www.bwconfidential.com The inside view on the international beauty industry October 20 - November 2, 2016 #137
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The buzz 2 The price of growth News roundup his week saw Coty make another acquisition, with the Netwatch 6 Tproposed purchase of hairstyling appliance brand ghd for $510m. The move was somewhat surprising, as it came just a Social media monitor few weeks after Coty closed the deal to take over P&G’s beauty brands. It was thought that Coty would take time to digest this Interview 7 deal (and also the acquisition of Brazil-based Hypermarcas, which Shiseido EMEA chief brand officer it made at the end of 2015) before moving on to its next target. for fragrance & president of The fact that the acquisition was in the professional haircare Fragrance Center of Excellence arena also raised some eyebrows. Ghd may sit well with Wella, Nathalie Helloin-Kamel which Coty took over as part of the P&G deal, but analysts insist that the US-based group has much to learn when it comes to the professional haircare Insight 9 segment, which is very different to fragrance and cosmetics. India What isn’t surprising, however, is that M&A continues apace. More M&A is set to be driven by an active start-up market, major groups looking to pick up the hottest new Show review 12 brand before their competitors do, the need for global groups to reinforce their presence Luxe Pack Monaco in key areas such as digital and among the millennials and also because some of the multinationals’ brands are not seeing the growth that they used to. Store visit 14 The only problem with all this is that the valuation multiples have never been so high. T Fondaco dei Tedeschi by DFS, Venice Buying growth has its price.
Oonagh Phillips Editor in Chief [email protected]
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n Coty to acquire ghd
n Shiseido aims for 9% share of global fragrance market The buzz n Sephora postpones entry into Iran
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Coty is to acquire UK-based premium hairstyling appliances brand ghd from Lion Capital for around £420m ($510m) in cash. Ghd will become part of the Coty Professional Beauty division, where it will be managed as a standalone business led by ghd’s current ceo Anthony Davey. Davey will report to Coty Professional Beauty president Sylvie Moreau. The transaction is set to close by the end of fiscal 2016. Ghd generated revenues of £178m ($216m) in fiscal 2016. The brand was founded in 2001.
Shiseido is hoping to boost its share of the global fragrance market to 9% within five years thanks to the addition of the Dolce & Gabbana fragrance license. Shiseido’s market share in fragrance before the integration of D&G, (whose license was formerly held by P&G) effective October 1, was 2.2%. Including D&G, it currently stands at 5.8%, making the group the world’s eighth-ranked fragrance player. Shiseido plans to turn the D&G brand into a €1bn business within 10 years, which would mean more than doubling its sales. Shiseido announced that from January 2017, fragrance arm Beauté Prestige International, or BPI, will cease to exist, with global fragrance operations being managed under the Shiseido Group EMEA umbrella. Operating under Shiseido BW Confidential Group EMEA, Shiseido Fragrance Division will include operations for Issey Miyake, 4 avenue de la Marne Narciso Rodriguez, Elie Saab, Alaïa, Zadig & Voltaire, Dolce & Gabbana and Shiseido 92600 Asnières sur Seine, France [email protected] Ginza Tokyo Fragrances. Serge Lutens will be managed under a separate division called Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 The Boutique. www.bwconfidential.com ISSN: 2104-3302 Publisher: Nicolas Grob The CEW France Achiever Awards ceremony took place in Paris on October 10. Editorial Director: Oonagh Phillips [email protected] This year, a total of 10 prizes were awarded, five of which were new, including a new Journalist & Copy Editor: Katie Nichol [email protected] award for men, representing the association’s decision to open its membership to men Journalist: Hannah Ikin earlier this year. The Men’s Honorary Achiever Award went to Philippe Benacin, ceo [email protected] Contributors: Sophie Douez, Alex Wynne, of Interparfums, while the Women’s Honorary Achiever prize was awarded to Nelly Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet Rodi, founder of NellyRodi trends agency. Other winners included Isabelle Parize, ceo of Subscriptions 1 year: electronic publication (20 issues) + Douglas. The Achiever Awards recognize those working in the beauty industry for their print magazine (4 issues) + daily news: €499 success, originality and risk-taking. or US$699 [email protected] This year, BW Confidential partnered with CEW France to create a special-edition Advertising [email protected] magazine focusing on the winners. BW Confidential pledged to donate a portion of BW Confidential is published by Noon Media the advertising revenues of this special issue to CEW and its Centres de Beauté, which 513 746 297 RCS Nanterre Copyright © 2016. All rights reserved. provide beauty treatments to cancer patients. See the full list of winners on Reproduction in whole or in part without permission is strictly prohibited. www.bwconfidential.com. n n n
www.bwconfidential.com - October 20 - November 2, 2016 #137 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup
n n n Retail
LVMH-owned perfumery chain Sephora has postponed its launch in Iran and will not enter the market before the second half of 2017 at the earliest, industry sources indicated to news agency Reuters. Sephora had originally planned to open stores in Iran from 2016. The buzz Sources say that the retailer is postponing store openings as the right financial and political conditions are not yet in place.
French company Chanel has opened its second beauty standalone store in Paris, located on the avenue des Champs-Elysées. The 100m2 (1,076ft2) location features both an events zone and a consultation area, which includes a perfume bar and make-up stations. Exclusive products and avant-premières will be included in the offering. Chanel opened its first Paris permanent beauty standalone, in the Marais district, in 2015.
Swedish beauty device brand Foreo has opened its first standalone store. Located in Paris at 188 Boulevard Saint-Germain, the 44m2 (474ft2) Foreo concept store stocks the brand’s facial cleansing devices and toothbrushes. Luna Go, a travel-size version of the Luna 2 cleansing device, is exclusive to the store. It is available for four skin types and costs €99.
Unilever-owned Dove is to open its first pop-up store globally, in November in Paris. The pop-up store has a strong focus on customization, with shoppers able to personalize a selection of products including shower gel, body lotion and body scrub. The pop-up store is open from November 9 to December 18.
Dubai-based luxury distribution company Chalhoub Group has opened five stores for its newly created oriental fragrance brand Ghawali. Since August, the group has opened two stores in Dubai, UAE, one in Riyadh and two in Jeddah, Saudi Arabia for the brand. It plans to open further stores in the region over the next five years. The brand offers 90 products, including fragrance, bath products and body oils.
L’Oréal-owned NYX Cosmetics has opened two standalone stores in Paris, France this month. The brand launched a 100m2 (1,076ft2) store on rue du Temple in central Paris, which followed the opening of an 88m2 (947ft2) boutique in Paris’ La Défense district. In-store services include a beauty bar with influencer tutorials.
UK-based beauty retailer Space NK is to open a new flagship store on London’s Regent Street in November, in partnership with property owner The Crown Estate. Called Innovation by Space NK, the store is designed to be a one-off concept, and to serve as a test-bed for the most innovative product launches zt the retailer. Innovation by Space NK is intended to offer ‘first look’ previews of launches, a range of beauty experiences for consumers and will also feature an on-site beauty school for Space NK staff.
UK-based online beauty retailer Feelunique opened its first Paris flagship in September 2016. Located in the French capital’s 16th arrondissement, the store combines a perfumery, a beauty institute and a hair salon. The perfumery space of close to 100m2 (1,076ft2) stocks traditional and niche brands. Beauty advisors are equipped with iPads, and customers can select and order products among the 20,000 skus and 450 n n n
www.bwconfidential.com - October 20 - November 2, 2016 #137 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL The buzz is cooatfragrancehouseCPLAromas. appointed NickPickthallaschairman. Fragrance tradeassociationIFRAUKhas market, plannedfor2017. Avon’s expansionintothehealthandwellness in theUS.Thisnewlycreatedpositionmarks Srivastava presidentofhealthandwellness New AvonLLChasappointedAnjana 37 yearsatthegroup. Karen Fonduwillretireattheendof2016after announcement thatL’OréalParisUSApresident Products Division.Theappointmentfollowsthe Brousset, presidentofL’OréalUSA’sConsumer who ispresidentofL’OréalCanada’sConsumerProductsDivision,willreporttoMichel Ikdeep SinghhasbeenappointedgeneralmanagerofL’OréalParisUSA.Singh, Gurwitch Productsfrom2011to2015. who willbeappointedatalaterdate.Pocciaheldtheroleofpresidentandceo Escentuals. PocciareplacesSandySaputoandwillreporttothepresidentofcompany global ceoofLVMH-ownedskincarebrandFresh. the USandcreatingaglobalgrowthstrategyforLauraMercier.Plissonwasmostrecently integrating andgrowingtheDolce&Gabbanabusiness,developingShiseidobrandin Bare Escentualswillcontinuetooperateseparately.Inhisnewrole,Plissonfocuson these USbusinesseswillenableittoexpanditsfootprintintheprestigemarket.Narsand Mercier andthegroup’sdesignerfragrancebrands.Thegroupsaidthatbringingtogether Beauty PrestigeGroup.TheGroupwillincludetheShiseidobrand,Laura Shiseido AmericashasappointedJean-MarcPlissonaspresidentofitsnewlycreated People n ago, according to TheNPDGroup. despite beingtheleastfrequented fouryears source ofmake-upinformation intheUS, The Data Feelunique nameplate. flagship isthefirstoffourRiveDroiteperfumeriestoberebrandedunder Parfumeries RiveDroitein2015abidtodevelopitsfootprintFrance.TheFeelunique and make-upserviceisalsoavailable.FeeluniqueacquiredFrenchperfumerychain treatment rooms,whilethehairsaloncaterstomen,womenandchildren.Amanicure News roundup Shiseido Americas also appointed Claudia Poccia chief marketing officer of Bare Shiseido AmericasalsoappointedClaudiaPocciachiefmarketingofficerofBare internet is now the fastest-growing internet isnowthefastest-growing brands distributed on the Feelunique website. The beauty institute has three brands distributedontheFeeluniquewebsite.Thebeautyinstitutehasthree n LPTC_banner_Corporate_110x1130mm_BW Confidential_ENG_AAFF.indd 1 ® 2016 The Lubrizol Corporation. Lubrizol The ® 2016 www.lipotec.com cosmetics. in application for systems delivery -and extracts botanical to molecules biotechnological and synthetic peptides, -from ingredients active innovative of production and development research, the in specializes Lipotec INSPIRING YOUR INNOVATION 3/6/16 10:25 The buzz News roundup Launches n The Illuminating Oil Gel-Cream contains the The IlluminatingOilGel-Creamcontainsthe glucosamine foritsregeneratingproperties. acid tohydratetheskinandacetyl essential oils,marineextracts,hyaluronic Serum containssevenmicroencapsulated and illuminatetheskin.TheIlluminatingOil serum andacreamthatclaimtohydrate Lumière Essentielle,thelineconsistsofa a newskincarefranchisethismonth.Called Estée Lauder-ownedDarphinislaunching loose powderbrush,eachpricedat€55. collection includesafoundationbrushand and theloosepowdercosts€75for8g.The for 30ml,theconcealerretailsat€605g in October.Thefoundationispricedat€95 and smooththeskin.Skincolorlaunched formulas andissaidtohydrate,regenerate powder, issaidtoprovideskincarebenefits,aswellcolorcoverage. this fall,calledSkincolor.Theline,whichconsistsofafoundation,concealerandloose Estée LauderCompanies-ownedLaMercameoutwithitsfirstmajormake-upcollection make-up. Thebrand’sspokesmodelismodelYumiLambert. focus onthewebtobuildawareness.Itfocusesideaofplayandfunaspect will besoldistheShiseidoTheGinzastoreinTokyo.brandtargetsmillennialsand Watashi+, aswellthird-partysites.Theonlybrick-and-mortarstorewherethebrand Japan. Distributionincludesthebrand’sownwebsiteandShiseido’sbeauty techniques ofitsin-househairandmake-upartistsissoldononlineplatformsin Shiseido hascreatedanewmake-upbrandcalledPlaylist.Theisbasedonthe chains and beauty supply stores. chains andbeautysupplystores. purchasing make-up,justbehinddepartmentstoresandaheadofdirectsellers,national information. Theinternetisalsoamongthetop-fivemostcommonchannelsfor decisions, whilemillennialsaremostlikelytocountononlinesourcesformake-up compared to2014. (surpassing printandbroadcastadvertising),anincreaseof11percentagepoints information onmake-upproductsandbrandsmorethananyothersource The products contain the brand’s Miracle Broth, which is found in all its skincare The productscontainthebrand’sMiracleBroth,whichisfoundinallitsskincare Make-up users of all ages rely most on word-of-mouth to help them make buying Make-up usersofallagesrelymostonword-of-mouthtohelpthemmakebuying the oilgel-cream costs€49for50ml. serum ispricedat€59for30ml, while skin-strengthening plantsugars. The acid andacetylglucosamine,as wellas same sevenessentialoils,hyaluronic market-research company found that women today use the internet to find market-research companyfoundthatwomentodayusetheinternettofind n The views expressed in this section are those of bloggers and do not represent the opinions of BW Confidential Netwatch While bloggershavepraisedthesuccessofintroductionK-Beautyproducts spreading intotheblush,foundationandhaircategories. gloss products(suchasNYX’sLidLacquer,pictured).Somereviewersseethetrend like theeasy,no-fussapplicationaswellinnovativevinylorlacquertexturesof Gloss foreyesisclaimedtobeabigtrendemanatingfromfashionshows.Bloggers to bloggers. touchpoints andeventscanenhancetheexperienceofproducts,according a naturalnextstepforthebrand,storeisseenasgreatsellingplatformwheredigital L’Oréal Paris’firstpermanentboutiqueinhasbeenahitontheweb.Describedas be blendable,breathableandbuildable. and versatility.Thecreamformulacanbewornontheeyes,lipsface,issaidto Canadian brandBiteBeauty’snewMultistickislikedforitscream-to-powdertexture needs. and in thistrendandsuggestthatK-Beautyisevolvingtorespondmorelocaltastes in storeslikeSephoraandWalmart,manyhavealsonotedaslowdownthepopularity Social mediamonitor BW Confidential BW reportsonwhat’sbeingsaidaboutbeautysocialnetworks
CONTENTS Concurrent Concurrent Show: by: Organised Venue: Dates: VISITOR’SGUIDE - Useful Information for overseas visitors Hotel/Transportation- Information Hightlights Show -
Tokyo Japan Big Sight, 23 January Reed Exhibitions Japan Ltd. Reed Exhibitions [Mon] -25
[Wed] , 2017
All inclusive guidebook to plan your visit! and more! Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel Fragrance forward
Interview Shiseido recently appointed Nathalie Helloin-Kamel as head of its new Fragrance Center of Excellence, designed in part to respond more quickly to market changes. Helloin-Kamel tells BW Confidential about Shiseido’s plans for the center and the group’s ambitions to grow its market share in fragrance
What are your priorities for the Fragrance Center of Excellence? Our first priority is to find the appropriate way to work with the other brands in the group and to make sure that the philosophy we have in Europe at the Center of Excellence for Fragrance is understood by everyone. The integrity of creation is key, and the respect for brand DNA is key. We have to be extremely careful of the way we are going to interact with our end consumer. The next level for the Center of Excellence is to create a community of the Centers of Excellence to be able to share what we have learnt across categories. I am obsessed with taking more creative risks and preventing the business being taken by niche brands. How will fragrance embrace the digital transformation? How to drive traffic to the point-of-sale and discovery? Those are my two obsessions of the moment.
Shiseido has announced plans to grow its share of the global fragrance category to 9% within five years. How do you plan to do this? We have to increase our market share by 3%, so we need to work differently. Growing 3% in five years is huge. Our challenge is how to radically change the way we work [without] losing what we have built for years. Everything starts from the brand and we have to be loyal to that. We have created an olfactory studio, with someone who is going to help us improve the way we work with perfumers and who will have a prospective vision for fragrance. We have also [created] a consumer insight and innovation department, which is going to help us connect and engage with our consumer. These teams have to work together from day one. Shiseido Group You plan to double Dolce & Gabbana’s sales to make it a €1bn brand in EMEA 10 years. How will you do this? l Shiseido Fragrance I have a very clear four-step roadmap. First, we need to take care of the existing Division brands: Issey Miyake, business. We are lucky; in the portfolio there are at least two amazing franchises: Narciso Rodriguez, Elie Saab, Light Blue and The One. We need to leverage these franchises, and then we need to Alaïa, Zadig & Voltaire, keep updating [their] story. [Then] we need to add new stories and open a new Dolce & Gabbana, Shiseido chapter, but not before 2018 or 2019. [Our third step] is to keep investing in the Ginza Tokyo Fragrances brand; even when you are a big brand, you need constant communication Shiseido fragrance market investment. You have to be present in the mind of the consumer and the beauty share: 2.2% (before integration consultant. The final point is to elevate the retail network and to close some doors, of Dolce & Gabbana); 5.8% because the distribution is too wide for the brand. Dolce & Gabbana is very n n n including Dolce & Gabbana
www.bwconfidential.com - October 20 - November 2, 2016 #137 - Page 7 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel
n n n generous and colorful. We don’t [see] that with the fragrance. When it comes to fragrance, the fundamentals of the brand have to be set. It’s very serious in fragrance; we need to [remedy that]. Interview
What is the initial response to the Zadig & Voltaire fragrances? We need to resuscitate Results so far have been very good; our market share is in line with our expectations. The “quality and creativity real test will be the first holiday season, but both fragrances have been extremely well received by consumers, who have engaged with the story and the tone of the brand. in our industry. People who turn to niche do Will you expand your existing fragrance brands into other categories? This is not a priority for us. Dolce & Gabbana is a three-axe brand, and our vocation is to so because they think continue to develop it as such. But for our other brands for the moment we are sticking we have standardized with just fragrance. creativity, and there Do you plan to further develop the Shiseido brand in fragrance? is not enough risk- I am working with my teams and with Tokyo on how to take Shiseido further in fragrance, but we have not planned a launch date, it’s a prospective reflection. We are taking; they are asking what is the role of fragrance for the Shiseido brand, and how will we treat it? We sanctioning us by will only develop something if we are certain we can bring something new and different to the market with a strong concept that supports the brand’s strategy and image. We going towards continue to support and develop Ever Bloom, which was introduced two years ago. niche fragrance
Will you take on the Burberry beauty license? For the moment, we are a partner of Burberry because we distribute the brand in several regions—in travel retail, the US and certain European markets. It is no secret that we Shiseido EMEA chief brand officer for fragrance & are thinking about developing our portfolio. We want to become a major player with a president of Fragrance Center market share of 9% worldwide, so we are open to new ideas. of Excellence Nathalie” Helloin-Kamel What needs to be done to boost declining volume sales in fragrance? When you look at the development of niche, even though the business remains small, it’s growing. We need to resuscitate quality and creativity in our industry. People who turn to niche do so because they think we have standardized creativity, and there is not enough risk-taking; they are sanctioning us by going towards niche fragrance. I’m convinced there is a way of bringing back creativity and risk-taking to our profession. When brands take risks, they are rewarded.
How important is digital to boosting the fragrance business? We have to find a way to be part of the digital transformation, which to date no brand has truly done. We cannot have people smell our products [online], and on top of that it is not that easy to talk about fragrance, as when you do, you talk about emotions, and that is so personal. The idea is to use digital to trigger an emotion or curiosity in the consumer so that he or she immediately goes to the store to s Shiseido plans to turn Dolce & discover the product. n Gabbana into a €1bn brand in 10 years
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s Local brands continue to command a sizeable share of the market
India Back on track The Indian beauty market is seeing good growth, thanks largely to the prestige sector fter a slow period over the past few years, the Indian beauty market is Aseeing a resurgence in 2016, say industry experts. Growth is being led by prestige, which has grown by an estimated 25% over the previous year, according to estimates. While there have been relatively few new brand launches—either global or local—in India, existing brands have been extending their reach with new products, new retail locations and with more promotions using social media. The beauty market in India was estimated to be worth $11.66bn in 2015, according to Euromonitor International. Although growth slowed from an average of 20% over the previous years to around 7% last year, certain segments continued to outpace others, particularly premium and masstige. “The mass market is not growing as fast as it was in the past—an estimated 8-9%. But what is growing really fast is prestige, at 20-25%,” says Salman India beauty sales* by category 2015 Bukhari, an industry expert. Masstige Category Sales $bn % change has been growing at 16-17%, according 2015/2014 to industry figures. In the premium Haircare 2.74 +7.5 market, brands such as MAC continue Skincare 1.62 +9.5 to see the best growth, along with Color cosmetics 0.839 +15.0 Clinique, Estée Lauder, Lancôme Fragrance 0.282 +13.0 and Chanel. This growth in higher-priced products is Total beauty & 11.66 +7.2 largely down to better brand awareness. personal care** Source: Euromonitor International *Retail sales price, As Bukhari points out: “A lot of mass- constant 2015 prices **Sum of listed categories doesn’t add market customers would rather n n n up to total as all categories are not included
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n n n buy a smaller sachet of Ponds than an unknown brand. The mass market is not growing so well, it is so deeply penetrated that every corner and shop has products available, while the masstige and luxury markets are unexplored.” Insight Market analysts agree that consumer spending is on a definite incline due to growing disposable income, more women entering the workforce and more advertising from beauty companies. Vijay Shanker, chief operating officer, H&B Ltd stores, a subsidiary of Dabur Ltd, which runs multibrand, standalone beauty boutiques, says that the key reason for greater spend is growing awareness levels among consumers in India for beauty products. “Consumers today know the international trends, both current and emerging, and are increasingly seeking such products. Today, they are bolder and more willing to experiment Consumers when it comes to color and finish. This trend is not just limited to urban cities, but even consumers in small towns and non-metro cities are showing similar “today know the preferences when it comes to beauty,” he says. international trends, Analysts add that the high concentration of young consumers (more than 55% of India’s population is under 27 years old) is fueling market growth, with these both current and consumers more open to experimentation and buying more than in the past. emerging. Today, Multinational & local they are bolder In mass, the big players in the market remain Hindustan Unilever (Fair & Lovely, and more willing Ponds, Lakme), L’Oréal India and Procter & Gamble (Olay). In the mass skincare market, Hindustan Unilever’s Fair & Lovely, a fairness cream, has continued to experiment. This to be the single biggest seller in the market. Over the last year, the brand trend is not just has introduced more specialist products aimed at reaching out to younger consumers, from basic daily use cream to more sophisticated variants, including limited to urban BB and CC creams, at higher price points. Fair & Lovely BB cream, for example, cities, but even retails at Rs79 ($1.18) for a 18g tube, with a bigger pack for Rs169 ($2.53). In the mass color market, Lakme, also from Hindustan Unilever, continues to be a consumers in small leading player, with other brands such as Revlon, Chambor and L’Oréal vying for towns and non- market share. But local Indian consumer-goods companies such as Dabur, Marico metro cities are (Parachute), Emami Ltd (which captured a niche market for men) and Godrej showing similar Consumer Products continue to hold strong positions in the market. In addition, brands such as Fairever from Chennai-based consumer-products company preferences Cavinkare, have been gaining popularity as well as Indian brand Lotus Herbals, which has been growing its market share with more specialist products.
Retail growth H&B Ltd stores chief operating officer Vijay Shanker Although new malls have been slower to develop in the past two years, beauty brands have been opening more standalone stores. These include The Body ” Shop, L’Occitane, and Indian brands Forest Essentials, Kama and Shahnaz Husain. There has also been a faster play in the multibrand retail space. French perfumery chain Sephora relaunched in India with a new partnership in 2015, with Bengaluru-based Arvind Lifestyle Brands. After revamping its Delhi store, Sephora finally opened in Mumbai in January this year and in Bengaluru in March. It operates other stores in Gurgaon in the New Delhi capital region, two in Delhi and one in Pune, and has plans for aggressive growth. n n n
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n n n “Sephora is planning to open 50 stores based in 15 more cities including Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Chandigarh, Jaipur, Indore, Lucknow, Ahmedabad and Surat,” comments Sephora business director
Insight Vivek Bali. The mass market Online fuels growth is not growing as Meanwhile, online sales have been adding to the beauty consumer’s beauty “ basket. According to a study by consultancy firm Bain & Company and online fast as it was in the search engine Google, e-commerce sales for beauty and hygiene products are past—an estimated expected to reach $11bn by 2020. It is estimated that more than 130 million Indians will buy beauty and hygiene products online by that time. 8-9%. But what is Online beauty e-tailer Nykaa, which has raised Rs1,600m ($24.03m) in three growing really fast is rounds of funding over the past four years, has inverted the business model and begun to launch physical stores. Nykaa ceo Falguni Nayar comments: “With prestige, at 20-25% increased beauty consciousness among consumers, the Indian beauty and hygiene market is estimated to reach $18bn by 2020, and 20% of this could come from e-commerce players.” Industry expert Salman Bukhari As consumers continue to increase their basket size, beauty companies are stepping up education and online strategies to capture the imagination of the country’s new generation. n ”
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CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Luxe Pack Monaco Unpacking innovation BW Confidential reports on what was seen and heard at packaging show Luxe Pack Monaco, which took place from September 21-23 Show review
he market’s difficulties were a key refrain at this year’s edition of Luxe Pack Luxe Pack Monaco TMonaco. Exhibitors commented that the market was flat at best, impacted Took place: September 21-23, by recent political events, increased competition and a shortage of key launches. Monaco, France Niche however, was identified as an area of future growth. Exhibitors: 470, +4.4% There were a range of interesting innovations on show, including a UV sensor ink vs 2015 from HCP Packaging geared towards brands promoting SPF. The ink reacts to UV light, New exhibitors: 70 prompting users to reapply. Other trends at the show included environmentally friendly Visitors: 8,645, stable vs 2015 packaging, travel-size versions, colored digital printing, wooden caps, crackle finishes and paper caps. In glass, there was a focus on decoration techniques, with new ways to incorporate fine lines or waves of color, and metalized finishes, while sober, pared-down forms and apothecary-style bottles were also much in evidence. This edition of Luxe Pack saw the introduction of C2L (Connect to Luxury), which aims to help companies with digital and facilitate contact between technology companies and packaging companies, according to Luxe Pack Monaco show general director Nathalie Grosdidier. “It was important to make this connection between the world of companies with digital and high-technology know-how and packaging manufacturers,” Grosdidier told BW Confidential. The C2L space hosted 20 companies focusing on digital. The organizers aim to expand C2L to Luxe Pack’s New York and Shanghai editions. In terms of show numbers, some 470 exhibitors attended (+4.4% on 2015), around half of whom were from outside France (3% were from Asia). Despite organizers commenting that recent terrorist attacks had no impact on attendance, many exhibitors said that they saw fewer visitors than usual. Visitor numbers stood at 8,645, flat compared with last year’s edition, according to organizers.
Seen in show French group Albéa put the focus on digital at its booth. It showed the Albéa Virtual Makeup App, a tool for its sales teams created in collaboration with YouCam Makeup founder Perfect Corp. With the app, users can view Albéa’s make-up packaging offering and virtually try on the products. The group also introduced its Albéa Mix & Match digital platform, which allows clients to design custom-made packaging solutions from Albéa’s standard offer, and personalize them with their own artwork. The platform has initially launched for Albéa’s Europe tube activity, and will expand to include its North America tubes offer and dispensing systems in the coming months. The brand’s new products included its Magic Lash mascara brush series (pictured), which claims to suit all lashes, especially those that are short n n n
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n n n and thin. The line comprises the Astonishing Brush, which has multiple waves of bristles and claims to create volume, and the Mini Cashmere Brush, which is said to be extremely soft for a comfortable application.
Germany-based Geka presented its Blaze of Glory collection. This includes mascara brushes Curlqueen (pictured), which features wedge-shaped fiber tips and claims to minimize clumps, and Softsecret, which combines a hard brush core (designed to lift and separate), with soft bristles (intended to reach fine lashes). Also included are Show review the Beautystylist lipgloss applicator, featuring a soft wiper lip that claims to adjust to the shape of the applicator, and the Precisionliner eyeliner, said to provide a precise application due to its 19 micro bristles that do not spread. These four products are packed in a rose gold bag by Geka Accessories, which also contains nail stickers and nail pearls.
Exhibiting under its new name, glassmaker Verescence (formerly SGD Perfumery) showed innovations including Bowie, its new androgynous bottle range said to be ideal for niche brands. Featuring a thick glass base, the Bowie range will be on the market from early 2017.
US-based WestRock previewed two new fragrance sprays. Melodie Touch is designed to provide a discreet and targeted dose for on-the-go applications and claims to be ideal for concentrated perfume formulas, which the company says is a growing trend among prestige brands. Melodie Mystery aims to combine a prolonged, fine spray with a focused application. WestRock also presented its skincare dispenser, Aria Luxe, which has a finger groove designed to increase comfort and control, as well as a locking feature. These three products will launch by the end of the year.
Texen presented its travel-size Mini Airless containers, which can be customized with tips such as stainless steel balls, and are meant for gifts, sampling or on-the-go use. The company also announced that it will present innovations designed to respond to specific consumer needs and desired application methods in the make-up, perfume and skincare categories in 2017.
Groupe Pochet showcased Epure, a new light glass jar for skincare by Pochet du Courval. Featuring a simple, sober finish, the light glass is part of an initiative to reduce the impact on the environment. The group also showed One Touch, which can be opened with one hand thanks to its on/off click function by the group’s Qualipac division.
This year the Aptar Beauty + Home stand featured an Oil Workshop, dedicated to its new oil applicator innovations. These included the press-to-dispense facial oil applicator Serumony Oil Edition and a new pump for all-over dry oils called Oilmist, which claims to enable a long, continuous mist-like spray. The group also previewed, a new version of its existing Note perfume for oils, suitable for perfume oils. This was presented in partnership with Firmenich for the formulation, and Verreries Brosse for the glass, and claims to dispense a measured dose resembling a drop of perfume. n
www.bwconfidential.com - www.bwconfidential.comwww.bwconfidential.com - October 20 - OctoberNovember 20 - November2, 2016 #137 2, 2016 - Page #137 13 -- Page 13 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Store visit
DFS makes a splash with Venice store The travel-retail operator combines culture and shopping at its new store in Venice’s historic Fondaco dei Tedeschi building VMH-owned travel-retail operator DFS has unveiled its new luxury store in LVenice’s historic Fondaco dei Tedeschi building, marking the operator’s first entry into Europe. The 7,000m2 (75,347ft2) store, called T Fondaco dei Tedeschi, houses beauty, watches, jewelry, accessories and Italian food, gifts and wine. A focus has been put on combining key luxury global brands with local Italian lines. The store’s 7,000ft2 (650m2) beauty hall is housed on the third floor, and features a mix of Italian and international beauty and fragrance brands, including The Merchant of Venice, Acqua di Parma, Dior, Estée Lauder and T Fondaco dei Lancôme. In total, 36 beauty brands are sold at the store, which claims to be Tedeschi by DFS Venice’s largest offering of beauty and fragrance. The interior glass fixtures in l Location: Venice, Italy the area are made of local Murano glass. l Total store size: T Fondaco dei Tedeschi boasts a floor above the retail space dedicated to 7,000m2 (75,347ft2) events and exhibitions. Featuring a rooftop terrace, it is open to the general l Beauty hall size: public, and is designed to act as a meeting place and cultural venue for the city, 7,000ft2 (650m2) promoting public events and cultural institutions, according to the group. l Special features: Emphasis The group entrusted the renovations of the historic building to architect and on combining Italian and urbanist Rem Koolhaas and his architectural firm OMA. The interior design was international brands, a floor completed by architect Jamie Fobert, and aims to celebrate traditional elements, above the retail space dedicated textures and shapes of Venice, DFS said. n to cultural events and exhibitions
www.bwconfidential.com - October 20 - November 2, 2016 #137 - Page 14 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Store visit
s The store’s 7,000ft2 (650m2 ) beauty hall features a mix of local and Italian beauty and fragrance brands
s Brands stocked include La Prairie, The Merchant of Venice, Acqua di Parma, Dior and Estée Lauder
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