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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 Rie for Maybelline New York September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully KE at See Management; styled Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by screened companies that offer products and services that we believe would interest our readers. If you do ory by Frances Tulk-Hart at See Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA S;C I Management, assisted by Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, Lisa Hennessy. Dress by Celine, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK /CORB hat by Karen Walker, brooch mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER by Subversive. Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO ttmann WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS BE by ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. E D RI 4 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 6 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
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