw its first-quarter sales decline 2.2% to €5.64bn, due to a The buzz difficult market for its Consumer Products division in North America, and the impact of currency fluctuations. On a like-for-like basis, group sales were up 3.5%. Sales at the Luxe division rose 2.7% (+7.2% like for like) to €1.46bn, while the Active arm saw sales grow 3.9% (+8.7% like for like) to €507.4m. However, sales at the consumer division fell by 5.5% (+1.2% like for like) to €2.76bn, due to a tough market in North America and a high comparison base in the first quarter of 2013, linked to two major launches. The Professional Products Division also saw a decline in the quarter. Sales fell by 2.3% (+3.7% like for like) to €735.2m. Agon said that Western Europe is seeing “renewed vitality” and that Southern Europe is reporting growth for the first time in six years. L’Oréal registered an increase of 1.8% (+2.8% like for like) in Western Europe, for sales of €2.02bn. North America’s sales declined 5.6% (-0.6% like for like) to €1.30bn. Emerging market sales showed declines. Asia Pacific sales fell 1.9% (+6.8% like for like), while the group’s Latin America business was down 10% (+8.2% like for like).

LVMH saw sales for the first quarter of 2014 grow 4% to €7.2bn. Organic sales growth was 6%. and cosmetics sales were up 1% to €941m (+5% on an organic basis), while sales at the selective retailing division ( and travel retailer DFS) increased 5% to €2.22bn (+10% on an organic basis). The group said DFS performed well, due to the development of tourism in Asia, despite a drop in spending by Japanese tourists as a result of the weak yen. It added that Sephora is seeing particularly rapid growth in Asia, the Middle East and North America, where online sales grew strongly.

Retail Chinese company Sanpower Group is to buy UK-based department store chain House of Fraser in a deal that values the retailer at £450m ($746m). Sanpower, which owns retail properties in China, will acquire an 89% stake in the chain. House of Fraser had been looking for buyers for some time and was in talks with French group Galeries Lafayette last year. The retailer was also studying the possibility of an IPO. House of Fraser operates 61 department stores in the UK and has annual sales of £1.2bn ($1.99bn). n n n News roundup

n n n LVMH-owned DFS opened its first luxury fragrance boutique at Abu Dhabi International Airport’s terminal 3. Called Fragrances by DFS, the 250m2 (2,691ft2) store will carry brands that the company claims are new to travel retail. Brands that will be exclusive to DFS worldwide in travel retail include , By Kilian, and The Fragrance Kitchen; Middle East exclusives include The Different Company, Penhaligon’s The buzz and Xerjoff.

US-based specialty store Henri Bendel is to stop selling third-party beauty brands at its Fifth Avenue flagship store in New York, to focus on its own brand, according to sources. Henri Bendel, part of retail group L Brands, sells a number of niche beauty brands, such a Butter , Mally Beauty and Illuminum fragrances. It is thought that Henri Bendel will now focus on its branded accessories and cosmetics.

French beauty brand Sisley is opening its first store in the US in May at housing, shopping and entertainment complex City Center in Las Vegas. The 750ft2 (70m2) boutique has private areas for skincare consultations and make-up application, in addition to a treatment room where customers can receive facial treatments. Sisley is present in 100 department-store doors in the US.

French perfumery chain Marionnaud donated €100,000 to Cosmetic Executive Women (CEW) Beauty Centres, which will go towards dispensing beauty treatments and advice to patients suffering from cancer. The €100,000 was raised from the sale of 20,000 soft toys in Marionnaud stores in February. Marionnaud has supported this cause since 2000 and in 2012, it began offering advice to cancer sufferers in some of its stores. The advice is given by personnel who have been specially trained by the CEW.

People

BW Confidential L’Oréal has appointed Martha Crawford senior vice president in charge of advanced 4 avenue de la Marne 92600 Asnières sur Seine, France research and the scientific directorate, and member of the research and innovation [email protected] management committee. Crawford was previously senior evp for research and innovation Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 at nuclear energy company Areva. She takes up her new position in October. www.bwconfidential.com ISSN: 2104-3302 Publisher: Nicolas Grob Editorial Director: Oonagh Phillips Cofinluxe ceo Jean Pierre Grivory (pictured) was made a Knight of the Legion of Honor [email protected] in Paris this month. France’s former prime minister, Jean-Pierre Raffarin, officiated at the Deputy Editor: Alissa Demorest [email protected] ceremony on April 3 and paid tribute to Grivory’s entrepreneurial talent. Grivory began his Editorial Coordinator & Assistant: Darlene Lim career in beauty in 1972. Cofinluxe markets the Salvador Dali and Charriol fragrances. [email protected] Contributors: Tina Clark, Alex Wynne, Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché Subscriptions Awards 1 year: electronic publication (20 issues) + print magazine (4 issues) + daily news: €499 or US$699 Jour d’Hermès (Hermès) and Paco Rabanne’s Invictus (Puig) were the big winners of [email protected] The Fragrance France’s annual Fifi awards, held in Paris on April 10. Jour Advertising [email protected] d’Hermès took home best women’s fragrance in selective distribution and best bottle BW Confidential is published by Noon Media 513 746 297 RCS Nanterre design, and Invictus was awarded best men’s fragrance in selective distribution, best Copyright © 2014. All rights reserved. bottle design and best men’s advertising campaign. Reproduction in whole or in part without permission is strictly prohibited. For a full list of winners, see our website. n n n

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n n n Launches France-based Interparfums is to launch its second men’s fragrance for luxury pen brand Montblanc, called Emblem, in May. “The idea for was to take on the codes of the brand’s Meisterstück pen. The result is something that is very original, compared to other The buzz fragrance lines,” explains Interparfums chairman and ceo Philippe Benacin. The fragrance, by Sonia Constant of , is described as a sensual woody scent. Benacin declined to give a forecast for the scent, but said that Montblanc now does retail sales of €200m and that this could increase by 50% in 2015. Montblanc’s first men’s fragrance by Interparfums, Legend, is the company’s top scent in volume and sales. Montblanc Emblem will be supported by an ad campaign featuring model David Genat. It will begin rolling out internationally in May, with the US following in 2015. The range retails at €39 (40ml EdT), €55 (60ml EdT) and €75 (100ml).

Paco Rabanne (Puig) is gearing up to launch what it calls the second chapter in its Lady Million franchise. Called Eau My Gold!, the new scent is described as a evoking a new facet of the Lady Million fragrance, which launched in 2010. The fruity floral fragrance was composed by Anne Flipo of IFF, who also created the original Lady Million scent. The fragrance will be backed by an ad campaign featuring Czech model Hana Jirickova bathing in a glass of champagne. Eau My Gold! will launch in June and retail for €59.70 (50ml EdT) and €77 (80ml EdT). n

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PIER 92 14-15 NEW YORK MAY 2014 www.luxepack.com

NEW YORK I MONACO I SHANGHAI ! VENUE NEW Beauty blogger review BW Confidential reports on what the bloggers are saying about beauty

Bloggers have applauded the attention brands are giving older consumers through their latest spokespeople. Color brand Nars is now being fronted by Franco-British actress Charlotte Rampling, and Beauty named actress Jessica Lange (pictured) as its face. There is also more interest

Netwatch in how mature women are portrayed after a advertisement featuring a 62-year old model was pulled by the UK Advertising Standards Authority for being overly retouched.

News that Sephora US is now shipping to the UK has generated excitement among bloggers, as it means British consumers can now buy the much-loved brands not available in the UK from the US. Yet some critics point out that the price of shipping—£10 ($17) for a purchase exceeding £75 ($126)— and the prospect of added import costs would make Sephora.com an expensive place to shop.

Fancy compacts with intricate embossed patterns in the powders are a growing trend, but reactions to the products have been less positive. Apart from what are seen as pretty designs, writers that the products are generally more expensive and hold little interest if the designs simply fade with use.

Bloggers are praising African-inspired brand Nyakio for its “delicious aromas” and revitalizing skincare benefits. Developed by a first-generation American of Kenyan origin, the brand is liked for its positioning, which addresses all ages, skin types and ethnicities. Nyakio has three collections: Giant Fig, Kenyan Coffee and Hydrating Kola Nut, inspired by the founder’s medicine man grandfather. Cyan,The views expressed in this section are those of bloggers and do not represent the opinions of BW Confidential Magenta, Yellow, Black,

L'Oreal Unilever innoCos Procter & Gamble Rome Estee Lauder 21-23 May 2014 Sephora Coty Oriflame Yves Rocher www.innocosevents.com www.leaderoftheyearaward.com [email protected] +31 643 00 1954 Urban Decay ceo Tim Warner

Color connection

Interview Ceo of US-based make-up brand Urban Decay since 2005, Tim Warner talks to BW Confidential about his growth strategy and how new owner L’Oréal is helping develop the company’s international footprint

What are your priorities for developing Urban Decay? When I joined the brand in 2005, we implemented a new strategy. At the time, we were independent [Urban Decay was acquired by L’Oréal in 2012] and we were competing with all of the big players, so that meant being very focused with the right retailers. I reduced door count on a global basis by about 40%— the brand was in about 1,500 doors worldwide, and we took it well below 800. Nearly 10 years later, we are in around 2,000 pos. I don’t believe we need to be in every store, in every city, in every mall—I’d much rather have a very high ranking in one or two retailers. As a small brand, The first country we are opening in under L’Oréal’s direction will be , the only way to get where we will launch in the second half of this year. Our focus there will be to “ work with the best retailer in each city. a store’s attention I’m more interested in expanding existing doors than opening new doors. We and build credibility are working on growing in Asia—mainly , Korea and Japan—and we are also looking at Australia. is to drive retail for We also launched with Sephora in Brazil and Mexico. Those markets will them—anything else develop in the next few years, and just as Sephora took a while to take hold in the US, I think it will be the same in Brazil and Mexico. is secondary

How has L’Oréal’s ownership changed your strategy? Urban Decay ceo Tim Warner Prior to the acquisition, my platform for international distribution was with Sephora. They knew the brand and they managed all of the distribution and importation issues so that I could focus resources on hiring people locally to ” drive retail. This way I didn’t have to operate a warehouse or work with a third- party distributor, a model that I don’t really believe in. Today, the big plus is being able to tap into L’Oréal’s vast resources and its affiliates worldwide. The group has been very helpful in terms of international distribution and from a supply chain perspective, which is not our specialty.

You began in the business as a buyer. How has this impacted your management strategy? Urban Decay Although this is a wholesale business, I approach it from a retail standpoint. l N° US doors: 1,600 Obviously, our sales come from net shipments, but I’ve always focused on retail l N° international sales because as a buyer, if you drive retail sales you get all the shipments n n n doors: 400

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n n n that you want. Most of my peers don’t focus on that; instead they look at how much they are going to ship. As a small brand, the only way to get a store’s attention and build credibility is to drive retail for them—anything else is secondary. In terms of allocating spend, I focus on making sure that we have plenty

Interview of people in the field to interact with customers and being as innovative as possible from a merchandising point of view. Retail is driven by people, and a fun staff breathes life into a store. I don’t believe we It’s also essential to be with the right retailers. I saw Sephora as being the need to be in every most innovative, game-changing retailer, so I chose to focus all of our resources “ there in the US. When I came to the company, we were the number 18 color store in every city in brand at Sephora US; we are now ranked number-one. every mall—I’d much But is the brand’s role limited once the product is in store? rather have a very That’s the typical mindset, but brands have to think bigger. You need to develop high ranking in one or relationships with the retailer, and not just focus on the buying organization. I make sure I have a team that focuses on sell-in, and a different team working two retailers on sell-through. Other companies tend to bundle the two.

Do you have plans for standalone stores? Urban Decay ceo Tim Warner Yes, we are opening our first freestanding store in Newport Beach, California, in the third or fourth quarter of this year. This store will basically be in our ” backyard [the brand is based in Newport Beach], which will allow us to manage it and watch it closely. There is a really big opportunity for us to do freestanding stores, not just in the US, but internationally. We want to launch this store, make sure we have the right business model, and be able to offer different products and different looks—we don’t want to replicate what we already have across all stores. We see opportunities in Singapore, Hong Kong, and the UK. L’Oréal’s backing is obviously important for this.

What is your focus for e-commerce? We have big plans for our e-commerce presence internationally. In the second half of this year we’ll launch on a brand new L’Oréal platform, which we can then easily replicate in different countries. We’ll start first in the markets, where we are already present and as we open in new markets, the e-commerce site will launch at the s Urban Decay, which has seen success with its Naked Palette, is launching its first standalone same time. n later this year and is rolling out a new global e-commerce platform

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Korean brands in Asia Ingredients for success Korean beauty brands are doing big business outside their home market. BW Confidential analyzes what is driving these brands’ success in Asia

orean brands are growing their share of the beauty market abroad. According to Kfigures from the Korea Customs Service, in 2013, cosmetics exports reached $539m. Skincare, the number-one exported category, followed by eye make-up and , is said to have seen a sales increase of more than 1,000% between 1998 and 2012. Asia makes up the bulk of cosmetics exports for Korean brands—industry estimates say more than 80% of Korean-exported beauty products in 2013 were sold in the region. Through aggressive China is the biggest importer of Korean cosmetics and Japan comes in second, followed marketing“ by . Consumers in and are also hungry for Korean brands, and companies strategies like price including have pointed out that also holds potential. The youth competitiveness, population in these countries is a strong attraction for Korean brands. product diversification Korean culture appeal and celebrity Domestic market suffers, exports on the rise Korean beauty products benefit from Korean brands are looking more to exports, due to the the success and visibility of Korean marketing, China slowdown in the local economy in recent years, following popular culture throughout Asia, mainly and Singapore have high household debt and a stagnating housing market. through the country’s soap operas and However, the economy looks to be slowly getting back on “K-Pop” music stars, many of whom become our two track—it saw 3% growth in 2013, and forecasts for 2014 are spokespeople for cosmetics brands. biggest markets are in the +4% range. “Korean brands are growing rapidly in However, when it comes to beauty, the Korean market the global market, along with interest is saturated, Mintel beauty analyst Laurie Du tells BW in Korean culture, thanks to innovative Confidential: “Major Korean brands have been seeing products, high quality and reasonable LG Household and Healthcare either slow growth or a stagnant situation [in their prices,” explains Korean group LG pr manager Hee Jung Park domestic market], while the growing needs from emerging Household and Healthcare pr manager ” Asian markets are providing opportunities”. Hee Jung Park. n n n

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n n n Asian consumers also see Korean products as being better adapted to their particular skin needs than Western brands. “The keys to success for these brands are their Asian skin-type formulations, their strong innovation and accessible price points,” explains

Insight Korean-inspired skincare brand Erborian International general manager Katalin Berenyi. She adds that Korea is Asia’s number-one market, and that Asian women look to replicate this idealized image of beauty through their use of Korean skincare and cosmetics. The innovation that comes out of Korean R&D labs is a big pull for Asia’s novelty-hungry consumers—BB and CC creams are now powerhouse categories on a global scale, with Korean prestige newer innovations such as cushion foundation formulas forecast to be the next big trend. The Korean market has also become a testing bed for international prestige brands that “brands are definitely trial their new launches there before rolling them out to the rest of Asia. impacting traditional Price is also a factor. The affordability of Korean beauty brands is proving a plus for consumers in markets such as China, making mass and masstige brands the strongest Western brands and, sellers. “The influence of Korean beauty brands are mainly in the low to mid-end to some degree, segment, while prestige sectors are still finding it hard to compete with some traditional international brands,” Mintel’s Du comments. Japanese players as Yet prestige brands are also growing internationally. “Korean prestige brands are well. The premium definitely impacting traditional Western brands and, to some degree, Japanese players as well. The perception is that Sulwhasoo [prestige brand owned by Amore Pacific], for customer sees these example, is very prestige, but the pricing is at least 30% less than a premium western brands as better brand, and so offers much better value than a comparable European or American product. The premium customer also sees the brand as better suited to her skin, because suited to her skin, of the Asian R&D,” comments Hong Kong-based prestige retailer Beauty Avenue ceo because of the Asian Sarah O’Donnell. R&D and much Courting the Chinese better value than a LG Household & Healthcare’s (LG H&H) prestige brand Whoo continues to grow its distribution in Asia, and says it has seen annual growth of 30% in the past three years comparable European in China, although it did not disclose sales figures. Amore Pacific, Korea’s number-one or American product beauty group, reported a 29% increase in its cosmetics sales to China in 2013 over the previous year, to reach KRW339bn ($327m) last year. Its prestige brands , Mamonde, Sulwhasoo and Innisfree were singled out as the biggest growth drivers last Beauty Avenue ceo year in China. Sarah O’Donnell Amore’s sales to other Asian markets (excluding China) were up by nearly 31% in 2013. ” Although sales figures were not broken down by country, the group reports that sales climbed by 118% in Singapore, more than 400% in and +225% in Thailand last year. China is also the number-one export market for LG-owned beauty brand and retailer The Face Shop (it launched in the country in 2007); Singapore, which it entered in 2004, is also a focus for the company. “Through aggressive marketing strategies like price competitiveness, product diversification and celebrity marketing, these countries have become our two biggest markets with the highest sales,” explains LG H&H’s Park. The Face Shop has more than 1,300 stores outside of Korea, of which around 700 are in Asia. For LG H&H as a whole, China is its biggest export market for beauty, and it says that Vietnam is also on its radar. “Vietnam is the most favorable country for LG H&H brands today. Vietnamese consumers want to use Korean cosmetics to look like Korean n n n

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n n n celebrities and our prestige herbal medicine brand Whoo and luxury skincare O Hui have strong rankings in the country’s prestige channel,” says LG H&H’s Park. Korean prestige brands are benefitting from political troubles between China and Japan The keys to success Insight that have had hurt Japanese brands’ sales in the country. But more accessibly-priced for these brands are Korean brands are also putting pressure on Western mass brands in Asia, and players “ such as Amoré Pacific have stated that they are looking to take market share from brands their Asian skin type such as P&G’s Olay and L’Oréal Paris. “Masstige customers will very often choose the Korean brand, as they see the value proposition as being much better. These brands are formulations, their certainly impacting European masstige brands like L’Oréal Paris. It’s another option for strong innovation and consumers, so brands need to keep on top of it and differentiate their offer even more,” comments Beauty Avenue’s O’Donnell. accessible price points Korean brands are set to continue to grow their share of the market in Asia. While China will remain the biggest part of Korean beauty groups’ overseas business for the foreseeable future, Mintel’s Du says that other Asian markets also hold “great potential” Erborian International gm for these brands, with growth rates higher than those seen in China. Watch this space. Katalin Berenyi ” Korean brands doing well in Asia Sulwhasoo: Amoré Pacific ‘s premium herbal medicine inspired brand Sulwhasoo is a strong contender in the premium skincare segment. The brand extended its distribution in Malaysia, Vietnam, Indonesia and Thailand last year. Sulwhasoo’s latest launch is CC Emulsion, which the brand claims is the market’s first “emulsion” type make-up that provides a lacquer coating texture.

Missha: Masstige brand Missha has an extensive presence in Asia, including China, Japan, Singapore, Taiwan, Vietnam and Indonesia. The brand’s offer spans all beauty categories and has a line for men. Bestsellers include Missha’s extensive BB cream offer, with BB Boomer (a $15 to be applied before the BB cream), and BB Deep Cleansing Oil, a to remove “long-lasting” BB cream, priced at $27.

Etude House: Owned by Amore Pacific, is the group’s mass “kawaii” skincare and make-up brand geared to teenagers. Current bestsellers include its Precious Minerals BB Cream Bright Fit, which claims to possess whitening, anti- wrinkle and anti-darkening properties, and Collagen Moistfull Cream, that is said to both moisturize and tighten the skin.

Skinfood: Masstige brand and retailer Skinfood spans all beauty categories, and has a natural positioning. The brand’s products are based on food ingredients, such as egg white, eggplant, avocado and carrot. Recent launches include the Caviar line, whose formula includes gold extract and caviar. Skinfood operates 740 stores in Asia (excluding Korea).

Tony Moly: Mass make-up and skincare brand Tony Moly is known for its funky packaging and accessible prices. Geared to teens, the brand is strong in the cleansing category and offers a range of massage and mask items. Tony Moly is currently rolling out its newest launch, called 100 Hour Cream, which claims to have long- lasting moisturizing properties. The brand operates around 80 stores in Asia and is currently in the product registration phase for China. n

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Show review better-than-expected beginning of the year in the wake of a difficult 2013 is A how exhibitors at Cosmoprof Worldwide Bologna and Cosmopack described the market. “The market has been tough over the past few years and there has been little to no visibility on upcoming orders, but we’ve seen a resurgence of activity in the past few months. Brands, both majors and smaller players that were holding off on launching major lines, are now going ahead with their plans. Our entire customer portfolio is seeing renewed activity,” says Leoplast sales director Cristina Maggi. Lead times however, are shorter than ever. “Time to market is shrinking and suppliers now need to develop [products] in a few months, rather than in a few years. However, we see the market improving,” explains Brivaplast marketing director Cinzia Bessi. Still, suppliers should remain cautious, notes Florence Lefeuvre, group sales, marketing and communication director at French group Alkos. “The market is extremely competitive in Europe, and although we are seeing signs of a better trading environment so far this year, we need to stay vigilant,” she explains. Cosmopack, the packaging and contract manufacturing trade show, welcomed 400 exhibitors, +9% on last year. However, many exhibitors criticized the organization for opening two days before Cosmoprof, which made for an exceptionally slow first day. Organizer Sogecos said that Cosmoprof registered 207,238 visitors, a 7% increase over 2013, and 2,450 exhibitors from 69 countries. Highlights this year included The Extraordinary Gallery, a space devoted to niche brands, with 28 participants, and the International Buyer Programme, which put more than 400 buyers in contact with exhibitors on the show floor.

Seen at Cosmoprof Swedish device manufacturer Foreo was at Cosmoprof showing its line of silicone-based skincare and oral-care tools. The brand’s facial cleanser tool Luna (pictured) launched last year; it also comes in a smaller “mini” version and a version for men. Foreo also launched a new eight-speed silicone toothbrush, Issa, and the two-speed Issa Mini, for children. The company claims that silicone is gentler than the nylon bristles used by other device companies. Foreo aims to sell the toothbrushes in retailers’ beauty departments, rather than merchandising them Cosmoprof & Cosmopack with appliances. Took place: In Bologna, Italy, from April 2-7 Finland-based Alva Organics, which is the exclusive licensee for children’s Cosmoprof visitors: products under the Sophie la Girafe brand, presented its seven-sku Ecocert- 207,238 + 7% vs 2013 certified line that includes a face cream (pictured), bubble bath and baby oil. Cosmoprof exhibitors: Sophie La Girafe Baby is sold in Sweden at retailer NK, at Harrods and Selfridges 2,450 from 69 countries in the UK, and is looking to roll out to larger pharmacies throughout Europe. The Cosmopack exhibitors: brand is launching a sunscreen in the fall. n n n 400 exhibitors, +9% vs 2013

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n n n Clemascience, a newly launched French beauty brand based on apple polyphenols presented its skincare (pictured) and nutritional supplement lines at the show. The supplements are geared to both facial care and weight loss. A body and haircare line round out the offer. In France, the brand is sold in the parapharmacy channel, and it is looking to expand to other European countries and to Canada.

Seen at Cosmopack Brush specialist Geka showcased Made to Measure Beauty (pictured), a make-up Show review range targeting five types of consumers. The first, Teen Beauty, is comprised of a mascara and a with an anti-bacterial flocked applicator; Natural Beauty contains a mascara made of renewable fibers and a vitamin-E enriched ; Luxurious Beauty features a mascara in a 3-D silkscreened metal tube and an eyeliner that provides a even line for a dramatic look; Beauty Experts has a molded-brush mascara whose bristles have a push-up effect and a brush designed to retouch bottom and corner lashes; and Beauty Pioneers is a set with a dual-pack mascara with one end enclosing a white base and the other dispensing black formula, and for lips, a double- ended item with a flocked applicator on one end and a lip brush at the other.

US brush-specialist Anisa calls 2014 its “year of expansion”. This year, the company will open a design studio in New York City and it is also entering new categories. “One of our areas of focus today is in make-up artistry,” explains founder Anisa Telwar. The company was showing items for nails, including a range of brushes for nail art application and a “landing pad” for resting fingers when applying polish. Anisa is also launching a bath and body range that includes Dual Sided Hydrophilic Foam, a “next- generation loofah”. In terms of its brush offer, Anisa showed a range of effects for its graphite handles, including Crackle Finish (pictured), Iridescent Edge, Water Dot and Fabric Wrap. Its offer of bags can also be coordinated to match the brush collection. “We want to make more of a statement, so we’re adding form, function and fashion,” comments Telwar. The company also launched Brush Pro Wipe, a dual-use disposable brush cleanser.

Texas-based Fusion Packaging, traditionally specialized in skincare packaging, is developing a make-up offer. Its new compact for make-up brand Urban Decay was on display, featuring the brand’s logo embossed on the pressed powder inside the sifter. Fusion Packaging was also showing Scene (pictured), a single-walled bottle with a clear PETG base that shows the color of the formula inside. This means that brands no longer need to apply stickers to communicate the color of the shade in the bottle.

German make-up and nailcare supplier Bomo Trendline launched a new collection of long-wear eyeliners at the show, featuring new caps and end plugs. The eyeliners feature ultra-fine applicators and metal packaging, and the formulas come in three different formulas: ultra black, carbon black or standard.

French supplier Alkos Groupe showed a range of new pencil products in wood and plastic. A collection for eyes called Intense N Stay Addict features creamy and easy-to-blend textures featuring pearlescent pigments. The eyeliners claim to have a 15-hour hold. For lips, the Matte & Long Lasting Veil collection comes in three colors n n n

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n n n and is said to provide the convenience of a pencil with the smooth application of a lipstick. Another new item is the company’s Magic Stick, a solid in the form of a retractable pen; the formula stick can be colored to match the shade of the actual juice.

Italian company Brivaplast, returning to Cosmoprof after an absence of several years, showed a line of three fiber-brush mascaras featuring shadow finishing on the tube. The Maxi Style brush claims to give more voluminous lashes and there are two Majestic brushes, one with a curved brush for curling and lengthening lashes and a straight

Show review version for lengthening, curling and volume.

Aptar showcased a range of mass and masstige items, including Essencia, an entry-level priced pump, with a collar that hides the pump mechanics and provides a homogenous spray, two features that are new to mass offers. “Masstige clients want their products to take on luxury codes, but they are asking for accessible prices,” explains Aptar director, business development fragrances Elisabeth Salom l’Ancien. The company has also enlarged the color spectrum for its Color Code line of pumps.

Germany based packager Dieter Bakic showed its newest line, Cosima (pictured), a range of tall and slightly rounded plastic and glass bottles and jars. The line can be fitted with a variety of different caps and can also be decorated on both the outer and inner shells.

Albéa’s cosmetic rigid packaging division showed its new line of upside-down squeeze foam dispensers called EZ’R (pictured), from the dispensing-systems division. The lines come in three sizes and the flip-top cap can be customized. Also on show was the My Style Family collection of fiber brush mascaras. Each item features a different brush: Lolita is for volume and definition, Mademoiselle gives volume and extra length, Miss gives lashes length and curl, and Signorina is a volume-boosting brush.

German pencil specialist Faber Castell presented its 2015 collection called No Limits. The airtight Combo Stick (pictured) is a two-in-one eye pencil with a creamy kajal formula on one end and liner boasting 12-hour hold on the other. The liner’s tapered tip allows for a detailed application. A second new applicator is the Chubby Mechanical Pencil for lips, which doesn’t require sharpening, thanks to its propel-repel mechanism.

French packaging company Cosmogen showed its latest application called Tense Tube (pictured), for the eye-contour area. The tube is topped with a cannula that dispenses the formula on one side, while the other features a metal surface that comes in a round, triangle or custom shape, and is said to have smoothing and relaxing properties. The applicator can also be customized with various textures, including bumps, hexagons or circles. The cannula and tube can be color-customized and the applicator tip comes in silver, gold, black or gunmetal gray.

Italy-based Baralan launched Inkwell (pictured). Designed for nail-art application, the bottle resembles an inkwell and its brush can feature different types of bristles. Baralan claims that Inkwell allows for easier immersion of the brush applicator. The hermetic seal at the base is suited to any standard shapes in the company catalog. n n n

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CONFIDENTIAL Show review China, Japan, Korea Market watch CONFIDENTIAL CONFIDENTIA

L CONFIDENTIAL coded discs that can be snappedbullet insidetotwistupanddowninastraightline,preventstilting.Itfeaturescolor- onto the bottom of the pack andeyes custom-decorated. or lips, co-designed with Brivaplast. The pen’s integrated mechanism allows the color n Cosmoprof Worldwide&Cosmopack India-based manufacturer offer decoration techniques, including in thefourthquarterofthisyear.Thefactorywillreplacetwoexistingsitesregionand bi-injection and metallization. output, tocaterdifferentproductsegmentsandrespondlocalneedsmorequickly. and beautypackaging.Thecompanyislookingtomakeitsfactoriesmoreflexibleintermsof France-based for allAndeanmarkets.Aptarinvested$4.5minthenewfactory. Dispensing company Heard inshow Icelandic packagingsupplier market and is keeping its eye out for acquisition targets in either Europe or South America. the 3,500m what’s tocome? What’s changedand Luxury insight CONFIDENTIA showcased Flash Pen Coloris (pictured) , a jumbo pen for Spain-based QuadpackshowcasedFlashPenColoris(pictured),ajumbopenfor L trends andnewopportunities An analysisofmarket data, Fragrance 2 (37,000ft

insight Albéa

Color makes acomeback Make-up insight Aptar is opening a new site near Milan, Italy, devoted to mascara production,

2 ) site manufactures items for the fragrance and personal-care segments, ) sitemanufacturesitemsforthefragranceandpersonal-caresegments, Piramal Glass opened its first factory in Colombia last month. Located in Cali, Promens Figures, retailinitiatives&trends Skincare insight Distribution atalltheindustry’s majorinternational events In-depth coverag eoftheglobalbeautymarket Luxe Pack Monaco • Beyond Beauty Paris • TFWA Asia Pacific Singapore Florence Make Pacific UpinParis •HBA GlobalExpoNew FragranzeYork... Pitti Asia Shanghai Pack • Luxe • Paris TFWA Beauté Kong Spa Mondial York• New Hong • Showcase Elements Asia Paris Cosmoprof • Beauty York New Beyond Pack Luxe • Monaco Pack Milan Luxe Esxence • Moscow Intercharm • Orlando Americas the of Show Free Duty ParisCosmetics Cosmoprof In • Shanghai Expo Beauty ParisChina Worldwide• Bologna PCD • Dubai East Middle World Beauty • Cannes Exhibition World ...TFWA How prestige is set to develop How prestigeissettodevelop Insight: Haircare will open a factory in Brazil in 2015 for personal-care

aims to grow its share of the premium glass aimstogrowitsshareofthepremiumglass Boost yourinternationalbusinesswithBWConfidential Data, trends&retailerviews Fragrance insight What’s nextforthecategory? Make-up insight What’s nextforthecategory? Skincare insight Trends, opportunities&challenges Insight: Fragrance Creation

Ups, downs&newdirections Insight: Fragrance n

[email protected] What’s instorefor2013? Make-up insight Store visit

MAC launches new flagship concept MAC mixes professional lines, standard products and services at its new flagship concept in San Francisco

stée Lauder-owned MAC opened what it calls its first Pro Fusion flagship store in ESan Francisco, US in March. The new store concept, which is also the brand’s third flagship in the US, combines MAC’s professional product line-up alongside its main ranges—a combination the brand hopes will differentiate it from the competition. Located at Union Square, the store covers a total of 3,000ft2 (279m2) of which 1,340ft2 (125m2) is sales space. It is organized into four zones. The first zone features MAC’s newly launched collections and signature color line-up. The second area at the center of the store is dedicated to make-up services and application and includes six individual make-up stations and one private make-up room. The third section of the store is devoted to the brand’s professional product range, which the company says will cater to the 21,000 Pro members in San Francisco and California. The fourth zone features a lash bar with 40 different types of lashes, as well as the brand’s MAC Pro Fusion skincare products. Two video walls anchor the professional area and lash bar. l Location: “We anticipate these flagships to be high-volume doors for the brand, due to the San Francisco, US large number of visitors they attract from around the world,” comments MAC global l Size: 3,000ft2 brand president Karen Buglisi Weiler. “Each year, approximately 16 million people (279m2); 1,340ft2 travel to San Francisco.” (125m2) of sales space The store will carry more than 1,700 skus, including new color collections, store- l Special features: only exclusive ranges and the full Pro line-up; it employs 45 make-up artists. Make-up services, Given the 3,000ft2 (279m2) of space, the brand also plans to host retail and special lash bar, private events, performances, educational seminars and training sessions at the store. n make-up room

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s A range of services are on offer at the store, including make-up application and a lash bar

s The boutique sells more than 1,700 skus, including the brand’s professional lines, standard ranges and store-only exclusives

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