THE 2007 AWARDS ISSUE Celebrating The Year’s Brightest Ideas The Top 75 Ranking Beauty’s WHO’s Power Players THAT GIRL? Cory Kennedy and the Online Insta-Fame Phenomenon WWDBEAUTYBIZ CONTENTS

23 38 14 This Month: Our annual best of beauty awards. Plus celebrity status goes digital as a new group of dot.com girls take a shot at the big time.

10 What’s In Store 23 The 2007 WWD Beauty Biz 38 The New Fame Game Hair treatments for seriously stressed strands aWards Move over movie stars. A new breed of and a mineral invasion. For the fifth year in a row, we celebrate the Internet phenoms looks set to steal the spotlight. beauty industry’s achievements. 14 People, Places & Lipsticks 24 44 The Vision thing The new face of green, Dior’s homage to Breakthrough Product From eco-consciousness to privatization, discover makeup in the movies and Bobbi Brown’s of the Year what 2008 has in store for beauty and beyond. holiday shopping meccas. 28 Newcomer of the Year 29 an Most Innovative Ad Campaign 46 Beauty’s Top 75 i 18 A Closer Look: Skin Care of the Year Find out who’s on top and who’s not in our The latest news in technology and product 30 Most Innovative Marketer annual listing of beauty’s biggest companies. habagl

breakthroughs from skin care’s front lines. of the Year A. S an i 32 54 r London’s Hot Hub B Retailer of the Year Travelers at the Eurostar’s new London terminal and

34

Best Executed Launch Strategy l

will find much more than just speedy trains. e

of the Year nd e r e D e at K by

on i strat u Ill ; roch A ON THE COVER WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as y Gu

Cory Kennedy photographed for ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of y WWD Beauty Biz by Guy Aroch. 194, NO. 120, Dec. 7, 2007, WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third B dy Hair by Dennis Devoy for and holidays, with one additional issue in January and December, two additional issues in March, Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests e Cutler/Redken; makeup by May, June, August, October and November, and three additional issues in February, April and to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World nn

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 WWD Beauty Biz EDITOR’S LETTER

Mae West seems an unlikely sage for the beauty our editors convened to debate. Using a set of criteria industry. But those looking for guidance in surviving based on retail performance, industry feedback and the ups and downs of 2007 would have been well our reporters throughout the year, we’ve compiled a The year served by her counsel to hold on tight. For many, roster that we think encompasses the best of beauty it was, indeed, a bumpy ride. This issue of WWD for 2007. Of particular note was the rise of highly Beauty Biz celebrates those who not only held on, specific niche brands that may do only one thing, they had a veritable iron grip. Despite the hurley- but do it very well. It was also impossible to ignore that was burley roller-coaster ride of retail consolidation, the increasing influence of the green movement on a downward-spiraling economy and ever-more the industry, as well as those who upped the ante demanding consumers, a number of companies in the advertising stakes, using their campaigns to hit the highs with innovative products, resource- unleash a multifaceted brand strategy. Turn to “The ful strategies and a single-minded focus on moving Winner Is...” on page 23 for full coverage of the their business forward. It is those companies we 2007 WWD Beauty Biz awards. celebrate in this, our fifth annual awards issue. As Sales figures are another way to gauge success— always, choosing the winners was no easy feat when after all, numbers never lie. As you’ll see in “Beauty’s Top 75” on page 46, the industry’s top 10 companies all managed to achieve growth. Our annual com- pilation of the world’s largest cosmetics companies has a new format this year, ranking companies on their calendar year 2006 sales, rather than fiscal or calendar year. L’Oréal once again holds the top spot, with $19.84 billion in sales, an 8.7 percent increase versus 2005; Procter & Gamble comes in at number two, with $17.5 billion, up 8 percent from the year before. After a period of intense restructuring, Avon moved up a place to number five, while Kao shot to number seven thanks to the integration of Kanebo, and Limited Brands passed Alberto Culver to grab the number 10 spot.

of particular note was the rise of highly specific niche brands that may do only one thing, but do it very well. it was also impossible to ignore the increasing influence of the green movement.

As we were reviewing the year that was, we also turned our attention to the year ahead. Though America’s fascination with fame shows no signs of waning, a new type of celebrity is gaining ground— the cyberstar. This issue’s cover girl Cory Kennedy epitomizes the trend. The high school senior gained nationwide notoriety after a photographer friend posted her pictures on his Web site. While adults may not yet know her name, Kennedy has become a hero to a younger generation for whom celebrity is the definitive barometer of success, the Internet the ultimate avenue. Discover online’s rising stars in “The New Fame Game” on page 38, then turn to “The Vision Thing” on page 44 for some predic- tions on what 2008 holds in store when it comes

to technology, cultural trends, Wall Street and es more. There’s a lot to look forward to, and much to g celebrate, too. On behalf of the entire WWD Beauty Biz team, I’d like to extend our congratulations to all of this year’s winners. — Jenny B. Fine etteDouwma/Getty Ima g Geor

 WWD Beauty Biz MASTHEAD

A Fairchild Publication

Pete Born Executive Editor, Beauty Advertising Production Jenny B. Fine Editor Christine Guilfoyle Publisher Gena Kelly Executive Director, Debra Goldberg Associate Publisher, Beauty Manufacturing and Distribution Jennifer Weil European Beauty Editor Randi Segal Mass Beauty Director Chris Wengiel Group Production Director Andrea Nagel Mass Market Beauty Editor Ron Troxell Senior Account Manager, John Ricotta Production Director Julie Naughton Senior Prestige Market West Coast Jill Breiner Associate Production Manager Beauty Editor Amelie Barsi European Beauty Manager, Paris Ahmed Pruitt Production Coordinator Molly Prior Beauty financial Editor Michele Sutton Executive Beauty Assistant Matthew W. Evans Beauty News Editor Circulation Bill Andrulevich General Manager, Michelle Edgar Associate Beauty Fairchild Fashion Group Wendy Frank Circulation Director Features Editor Richard Cherichella Business Director, Richard Franz Circulation/Sales Director Faye Brookman Contributing Editor Fairchild Fashion Group John Cross Fulfillment Director Megan McIntyre Assistant Editor Janet Janoff General Manager, WWD James Rossi Circulation Marketing Director Patricia Chang Editorial Intern Colleen Compston Executive assistant to Susan Kline Fulfillment Manager Deborah Boylan Copy Editor the president Daniel Lagani President, Fairchild Fashion Group Contributors Marketing/Promotion Samantha Conti, Brid Costello and Nina Jodi Marchisotta Associate Publisher, Marketing Jones (London), Stephanie Epiro (Milan), Miles Danielle McMurray Creative Services Director Socha (Paris), Marcy Medina (Los Angeles), Brooke Welsch Senior Marketing and Katherine Bowers (Boston), Melissa Drier Events Manager (Berlin), Georgia Lee (Atlanta), Holly Jamie Hollander Senior Marketing Manager Haber and Rusty Williamson (Dallas), Koji Kathleen Callahan Classified Marketing Manager Hirano (Tokyo) Stephanie Horst Promotions Manager Art Benjamin Gelinas Design Director Pamela Olecki Art Director Mark Ramel Design Manager Danilo Matz Consulting DESIGNER Dick Silverman Director of Special Projects Anita Bethel Photo and Imaging Director Julie Gu marketing coordinator Carrie Provenzano Associate Photo Editor Stephanie Brown Promotions Assistant Andrea Kaplan VP, Corporate Communications Photographers Pasha Antonov, John Aquino, Talaya Centeno, George Chinsee, Steve Eichner, Kyle Ericksen, Thomas Iannaccone, Robert Mitra

 WWD Beauty Biz What’s In Store

01 Neutrogena The latest crop of Mineral Sheers mineral makeup Powder Foundation features Made with soy to give new skin a smooth, even finish, textures and this pressed powder also vibrant colors. includes time-released antioxidants. ($12.99; mass By PATRICIA CHANG GROUND retailers) Photographed by THOMAS Iannaccone 02 Physicians Formula Organic Wear 100% Natural SWELL Origin Bronzer This bronzer uses certified organic ingredients like rice silk, known for its ability to absorb oil, and jojoba seed oil, a natural moistur- izer, to provide a healthy, shine-free glow. ($13.95; mass retailers)

03 Jane Be Pure Mineral Lip Balm Avoid a chapped pucker this winter with this mineral lip-saver, available in five vibrant shades and three sweet flavors. ($3.99; mass retailers)

04 CoverGirl TruBlend Minerals Pressed Mineral Foundation Available in six shades, this powder features a blend of micro-fine minerals for a more lightweight and natural feel. ($7.99; mass retailers)

05 Revlon ColorStay Mineral eye shadow, Foun- dation and Blush With good-for-you minerals like rose quartz and topaz, these products can endure for up to 16 hours, thanks to a patented long-wear technology. ($8.49, $13.99, $13.99; mass retailers)

06 Maybelline Mineral Power Natural perfecting Foundation Made with mineral pigments that have been triple-refined, this founda- tion, available in 16 shades, gives the natural benefits of minerals in a mess- free liquid form. ($9.99; mass retailers)

10 WWD Beauty Biz What’s In Store

These mane-resuscitating 01 Matrix Biolage ScalpTherapie Oil treatments won’t Control Treatment leave your hair Glycerin absorbs excess stranded oil to normalize the scalp, for TLC. while mint and kola nut By PATRICIA CHANG revive and revitalize in this Photographed by daily leave-in treatment. THOMAS Iannaccone SAVING ($15.95; 800-6-MATRIX, biolage.com)

02 Ojon Tunu Elastik Hair Tamer GRACE Wild-crafted extracts of tunu, an elastic fiber rich in protein, and swa, an oil packed with amino acids, work together to seal and moisturize cuticles for smooth, well-behaved hair. ($25; Sephora)

03 Aveda Smooth Infusion Style-Prep Smoother Tapioca starch from Thailand defends hair from humidity and a blend of organic aloe, maize and guar beans targets and smooths out damaged spots. ($24; Aveda salons, spas & stores)

04 Clairol Herbal Essences Long Term Relationship leave-in Split End Protector for long hair Finally, a relationship you can be committed to. Spray on this raspberry- scented treatment daily to detangle and condition. ($2.99; mass retailers)

05 Frederic Fekkai All-Day Hair Plump Hyaluronate humectants, derived from hyaluronic acid, plump hair cuticles and lock in moisture, leaving hair thicker and healthier looking. ($95; Neiman Marcus)

06 Redken For Men Chill Blast anti- dandruff Leave-In Treatment No more itchy, flaky scalps with this pyrithione zinc and peppermint antidandruff treatment. The spray pump allows for easier application of the energizing formula to specifically targeted areas of the scalp. ($13.95; select salons, redkenformen.com) People, Places & Lipsticks IS CORB z/ t l PPL Di enry H y B Iannaccone; model s by Thoma s o t fepho Li STIll

GREEN TEENS free primping at pocket-money prices (a 75-ml. tube Talk about early adopters. In Britain, teen beauty brands with a natural bent in england, the newest are cropping up faster than pimples in prep school. of New Leaf Skin Exfoliating Polish costs about converts to the green scene “Whether it be what goes into the product or how $10). “Products need to be gentle and effective,” says are teenagers and a bevy the product is produced and packaged, conscientious founder Fiona Parkhouse, who originally dreamed of natural skin care has shopping is becoming more important to the young up the line, which will bow in the U.K. in January at sprouted up to suit them. consumer,” says Sarah Vorbach, founder and man- Superdrug, with her young daughter in mind. Young aging director of Face Boutique, a premium natural & Pure, a two-year-old natural line concocted for skin care brand created for teens and twentysome- 10- to 21-year-olds and sold at Whole Foods, is also things, which bowed in the U.S. in September and branching out. Founder Lianne Miller is cooking up the U.K. in October at Space NK. Likewise, Amie, a a five-unit organic line, which is set to bow in May. line of five natural products, was designed for guilt- —Brid Costello

14 WWD Beauty Biz People, Places & Lipsticks

Loro Piana Picaya 821 Madison Avenue, 101 West Colorado Avenue, PPL New York; 212.980.7960, Telluride, Colo.; 970.728.0954 loropiana.com They have the most inspirational There is no more luxurious gift then beads there (I’ve started many a Loro Piana blanket. They’re so soft collections from them!), but they A Tale and warm and it’s something that also have great boxes, furniture lasts forever. and clothes from Bali. Mario Diab Salon Prada 62 Crosby Street, 575 Broadway, to Tell These new fragrances New York; 212.226.6595, New York; 212.334.8888, — launching just in time for mariodiab.com prada.com the holidays — have Stories Saffron NOT-SO- Giving gift certificates to my favorite All of my A+ gifts come from Prada. as compelling as their scents. James Parfums salon is always a great way to pam- I particularly love the handbags; —Jenny B. Fine per a deserving someone around the they’re cute, simple, efficient and, When Hawaii native Kate Growney

Sectret holidays. The salon is beautiful and above all, cool. They can dress up was a beauty editor, she grew used be prepared to get the most natural any outfit. to people telling her how amazing hair coloring and cut of all time! her home state smelled. She puzzled Santa Tory Burch over why no brand had created a line of scents based on the wide array of Query makeup artist Bobbi Brown 257 Elizabeth Street, flowers found there. So she moved about her inspiration for a particular New York; 212.334.3000, to L.A. and did just that. The result color collection and chances are she’ll toryburch.com is Saffron James Parfums, three eaux cite the colors of the flowers in a Anytime I wear her clothes I feel put de parfum ($85 each) that launched favorite market stall in Provence or together and dressed up. She has great party dresses for the holidays. at Studio at Fred Segal in November.

the beads found in a small boutique in on

ti Each is based on a particular flower Colorado. It’s clear: When it comes to Yogi Berra Museum and the story surrounding the bloom.

shopping, this is a woman who knows ollec C and Learning Center Ume, for example, which means to at-

how to mix business and pleasure. So tt tract, features white ginger, water lily with the holidays upon us, we asked 8 Quarry Road, ere Ev and gardenia; Le’A, which translates

Little Falls, N.J.; 973.655.6888, y

Brown to divulge where she uncovers s e

O SOLEIL t as pleasure or happiness, is an hom- her favorite finds. yoigberramuseum.org 7 South Fullerton Avenue, If you have boys like I do, this is 100% Love age to the plumeria flower, a symbol a/cour Montclair, N.J.; 973.783.4444 a great place to get baseball memo- i of immortality. Next up is a fragrance Sculptor Nobi Shioya’s decision to Every time I need a color fix I come rabilia from one of the greatest based on Chinese violet. “I’m inspired olumb YGMA

C incorporate scent into his work about here. I get a ton of jewelry from O players who ever played the game. by florals that you don’t see every day,”

ISS 10 years ago was auspicious for a Soleil. They also have a lot of soaps I love getting some baseballs says Growney, “and giving people

CORB number of reasons. In addition to something new and unexpected.” /

and room sprays from Provence. personalized and giving them out as arnerby E G V staging a critically acclaimed show, gifts; it means so much to people. HER Shioya met his wife—Veronique oder; T ACai

Y Molinard

e Ferval, International Flavors & v a

D Une Histoire de Chypre COLLAR Fragrances’ New York creative center Ascending manager—while working on the More powerful than pomegranate! Better than After reading about the fragrance project. No surprise then, that his next blueberries! In the past couple of years, acai has boutique Aedes de Venustas in the

reenbag by project was called 100% Love, a huge G New York Times, perfumer Dominique

an;Toucan by been heralded as a superfood thanks to its extreme i

IS; heart composed of small pink plastic antioxidant properties. Now the Brazilian berry is Camilli was so intrigued he was at the scented beads spread on the floor of CORB popping up in beauty products, too. Tarte Cosmetics store’s front door the next morning.

. Shabagl. a gallery. Inspired, Shioya decided to Camilli, whose recent projects include A has incorporated it into its popular lip glosses and mann/ mix art and commerce, tapping IFF an

tt the relaunch of Molinard 1849, imme- i cheek stains, Raw Natural Beauty into foundations, e r B B perfumer Sophia Grojsman to create Fresh in its new antiaging body moisturizer. “It’s diately befriended co-owner Robert AND

g byg a retail scent to represent the concept.

i one of the most nutritious fruits on the planet,” says Gerstner. “I had just finished the line Known as the “queen of the rose,” Coming ehr and he took it immediately,” laughs G Tarte’s Maureen Kelly. As such, acai (pronounced Grojsman combined her favorite DRENDEL on; ah-sigh-ee) is said to be particularly powerful at Camilli. “He was our first customer.” e ti t bloom with a ripe, berry-based top fighting free radicals and reducing inflammation. Fast forward three years, and the duo note and black cacao and incense- ollec has also become co-collaborators. Ca- C by Ka Says Fresh’s co-founder and president of R&D Lev

s Attraction s infused base. Retailing for $120,

on milli and Gerstner traveled to Grasse, Makeup has always played a key supporting role in the movies. er Glazman, who’s been eating acai in a dried form for t ti

e 100% Love launched at Barneys New

P France, where they combed through Next year, Dior is giving it top billing with a documentary called ra three years and became “obsessed” with finding

st York in September. The project was a Maquillage et la Cinema. The 12-minute documentary, coproduced eal the Molinard archives and decided to

N it as a cosmetic grade ingredient, “This gives your true collaboration between two artists. a/ recreate a chypre, the blend of citrus by Dianne Vavra, Dior Beauty’s vice president of public relations, i skin natural protection from pollutants, free radicals “When I work with a perfumer, the and Richard Brown, professor of motion picture studies at NYU, is and the environment. It helps even out the tone, and woody notes created by Francois

olumb direction is in their hands,” says a montage of the most memorable makeup moments on film, from C reenergize cells and maintain the healthiness of Coty in 1917. The result: Une His- Shioya. Of Grojsman’s creation, by

Iannaccone; Illu toire de Chypre, launching at Aedes in e

the ritualistic applications depicted in Memoirs of a Geisha to s the skin.” Super power indeed. Shioya was taken aback before falling tsi mid-December for $225. “We wanted Dustin Hoffman’s denouement in Tootsie, when he reveals himself 01 Fresh Sugar acai age-delay Too for it—hard. “There was a point when

, to create a product based on what we as a man by throwing off his wig, peeling off his false eyelashes Body cream ha by Thoma I was shocked with the very unique s is think the industry should be,” says

and wiping his face clean of foundation. The duo viewed and edited o e

t 02 raw color soft focus G notes,” he says, “but now I’m very over 500 films for the finished product, which will be screened Gerstner. “We want to go back to 01 13 going on 30 illuminating skin perfector much addicted to the smell.” of a the traditional art and craftsmanship fepho for editors in New York and Los Angeles early next year. s r

02 Tootsie Li 03 tarte full blossom natural i of perfumery. More and more, this 03 memoirs of a geisha swirl cheek stain emo

M STIll is disappearing.”

16 WWD Beauty Biz WWD Beauty Biz 17 A Closer Look From stem cell manipulation to skin ACL regeneration, high-tech innovations are the name of the game for first-half skin care. SKIN

By Megan McIntyre Lauder. “In the past we were always talking about when Good Skin unveils a two-part eye cream, Photographed by George Chinsee prevention or repair of the effects of premature aging. Eyliplex-2. “Because of the long laundry list of issues AND THOMAS IANNACCONE We are now making cells live longer by reprogram- that women have in the eye area, in order to best CAREming cellular division and saving the number of address each of those individually, you have to split cellular divisions you are entitled to.” The cream hits things up into two different formulas,” says Shaunda counters in February and retails for $250...Clarins Swackhamer, executive director of product innova- wants to change the way consumers view moisture tions for BeautyBank. Step one is a day gel with cork with the January launch of HydraQuench. Each of oak and sweet almond extract to firm and tighten the the five stockkeeping units, which will retail between eye area. Step two is a night balm that uses Haloxyl his January Olay is adding 14 Day $48 and $56, are formulated for a specific skin care PFE, an extract from the passionflower, to get rid of Skin Intervention, a two-week intensive type in either a hot or cold climate. “HydraQuench dark spots by clearing away excess pools of hemoglo- firming and hydrating treatment, to its takes into account the modern lifestyle and is a bin. The two-part system will retail for $39.50...On Regnerist portfolio. The treatment, moisturizing system that’s not one-size-fits-all,” says the first-aid front,N eutrogena will introduce Skin which consists of 14 individual doses Caroline Pieper-Vogt, senior vice president of Aid in January, an all-in-one cream meant to treat Tdivided into two phases, uses the Regenerist line’s marketing. “We’re speaking to who you are, where everything from minor cuts and burns to bug bites, signature peptide-B3 complex in higher concentra- you live, how you live and where you go.” The line using glycerin, allantoin and petrolatum to heal faster. tions than the original to firm skin and diminish features katafray bark extract from Madagascar to Meanwhile, German brand Dr. Hauschka unveils wrinkles for a purported skin overhaul in a shorter help synthesize the production of skin’s natural its line of Holistic Home Remedies, also in January. time frame. “The first phase initiates cellular moisturization factors. Industry sources expect first- The organic remedies, which range from ingestible regeneration, pairing moisturizers with the Olay year sales to hit $5 million ...Clinique is seeing red cold and flu relief to a topical wound compress, are peptide-B3 complex,” says P&G Beauty’s principal this January with the introduction of Redness formulated to strengthen the body’s healing system, scientist Mary Johnson. “Phase two contains a high Solutions, a four-sku line ($16.50 to $39.50) targeted not just suppress the physical symptoms of the concentration of the complex to fill wrinkles and at correcting irritated skin. Says Beth Spruance, vice sickness. “We’ve always said about our skin care that improve the skin’s barrier function to give skin a lifted president of global treatment marketing for Clinique, the approach of beauty has been through the lens of look.” Industry sources estimate the product, which “In talking with dermatologists [we realized] there are health,” says chief executive officer Mirran Raphaely. will retail for $24.99, could do between $20 million multiple types of redness, and that not all redness is “With the remedies we get to explain why that is and and $40 million in first-year sales...In an effort to created equal.” For people with what the brand calls how our brand makes products that address human slow down the aging process, Estée Lauder is “reactive skin,” the line offers a hydrocortisone-based health.” Dr. Hauschka sells over 1,000 remedies in putting its faith in the antioxidant resveratrol, the cream called Urgent Relief. Persistent redness, like Europe; eight will be launched in the U.S., selling for featured ingredient of its Re-Nutriv Ultimate Youth rosacea, requires more vigilance and for that Clinique Creme. The company has developed a more stabilized created three products, an oil-free cleanser, a green- 01 Kate Somerville Quench Hydrating Serum, ExfoliKate; $65, $85 02 Körner form of resveratrol called resveratrate, which it claims tinted hydrating cream and an oil-free SPF base. The Loaded The Eye Cream; $110 03 Neutrogena Skin Aid; $8.99 04 Dior Capture penetrates deeper and produces more concentrated cream features white, yellow and red teas to soothe R 60/80 XP Ultimate Wrinkle Restoring Creme; $80 05 Burt’s Bees Naturally levels of resveratrol to extend the life span of skin skin and caffeine, sucrose, algae and resveratrol to Ageless Intensive Repairing Serum; $24.99 06 Olay Regenerist 14 Day Skin Intervention; $24.99 07 Care by Stella McCartney Nourishing Night & Day cells. “For the first time we are entering in the domain correct redness over time. Industry sources expect Cream; $80 08 La Mer The Cleansing Foam; $65 09 Prescriptives Instant of genetic aging,” says Daniel Maes, senior vice first-year U.S. sales for the line to reach $10 million... Gratification Skin Renewal Peel; $45 10 Chanel Hydramax + Active Sérum; president of research and development for Estée Eyes will get a double dose of treatment in January $105 11 Adesign Skincare Brush Set; $60

18 WWD Beauty Biz WWD Beauty Biz 19 A Closer Look

“For the $10 to $20...Christian Dior Beauté introduces a making sure you are keeping the skin as healthy as it first time high-tech addition to its Capture portfolio with can be.” The products will retail for $24.99 each and Capture R 60/80 XP, a four-sku line on counter in will be on shelves in February. Meanwhile, Aveeno ACL we are January, that uses technology based on stem cell will expand its Positively Ageless line, which launched research. The line, which will retail for $60 to $85, early last year, with Positively Ageless Lifting & entering utilizes a new delivery system that Dior says targets Firming day and night creams launching in January in the the skin’s adult stem cells and releases a wrinkle- ($19.99 each). Utilizing the line’s proprietary natural domain fighting complex to help them repair and fend off shiitake complex, the products also contain wheat damage, stimulating cell regeneration in the process. protein to target ageing skin...Körner gives dark of genetic “[Stem] cells are being used in many areas of circles and puffiness the boot this March with research,” says Dior global medical advisor physician Loaded The Eye Cream, an extension of the aging...we Neil Sadick. “This is a breakthrough in that it is the Australian brand’s Loaded antiaging line. Using a are now first product shown to modify these cells in terms of blend of active ingredients like hematite, coffee, making slowing down the aging process.”...With the green tea, iris bulb extract, cranberry seed extract, Hydramax + Active line, Chanel focuses on the root biopeptides and orchid extract to even out skin cells live of the problem for dryness. Using ceratonia PFA, a texture, reduce puffiness, moisturize and smooth fruit extract derived from the carob tree and purified fine lines, the cream will retail for $110 at Henri longer through the brand’s polyfractioning technology, the Bendel and Apothia at Fred Segal...Looking to by repro- three-sku collection is said to strengthen skin’s natural nutrition as an inspiration, Darphin expands its moisturizing factor—the binds in between skin cells Fibrogène range with three products targeted at gramming that lock water in. Hydramax + Active hits counters very dry skin. Describing dry skin as hungry and cellular in March and will retail for $55 to $105...Celebrity lacking nourishment, Darphin is using oils of aesthetician Kate Somerville, whose clients coriander, avocado, jojoba and sweet almond along division.” include Kate Walsh, Jessica Alba and Debra Messing, with shea butter, olive extract, vitamin F and myrrh has big plans for 2008 with the expansion of her to provide skin with high doses of lipids to prevent eponymous L.A. Skin Clinic. The original space, wrinkles, tightness and dullness. The products, which measured 3,500 square feet, will now encom- which range in price from $150 to $165, will be pass 8,000 square feet with the addition of a private available starting in February...To compensate for treatment area for Somerville’s upscale clientele. “The the average woman’s lack of sleep—which leads to expansion will allow us to introduce a space dedicated prematurely aging skin—Elizabeth ArdeN will to privacy, service and glamour,” says Somerville. The launch Prevage Anti-Aging Night Cream this newly expanded space will open in January, to be month. The $125 cream uses time-released followed with a higher-priced line of products by the idebenone, an antioxidant, to enhance skin’s repair end of 2008...With the release this month of Instant mechanism as you sleep, resulting in moisturized, Gratification,P rescriptives introduces its first healed skin with more radiance and fewer wrinkles, peel. “We like to consider it a facial, a peel and a Arden says...La Mer will bring its patented microdermabrasion in one,” says Marianne Russo, deconstructed waters to a cleanser in January called director of product development for Prescriptives. The Cleansing Foam. The positively charged waters “It has both physical and chemical exfoliation purportedly attract negatively charged dirt and benefits. In our clinicals, we got results comparable makeup, so skin doesn’t need to be scrubbed, leaving to a 30 percent glycolic peel, with less irritation.” The it clean and refreshed without being irritated. The product, which will retail for $45, uses glucosamine foam, which will retail for $65, also contains and beta hydroxyl acid to exfoliate and resurface skin, magnetized tourmaline to mineralize skin, sea algae as well as self-heating magnesium sulfate encapsu- to create a more luxurious foam and crushed jade lated with silica to soften skin and open pores... and pearl to refinish skin...The makeup brush British aromatherapy brand This Works breaks into company ADesign is out to show women that the skin care category with two essential oil-based brushes aren’t just for their cosmetics with the products: Active Serum and Active Oil, $75 each. launch this month of the Skincare Brush Set. The The serum’s key ingredients include yellow green set contains five of the brand’s synthetic makeup algae, vitamin C, guava, ginseng and a sesame protein brushes, all rebranded to be used in different parts of complex; the oil contains botanical-based oils a skin care routine, from cleansing and exfoliating to including marula, black currant and olive...This applying blemish treatments. According to Shana month Care by Stella McCartney launches Marshall, the co-developer of Adesign, hands carry Nourishing Night & Day Cream ($80), which uses all sorts of oils and bacteria, which are distributed all organic cupuacu and fatty acids from Brazil nuts to over the face when people use their hands to apply create a protective film that mimics the coating that skin care products, leading to irritation and break- surrounds babies in the womb. The lipid-based outs. When properly maintained, the brushes biofilm is said to protect skin from harsh climates and purportedly eliminate this buildup of bacteria for pollution while buriti, an extract derived from a South healthier skin. The set will retail for $60 at adesign- 01 Good Skin Eyliplex-2; $39 02 Estée Lauder Re-Nutriv Ultimate Youth Creme; $250 03 Clinique Redness Solutions American palm tree, helps dry skin to restore itself... brushes.com...U.K.-based pregnancy line Mama Daily Relief Cream, Urgent Relief Cream; $39.50, $30 04 The antiaging market is going au naturel. With its Mio wants to extend its client base in January with This Works Active Oil, Active Serum; $75 05 Dr. Hauschka first foray into the antiaging market,B urt’s Bees the Zap collection. The five treatment products are Holistic Home Remedies Apis Belladonna Sore Throat relies on pomegranate to fend off free radical damage based around the concept of skin elasticity and focus Rescue, Nicotiana Cramp Relief, Arnica Bump and Bruise in its four-sku Naturally Ageless line. “Aging is a on rectifying skin issues that affect mothers new and Relief, Borage Varicose Vein Relief; $14 06 Elizabeth natural process,” says senior brand manager Paula old, like stretch marks, scars, crepey skin and Arden Prevage Anti-Aging Night Cream; $125 07 Aveeno Positively Ageless Lifting & Firming Daily Moisturizer, Alexander, “so our view is that you really ought to be cellulite. The products, which range in price from Eye Cream, Night Cream; $19.99 08 Darphin Firbogène addressing it naturally as well. There’s a real miscon- $38 to $70, are paraben- and petrochemical-free and Line Response Nourishing Serum; $165 09 Clarins ception on the market that you need harsh chemicals use omegas 3, 6 and 9 to address elasticity and HydraQuench Lotion SPF 15, Rich Cream; $48 to address the signs of aging when really it’s just about gravity-related skin sagging.

20 WWD Beauty Biz WWD Beauty Biz 21 THE WINNER

Every year, the beauty industry’s most innovative IS...players compete

to take home the top prize—customers’ dollars. This year was no exception. Here, we celebrate the best and brightest with the fifthawards. annual WWD Beauty Biz ettmann/Corbis B Photoby Prestige Skin Care

Breakthrough Care by Stella McCartney Designer queen of green Stella McCartney made eco Pro clothing chic, proving that luxury could cohabitate duct of the comfortably with being socially conscious. The From bespoke fragrances Year to Boomer-only brands, designer, who eschews meat and leather, opted for highly focused products from companies big the same route with her entry into skin care. Called Care and created by McCartney’s licensee YSL and small helped redefine the beauty landscape. Beauté, the line marked the first time a luxury fashion label launched an organic skin care range. But don’t think of it as just a fad. “We’ve been in development for three years; we’re not jumping on a trend,” said McCartney, who grew up on an organic farm and is a longtime campaigner for animal rights. “I’m doing this for genuine reasons.” The nine-item line, which was launched last spring exclusively at Sephora, is priced from $35 to $80. The products focus on preventing the signs of aging, rather than repairing Prestige Color Cosmetics them. And though prices may not be entirely down to earth (it is a luxury line, after all), the ethos is: All items in Care, which carries the French Ecocert Lipstick Queen organic certification label, forgo the use of animal by Poppy King testing, endangered plant species, petrochemicals, silicones, chemical preservatives and animal-derived Australian lipstick maven Poppy King was playing ingredients. —Matthew W. Evans dress-up in her mother’s closet with bright red lipstick at the age of seven. In a way, she hasn’t changed all that much. She is still absolutely passionate about lipstick. “I tried talking myself out of making a serious Prestige Hair career out of lipstick, but every time I deviated away from anything to do with lipstick, it just didn’t feel

right,” said King, who first launched an eponymous Aveda Men line in 1992. With hopes of bringing lipstick back With its new men’s hair care brand, launched in July, into the spotlight, this year King introduced Lipstick ORBIS Aveda believes that it has identified an opportunity Queen, a line of 10 shades in two textures—the that could triple the amount of men using its hair tion/C matte Sinner and the sheerer Saint. King’s passion c care products and services, said brand president grows out of a feeling that lipstick is misunderstood. Dominique Conseil. The idea: a line that addresses h Colleh “People feel that it’s old-fashioned when indeed it’s c the physiological differences between men’s and euts

anything but,” said King, who drove home her point D women’s bodies. For example, men’s scalps are with the midyear introduction of Oxymoron, a matte thicker than women’s and produce twice as much ulton-

lip gloss available in four shades. —Michelle Edgar H oil, according to the company. Seven products, ranging in price from $18 to $25, were produced to htby g tackle such concerns. All are scented with a citrus, spearmint, lavender and vetiver aroma designed Prestige Fragrance to work in tandem with the products’ phyto- unnersri R ; active blend. As well, Aveda worked with clinical aromaologist Pierre Franchomme to create botanical Memoire Liquide ORBIS blends that also offer active ingredient benefits. Robin Coe-Hutshing and her sister, Jennifer Coe- Among the ingredients used: boswellia, licorice root, Bakewell, have come a long way since their days as

ettmann/C sage extract and plai and tamanu oils, all of which self-described hippie chicks mixing fragrances in B are sustainably sourced. And the rewards for Aveda’s the back of their store. The proprietresses of the labors are expected to be considerable. Said Heidi influential indie boutique Studio at Fred Segal, the Norman, executive director of marketing, styling sisters proved themselves to be equally as skilled at and men’s products: “We believe men’s products and product development this year with the launch of services could grow to a $230 million opportunity Memoire Liquide. The bespoke fragrance collection one;runners left ny for Aveda.” —Julie Naughton features 160 unique scents that can be mixed and cc

matched as the customer desires. While the custom- anna I designed decanters, etched black and gold labels

and in-depth, individual descriptions for each of homas T the 160 accords suggest haute couture price tags, the reality is quite different. The entry price point is $45 for a 0.5-oz. pure perfume roll-on, meaning e Chinseee and

the California sisters not only tapped into the g prevailing trend for personalized fragrances, but, true to their hippie roots, did it in a feel-good way, too. —Jenny B. Fine hotosby Geor p stilllife

24 WWD Beauty Biz WWD Beauty Biz 25 Breakthrough PRODUCT OF THE YEAR In true dove fashion, Mass Color Cosmetics Mass Hair the ads were arresting, featuring real fifty- Jillian Dempsey for Avon clairol Nice ’n Easy Hair something women—in Talk about an inspired pair. This year Avon teamed Color Collection some cases baring all. up with celebrity makeup artist Jillian Dempsey to Procter & Gamble’s mass hair color business help breathe new life into its $1 billion-plus color continues to innovate, most notably within the category. Dempsey, who founded the makeup line Clairol Nice ’n Easy franchise. This year Nice ’n Easy Mass Skin Care Delux, came aboard as Avon’s global creative color brought several innovations to mass shelves, the first director. As part of the deal, Dempsey, who besides being a new technology so women coloring their hair making up some of the hottest names in Hollywood at home can achieve three tones in one shade. The Dove Pro-Age also happens to be married to TV heartthrob Patrick Color Blend technology, as it is called, was inspired Dove gets a kick out of raising eyebrows. Fortunately Dempsey, was charged with reinvigorating and by salon colorists who often mix a variety of tones for the $1 billion-plus Unilever brand, sales have modernizing Avon’s core color collection, as well to get a desired color. Since the introduction, Nice been rising, too. Dove’s latest effort to elicit double- as working on product development for its younger ’n Easy executives say the brand has experienced takes: A collection of personal care products called sister line, Mark. Her imprint on the company was 8 percent increases in food stores and drugstores, Pro-Age. Created for women 50 and older, Pro-Age heralded with the February launch of a limited and double-digit growth at Wal-Mart, its largest (as opposed to antiaging) has increased brand sales edition spring color collection and her debut in customer. Also this year was the launch of Nice by about $24 million in the food, drug and mass Avon’s global brochures. The mostly sheer line was ’n Easy ColorSeal Conditioning Gloss as a stand- channels, excluding Wal-Mart, from its February encased in Avon’s new packaging initiative—black alone product. The gloss, which is an intense weekly launch through Oct. 7, according to Information cases and metallic silver accents—replacing the conditioning treatment specially designed for color- Resources Inc. In true Dove fashion, the ads were original blue color scheme. The centerpiece of the treated hair, is the most sought-after product on the arresting, featuring real fiftysomething women Dove collection was a multihued face palette that featured company’s 1-800 Clairol Hotline, says the company, discovered around the country—in some cases baring bright colors in a modern floral design. That was and was previously only available as part of a Nice ’n all. The line, which trumpets the idea that beauty has followed up in the fall with a collaboration among Easy hair color kit. —Andrea Nagel no age limit, includes products from every category Avon, Dempsey and designer Cynthia Rowley. As that Dove competes in, namely skin, body and hair a result of the line’s revamp and Dempsey’s input, care and deodorant. Ingredients—including glycerin Avon said it now ranks number three globally in for suppleness and olive oil for nourishment—are color sales. —Megan McIntyre intended to help skin retain moisture and optimize cell turnover. Pro-Age had a broad rollout, nabbing prominent displays in both Wal-Mart and Target. —Molly Prior

Mass Fragrance

Mustang by Aramis and Designer Fragrances For most companies, revving up their fragrance business is just an expression. For the Aramis and Designer Fragrances division of the Estée Lauder

Cos., which signed a licensing agreement with the ORBIS Ford Motor Co. in May to produce a Mustang-themed tion/C fragrance, it’s a reality. The fragrance marked a return c to the mass market by the Estée Lauder Cos., which h Colleh had been absent from that market segment since c

selling Jane Cosmetics in February 2004. Mustang euts was first launched in Sears, J.C. Penney and Kohl’s D

Department Stores in July. In August, it rolled out to ulton- mass merchandisers and chain drugstores, including H e bye Wal-Mart, CVS and Target, for a total of about c 22,000 doors in the U.S. In addition to traditional ra;

fragrance promotion vehicles, Mustang has also been ORBIS promoted at NASCAR events and in Ford World Magazine, which is distributed to the company’s ettmann/C

250,000 employees, said John Nens, director of B global brand licensing for the Ford Motor Company. “This fragrance is an extension of our brand, and one that we think has great potential,” said Nens, adding one;horse by

that the Mustang name is also licensed for shirts, cc hats, toys, video games and jewelry. “Even if you can’t anna drive the car, you can still live the brand. —J.N. I homas T hotosby p stilllife

26 WWD Beauty Biz WWD Beauty Biz 27 of the NEWCOM Year Forget beginner’s luck.ER Technology and convenience fueled the success of two new skin care brands. MOST Brand ATIVE INNoV of the my Blend N Year by Dr. Olivier Courtin AD CAMPAIG For Olivier Courtin, son of the late Clarins founder Who says you have to shout to be heard? Jacques Courtin, it’s all in a name. Or lack thereof. These winners opted for sophisticated When Courtin launched his new high-end skin care elegance instead—to great effect. line My Blend by Dr. Olivier Courtin, he chose to make it a freestanding line not supported by the Clarins name. Courtin felt it was necessary for its Prestige Mass success, as My Blend’s concept is not compatible with the consumer’s existing impression of Clarins. The line is based on the premise that not all women fit Estee Lauder Cover Girl into the four traditional skin type classifications and Private Collection Easy, breezy and beautiful has given way to sleek, instead features eight formulations aimed at distinct There was no one better at creating an advertising modern and sophisticated. Mass market stalwart stages of a woman’s life—from oily post-adolescence fantasyland than Estée Lauder. And as senior vice Cover Girl gave itself a makeover this year, unveiling (type 01) to dry maturity (type 08). The day and president and creative director, her granddaughter a streamlined new look in its advertising and much night creams that form the backbone of the line can Aerin Lauder has worked tirelessly behind the scenes of its packaging, and signing A-list actress Drew be further individualized with the help of “boosters,” to further promote the brand’s aspirational image. This Barrymore as both a spokesmodel and co-creative five liquid formulas that can be seamlessly added to year, though, she was the brand’s aspirational image director. She joins Rihanna, Keri Russell and Queen the creams to address specific needs such as redness, as the face of its newest fragrance Private Collection Latifah in the brand’s lineup. Barrymore, who was radiance or hydration. With consumers clamoring Tuberose Gardenia. Photographed by Craig highly sought after by a number of beauty companies for more customization, Courtin is certain he McDean, the black-and-white portrait was inspired and is reportedly earning between $1 million and $2 doesn’t need the name; he’s already got their number. by a Victor Skrebneski shot of her grandmother. But million in her new role, made her debut in ads for —M.M. Private Collection represents much more than an LashBlast volumizing mascara. A striking black- homage: The project has also been designed to be and-white photo of the actress (lensed by Michael desirous to a new generation of consumers as part Thompson) is offset by a magnified image of the Person of a two-tier strategy that involves separate plans for mascara’s wand. Absent is copious amounts of copy Lauder’s department store and high-end specialty and cluttered graphics. The ad was the first salvo in store accounts. That led to the decision to cast Aerin Cover Girl’s “See the Difference (Not the Makeup!)” Lisa Hoffman Skin Care as the face of the fragrance, marking the first time a campaign, which will also include a new in-store Inspired by her own hectic traveling schedule with Lauder family member has appeared in an ad for any look, reformulated products and a redesigned Web husband Dustin, Lisa Hoffman entered the beauty of its projects. Said John Demsey, group president site. The brand’s goal? Equally audacious: to drive business a year ago to help women simplify their of the Estée Lauder Cos., “Aerin gives a voice to home its point of difference not only between it routines. First up was a skin care line divided into the brand that’s contemporary and modern. She’s a and other mass market players, but versus prestige daytime and evening ranges; Hoffman then expanded working young mother, she lives a glamorous life and players, too. —J.B.F. into body and spa, and most recently fragrance, she’s friendly with the very kind of people that her with three different formulas created for morning, grandmother might have been friendly with if she’d noon and night. “I created my line so I could have been living today.” —J. B. F. a complete skin care regimen that was not only made from the finest ingredients but was also highly portable and organized, and most importantly, could move with me from day to night,” said Hoffman. After being launched exclusively at Bergdorf Goodman, Hoffman’s assortment has expanded into

Fred Segal’s Apothia and internationally at Harvey ORBIS Nichols in the U.K. and Colette in Paris. Everything is packaged either in single-dose ampules or ettmann/C

conventional sizes, and prices start at $25 and rise B to $150. For retailers, the line performed like a, ideby

well, star. Said Ed Burstell, senior vice president and R general merchandise manager of beauty, jewelry and one; accessories for Bergdorf Goodman, “Lisa Hoffman cc

represents the spirit of today’s modern woman and anna I our customer has responded quite positively to the

offering.” —M.E. homas T hotosby p

28 WWD Beauty Biz WWD Beauty Biz 29 stilllife MOST PRESTIGE COMPANY Mass Company I P&G PrestiGE fragrance Soap & Glory NNoV Don’t let its detergent and diaper brands fool you. Marcia Kilgore, creator of Bliss Spas, has always been ATIV Procter & Gamble is a formidable fixture in the pres- known for her whimsical take on beauty (an approach E that had her laughing all the way to the bank when tige fragrance business with a portfolio—reported to M her winning formula? have generated about $2.5 billion in sales last year— she sold Bliss for a reported $30 million to LVMH ARKETER Moët Hennessy Louis Vuitton in 1999). Her latest of the there is no formula that includes Valentino, Escada, Hugo Boss, Lacoste Whether taking a cheeky approach or a chic one, — and that’s precisely and, most recently, Gucci and Dolce & Gabbana. effort, Soap and Glory, is no exception. Created to Year Prestige fragrance is a cluttered market, to be sure, provide entertainment in the body wash aisle, the these people and companies really struck a chord the point. giving P&G all the more reason to build its business line takes its inspiration from the blaring headlines with consumers. the best way it knows how: based on consumer in- of Britain’s tabloid newspapers, with names like Sexy sights and research and development. P&G relies on Mother Pucker for lip plumpers. First launched last its own team of noses and perfumery experts to work year in the U.K. with a dual distribution strategy with fragrance houses to develop new technologies. that encompasses both Harvey Nichols and Boots PRESTIGE PERSON For instance, based on the consumer insight that the Chemist, Soap & Glory hit Target shelves in men want to refresh their fragrance during the day September. Kilgore launched Soap & Glory Spa that Catherine Walsh of coty without having to tote around a bottle, P&G cre- same month in the U.K., a nine-stockkeeping-unit ated a time-release technology for Lacoste. While line with more advanced formulations and slightly What do you call a marketing guru who counts Sarah some scents fall short of reflecting the ethos of the higher price points. Overall, sales for the brand are Jessica Parker, Jennifer Lopez and Gwen Stefani designer name attached to it, P&G hits the mark, by expected to reach $15 million this year—a figure that among her closest workmates? Catherine Walsh. combining (and mining) the creativity of each fash- should give Kilgore something to smile about. —J.B.F. Walsh, who is senior vice president, American ion house with the research and methodology of its Fragrances for Coty Prestige, helped kick off the core businesses. —M.P. trend for celebrity fragrances with Lopez’s first effort, Glow by JLo, which generated worldwide sales of $100 million in its first year, then followed that up with the smash hit Lovely Sarah Jessica Parker. She continued her streak this year with Covet, SJP’s follow-up, as well as successful launches for Calvin Klein, Gwen Stefani, Marc Jacobs and Kenneth Cole. Her winning formula? There is no formula—and that’s precisely the point. Crafting an innovative mix of both traditional and “new” media vehicles such as dedicated Web sites and e-mail blasts for each brand, Walsh has consistently delivered strong and well- received marketing campaigns. Among this year’s standouts: With licensee Kenneth Cole and rocker Jon Bon Jovi, Walsh helped launch RSVP for men, a scent that donated some of its proceeds to charities such as Habitat for Humanity and H.E.L.P-USA. —J.N.

MASS Person

Mike Indursky of Burt’s Bees band; by Keystone/Corbis Taking the bull by the horns is not quite the ORBIS personality trait one would attribute to most eco-

friendly, natural product makers. But Mike Indursky, ettmann/C chief marketing officer of Burt’s Bees, is doing just B that with an initiative that looks to change the playing field of natural personal care. Indursky is lobbying in

Congress for a bill that would develop an industry one;horn by cc standard for the use of the word “natural” in personal anna care products and require products labeled “natural” I to be at least 95 percent natural, meaning they homas should not have parabens, synthetic preservatives, T sulfates, animal products or anything with suspected potential human health risks. Indursky cites as his inspiration to regulate natural personal care e Chinseee and the overwhelming confusion in the category. So g far he has garnered the attention of other natural companies, at least one U.S. senator and a handful

of government and natural product agencies, all hotosby Geor p supporting his cause. Consider him beauty’s go-to guy for the grassroots movement. —A.N. stilllife

WWD Beauty Biz 31 of the RETAILER Year In a year fraught with consolidation and acquisition, these retailers proved that great service and a killer selection keep the crowds coming.

Prestige Specialty Mass

Bloomingdale’s Henri Bendel CVS pharmacy Bloomingdale’s has always had a sparkling assortment If ever there was a haven for artisanal, niche and Drugstores by design are pharmacies first, impulse of beauty brands—this year, the retailer showcased start-up beauty brands, it’s Henri Bendel. From shopping havens second. CVS Pharmacy, however, them in ways that really made them glitter. First was the store’s semiannual beauty breakfasts, where has elevated beauty to a key growth driver of its overall a complete overhaul of the massive beauty floor at budding brands are introduced to the media, to business and heralded that strategic position with a its 59th Street Manhattan flagship, including stores- hard-to-find items spotlighted front and center, full-fledged marketing campaign called Reinventing in-store for a number of brands and the launch Bendel’s has shown a penchant for cultivating Beauty. In May, the retailer ushered in the ongoing of cheeky projects like Juicy Crittoure, a beauty new brands. This year, fragrance took center stage, effort by dressing its 6,200 stores in bold teal signs and grooming line for dogs being produced under with the retailer launching up-and-coming indies hanging from the ceiling and protruding from shelves, the Juicy Couture moniker. For longtime partner like Etat Libre D’Orange, Juliette Has a Gun and followed up by an extensive direct mail and newspaper Lancôme, a 1,000-square-foot space was carved out Memoire Liquide. “There are some very interesting ad campaign. The move comes after a four-year effort in a prime center position, adding more than 200 independent perfumers out there creating products to revamp CVS’s beauty shopping experience. Since square feet to its selling area; Estée Lauder scored with a more sophisticated and special feel,” Claudia 2003, CVS has injected a dose of European cachet more than 900 square feet for its sleek, modern Lucas, senior vice president and general merchandise into its chain by bringing in exclusive brands like the installation (said to be inspired by the late founder’s manager of beauty at Bendel’s, said earlier this year. Finnish-based Lumene, added proprietary lines such dressing table) with blue suede upholstered chairs for In the last several years, since arriving at Bendel’s as Skin Effects by Dr. Jeffrey Dover and, by yearend, consultations. Philosophy’s first store-in-store was from Selfridge’s in the U.K., Lucas has refashioned will have almost 1,000 beauty consultants in 600 stores. installed at 59th Street, followed by similar spaces the store’s first floor beauty department, installed a The focus on beauty is paying off. Last year, notes for La Mer, SK-II and Benefit. And the updates L’Artisan Parfumeur in-store boutique on the second Cheryl Mahoney, vice president of merchandising, aren’t limited to Manhattan—Bloomingdale’s, which floor and helped oversee the conversion of Bendel’s beauty care, CVS’s beauty business grew two times expanded aggressively this year with openings in San fourth floor into a Frédéric Fekkai salon. She even faster than the industry average, and cosmetics sales Francisco, South Coast Plaza in Costa Mesa, Calif., managed to coax Francois Nars into making his first gained three times faster. —M.P. and Chevy Chase, Md., is rolling out its stylish new public appearance in years this spring, transforming look across the country. —J.N. Bendel’s ground floor into an art gallery to exhibit the makeup maestro’s photographs. “Consumers are ORBIS yearning for something that feels real,” Lucas said, tion/C

and this year, that’s what she and Bendel’s gave c them. —M.W.E. h Colleh c euts If ever there was a haven D ulton- for artisanal, niche H and start-up brands, it’s henri bendel. one;linewomen of by cc anna I homas T quinoand A hotosJohnby p stilllife

32 WWD Beauty Biz WWD Beauty Biz 33 D Prestige Skin Care XECUTE Lancome Primordiale BEST E Cell Defense Double CH Performance Cell LAUN Defense & Skin of the Perfecting Serum Year The two key trends that drove skin care sales this STRATEGY year—high-tech and eco-friendly—are seemingly at odds with each other. But Lancôme was able From product development to public relations, when to combine the two for a winning strategy with Primordial Cell Defense & Skin Perfecting Serum. it came to executing all aspects of a launch strategy Lancôme covered the high-tech side with its new flawlessly, these marketers reached new heights. ingredient pro-xylane, which it calls the first ever “green” molecule to be developed in its labs. Cell Defense claims to block 99 percent of the free radicals Prestige Color Cosmetics Prestige FRAGRANCE caused by UV exposure, pollution and temperature extremes. To launch the product, Lancôme teamed up with Carbonfund.org, pledging to reduce its MAC Loves Barbie Giorgio Armani Parfums carbon footprint with a tree planting campaign in What little girl doesn’t love Barbie? Well, little girls With designer fragrances inundating the market, which a tree was planted for each of the first 10,000 become big girls and it seems that their love doesn’t Giorgio Armani Parfums has not only managed to bottles sold, by implementing a paper-free press office wane, a fact that MAC Cosmetics and Mattel stay on top of the men’s market, this year it boasted and by offsetting the travel of its five spokesmodels, illustrated with MAC Loves Barbie, a full-scale three fragrances in the top 10. Attitude, which was including Elettra Rossellini Wiedemann, Daria makeup collection for adult women. The Pop Art- launched in May in 3,000 department store doors, Werbowy, Shalom Harlow and Selena Breed—all of hued lineup included 27 stockkeeping units ranging looks set to becomes yet another blockbuster, joining whom showed up at the press launch in February. in price from $10 for a bright pink nail polish to $45 brother scents Acqua di Giò for men (number one) The brand followed up with an April Earth Day for a makeup brush. Each was packaged in MAC’s and Armani Code for men (number two). L’Oréal, initiative, with a video starring its spokesmodels and signature black, with a stylized pink outline of a Armani’s licensee, has succeeded by developing a special T-shirt designed by trendy denim label Rag ponytailed Barbie. Barbie’s image was also debossed new fragrances with different strategies and & Bone. Said Harlow, “It’s easy to feel overwhelmed onto eye shadows and blushes. Selected MAC platforms, differentiating the scents in everything when you think about global warming. Something stores were outfitted as mini Barbie boudoirs, and from the olfactive composition to the brand’s like this makes you realize every individual can make MAC’s makeup artists wore T-shirts designed for message, while still backing up existing fragrances a difference.” —J.B.F. the collection in-store. Collateral items, such as hair with large advertising campaigns and spending to bows, were also sold at counter. MAC and Mattel avoid cannibalization. While Acqua di Giò is a even created a makeup artist Barbie, complete with fresh aromatic fragrance and Armani Code a spicy her own mini makeup case. Nearly all of the coveted seductive one, Attitude is a woody oriental, designed dolls sold out in less than a month. (At last count, to appeal to a man’s more sensual and masculine side. the $35 doll was selling for over $100 on eBay.) Said Ava Huang, vice president of marketing, “This The line’s success came as no surprise to Richard brand differentiation has proven successful, given Dickson, senior vice president of marketing, media that we have been able to recruit new users, as well and entertainment, worldwide, for Mattel, who as create wardrobing opportunities across our brands, thinks makeup is a natural place for Barbie. “The making them successful both as individual scents and core Barbie brand is broadly distributed in many as an overall collection.” —M.E. different ways, including entertainment, apparel, publishing and room decor,” he said. “It’s the largest lifestyle brand for women.” —J.N. ORBIS el/C g

what little girl doesn’t ie Sp

love barbie? well, little ed girls become big girls T and it seems that their love doesn’t wane. one;balloon by cc anna I homas T e Chinseee and g hotosby Geor p stilllife

34 WWD Beauty Biz WWD Beauty Biz 35 Best executed launch strategy OF THE YEAR Mass Hair Care Mass Skin Care

Organix Garnier Nutritioniste Showing up late to a presentation with Target’s Entering the most competitive category in mass hair care buyer left the Organix team with just beauty, Maybelline-Garnier needed to position three and a half minutes to tell their story. its new skin care line very differently from Luckily, the buyer saw the brand’s potential, and category leaders Olay and Neutrogena. With earlier this year placed the sulfate- and paraben- the launch of Nutritioniste earlier this year, it free hair care range in half of all Target doors. did just that. Nutritioniste was marketed as a That’s not the way it usually goes in mass hair line that combined the sciences of nutrition care, but for the fledgling brand owned by Vogue and dermatology. The new platform was aimed International of Clearwater, Fla., it was just at a consumer psychographic, one interested in the tip of the iceberg. Shortly after the Target wellness, as opposed to a specific demographic. meeting, Safeway, Albertson’s and Kroger took Garnier spent an estimated $70 million on in Organix, too, bringing total distribution to advertising, tapping brand spokesperson Sarah 10,000 doors. By midyear, the brand’s sales took Jessica Parker to be part of the effort. In-store, off, prompting the company to dive deeply into to help consumers navigate Nutritioniste’s 15 a print ad campaign in major beauty magazines, items, packaging copy explains how to use the including Vogue, as well as a billboard in Times products, as well as which other items could help Square. The brand looks to end 2007 with $12 achieve advanced results. To reinforce its high million in retail sales. In 2008, Organix will tech-meets-nature ethos, Nutritioniste boxes are be sold in 30,000 doors and early estimates are black, green and white, while floor stand displays that it will become a $50 million brand. Vogue feature a photo of Ellie Krieger, the nutritionist International, a 20-year-old company and maker who served as a consultant on the line, as well as of the styling brand FX Special Effects, looks to educational brochures. —A.N. double overall company sales by year-end 2008, thanks in large part to Organix. —A.N.

showing up late to a presentation with ORBIS target’s hair care tion/C c buyer left the organix team just three and erColle g a half minutes to tell rin Sp their story. luckily, the buyer saw the brand’s potential. hildby John c ; ORBIS tion/C Mass Color Cosmetics c h Colleh c

Physicians Formula euts D Minerals now abound in the mass market, but Ingrid Jackel recalled earlier this year, “We had ulton-

when Physicians Formula introduced its Mineral such tremendous success with our Mineral Wear H Wear Talc-Free face powder in spring 2005 it laid franchise that we focused all our energy on irlby

the first bricks of the trend in the channel. Soon that priority. I think we made the right choice, g after its launch, it was clear Mineral Wear was a because it’s become a very strong franchise.” This one;

hit. This year, the firm gave the mineral concept summer, the company—which began trading on cc anna

a giant push forward by introducing talc-free eye the Nasdaq in November 2006—developed a 30- I shadow, eyeliner and blush, a move that built its minute infomercial to herald its Mineral Wear homas

mineral line into a collection of 80 stockkeeping line, creating an introductory kit of four products T units. More Mineral Wear extensions are planned for $39.90 along with a $5-off coupon redeemable for next year, including a spin-off line called at retail. “We think of it as a tool to drive retail hotosby Organic Wear—billed as eco-friendly organic sales,” said Jackel, referring to the infomercial, p cosmetics. As the firm’s chief executive officer and it did. —M.P. stilllife

36 WWD Beauty Biz WWD Beauty Biz 37 BY JENNY B. FINE PHOTOGRAPHed BY GUY AROCH Forget the spotlight. For a new generation of cyberstars, it’s all about basking in the glow of their computer terminals.

Silver eye mask by Dolce & Gabbana, jeans by 3.1 Philip Lim.

40 TKTK 2007 WWD Beauty Biz 39 THE NEW GAME

In the past year, 17-year-old Cory Kennedy has appeared on nearly 80 percent of 12- to 17-year-olds use the site weekly. While three magazine covers (not counting this one), been the subject once MySpace and its brethren were primarily social networking of an L.A. Times feature story, racked up over 10,000 friends on sites, today they’re self-promotional tools. “For marketers looking MySpace, palled around with the likes of Lindsay Lohan and for the next big thing, the Internet is like one big unending farm been photographed in nightclubs from L.A. to Paris. She even team,” says Thompson. has her own Wikipedia entry. Take the music business, for example. As costs (and piracy) The high school senior is a bona fide celebrity, but she’s have skyrocketed and CD sales have slowed, record executives are not famous for singing, for acting or for having any particular looking for a proven track record online, rather than an unknown athletic prowess. with a loyal—but local—following. “Artist recruitment, develop- Cory Kennedy shot to fame on the Internet, after a hip young ment and scouting is all done online,” says one executive who asked photographer started posting her pictures on his Web site. Kenne- not to be identified because his company doesn’t allow employees dy’s eclectic style and easygoing attitude quickly garnered attention to speak to reporters. “Back in the day, the executives were the and the page views started building. gatekeepers to stardom. Someone would say, ‘This girl is going to She is an oracle for the digerati generation, an online icon who be huge, let’s go for it,’” he continues. “Today, they don’t have that heralds the increasing influence of the Internet and the decreasing same liberty. They’re trigger-nervous because giving somone a shot role of mainstream media in the modern-day fame game. requires a lot of money and potentially their jobs. They’re looking Though most adults have never heard of her, to many teens for success and traction before they believe in someone.” Kennedy is a hero. Never before has the desire for fame been so “The Internet is a huge democratizer,” agrees Jane Bucking- great among young people. And never has there been a conduit as ham, president of The Intelligence Group. “You don’t have to get quick, as global and as easy as the Internet. After all, if Cory Ken- in the door of a Hollywood executive. You just have to have masses nedy can become famous in 15 megabytes, why can’t they? of people choose you.” “The expectation and aspiration for fame is greater than it’s But, of course, you do need talent. “It’s hard to be truly creative, ever been among young people,” says Samantha Skey, executive to come up with great content,” Buckingham says. “These individ- vice president of strategic marketing for Alloy Media + Marketing. uals don’t have writers to write their copy, editors to edit their stuff “They don’t just want to be famous. They expect to be famous. or stylists to make them look fantastic. For the most part, they’re The whole notion and reality of fame is changing dramatically for doing it on their own, yet being judged by the same standards as young people today. The notion that one must have a particular someone who is being produced by a network.” talent to cultivate fame is antiquated.” Of course, Cory Kennedy is not the only online celeb. Others As a recent Psychology Today poll found, 31 percent of Ameri- who have transitioned from online to mainstream notice include can teens believe they’ll be famous one day. “On the one hand, Tila Tequila (née Nguyen), who parlayed her notoriety as the first teens aren’t so different from how they’ve always been—they want MySpace celebrity (she currently has over 2,262,264 friends on the attention and they want to be popular,” says Chris Gonzalez, site) into an MTV reality show; LonelyGirl15, who came to fame executive editor of teen sites for CondéNet. “What has changed is originally as a real video blogger before being revealed as a fic- the Internet, which gives them immediate access to put themselves tional character, and Marie Digby, whose acoustic performance of online and have thousands of people come and see who they are.” Rihanna’s hit song “Umbrella” gained her nationwide attention and While that idea may be abhorrent to an older generation who a spot on Last Call with Carson Daly. values their privacy, most Gen Yers and Millennials have spent their Others on the verge include Meiko, a 25-year-old singer who entire lives in front of a camera. “There are a lot of kids who, as they used MySpace to gain recognition and released her self-titled debut were exiting the wombs of their mothers, their dads had a cam- album in June without a record label (it has since sold over 3,000 era,” laughs Robert Thompson, professor of television and popular copies) and Heidi Cannon, a singer described by Nylon editor in culture at Syracuse University. “When they took their first steps, chief Marvin Scott Jarrett as having “an all-American look but an blew out their birthday candles, they were recorded. Today there’s a indie spirit.” For a primer on how to move from online to main- notion that history isn’t what’s written in books. It’s what there is stream fame, they need look no further than Esmée Denters. The video clips of and becoming a part of it is a very powerful draw.” 18-year-old Netherlands native got her start by posting a video of That lure has led to an explosion in the popularity of sites such herself on YouTube singing TLC’s “Waterfalls” in her pink wallpa- as MySpace and YouTube. MySpace claims to have 70 million pered bedroom. Fast-forward one year, and she’s since been signed unique active monthly users; a recent Forrester report shows that to Tennman Records, Justin Timberlake’s label. A video of Denters “For marketers looking for the next big thing, the internet is like one big unending farm team,” says professor Robert Thompson.

Dress by Sonia Rykiel, necklace worn as hair piece by Subversive.

42 TKTK 2007 WWD Beauty Biz 41 Dress by Christian Lacroix, boots by Bruno Frisoni.

Hair by Dennis Devoy for Cutler/Redken; THE NEW GAME makeup by Rie for Maybelline New York at See Management; singing Natasha Bedingfield’s “Unwritten” had 5,711,289 down- features other online hipsters he discovers, too. One of his favorite C.K.: Keep going with my passions styled by Frances loads, while her version of Timberlake’s “What Goes Around” sites is thecobrasnake.com, created by photographer Mark Hunter, for fashion and music and film and Tulk-Hart at had 11,760,559—no wonder he took notice. Recently, Denters where he posts pictures of young women he photographs at trendy See Management, education and writing. Keeping up assisted by also served as one of the launch faces of AlphaKitty, the YouTube parties in L.A. and New York. Hunter’s subjects are all races, all with this culture that I love so much Lisa Hennessy; channel started in September by ex-Seventeen magazine editor in sizes and all styles—and it’s their very nonconformity that makes and using it to my advantage to travel POSt PRODUCTION BY chief Atoosa Rubenstein. “For AlphaKitty, Esmée was the equiva- them so popular with young people. “Youth culture today wants to and experience as much as I can. LABoutique NY. lent of putting a celebrity on the cover of a magazine,” says Ruben- see someone who is a little bit more like them,” says Jarrett, “who WWDBB: How do you fit in school? stein. “We launched with five videos and within one week we had has some personality and who is cool.” C.K.: I go to a very small public one million page views. That was because of Esmée.” Hunter, who discovered Kennedy when she interned for him, school and there’s not really many Rubenstein knows firsthand the power of online celebrities to has himself become famous for snapping pictures of PYTs at trendy people who have the same interests. pull in eyeballs—even when they haven’t yet hit the mainstream. parties in New York and L.A. He, too, has been the subject of an So I just really get my work done and She put Teddy Geiger, a 19-year-old musician from Rochester, L.A. Times story, and his Web site gets 25,000 unique hits a day. go home. N.Y., on the cover of Seventeen’s November 2006 issue, despite Though his subjects are largely young, Hunter says his audience is WWDBB: What is it about you that fierce internal resistance. “Nobody knew who he was. Even people much broader than that. “My demo is a mix of 13 to 30,” Hunter you think made people want to learn at the magazine didn’t understand why we put him on the cover,” says. “There are a lot of young kids who aspire to be fashionistas more about you online? Rubenstein remembers. “But he had a very strong MySpace fan and they’re not old enough to come to the parties. But there’s also C.K.: I think it’s because you could base, and I was banking on that fan base to come out and sup- a lot of older people who don’t want to go out, but want to know really catch my personality through port him.” They did. According to Rubenstein, Geiger was the what’s cool, so they’ll look to see how the kids are dressing and the photographs. I wasn’t trying to magazine’s best-selling November cover since 2000—beating out what’s going on.” Even Secret deodorant recently tapped Hunter pose or pout my lips. They were all Cameron Diaz and Nicole Richie in the process. to shoot its latest ad campaign using girls he discovered during his true, candid photos and I had this When asked the implications for marketers, Rubenstein’s answer nights out. different style and different look is immediate. “There is a very real world happening in the virtual While the new slew of stars may not be as talented as more about me. It’s much different than world,” she says. “It’s a very powerful message to traditional media traditional celebrities like actors, musicians and athletes, to many the average celebrity. People were that they’re not the only star makers. We’re getting sick of our young people, that’s besides the point anyway. “Teens think about just so curious...like, why is she with traditional celebrities because now that the tabloids have turned a character on The Hills [an MTV reality show] in the same way all these celebrities? How does she them into more careful creatures, they’re boring,” Rubenstein con- they think about actress Emma Roberts [Julia’s niece and the star know these people? Where does tinues. “What’s compelling about these people and why they’re of Nancy Drew],” says Skey. “They watch the fashion of both, want she get these clothes? Where is breaking through is that as a culture, we still want to be stimu- to know who both are dating and they think both have really pretty she from? How old is she? People lated and excited and shocked and these people make that possible. hair. The things that are relevant to teens about famous people are wanted to know. They’re real.” equally as relevant for both, despite their conduit to fame.” WWDBB: How would you describe William Sledd is one such example. A 24-year-old Gap sales- your style? man from Paducah, Ky., he started posting videos of himself doling C.K.: Eclectic. I like vintage and out fashion advice on YouTube. Called “Ask a Gay Man,” Sledd’s modern. I’m messy. Like my hair signature opener is “Hey bitches.” Most of his videos have gar- is just—I don’t do anything. I don’t nered about half a million views thus far, but a few have hit the two dress formal. Everything is toned million mark and counting. “His videos get tremendous traffic,” CORY down. If I’m wearing a Chanel bag says Rubenstein. “He may be the most subscribed to channel or carrying a Jansport backpack to on YouTube. If I were the Gap, I’d put him in an ad or use him school it’s like the same feel. online. Mainstream marketers have a whole new slew of talent to UNPLUGGEDShe may WWDBB: Have computers always WWDBB: Do you think you’re a role choose from,” she continues. “There’s tremendous opportunity out been a part of your life? model for girls your age? there, but you have to look for it.” have shot Cory Kennedy: Not really. Not until C.K.: Yeah. I think so. I get a lot of Nylon’s Jarrett, an astute talent spotter and trend tracker, to fame I had to start typing reports around messages about my style and how has also made it his business to follow the Web’s rising stars. In sixth grade. I didn’t get an e-mail until I’ve helped them come out of their addition to putting Kennedy on the cover of his magazine and online, I was in ninth grade. shell, become more outgoing with signing her up as a fashion advice columnist, Jarrett frequently but Cory WWDBB: How do you feel about dressing and shopping. And also, the being labeled an Internet celebrity? story about how I’ve gained fame— Kennedy C.K.: I don’t like it. [The name] just they tell me “Oh, it’s so inspiring how is no tech makes me feel like I do everything you did that,” or “I really love that on the computer and I really don’t. you don’t care what people think” or geek.Here, That’s just how a lot of people found “You’re just yourself and you don’t the teen photos of me. change for anyone.” WWDBB: What would you rather be WWDBB: Do you see yourself moving on style, known as? more into the mainstream in terms of school C.K.: Someone not on the Internet? notoriety? I don’t know…real? C.K.: Not mainstream. But bigger, and stay- WWDBB: The image of conventional I guess. More well-known. Wherever ing in the celebrities are controlled by press that goes we’ll see because I don’t agents, but for you it’s completely out really know what’s coming up next. limelight. of control. How do you corral it? I have no idea. —J.B.F. Sweater by C.K.: I just go with the flow. There’s WWDBB: Has becoming famous on Malo, necklace so many people on the Internet, the Internet made you want to be worn as I can’t control it. I just continue more tech-savvy? hairpiece and ring by Bing being myself. C.K.: No (laughs). I mean I know how Bang, shoes by WWDBB: Now that you have to use a computer but I’m not like an Sonia Rykiel. recognition, what do you want to do? Apple genius.

44 TKTK 2007 TKTK 2007 45 Evan Hansen, editor in chief, Wired News Look for big advances in personalized medicine with companies such as 23andme and deCode Genetics offering detailed THE DNA roadmaps for under $1,000. This will let you see your genetic predisposition for cancer, heart disease and so on, and will have enormous implications for health and society at large (consider how this information might affect medical VISION insurance premiums). In consumer electronics we’re going to see wireless technology advance to the next level with the rollout of new high-speed networks called 3G. From the military, look for unmanned MoreTHING mergers, fewer robotic weapons and nonlethal acquisitions? New faces, crowd control technologies using sound, microwaves and nausea to different places? To discover disperse rioters. what 2008 holds in store Cathy for society at large (and Leonhardt, beauty in particular), we asked managing director, some forward thinkers Peter J. Solomon Co. to Much of the high level of M&A speculate on what lies ahead activity in the past three years has been driven by the growth of private in their respective fields. equity investors and transaction financing at unprecedented levels. Faith Popcorn However, with recent credit market Our lives are out of the delicate turmoil, the housing market crisis balance that Chinese philosophy and economic uncertainty, M&A calls yin and yang. Yin embodies activity has declined. But so have what is dark, negative and passive. valuations, with consumer and retail It is this mind-set that has made stocks reflecting these issues. In our world aware of the catastrophic the coming months, M&A activity affects of harsh treatment toward will likely be at a slower pace than Mother Nature. Yang stands for the past few years. But there are a light, positivity and action. Our world few countervailing forces: Strategic has been in an overwhelming state buyers are now better positioned of yin, but 2008 will continue to to do acquisitions vis-à-vis private usher in an accent of yang. Though equity buyers as credit markets are not in balance yet, the tiny ray of limiting transaction multiples and light in the darkness we are calling Karim Rashid Wendy Liebmann, where they want: traditional Giovanni C Russo, high-tech fabrics in other areas like is another way of engineering valuations are lower. Additionally, “yin(g).” As the trend AtmosFEAR The new year will bring the founder and chief shopper, storefronts, online, vending creative director, fragrance packaging. Architects are cost out of the supply chain. private equity investors are returning explains, polluted air, contaminated increased casualization of our WSL Strategic Retail stores, TV, Web sites, all of the No 11 Inc. also beginning to use state-of-the- We’re also going to see a better to more value-priced acquisitions. water and tainted food stir up a world. The world around us I think 2008 will be one tough above and more. Add to that the As there is more wealth being art fabric materials in building. It’s union of the store, its catalogue Strategic buyers will still pay storm of consumer doubt. This feel- seems to be getting perpetually roller-coaster ride at retail. It’s fast-evolving value proposition created around the globe, the new and fresh, and definitely not and the Internet. It will be more higher multiples for premium ing of fear has been propelling con- softer, more amorphous and more been a long time since we’ve seen shoppers will demand—way demand for luxury goods will anything we’ve seen before. integrated, meaning I preshop growth brands such as Burt’s Bees. sumers toward the trend of S.O.S., experiential, more tactile, more this convergence of diminished beyond great prices. Constant increase. That being said, the online, I visit the store and I To drive expansion, consumer where individuals are discovering a sensual. Our objects are softer, economic expectations, dramatic newness, innovation, a simplified exclusive experience from luxury Paco Underhill, either close the deal in-store or products companies will continue sense of responsibility, ethics and more human and more engaging. social change and political shopping experience and a brands is declining. The result founder, chief executive I go back and order online. The to selectively pursue acquisitions compassion for our planet. In 2008, The digital age, the information upheaval all wrapped up in a time strong, authentic emotional of this is we will most likely see officer and president, online world is a better informed to enter new product categories, responsibility will equal sophistica- society, the global village and the of technological transformation. connection will all be critical to a return to handmade, artisan, Envirosell sales associate. What we’re gain share in geographies and tion. Items that are rare, with a story leisure culture all are symptoms We’ll see the continuing redefinition building value and loyalty. bespoke and couture. Having The ongoing launch of private going to see increasingly as we access new distribution channels. or a conscience, will become more of a changing shrinking physical of retail. It’s what we call the tailor-made means one of a kind, so label. Retailers are finding ways have Internet-enabled mobile With strategics focusing on billion

Andrew Weil, es

valuable. Streamlined, efficient world where “soft” defines our big bang theory—continuing g you have no chance of running into to source their own products. phones and in-store devices that dollar global brands, fewer mega- design will continue to infiltrate the new relaxed landscape. Soft is a consolidation across all channels physician your clone at a cocktail party. As far If you look at the hottest stores can broadcast to a mobile phone acquisitions are still possible. mainstream. The handmade works metaphor for our forever-changing resulting in fewer bigger retailers, Anger and frustration with the as the ready-to-wear market, you’ll across the First World, be it will be that some of the basic However, the consolidation of trade of global artisans will be given more ever-vast organic system. This with lots of smaller, more agile, state of health care will lead to see more and more convergence Zara or Mango or Trader Joe’s needs of packaging are made factors and increasing regulatory value than ever before. Our culture casualization of shape, form, newer retail players filling the demands for reform and, I hope, of sports technology and fashion. I or even Jo Malone, they’re all redundant—just as with Apple’s initiatives are forcing mergers at is digging for depth in how we live material and behavior is now void. Brick-and-mortar stores to more people taking personal love going to a snowboard or surf about private label products. new iPhone, which came with an the midlevel. Thus, M&A activity will and what we have. Hence, ying a movement that elevates the will finally become just another responsibility for their own shop to search for ideas regarding This allows the manufacturer of Internet address instead of an continue to play a major role in the is the new bling; responsibility is physical world to be as engaging option. Shoppers will expect their well-being. new high-tech fabrics and design. products not to make love through instruction book. It also makes us beauty industry, but at more modest

what’s “flash,” not mere trappings. as the digital world. goods and services any way, any Photoby Purestock/Getty Ima Furthermore, I see the use of the interpreter of the retailer and an eminently greener culture. transaction valuations.

44 WWD Beauty Biz WWD Beauty Biz 45 RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RECENT HISTORY

The Top 75 ranks the world's largest cosmetics companies by Unilever Home and Personal Care/Axe/ For full-year 2006, Unilever’s personal care sales hit almost beauty sales. These firms weigh in at $138.654 billion in sales. UNILEVER Lynx, Impulse, Rexona/Sure, Degree, $16 billion. The division, which includes oral care and bar soap, The U.S. has the most companies on the list with 25 and leads London, Dove, Lux, Pond’s, Suave, Sunsilk, represented 28% of Unilever’s total annual income of almost $57 in volume terms with $60.117 billion. France has 11 companies Rotterdam Timotei, Clear. billion, versus 26% in 2005. Some 55% of the division’s sales are on the list and volume of $29.458 billion; Italy, nine companies generated in emerging markets, with Asia alone counting for more and $1.957 billion; Japan, eight companies and volume of 3 $ 12.807 billion (est.) than 30%. In 2005, such markets made 38% of sales. Michael $14.657 billion, and Germany, six companies and $8.969 billion. 10.195 billion (est.) Treschow became Unilever’s first independent nonexecutive Beauty’S 6% v. ’05 Firms are listed by parent company and ranked by their beauty chairman in May, succeeding Antony Burgmans. In March, Michael sales for the 2006 calendar year. For companies whose fiscal Polk replaced John Rice as president for the Americas. Rexona/Sure year did not run from Jan. 1, 2006,to Dec. 31, 2006, estimates became Unilever’s 12th $1.4 billion-plus brand in 2006. Hair care were calculated. Sales figures were either obtained from line Sunsilk was introduced in the Americas, Asia and Africa. Pond’s the companies or with the help of industry sources. Beauty bowed in the Philippines, Indonesia, Thailand and China. Clear volume is made up of fragrance, makeup, skin care, sun care, antidandruff shampoo was launched in key markets in first-quarter RESEARCHED and compiled by rachel tiplady, with hair care, deodorant, plus cellulite and shaving products. It 2007. Dove introduced Pro-Age, skin care and toiletries for women contributions from jennifer weil (PARIS), melissa drier does not include bar soaps, razors, toothpastes, foods and aged 50-plus, in Europe and the Americas in January. It also rolled (berlin), poul funder larsen (copenhagen), jane moir diet foods, medicines, vitamins or detergents. To be included out Summer Glow, a gradual tanning moisturizer, across Europe. (hong kong), brid costello (london), stephanie epiro (milan), peter born, faye brookman, michelle edgar, in this ranking, a company must sell its products in at least matthew evans, andrea nagel, julie naughton, molly two of the following major markets: Europe, North America, While the Estée Lauder Co’s sales for calendar 2006 are estimated at prior (new York) and michael kepp (rio de janeiro). South America and Asia. Estee Lauder, Aramis, Clinique, THE ESTEE Prescriptives, Lab Series, Origins, $8 billion, the firm’s fiscal 2007 generated sales of $7.04 billion, up LAUDER COS. MAC, Bobbi Brown, Tommy Hilfiger, La 8.9% over the prior year. Its net earnings gained 83.9% to $449.2 RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RECENT HISTORY New York Mer, Donna Karan, Aveda, Jo Malone, million. In November, Lauder unfolded a succession plan in which Bumble and bumble, Darphin, Michael Procter & Gamble executive Fabrizio Freda was tapped to become $ 8 billion (est.) Kors, American Beauty, Flirt!, Good president and chief operating officer with plans to promote him Consumer/L’OrEal Paris, Garnier, In 2006, L’Oréal’s total sales reached $19.84 billion, an 8.7% increase, 4 6.8% v. ’05 Skin, Grassroots, Sean John, Missoni, to ceo within 24 months. At the same time, Leonard Lauder said L’OrEal group Maybelline New York, La Scad, SoftSheen, the company’s highest gain since 2000. It came thanks to a 5.7% Coach, Daisy Fuentes, Tom Ford Beauty, he would step down as chairman when the new succession plan Clichy, france Carson, Mininurse. Professional/ rebound in organic growth, acquisitions and a strong turnout by its “rest Donald Trump The Fragrance, Kate goes into place, thereby paving the way for his son and current ceo L’OrEal Professionnel, KErastase, of the world” market, which generated 60% of the company’s overall $ 19.84 billion Spade, Ojon. William to succeed him. Other highlights included the opening of InnE, Redken, Matrix, Mizani, PureOlogy. percentage gain. That category made 27% of total L’Oréal revenues, 15.79 billion the 9,500-square-foot Innovation Institute in Shanghai, a deal with Luxury/LancOme, Biotherm, Helena overtaking North America’s contribution of 26% for the first time. 1 8.7% v. ’05 Coach to launch an eponymous fragrance and the premiere of Bobbi It was also the first time L’Oréal’s skin care category (including sun Rubinstein, Kiehl’s, Shu Uemura, Brown on QVC. The Aramis and Designer Fragrances division and care) was the strongest performer. Sales at Garnier topped the $2.8 Parfums Giorgio Armani, Parfums Ford Motor Co. created a men’s scent, Mustang. Thia Breen was billion mark for the first time. Net profits, excluding nonrecurrent items Cacharel, Ralph Lauren Fragrances, named president of Estée Lauder Americas and global business after minority interests, rose 12% to $2.6 billion in the year. L’Oréal’s Paloma Picasso, Parfums Guy Laroche, development. Market openings included Vietnam for Clinique; main market is Western Europe, with 47% of total group consolidated Diesel, Yue-Sai, Viktor & Rolf. Active Chile and France for La Mer; Spain for Aveda; Poland, the Czech cosmetics sales. Fast-growing regions last year included Eastern Cosmetics/ Vichy, La Roche-Posay, Republic, Belgium and Estonia for MAC, and Italy, Turkey and Europe, with almost 25% gains; China, with more than 21%, and India, Skinceuticals, Sanoflore, The Body Russia for Jo Malone. Aveda unveiled its 4,100-square-foot flagship with 40%. Key buys over the past 12 months included the October Shop. Galderma, Le Club des Createurs Lifestyle Salon and Spa in Osaka, Japan. de Beaute, Laboratoires Inneov (50% 2006 purchase of Laboratoires Sanoflore, giving L’Oréal a foothold each). Sanofi-Aventis (10.4%). in the high-growth organic cosmetics segment. This May, it bought PureOlogy, among the salon industry’s hottest hair care brands. L’Oréal Avon Color, Anew, Skin-So-Soft, Avon For full-year 2006, net income slid 44% to $477.6 million on an also snapped up the outstanding 70% of U.S. salon beauty distributor AVON PRODUCTS Solutions, Advanced Techniques 8% overall revenue gain to $8.76 billion. Avon’s beauty sales Beauty Alliance this April. This July, it announced its intent to acquire New York Hair Care, Avon Naturals, Mark, Avon picked up 7.8%. Among its top launches of the year, according Maly’s West, another U.S. salon beauty distributor. Wellness. to the company, were Derek Jeter Driven men’s fragrance, Avon $ 6.029 billion Solutions Ageless Results antiaging treatment line, Anew Clinical 7.8% v. ’05 Eye Lift cream and Ultra Color Rich Lipstick. For 2006, Avon’s Procter & Gamble Beauty/Pantene, Head For the 2006 calendar year, Procter & Gamble Beauty was estimated 5 advertising investment increased more than 80% to $249 million. PROCTER to have generated sales of $22.08 billion, or some 30% of total & Shoulders, Clairol, Herbal Essences, Last year, the company also got the green light to resume direct company revenues, according to industry sources. However, once & GAMBLE Nice ’n Easy, Natural Instincts, Wella, selling in China. At the end of 2006, there were more than 350,000 sales of products such as Ivory and Camay bar soaps, plus feminine- CINCINnATI Koleston, Shockwaves, Wellaflex, licensed Avon representatives in the country. By mid-2007, that care items and salon furniture are subtracted from that sales number, Vidal Sassoon, Infusium 23, Aussie, number had risen to 659,000. 2 $ 17.5 billion (est.) Rejoice (hair care). Cover Girl, Max pure “beauty” revenues—as defined by this ranking—hit an estimated 8% v. ’05 Factor (makeup). Hugo Boss, Old Spice, $17.5 billion. This July 1, P&G reorganized into three business units: Lacoste, Jean Patou, Valentino, Gucci, P&G Beauty, Global Health & Well-Being and Household Care. Shiseido, Cle de Peau Beaute, Carita, Shiseido is two-thirds of the way into a three-year restructuring Escada, Puma, Anna Sui, Ghost, Dunhill, Susan E. Arnold is the new structure’s president, global business SHISEIDO CO. Decleor, Nars, Joico, Aupres, Supreme plan. After posting net losses of about $77 million in the fiscal one

Laura Biagotti, Dolce & Gabbana, units. She was formerly vice chair of P&G Beauty and Health. Robert cc Tokyo Aupres, Urara, Pure & Mild, Za, D’ici year ended March 31, 2005, it generated net income of $124 Christina Aguilera (fragrance). Olay, McDonald, formerly vice chair of global operations of P&G, became La, Ipsa, Ayura, Ettusais, Soka Mocka, million one year later and $217 million in the ’06-’07 fiscal anna I $ 5.884 billion (est.) SK-II, Noxzema, DDF, Gillette (skin care). the company’s chief operating officer. In January, P&G acquired HDS Shiseido Fitit, FT Shiseido, Shiseido period. Both revenues and earnings outperformed company ¥ 684.2 billion (est.) Secret (deodorant). Cosmetics Lab Inc., marketer of Doctor’s Dermatologic Formula Professional, Zotos, Zirh, Helen Curtis, expectations in its most recent fiscal year. Total net income was homas 3.2% v. ’05 T 6 (DDF) skin care. P&G also entered the celebrity scent sweepstakes Sea Breeze. Serge Lutens. Beaute up 75% year-on-year. Overseas markets—where business rose by signing songstress Christina Aguilera on for a fragrance license. Prestige International/Parfums Issey 14%—contributed the most. In China, Shiseido’s sales grew In December 2006, P&G sold the 4711, Tosca, Sir Irisch Moos and Miyake, Parfums Jean Paul Gaultier, 31%, fueled by 1,700 new doors and the “highly successful”

Extase fragrance businesses to Germany’s Mäurer + Wirtz. Cover Chinseee and Parfums Narciso Rodriguez. launch of the Urara skin care brand in October 2006, according Girl signed on new spokesmodels, Rihanna and Drew Barrymore, and g to the company. Shiseido aims to stabilize its domestic earnings, added celebrity makeup artist Molly Stern to its lineup. Key product which slipped 1.3% during the most recent fiscal year, due to a introductions included Dolce & Gabbana’s The One women’s scent, “drastic sales drop” in the health care division. Shiseido will start plus the relaunches of Herbal Essences and Head & Shoulders hair operating in Russia in January 2008. This year, Shiseido predicts care. It is expected P&G will register sales growth of 5 to 7% per year revenue growth of 4% and a 30% jump in net income to $284 through 2010, according to chief executive and chairman, A.G. Lafley. million, driven by its international business. stilllife photos by Geor

46 WWD Beauty Biz WWD Beauty Biz 47 RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RECENT HISTORY RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RECENT HISTORY

Kao Corp., Biore, Asience, Essential, For its fiscal year ended March 31, Kao’s Prestige Cosmetics division Alberto VO5, Tresemme, Nexxus, The 12 months ended Sept. 2006 marked the 15th consecutive year KAO CORP. Merit, Sifone, Feather, Liese, Blaune, grew 243% to $2.6 billion, thanks to the integration of Kanebo’s ALBERTO-CULVER Consort, Family Fresh (hair care). St. of record income and earnings. Alberto-Culver attributed the growth Tokyo Sofina, Aube, Est. Kao Brands: Jergens, sales. The Tokyo-based company was snapped up by its larger rival Melrose Park, Ill. Ives (skin care). TCB, Soft & Beautiful, to Nexxus Salon Hair Care, which outperformed its goal of $100 Curel, Ban (skin care). John Frieda, Guhl Kao for $3.6 billion last year and integrated into Kao’s accounts Just for Me, Motions (ethnic hair care). million in retail revenues in the mass market, as well as strong sales of $ 5.025 billion (est.) in Febuary 2006. Including the amortization of the Kanebo deal, $ 3.45 billion (est.) TRESemmé. It realized double-digit growth in the U.S. and launched (hair care). KPSS GmbH: Goldwell, KMS 2.1% v. ’05 ¥ 543.32 billion operating income within Kao’s Prestige Cosmetics division plunged in Argentina, Chile and Mexico, where it achieved 4% market share 7 70% v. ’05 (hair care). Molton Brown (fragrance, 11 skin care). Kanebo Cosmetics: Sensai, 82% to $4.4 million. Its Personal Care division showed growth of 4% within the first three months in each. In November 2006, Sally Beauty RMK, Suqqu, Lunasol, Yusui, Impress, to $1.7 billion. Revenues for Kanebo-brand cosmetics hit $1.7 billion Supply split from Alberto-Culver and sold a portion of its beauty- Aqua, Doltier, Twany, Freeplus, Lissage, in the February-December 2006 period, a 2% rise. This April, Kao supplies business to private equity firm Clayton, Dubilier & Rice in a Allie (skin care, cosmetics). T’Estimo, reorganized into four units to reflect changes in consumer-product transaction valued at $3 billion, including $1.85 billion in debt. Revue, Kate, Tiffa, Lavshuca (cosmetics). selection and purchasing behavior: Beauty Care, Human Health Care, Fabric and Home Care and Chemical Products. Within beauty, Dew, Suisai, Kanebo Blanchir, Faircrea, It has been a busy year for Coty. This July, for instance, it signed Kao said it aims to build upon the originality of the Kao brand in Coty Prestige: Baby Phat, Calvin Klein, Evita (skin care). Sala (hair care). COTY a licensing agreement with Tonino Lamborghini to create men’s Japan. Abroad, it plans to expand its sales base, particularly in China. Cerruti, Chloe, Chopard, Davidoff, Gwen New York fragrances. In March, Coty unveiled its first U.S.-based fragrance bay, Kanebo, which operates separately, has grown from the strong sales of Stefani, Jennifer Lopez, Jette Joop!, a retail kiosk featuring 18 of its fragrances in Lord & Taylor’s Fifth a selective skin care brand called Impress, launched in March 2006. Jil Sander, Karl Lagerfeld, Kenneth $ 3.2 billion (est.) Avenue store in New York. In February, Coty sold its mass market 19% v. ’05 Cole, Lancaster, Marc Jacobs, Nautica, 12 Nikos, Sarah Jessica Parker, Vera brands The Healing Garden and Calgon to Ascendia Brands Inc. for Nivea, 8x4, Atrix, Labello, Hidrofugal, Sales from Beiersdorf’s cash cow Nivea grew 9% to break the $4.3 Wang, Vivienne Westwood. Coty Beauty: $125 million. Also that month, Coty inked a fragrance licensing deal BEIERSDORF La Prairie, SBT Skin Biology Therapy, billion barrier. The brand ranked number one in 131 markets in 2006, adidas, Aspen, Astor, Celine Dion, Chupa with Kate Moss and the company created a new unit, called Coty Hamburg, Juvena, Marlies Moller, Florena, up from 125 in 2005. But Beiersdorf’s pharmacy-distributed Eucerin Chups, David and Victoria Beckham, Beauty, that combines its mass market businesses in Europe, the Germany Eucerin. brand and prestige La Prairie brand posted the strongest growth. Desperate Housewives, Esprit, Americas and Asia. Gwen Stefani made a global fragrance licensing Eucerin’s sales grew 10%. La Prairie Group grew net sales 10% on Exclamation, Isabella Rossellini, deal with the firm in December 2006. Coty has also signed on a slew $ 4.94 billion year. Within that, La Prairie brand’s sales gained 16%. Key launches Jovan, Kate Moss, Kylie Minogue, mary- of celebrities over the last 12 months, including Josh Holloway, Kim 8 3.932 billion included the global rollout of La Prairie Pure Gold Serum and kateandashley, Miss Sixty, Miss Sporty, Basinger and Tom Brady, to front a number of its products. By 2011, 7.2% v. ’05 Juvena’s Juvedical DNA Skin Optimizer. In its first year, the Nivea Rimmel, Shania Twain, Stetson, Tonino Coty is expected to be a $5 billion company, according to its ceo House in Hamburg, offering spa treatments, attracted 700 visitors a Lamborghini, Vanilla Fields. Bernd Beetz. day. The City of Hamburg sold its 10% stake in Beiersdorf in January, increasing the company’s free float to about 32%. Beiersdorf sold LVMH Moët Hennessy Louis Vuitton’s Perfumes and Cosmetics the Hirtler Soap Factory in Heitersheim, Germany, in February. In Perfumes and Cosmetics/ Parfums LVMH MOET division’s sales rose 8.1% in first-half 2007 versus first-half 2006 June, it said it would transfer its Italian production to Spain, Germany Christian Dior: Addict, J’adore, HENNESSY to $1.9 billion. Its profits spiked almost 37% to $158 million, and Poland. Beiersdorf signed a letter of intent early this year for a Dolce Vita, Fahrenheit, Eau Sauvage, bolstered by business at Parfums Christian Dior, Guerlain and strategic alliance with C-BONS Holding Ltd., a leading player in LOUIS VUITTON Poison, Capture Totale, Dior Homme. Parfums Givenchy. Operating margin as a percentage of revenue for Hong Kong’s hair care market. Paris Guerlain: Issima, Shalimar, Aqua 13 Allegoria, L’Instant de Guerlain, the division rose 2 percentage points, to 9%. As for 2006, LVMH’s $ 3.164 billion Meteorites. Parfums Givenchy: Perfumes and Cosmetics division posted organic revenue growth of Neutrogena, Aveeno, RoC, Clean & Clear, Johnson & Johnson completed the acquisition of Pfizer Consumer 2.519 billion Givenchy Pour Homme, Organza, 11% and a 28% spike in operating profit to $325 million. Fragrance JOHNSON Johnson’s, Ambi, Purpose, Shower to Healthcare, whose beauty holding is Lubriderm, in late 2006. Sources 10% v. ’05 Amarige, Very Irresistible, Ange ou sales accounted for 52%, cosmetics, 28%, and skin care, 20%. Europe & JOHNSON Shower, Lubriderm, pH5.5, Biapharm SAS. valued the deal, which also includes health care brands, at $16.6 Demon. Givenchy Le Makeup. Parfums (excluding France) generated 41% of the division’s sales; France, New Brunswick, billion. J&J reorganized its activities into new divisions, including Kenzo: Flower by Kenzo, Kenzo Ki. 17%; Asia (excluding Japan) and “other markets,” 13% each; the U.S., N.J. Beauty Care Global Business Unit and Baby Care Global Business Parfums Loewe, Sephora, Acqua di 9%, and Japan, 7%. Parfums Christian Dior, which signed Eva Green 9 Unit, each of which includes beauty. J&J’s worldwide consumer Parma, Benefit Cosmetics, Fresh, as the face of its Midnight Poison scent, generates about 60% of the $ 3.8 billion (est.) segment posted annual revenues of $9.8 billion, an 8% increase. Make Up For Ever, Fendi, Pucci. division’s total revenues. At Guerlain, all categories pushed the brand 8% v. ’05 Operating growth reached 6%, and there was a 1% positive impact into double-digit revenue growth. from currency exchange. Domestic sales rose 4%, and revenues from exports increased 11%. J&J said the division’s strong gains were due Maureen Chiquet was named global ceo of Chanel effective this January. to the turnouts of Aveeno, Johnson’s and Clean & Clear. J&J’s skin Chanel No.5, Allure, Allure Homme, CHANEL Coco, Coco Mademoiselle, Chance, In the newly created position, based in New York, Chiquet coordinates care unit posted sales of $2.6 billion, a 10% increase. J&J generates New York all company activities worldwide. She reports to Chanel chairman Alain 47% of its skin care sales in the U.S. No.19, Cristalle, Pour Monsieur, Antaeus, Egoiste (fragrance). Wertheimer. In November 2006, John Galantic replaced her as president $ 3.141 billion Precision (skin care). Rouge Allure, and chief operating officer of Chanel Inc; in March, Véronique Morali (est.) Victoria’s Secret, Bath & Body Works, C.O. Owner Leslie H. Wexner sold a 75% stake in Limited Stores this was named president of Chanel SAS. The firm registered 13% growth LIMITED BRANDS 14 2.5 billion Le Vernis, Inimitable (makeup). Bigelow, La Senza, White Barn Candle Co. July to an affiliate of Sun Capital Partners Inc. in a noncash deal. (est.) in makeup sales, thanks to the launches of Rouge Allure lipstick and Columbus, Ohio The private equity firm is expected to contribute $50 million in equity 12% v. ’05 Inimitable mascara. Chanel continued to dominate the female fragrance capital and arrange for a $75 million credit facility. Limited will not top 10 around the globe. Chanel No.5 remains number one, followed by $ 3.7 billion (est.) receive any cash and expects to record an aftertax loss of $42 million. Coco Mademoiselle and Chance in fifth place. 10 12% v. ’05 The company also closed in July a deal to sell a majority interest in its Express brand to Golden Gate Capital for $602 million. Such moves Schwarzkopf & Henkel: Schwarzkopf, In first-quarter 2007, Henkel’s cosmetics and body care business will allow Limited Brands to focus on core businesses—Victoria’s HENKEL Fa, Taft, Gliss Kur, Schauma, Palette, posted sales up 10% and operating profit up 11%. In 2006, Henkel Secret and Bath & Body Works. The company is expected to take Dusseldorf Diadermine, Brillance, Got2b, Dep, L.A. said its cosmetics and body care businesses (excluding oral care) advantage of synergies between Bath & Body Works and Victoria’s Looks, Citre Shine, Smooth ’N Shine, outpaced the worldwide market, with 9% sales growth and 12% gain $ 3.004 billion (est.) Secret, as both sell many of the same type of beauty items. C.O. Paon. Schwarzkopf Professional: in EBIT. Its organic sales rose 4%. Revenues from consumer hair and 2.391 billion (est.) Bigelow should provide more growth, too. Although there are only 15 8.9% v. ’05 Igora, bc bonacure, Osis, Seah body care products fueled the gains, especially in Eastern Europe, five Bigelow apothecaries, its products have been added to Bath & Hairspa, Silhouette, Indola. Henkel Asia-Pacific and Latin America. In North America, its deodorant Body Works stores. There are about 1,000 Victoria’s Secret doors and Lion Corp.: Fresh Light. Morris: brands helped bolster sales. This March, Henkel sold its fine-fragrance more than 1,500 Bath & Body Works stores. Neil Fiske, Limited’s Sergio Tacchini, La Perla, Genny, Morris Profumi business, which manufactures and markets licensed former ceo who helped inject brand names into the firm’s product mix, Krizia, Fiorucci Parfums, Ferrari. brands such as Ferrari and La Perla, to the Italian investment group primarily in Bath & Body Works’ flagship design, was replaced this Dial: Dial, Tone, Coast, Pure & Natural, Investindustrial. Henkel’s professional hair care business developed June by Diane Neal. She had been Bath & Body Works’ president. Right Guard, Soft & Dri, Dry Idea. well internationally, notably in Eastern Europe and Latin America.

48 WWD Beauty Biz WWD Beauty Biz 49 RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RANK COMPANY + 2006 Sales SUBSIDIARIES + MAIN BRANDS RANK COMPANYCOMPANY + + 2006 2007 S Saalleses SUBSIDIARIES + MAIN BRANDS

MARY KAY Mary Kay, TimeWise, MK Signature, PUIG BEAUTY & Puig Prestige: Carolina Herrera LORNAMEAD Finesse, Aqua Net, Harmony, Vosene, L’OCCITANE EN L’Occitane en Provence (skin care, Dallas Velocity. FASHION GROUP Perfumes, Paco Rabanne, Groupe London Once, Brisk, Bristow (hair care). PROVENCE hair care, body care, men’s care, $ 2.25 billion $ 647.2 million (est.) Barcelona Nina Ricci, Comme des Garcons Yardley, Woods of Windsor, CD Manosque-en- fragrance, cosmetics). 2.3% v. ’05 25 $ 1.167 billion 34 £ 351.2 million (est.) 16 43 Provence, France 929 million Parfums. Prada. Puig Beauty: 9.8% v. ’05 (bath and body). Lypsyl (lip care). $ 420.8 million 4% v. ’05 Myrurgia, Perfumeria Gal, Antonio Christy (skin care). Triple Dry 335 million YVES ROCHER Yves Rocher (skin care, makeup, Puig, Antonio Banderas, Barbie, (personal care). Handsan, Crisan 24.5% v. ’05 Issy-les-Moulineaux, fragrance). Daniel Jouvance, Dr. Adolfo Dominguez. (hair and skin care). Te Tao (hair France Pierre Ricaud, Sante Naturelle, 17 $ 1.97 billion and body care). Stanhome (skin care). Isabel Derroisne BARE ESCENTUALS bareMinerals (color cosmetics). 1.568 billion ORIFLAME COSMETICS Orifl ame (makeup, skin care, (fragrance). Kiotis (skin and body San Francisco RareMinerals, md formulations (skin 2.7% v. ’05 Stockholm fragrance, toiletries). $ 395 million care). Galerie Noemie (makeup). SARA LEE CORP. Badedas, Duschdas, Monsavon, care). Bare Escentuals (body, bath $ 1.153 billion Chicago 44 52% v. ’05 26 918 million Radox, Sanex, Zwitsal (bath, body and face care). $ 641.4 million (est.) 20% v. ’05 35 1% v. ’05 and personal care). Brylcreem, NATURA COSMETICOS Natura/Chronos (antiaging cream). Williams (men’s toiletries). Matey Sao Paulo, Brazil Ekos (fragrance, hair care, skin FANCL CORP. Boscia, Fenatty, Evante, Cleartune, $ 1.797 billion (bath care). Yokohama, Japan FDR, Jinnous (skin care). Belmeil, 18 R$3.9 billion care, bath and body oil). Mamae e ELIZABETH ARDEN Elizabeth Arden, Elizabeth Taylor, $ 377.2 million (est.) Bebe (fragrance, hair care, bath New York Britney Spears, Danielle Steel, Hilary Clevance (cosmetics). 19.9% v. ’05 $ 1.046 billion (est.) 45 ¥ 43.862 billion (est.) CVC CAPITAL PARTNERS Th e Co l o m e r G ro up/R evl o n and body oil). Diversa (makeup). Duff, Mariah Carey, Halston, Daytona 27 9.2% v. ’05 London 9.6% v. ’05 Professional, Modern Organic 500, Geoffrey Beene, Paul Sebastian, $ 603 million (est.) Products (MOP), Arosci, African Gant, Hummer, Alfred Sung, Badgley 36 480 million (est.) ALTICOR Artistry, E. Funkhouser New York Pride, Fabu-Laxer (hair care). Mischka, Bob Mackie, Lulu Guinness, 5% v. ’05 DEL LABORATORIES Sally Hansen, Healing Beauty, La Ada, Mich. (EFNY), Laura Mercier, NAO (skin American Crew (men’s hair and $ 1.63 billion Nanette Lepore, White Shoulders, Uniondale, N.Y. Cross (nail care, lip care, foot care, care, cosmetics). Tolsom (men’s skin care). Creative Nail Design $339 million 19 0.6% v. ’05 Giorgio Beverly Hills. hand care, depilatories). N.Y.C. New 46 7.5% v. ’05 skin care). Body Series, G&H (body (nail items). Creme of Nature (hair York Color (cosmetics). Elizabeth care). Satinique (hair care). color). Natural Honey (skin care). Arden (nail care). GROUPE PIERRE FABRE Avene, Ducray, Pierre Fabre, Galenic, Boulogne, France Klorane, Rene Furterer (skin and PACIFIC CORP. AmorePacific Corp.: Lolita Lempicka, $ 925.8 million VORWERK & CO. Jafra Cosmetics/Royal Jelly, INTER PARFUMS Burberry, Lanvin, Paul Smith, S.T. Dupont, hair care). Seoul Jean-Charles de Castelbajac 28 737 million Wuppertal, Germany New York Christian Lacroix, Quiksilver/ Roxy, Van Elasticity, Retinol (skin care). $ 1.622 billion $ 561.5 million $ 321 million (fragrance). AmorePacific, Sulw- 8.5% v. ’05 Cleef & Arpels, Nickel, Banana Republic, 20 KRW 1.53 trillion 447 million Define Your Body, Jafra Spa, Art 47 17% v. ’05 37 Gap, New York & Company, Aziza, Jordache, hasoo, Hera, Iope, Laneige, Mamonde, of Balance (bath and body care). 9% v. ’05 12% v. ’05 Intimate, Diane von Furstenberg, Celine. Innisfree, Etude (cosmetics). Lirikos Navigo, Sphera, Victus, Valferra POLA ORBIS HOLDINGS Pola/B.A., Creatage, Wrinkle Shot, (skin care). Mise en Scene (hair care). (fragrance). Tokyo White Shot, Estina Alvita, Whitissimo, Happy Bath (body care). $ 891.3 million NOEVIR CO. Noevir: Speciale Line, 505 Line, 105 29 ¥ 103.635 billion Signs Solution (skin care). Augha, Tokyo Line, 99 Line, Extra Line, NHS Line, 0.2% v. ‘05 Southern Call, Order Color Market, SISLEY Sisley (color cosmetics). Sisleya, $ 318.2 million (est.) Noevir Blancnew Reset-W, Raysela 48 ¥ 37 billion (est.) Aniak, Vivoke (makeup). Orbis: Aqua Paris Sisleya Elixir (skin care). Eau de Suncare Line, Noevir 5 Makeup Line, $ 541.4 million KOSE CORP. Kose Corp: Cosme Decorte, Awake, Force, Clear, Whitening, Excellent, 1% v. ’05 Tokara Sea Mineral Toiletries. 38 431 million Soir, Eau de Campagne, Soir de Lune Tokyo Beaute de Kose, Sekkisei, Visee, White Aw. pdc: Pure Natural, UV (fragrance). Tokiwa Pharmaceutical Co. Ltd.: Nov $ 1.519 billion (est.) 12% v. ’05 Oliogomarine Line, Nov III Skincare 21 ¥ 176.6 billion (est.) Esprique Precious, Stephen Knoll Moisture, Arbu White. Future Labo: Line, Sana Excel Makeup, Sana Natural Collection, Predia, Jill Stuart. Derma Q II. Orlane Japon: B21. 0.5% v. ’05 Resources, Sana Nameraka Honpo, Kose Cosmenience Co. Ltd., Kose EUROITALIA Moschino, Reporter, Alessandro Sana Maikohan Makeup. Cosmeport Corp., Albion Co. Ltd., Cavenago, Italy PPR YSL Beaute/Yves Saint Laurent Dell’Acqua (fragrance). Naj-Oleari Dr. Phil Cosmetics Inc. $ 520.2 million Paris (fragrance, makeup, skin care). Roger 39 414.1 million (fragrance, color cosmetics, skin $ 786.4 million O BOTICARIO Native Spa and Active (skin care). & Gallet (fragrance, bath and body 28% v. ’05 care). Versace (fragrance, color 30 626 million Curitiba, Brazil cosmetics). Malbec, Lily Essence (fragrance). ALLIANCE BOOTS PLC Boots the Chemists/No. 7, 17, 2.4% v. ’05 care). Stella McCartney (fragrance, $ 311.9 million Royalt y (fragrance, makeup). Nottingham, U.K. 49 R$677 million Soltan, Boots Expert, Natural skin care). Boucheron, Ermenegildo Maquilagem Boticario (makeup). $ 1.482 billion (est.) 4% v. ’05 22 £ 804 million (est.) Collection, Botanics, Liz Collinge, Zegna, Oscar de la Renta, Alexander NIPPON MENARD Saranari, LS, Fairlucent, Tsukika, 5% v. ’05 FCUK, Glitter Babes, Ruby & Millie. McQueen (fragrance). COSMETICS CO. Colax, Beauness, Divum (skin care). Nagoya, Japan Embellir (skin care, makeup). 40 $ 507.4 million (est.) TIGI Bed Head (hair and body care, Jupier, Pradeal, Stream (makeup). REVLON Revlon, Almay, Ultima (cosmetics). LG HOUSEHOLD & Ohui, Whoo (prestige skin care, ¥ 59 billion (est.) Carrollton, Tex. cosmetics). Catwalk, S-Factor (hair New York HEALTHCARE 3.3% v. ’05 L’Eau de Kasaneka, L’Eau de Ryokuei $ 300 million (est.) Mitchum (deodorant). Charlie cosmetics). Isa Knox, Lac Vert, Vonin, 50 10% v. ’05 care). Unleashed (skin care). $ 1.331 billion (fragrance). Kasaneka, Ryokuei (fragrance). Flex (hair care). Seoul 23 Flat v. ’05 31 $ 695.4 million CathyCat, Sooryehan (skin care, (body care). KRW 656 billion cosmetics). Elastine, Curair, Rien, 7.5% v. ’05 Double Rich (hair care). Beyond (body KALINA Chorny Zhemchug, Chistaya Linia, GROUPE CLARINS Clarins: Eau Dynamisante, Total care). NU SKIN ENTERPRISES . Nu Skin (skin care). Yekaterinburg, Serebrennaya Linia, Solotaya Linia, Mia Neuilly-sur-Seine, Provo, Utah Russia Body Lift, Super Restorative, 51 $ 296 million (skin care). Dr. Scheller’s Cosmetics $ 454.5 million France Multi Active, Extra Firming (skin (cosmetics, skin care). Angelika Varum 24 $ 1.215 billion TUPPERWARE 41 6% v. ’05 29% v. ’05 BeautiControl/International Beauty: care). True Comfort Foundation, (fragrance). 967.2 million BRANDS CORP. House of Fuller, Nutrimetrics, 3.1% v. ’05 Instant Smooth (makeup). Clarins Orlando, Fla. 32 $ 663.3 million NaturCare, Avroy Shlain, Nuvo Men (men’s skin care). Par Amour Cosmeticos, Swissgarde (makeup, MARKWINS The Color Institute, The Color BULGARI Eau Parfumee au The Vert, Eau Parfumee (fragrance). Parfums Azzaro: 450% v. ’05 skin care, fragrance). INTERNATIONAL Workshop, The Spa Workshop. Wet Rome au The Blanc, Eau Parfumee au The Rouge, Azzaro pour Homme, Chrome, Onyx, City of Industry, ‘n’ Wild, Wet ‘n’ Wild Fresh Face $ 253.1 million 52 201.5 million Bulgari Pour Femme, Bulgari Pour Now. Parfums Thierry Mugler: 42 Calif. Skin Care, Black Radiance, Tropez, Homme, Petits et Mamans, Bulgari Black, Angel, Amen, Innocent, Alien, Eau de COLGATE-PALMOLIVE Palmolive, Mennen Speed Stick, Skin $ 441 million Beauty Basics, POP, ACT, Bratz, 10.8% v. ’05 10.8% v. ’05 Bulgari Blu, Bulgari Blu Pour Homme, Star, Ice Men. Stella Cadente. David New York Bracer, Afta, Protex, Caprice, Lady Glamour Girls, Jonel, Artmatic, $ 660 million (est.) Blu Notte, Aqua Pour Homme, Omnia, Yurman. Porsche Design. L’Occitane, Speed Stick, Tom’s of Maine. SoHo, ck Calvin Klein Beauty. 33 10% v. ’05 Omnia Crystalline, Omnia Amethyste Kibio (10% each). (fragrance). Bulgari (skin care).

50 WWD Beauty Biz WWD Beauty Biz 51 RANK COMPANY + 2006 Sales COMPANYSUBSIDIARIES + 2007 + S MAINales BRANDS RANK COMPANY + 2006 Sales COMPANYSUBSIDIARIES + 2007 + S MAINales BRANDS

SCHERING-PLOUGH Coppertone, Bain de Soleil, Solarcaine (sun care). Dr. Scholl’s For Her EUGENE PERMA GROUP Eugene Perma Paris: Keranove, Petrole Hahn, Eugene Color, Biorene, HEALTHCARE PRODUCTS Paris Artiste, Cycle Vital, Essential (hair care). Chen Yu (skin care, makeup). (treatment). $ 178.4 million CORP. Kenilworth, 53 64 142 million N.J. $ 250 million (est.) 0.4% v. ’05 12% v. ’05 COLLISTAR Milan Collistar (color cosmetics, skin care, hair care, body care, sun care, $ 168.3 million men’s skin care, aromatherapy). 134 million LIZ CLAIBORNE Liz Claiborne Cosmetics, Ellen Tracy, Lucky Brand Cosmetics, Juicy 65 28% v. ’05 COSMETICS Couture, Realities Cosmetics, Curve, Usher. New York 54 $ 243 million (est.) WELEDA Wildrose, Mandel, Calendula, Iris, Sanddorn, Birke, Edelweiss. 8% v. ’05 Arlesheim, Switzerland $ 158.1 million 66 CH F 198 million RECKITT BENCKISER Clearasil, E45 (skin care). Veet (depilatory products). 13.1% v. ’05 Berkshire, U.K. $ 230.3 million (est.) 55 £ 125 million (est.) MIRATO Malizia: Malizia Uomo, Malizia Profumo d’Intesa (fragrance). Malizia Family 4% v. ’05 Landiona, Italy (bath products). Malizia Ecologica (hair care). Intesa: Intesa Pour Homme $ 155.3 million 67 123.6 million (body care). Intesa Sex Unisex (hair and skin care, fragrance, deodorant). ALES GROUPE France: Laboratoires Lierac, Laboratoires Phytosolba, Laboratoires 6.5% v. ’05 Intesa Styling, Gomgel, Splend’or (hair care). Clinians (skin care). Geomar Paris Ducastel, Parfums Caron. U.S.: Ales Group Inc./ Phyto: Secret (body care). $ 229.9 million 56 183 million Professionnel, Kydra (hair care). Phytospecific (ethnic hair care). 6% v. ’05 Lierac, Phytoderm (skin care). Caron (fragrance). Epure (cosmetics). OMEGA PHARMA Bergasol (sun care). Restiva (hair care). Poudres T. Leclerc, Aco Hud, Claire Nazareth, Belgium Fisher, Eau Precieuse, Innoxa, Sant’Angelica (makeup, personal care). $ 152 million (est.) 68 121 million (est.) LUSH Lush (bath, body and skin care). Poole, U.K. 12% v. ’05 $ 223.9 million (est.) 57 £ 121.5 million (est.) 26% v. ’05 Steiner LEISURE . Elemis, La Therapie (skin care). Nassau, The Bahamas $ 152 million 68 18% v. ’05 BOTTEGA VERDE Bottega Verde (face care, body care, bath care, hair care, makeup, Cossato, Italy fragrance, men’s care). $ 194.7 million (est.) 58 155 million (est.) CONTER Conter/Tesori D’Oriente, Vidal, Centrifolia, Marsiglia Leocrema (bath and 3.3% v. ’05 Milan body care). Denim (fragrance). Fresh & Clean (body care). Medicea/Indians, $ 150.7 million 70 120 million Terre D’Oriente, Maison des Aromes, Voglia di Yogurt, Happy Shower, Hot 8% v. ’0 Wheels (bath care). Sweet Years, Billionaire, Hollywood (fragrance). Daniele SELECTIVE BEAUTY Agent Provocateur, Marbert, Benetton, Trussardi, Sonia Rykiel, Balmain, Renica Noe (color cosmetics). Barbie (color cosmetics, bath and body care). Paris MaxMara, Iceberg, John Galliano, Jimmy Choo. $ 190.9 million 59 152 million COSWELL 49% v. ’05 Eurocosmesi/Canali, Byblos, Antonio Fusco, Gas, Mila Schon, Australian, Bologna, Italy Renato Balestra (fragrance). Transvital (skin care). Rockford, Thermae $ 150.7 million (est.) 70 120 million (est.) Romanae, L’Istituto Erboristico Angelica, Profumeria Italiana Patrichs, KELEMATA Orlane, Annayake (treatment, fragrance, makeup). Perlier: Ricette Flat v. ’05 Bionsen, BlanX, Renato Balestra, Vape, Grey (body care, skin care, fragrance). Turin, Italy Naturali, Linea Miele, Linea Fragranze, Linea La Voglia Matta, Un Fleur, $ 185.9 million Un Emotion, Elariia (fragrance bath and body care). Kelemata, Venus 60 148 million PLAYTEX PRODUCTS Banana Boat (sun care). 16.9% v. ’05 (treatment, toiletries). Victor (fragrance). Westport, Conn. $ 150 million (est.) 72 20% v. ’05 JOHNSON PUBLISHING Fashion Fair Cosmetics (makeup). Chicago 61 $ 182 million (est.) MAURER + WIRTZ Tabac Original, Tabac Man, Granvalor Tabac, 4711, Tosca, Sir Irisch Moos, 1% v. ’05 Stolberg, Germany Nonchalance, Betty Barclay Woman, Nº2/Nº3, Betty Barclay In Love, $ 146 million 73 116.3 million Pussy Deluxe, Carlo Colucci Uomo, Carlo Colucci Uomo Mare, s. Oliver Flat v. ’05 Man/ Woman, s. Oliver SPORTS ‘1’ Male/ Female, s. Oliver SILVER Man/Woman, Mustang Man/Woman, Otto Kern Man/ Woman, New Yorker Man/Woman. MAXIM Maxim Cosmetics (private label). Createurs Cosmetiques (fragrance, bath MARKENPRODUKTE and body care). Berlin Cosmetics: Kaloderma (makeup, skin care, hair DR. WOLFF GRUPPE Dr. Kurt Wolff/Alcina Balance Kosmetik, Alpecin, Plantur 39, Linola. Pulheim, Germany 62 $ 179.6 million care, fragrance, bath and body care). Elysee Cosmetiques. Cosmolux. Bielefeld, Germany $ 138.1 million 143 million 74 109.9 million 0.7% v. ’05 21.7% v. ’05

MICYS Pupa Makeup (color cosmetics, beauty kits). Pupa Fragrances, Pupart STYLING LIFE HOLDINGS B&C Laboratories/Soigne, Soigne Agnize, Vecua, Restgenol, Love Clover, Casatenovo, Italy Flowers, Bouquet de Parfums, Flower in Red Parfums (fragrance). Pupa Tokyo Tsururi, Delitia, Satishe, Vecua Ex, Anuenue. $ 179 million Toiletries: Miss Milkie (bath, body and sun care). Polly’s Beauty Farm $ 135.8 million (est.) 63 140 million 75 ¥ 15.79 billion (est.) 3.5% v. ’05 (bath care). Milk Therapy (skin care). 9.2% v. ’05

52 WWD Beauty Biz WWD Beauty Biz 53 LAST CALL

Trains beat planes and automobiles visitors expected to pass through the in the romance stakes every time. station annually may find they don’t It’s no wonder then that St. Pancras have to board a Paris-bound train to International, which replaced Waterloo unearth a certain je ne sais quoi after all. Station as the Eurostar’s London —Brid Costello terminal in November, was conceived London’s to get travelers in the mood—to shop. The station, which originally opened in 1868 and features an iconic red brick Victorian Gothic facade and vast glass ceiling, was overhauled to HotTravel takes a backseat Hub to retail make shopping as integral to the travel experience as packing clean underwear. at London's St. Pancras A plethora of boutiques, including Station,the new Eurostar Boots, Rituals, The Body Shop, L.K. terminal Bennett, Hamleys and Thomas Pink, , that doubles as shares floor space (there’s over 82,000 a shopping paradise. square feet of retail space in all) with a market, various brasseries and Europe’s

longest Champagne bar. The 43 million photosby LCR

54 WWD Beauty Biz