www.bwconfidential.com The inside view on the international beauty industry March 5 - April 1, 2015 #108 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside The buzz 2 Version X News roundup he number of new fragrance launches continues to rise Netwatch 6 Tand stood at 1,620 in 2014, according to the latest edition of fragrance guide Fragrances of the World 2015 Social media monitor by industry expert Michael Edwards. However, the pace of new introductions slowed somewhat last year. In women’s Interview 7 fragrance, the number of launches in 2014 dropped to Gebr Heinemann purchasing & 925 compared with 968 in 2013. The niche category, logistics executive director Kay Spanger which is fast becoming saturated, also saw a slight decline in launches with 448 new products in 2014, against 540 Insight 9 in 2013. European perfumeries But the number of flankers continues to rise—a total of 275 were introduced last year— as brands looked to capitalize on existing ranges rather than take the risk of introducing a Store visit 13 completely new franchise. Yves Rocher, France While most bemoan the number of launches, the newness factor is unlikely to go away. No matter what the industry, from mobile phones to tablets, consumers are looking for the latest new thing. The only difference is that in many other sectors the latest product often boasts a new technological feature or interesting update, while in fragrance, consumers will be offered a lighter or more intense version of a scent that came out a year earlier. The question is whether version x of a well-known scent is compelling enough for consumers to part with their cash and make a purchase. Meet the BW Confidential team at: Oonagh Phillips l Cosmopack, Bologna, March 19-22 Editor in Chief l Cosmoprof Worldwide, Bologna, March 20-23 [email protected] l Duty Free Show of the Americas, Orlando, March 22-25 l Esxence, Milan, March 26-29 l in-cosmetics, Barcelona, April 14-16 l Luxe Pack Shanghai, April 15-16 l MakeUp in Seoul, April 15-16 l BeautyEurasia, Istanbul April 30 - May 2 News headlines daily on www.bwconfidential.com @BWCbeautynews l TFWA Asia Pacific, May 10-14 News roundup At a glance... n Unilever to acquire Ren n Brazil exempts some beauty categories from registration The buzz n Advent looks to IPO for Douglas or sale of chain n Fragrance launches reach 1,620 in 2014 Stay informed with our daily news headlines on www.bwconfidential.com Strategy Unilever is to acquire UK-based natural skincare brand Ren. The brand, founded in 2000, is sold in 50 countries, mainly in specialty stores and pharmacies. Unilever says that Ren has potential for further growth, given that the naturals category is one of the fastest growing in skincare globally. The acquisition is to close in May 2015. Brazil’s national surveillance agency of health, ANVISA, has updated regulations on cosmetics sold in the country. The new regulations mean that a number of cosmetics categories will be exempt from registration. Brands will only be required to notify health authorities that their products will be put on the market. The new regulation aims to simplify and speed up the process of bringing products to market in Brazil. However, the exemption does not apply to what are considered high-risk products, such as hair- straightening items, sunscreen, insect repellent, antiseptic gel and children’s products. Fragrance house Firmenich has sold its fragrance-themed website Osmoz to French digital agency The Twelve. The agency was in charge of Osmoz’s update two years ago, and has been managing the site since then. Launched in 2001, Osmoz is present in more than 15 countries and has 234,000 active members, according to Firmenich. Retail Private-equity company Advent is preparing to list German perfumery chain Douglas on the stock market, says Reuters. Advent is looking to either an IPO towards the end of the year or to selling Douglas, say sources. Advent acquired a majority stake in Douglas in 2012 and took the group private. Douglas has since looked to focus on its perfumery business by buying French retailer Nocibé and selling its jewelry stores Christ and confectionery stores Hussel. It also plans to sell its Thalia book stores division. Budget brand E.l.f. Cosmetics opened its first standalone store outside of the US last month, in Aix-en-Provence, France. The 50m2 (538ft2) boutique sells the brand’s color cosmetics range and has a make-up artist on staff, in addition to its beauty advisors. The brand also moved into skincare last month. The line, priced between $8-$12, will debut with 11 skus and includes a primer, night cream, exfoliating scrub and BB cream. n n n www.bwconfidential.com - March 5 - April 1, 2015 #108 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n World Duty Free Group (WDFG) has extended its contract with Kuwait International Airport for five more years, with the option of an additional year. The travel retailer, which works with local partner That Es-Salasil in Kuwait, has held the concession since 2006. WDFG will continue to operate two stores in the departures area, one of The buzz which is dedicated to beauty and jewelry. The contract took effect on March 1. Sephora is launching a click-and-collect service in France in May. Shoppers can order and pay online and then pick up their purchase in Sephora stores three hours later. A French court has rejected worker unions’ demands to close AS Watson-owned Marionnaud’s flagship store on the Champs-Elysées at 9pm. The store will be allowed to remain open until midnight. Beauty subscription box player Glossybox turned a profit for the first time last year. The Germany-based company claimed it made a seven-digit profit. Present in more the 10 markets, the company also said that its consumer base increased by 25% last year, while marketing costs were reduced by 33%. People The US-based Personal Care Products Council (PCPC) appointed Thia Breen, group president of North America for The Estée Lauder Companies, as board chair last month. Breen was previously vice chair of the council and replaces Elizabeth Arden chairman, president and ceo E. Scott Beattie, who had served as PCPC chair since 2012. LS Travel Retail Pacific has named Ken Tse as head of operations duty free and luxury. Tse was previously managing director of Nuance-Watson’s Singapore operation. Sisley has named Jim Maki president of Sisley USA. Maki joined Sisley in 2012 as executive vice president of the US division. Joy Chen, formerly ceo of skincare brand Yes To Inc, has been named president and ceo of Pola Orbis-owned skincare brand H2O+. New fragrance launches 2014 Faber Castell Cosmetics has named Christina Zech as managing director. Category 2013 2014 Feminine 968 925 Data Masculine 328 353 Unisex 314 342 Last year, 1,620 new fragrances launched on the global market, according to the Niche 540 448 31st edition of fragrance expert Michael Edwards’ Fragrances of the World 2015. Limited editions 245 263 This compares to 1,610 new launches in 2013. Some two categories saw fewer launches in 2014: women’s scents (925 versus Flankers 245 275 968 in 2013) and niche, with 448 new scents in 2014, compared to 540 the Celebrity 58 79 previous year. Despite an ailing celebrity fragrance market, there were 79 new Total 1,610 1,620 fragrance launches in the category last year, compared to 58 in 2013. n n n Source: Fragrances of the World 2015 www.bwconfidential.com - March 5 - April 1, 2015 #108 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n The sale of prestige skincare serums saw contrasting results in Europe for the Prestige serum sales* in Europe month of January, according to NPD Group. In France serum sales were up by 5%, and % change Jan 2015 vs Jan 2014 in the UK they increased by 8%. In Italy, however, the segment reported a decrease of Country % change Jan 2015 1%, while in Spain sales fell by 7%. vs Jan 2014 The buzz France +5% Close to six million fewer women bought beauty items last year in the US, a 4% decrease over the previous year and the lowest level of beauty shoppers in the Italy -1% country since 2008, says NPD Group’s Annual Beauty Consumer Economic Indicator. Spain -7% Consumers reduced their spending on make-up and fragrance items 1.5 times as UK +8% often as on skincare and haircare, as respondents say make-up and fragrance are “for Source: NPD Group *Value sales special occasions”. Yet if women were given an extra $100 to spend on beauty, says the report, the majority say they would buy make-up or fragrance items. About half of women say that beauty would be the first product category they would stop buying if finances were tight, but almost the same percentage say they would continue to buy these products because they boost their self esteem. In terms of pricing, nearly 50% of women polled say they usually buy discounted products, yet the remaining 50% claim that price is not the most important factor when buying beauty. Launches Hermès is adding a fifth fragrance to its Les Jardins collection, which was introduced in 2003. Called Le Jardin de Monsieur Li, the EdT, created by Hermès in-house perfumer Jean-Claude Ellena, was inspired by plants found in Chinese gardens, including prune trees, jasmine and Szechuan pepper bushes. Le Jardin de Monsieur Li launched mid- February in Hermès boutiques, and will roll out to department stores and perfumeries worldwide in March.