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BW Confidential Team At www.bwconfidential.com The inside view on the international beauty industry October 20 - November 2, 2016 #137 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside 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] Meet the BW Confidential team at: l Intercharm Moscow, October 26-29 l Cosmoprof Asia, Hong Kong, November 15-18 l MakeUp in São Paulo, December 7-8 News headlines daily on www.bwconfidential.com @BWCbeautynews News roundup At a glance... n Coty to acquire ghd n Shiseido aims for 9% share of global fragrance market The buzz n Sephora postpones entry into Iran Stay informed with our daily news headlines on www.bwconfidential.com Strategy 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 News roundup n n n brands distributed on the Feelunique website. The beauty institute has three treatment rooms, while the hair salon caters to men, women and children. A manicure and make-up service is also available. Feelunique acquired French perfumery chain Parfumeries Rive Droite in 2015 in a bid to develop its footprint in France. The Feelunique flagship is the first of the four Rive Droite perfumeries to be rebranded under the The buzz Feelunique nameplate. People Shiseido Americas has appointed Jean-Marc Plisson as president of its newly created Beauty Prestige Group. The Beauty Prestige Group will include the Shiseido brand, Laura Mercier and the group’s designer fragrance brands.
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