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BW Confidential Will Be Taking a Break for the Summer www.bwconfidential.com The inside view on the international beauty industry July 10-August 27, 2014 #96 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside The buzz 2 Retail on fire News roundup obile shopping strategies are likely to get a little Netwatch 6 Mmore serious now that Amazon has launched its own smartphone. The e-commerce giant’s Fire Beauty blogger review Phone is described as more of a shopping tool than a communication device, as it can recognize thousands Interview 7 of products and enable users to immediately buy them Givaudan fragrance division from Amazon’s website. The phone’s dedicated button president Michael Carlos for making a purchase means that shoppers have more opportunities to shop and shop more easily and Insight 9 can compare prices and buy an item that costs less India on Amazon. This is likely to send shivers down the spine of most competing retailers, but could be a major opportunity for brands to sell more if they agree to Show review cooperate with Amazon. World Perfumery Congress 12 Amazon practically invented e-commerce, transforming (and in some cases MakeUp in Paris 14 destroying) a string of industries from book selling to electronics retail in the process. Its new phone could very well usher in another new chapter in retailing. Store visit 16 It’s unlikely that beauty will remain untouched by the online retailer’s ever- ArtDeco, Paris growing influence for long. Industry players may have to decide sooner than they thought whether they can beat Amazon with their own strategies or whether they will end up having to join them. BW Confidential will be taking a break for the summer. We will be back with more news, analysis and commentary on August 28. The next issue of BW Confidential will be Oonagh Phillips published on August 28, 2014 Editor in Chief Stay informed with our daily news [email protected] service on www.bwconfidential.com News roundup At a glance... n Coty implements major reorganization n LG no longer bidding for Arden The buzz n Pola Orbis creates international division n Douglas finalizes acquisition of Nocibé n Harrods to unveil premium fragrance concept n Interparfums launches Jimmy Choo Man Stay informed with our daily news headlines on www.bwconfidential.com Strategy Coty will eliminate its separate prestige and mass divisions to implement what it calls a more integrated model focused on categories and regions in a major reorganization of the group.The company says that the move will bring a more holistic approach to consumers and product categories and improve coordination and resources between channels and markets. It is also expected to generate savings by reducing duplication. The new organization will be structured into a Categories and Innovation division and a Global Markets division. Categories and Innovation will be headed by Renato Semerari, who was previously president of Coty Beauty. All Coty brands will now be housed under four categories: fragrance, skincare, color cosmetics and bodycare. The Global Markets division will be headed by Jean Mortier, previously president of Coty Prestige. The markets will be organized into four regions: North America, Europe, APAC/ MEA and Latin America. Korean group LG Household & Healthcare has said it is no longer considering purchasing Elizabeth Arden. The news came as Arden said it would implement a major restructuring plan that involved terminating fragrance licenses and cutting jobs to reduce overheads in the face of growing losses at the company. LG said in April that it was interested in acquiring Arden, with an eye to boosting its international business. However, it is thought that the mounting difficulties at Arden have caused the Korean group to back off. LG is, however, still said to be interested in acquisitions. French brand Chanel unveiled its new Research and Technology center to the press in June. The new center, which opened in January 2013, is in Pantin on the outskirts of Paris. The center groups together the activities of the brand’s former site in Pantin, as well as sites in Sophia-Antipolis in the south of France and Neuilly, a suburb of Paris. The ultra-modern building, whose exterior is decorated with a black metallic lattice structure, covers 15,000m2 (161,500ft2) and houses 200 researchers. It is also home to high-tech equipment, including a poly-fractioning machine for the extraction of actives and a multi-photon microscope, which provides a non-invasive way of testing the efficacy of actives on the skin. A focus of the center is natural actives and green chemistry. Talking about Chanel’s vision of research and the new center, Christian Mahe, managing director of Chanel research said: n n n www.bwconfidential.com - July 10-August 27, 2014 #96 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n “Chanel’s research should be considered as an innovative and daring international ecosystem that respects the environment.” He added that the idea of the ecosystem can be seen in the brand’s association with universities internationally and its collaboration with start-ups. In addition to the Pantin center, Chanel operates research hubs in Piscataway, US and Funabashi, Japan. The buzz Japanese beauty group Pola Orbis has set up a new entity called Global Business Division to manage its overseas business. The company’s Global Business Strategy Office branch that currently manages the business outside Japan will integrate the new division. Chinese beauty executive Yutaka Den is joining Pola Orbis as chief global business officer to head up the new division. He will also become director of Pola Orbis subsidiary Jurlique International in Australia and H2O Plus Holdings in the US. Retail German retailer Douglas has finalized its acquisition of French perfumery chain Nocibé. The new entity is now France’s largest perfumery network in store numbers, with 645 doors. Douglas operates 179 stores in France directly and through franchises, and Nocibé has 466 doors. In terms of sales, the group is now number two in France, behind LVMH-owned Sephora. Marionnaud comes in third place. Douglas was required to sell 38 stores in France in order to obtain approval for the Nocibé acquisition from French competition authorities. Douglas, which is owned by private-equity group Advent International and the Kreke family, signed a deal to purchase Nocibé in February this year. UK-based department store Harrods is to launch a new fragrance retail concept at its London store this September. The retailer says the concept, which it calls the Salon de Parfums, is aimed at ‘perfume connoisseurs’, and that it will present high-end and rare scents, alongside perfume creation and personalization services. The 5,090ft2 (473m2) space on the store’s sixth floor features dedicated brand boutiques for 11 fragrance brands: Bond No 9, By Kilian, Chanel, Clive Christian, Creed, Dior, Guerlain, Henry Jacques, Roja Dove, Tom Ford and Xerjoff. A separate fragrance gallery will stock another selection of perfumes and will include world- exclusives, such as London-based perfumer Thomas Kosmala, and fragrances, such as Dolce & Gabbana’s Velvet Collection. The space is intended to convey an intimate retail ambiance and is decorated in soft grays and natural tones. The 11 brand boutiques are situated along a corridor that features columns, showcase windows and decorative light fixtures. The fragrance gallery lies at the end of the corridor and is in the form of an oval-shaped room with seating and a crystal chandelier. n n n www.bwconfidential.com - July 10-August 27, 2014 #96 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n People The Estée Lauder Companies has appointed Israel Assa senior vice president and general manager Estée Lauder travel retail worldwide. Assa is currently vice president and general manager travel retail Americas. The buzz Assa replaces René Frion, who has been named vp and gm Aramis and Designer Fragrance, Bumble & bumble, Ojon and Smashbox for the UK and Ireland. The appointments went into effect on July 1. Japanese group Shiseido has named Philippe Lesne vice president travel retail worldwide. Lesne was previously managing director travel retail Asia Pacific. Lesne has been with Shiseido since 2009. The appointment follows news of the departure of Shiseido senior vice president Europe Ariel Gentzbourger, who is to become senior vice president general merchandise manager cosmetics and fragrances at travel retailer DFS. French group Clarins has appointed Olivier Tallot brand manager Clarins Fragrance Group Asia Pacific. Tallot was previously regional marketing manager travel retail Asia Pacific. He will be replaced by Katiba Belkhadria, who worked for Clarins skincare in Paris. UK-based fragrance house CPL Aromas has appointed Olivier Maurel as perfumer. Maurel will be based at the company’s creative center in Paris. He previously worked with Italian company GRC Parfum. CPL Aromas is currently focusing on developing its business in France and in North African countries served by the French office. Data Prestige eyebrow make-up in the US saw sales up 28% in the 12 months ending March 2014, according to NPD Group. However, the total prestige make-up category in the US saw sales grow by just 3% for the period. Sales of eyebrow products have increased by double digits over the past three years, and BW Confidential now represent $122m, and 11% of total US prestige eye make-up sales. However, NPD 4 avenue de la Marne 92600 Asnières sur Seine, France reports that less than 80% of prestige retail stores are currently selling eyebrow make-up. [email protected] Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 www.bwconfidential.com ISSN: 2104-3302 Products Publisher: Nicolas Grob Editorial Director: Oonagh Phillips [email protected] Interparfums is to launch its first men’s fragrance for Jimmy Deputy Editor: Alissa Demorest [email protected] Choo this fall.
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