THE SCOOP FROM WWD’S BEAUTY CEO SUMMIT X REINVENTING A RETAIL CHANNEL

1 WWD BEAUTY INC

AN ISSUE OF WOMEN’S WEAR DAILY THE BUSINESS OF BEAUTY

THE NEW MACHO INSIDE THE BOOM IN GROOMING

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ave you seen the video of Harvard student Grace Choi presenting her invention called the Mink, a 3-D Believe it or printer that prints makeup, at a In This Issue not, men are TechCrunch conference in early May? Look for the becoming as skin-care battle hair-obsessed If you haven’t, I encourage you to watch it. While as women, as H to heat up 8 Heavy Hitters 18 The Evolution of Man the Mink isn’t on the market—yet—if Choi’s this fall with you’ll discover major launches Prestige brands unveil Grooming is booming as a in this story. determination is any indication, it (or something from Clinique, their skin-care stars for the new generation of image- similar) will be soon. That kind of big-bang Shiseido, second half. conscious guys adopt Chanel and ever more sophisticated disruption is typical of the transformation that others. 10 Retail Safari regimens. technology, in all of its manifestations, is having WWD’s Rachel Brown Find out how on the beauty industry at the moment. 22 The Direct Connect the digital visits the newest beauty revolution is Transformation. Change. Metamorphosis. As boutiques in Los Angeles. The direct-selling channel transforming the Future Lab’s Chris Sanderson said at the WWD Two visionary is enjoying a renaissance traditional direct- execs conduct 12 The Originals as a new generation of sell model into Beauty CEO Summit held in May, “Change equals a thoroughly a spirited— Elizabeth Musmanno and brands tweak the model challenge, challenge represents opportunity.” and frank— modern conversation Alex Wiederin discuss life on to suit the times. channel. This issue takes an in-depth look at some about the role the creative edge. of the key opportunities savvy marketers are of creativity 26 Change is in the Air in beauty 13 Think Big The rapid transformation currently capitalizing on. The men’s grooming marketing market is one such example. After years of false today. Hong Kong’s newest luxe of the beauty industry beauty destination. was top of mind at Discover the starts, the category is on fire, thanks to a new the WWD Beauty CEO key items on generation of image-conscious guys. Such men the agenda at 14 The British Are Coming! Summit. beauty’s most have “grown up in a world where it’s okay to WWD Five U.K.-based brands important take better care of yourself,” says Unilever’s Gina Beauty Inc hitting our shores. 30 The Beauty Secrets meeting of the minds. Boswell. “It’s expected—among their friends, visits Beauty of a Bombshell Avenue, the 15 The Entrepreneurial Edge Legendary actress Joan their significant other and at work.” Discover how new 20,000- square-foot Sisters Cecil Booth and Collins adds entrepreneur that dynamic is impacting the market in “The megastore in Dr. Rebecca Booth tackle to her résumé. Evolution of Man” on page 18. Hong Kong. hormonal aging. Michael Dubin knows from men. As founder of Dollar Shave Club, he personifies a group of 16 Shopper Stalker Who’s buying what–and entrepreneurs who are shaking up once staid ON THE COVER: David Miller why–in New York City. categories. The impact of Dubin and others at Soul Artist Management photographed exclusively for like him was top of mind at the Summit, where WWD Beauty Inc by Jim Wright. many speakers focused on how they’re facing the Body art by Anastasia Durasova at Artmix Creative. Grooming challenge of disruptors head-on. For a full report on by Matthew Monzon at Tracey the key takeaways from the conference—and what Mattingly. Styled by Luis

Campuzano. Tank top by DKNY. MICHAEL NAGLE BY WILLA PARTY JIM WRIGHT; MODEL BY ENDICOTT; STEVEN BY CHINSEE / STYLED GEORGE BY PHOTO PRODUCT it means for the future of the industry—turn to “Change is in the Air,” on page 26. —JENNY B. FINE

WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 207, NO. 125. SA TURDAY, JUNE 21, 2014. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and two additional issues in February and September) by Fairchild Fashion Media, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive O¢cer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating O¢cer & Chief Financial O¢cer; Jill Bright, Chief Administrative O¢cer. Periodicals postage paid at New York, NY, and at additional mailing o¢ces. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at wwdPrint@cdsfulfillment.com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post O¢ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. Occasionally, we make our subscriber list available to carefully screened companies that o¬er products and services that we believe would interest our readers. If you do not want to receive these o¬ers and/or information, please advise us at P.O. Box 6356, Harlan, IA, 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

6 WWD BEAUTY INC

BB1407-PG0X-TOC.a.indd 6 6/11/14 11:24 AM 06112014112757 Approved with warnings LOOK OF THE EDWARD NARDOZA EDITOR IN CHIEF, WWD MOMENT PETE BORN EXECUTIVE EDITOR, BEAUTY JENNY B. FINE EDITOR

JENNIFER WEIL EUROPEAN EDITOR JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR MOLLY PRIOR BEAUTY FINANCIAL EDITOR FAYE BROOKMAN CONTRIBUTING EDITOR JAYME CYK EDITORIAL ASSISTANT KATIE KRETSCHMER CONSULTING COPY EDITOR

NANCY BUTKUS CREATIVE DIRECTOR

ART BARBARA SULLIVAN CONSULTING ART DIRECTOR

CONTRIBUTORS SAMANTHA CONTI AND NINA JONES (London), MILES SOCHA (Paris), CYNTHIA MARTENS (Milan), MARCY MEDINA AND RACHEL BROWN (Los Angeles), MELISSA DRIER AND SUSAN STONE (Berlin), AMANDA KAISER (Tok yo)

PHOTO CARRIE PROVENZANO PHOTO DIRECTOR LEXIE MORELAND ASSOCIATE PHOTO EDITOR JENNA GREENE ASSISTANT PHOTO EDITOR CARTER LOVE BOOKINGS EDITOR EILEEN TSUJI PHOTO COORDINATOR ROBERT COHEN PHOTO FACILITATOR JOHN AQUINO, GEORGE CHINSEE, STEVE EICHNER, KYLE ERICKSEN, THOMAS IANNACCONE PHOTOGRAPHERS

CONTRIBUTING PHOTOGRAPHERS RUVEN AFANADOR, KENJI AOKI, DAN BORRIS, NIGEL DICKSON, HENRY LEUTWYLER, MARK HANAUER, MICHAEL NAGLE, JEFF RIEDEL, PHILIPPE SALOMON, DAVID LEWIS TAYLOR, YASU+JUNKO

BEAUTY INC ADVERTISING PAUL JOWDY VICE PRESIDENT, GROUP PUBLISHER RODARTE PAMELA FIRESTONE ASSOCIATE PUBLISHER ELLIE GHADIMI ADVERTISING DIRECTOR, BEAUTY JILL BIREN WEST COAST DIRECTOR GUGLIELMO BAVA INTERNATIONAL DIRECTOR OLGA KOUZNETSOVA ACCOUNT MANAGER, ITALY BRITTANY MUTTERER BEAUTY SALES ASSISTANT

MARKETING/CREATIVE SERVICES EMILY CORTEZ ASSOCIATE PUBLISHER, MARKETING RODARTE AND FRIEZE PHOTO BY KYLE ERICKSEN; SHANGHAI BY DAVE TACON; CHANEL AND LOUIS VUITTON BY GIOVANNI GIANNONI GIOVANNI BY VUITTON CHANEL AND LOUIS TACON; DAVE SHANGHAI BY ERICKSEN; KYLE BY PHOTO AND FRIEZE RODARTE KRISTEN M. WILDMAN EXECUTIVE DIRECTOR, EVENT MARKETING JILL WEISKOPF DIRECTOR, PUBLIC RELATIONS MARY KATE CALLEN MARKETING DIRECTOR JENNIFER PINCUS SENIOR DIRECTOR, INTEGRATED MARKETING ANNE ICHIKAWA COPY DIRECTOR JENNIFER BORCK ASSOCIATE DIRECTOR, INTEGRATED MARKETING ALISSA GROSS SENIOR INTEGRATED MARKETING MANAGER MICHAEL FOUNTAS SENIOR MARKETING MANAGER, EVENT MARKETING SHAMILA SIDDIQUI INTEGRATED MARKETING MANAGER JULIE JACOBY EVENT MARKETING MANAGER AN ATTENDEE AT THE HALF AND HALF OLIVIA SPADAFORE MARKETING MANAGER FRIEZE ART FAIR ELLYN PULEIO DIGITAL DEVELOPMENT MANAGER Call it a study in contrasts: The hippest AMANDA MULLAHEY ASSOCIATE INTEGRATED MARKETING MANAGER hair look right now is the juxtaposition of TIM SCHULTHEIS ART DIRECTOR GAFFNEY BARNETT ART DIRECTOR Crayola-bright colors with natural tones. CHRISTOPHER SANTORELLA DIGITAL DEVELOPMENT COORDINATOR The look, adopted by models and street- CHRISTINA MASTROIANNI PUBLIC RELATIONS ASSISTANT style stars alike, is poised to enter the JESSICA MARRA MARKETING ASSISTANT mainstream, thanks to launches in both PRODUCTION A SHOPPER GENA KELLY VICE PRESIDENT, MANUFACTURING the salon and retail channels, like L’Oréal CHRIS WENGIEL GROUP PRODUCTION DIRECTOR IN SHANGHAI Professionnel Hairchalk, Garnier Color KEVIN HURLEY PRODUCTION DIRECTOR Styler and The Body Shop’s Hair Chalk. JILL BREINER ASSOCIATE PRODUCTION MANAGER Look for it to extend even further CONSUMER MARKETING ELLEN DEALY SENIOR EXECUTIVE DIRECTOR as well: In July, the nail company PEGGY PYLE CONSUMER MARKETING DIRECTOR Ciaté will introduce a six-shade JANET MENAKER SENIOR DIRECTOR, DIGITAL MARKETING & STRATEGIC DEVELOPMENT line of mascara, LashLights, de- JOHN CROSS PLANNING & OPERATIONS DIRECTOR SUZANNE BERARDI SENIOR ONLINE MANAGER signed to add bold color to the ALISON CHRISTIE ASSISTANT MARKETING MANAGER CHANEL tips of the eyelashes. FAIRCHILD FASHION MEDIA SUZANNE REINHARDT CHIEF OPERATING OFFICER MELISSA BRECHER CHIEF MARKETING OFFICER DAN SHAR VICE PRESIDENT, GENERAL MANAGER, DIGITAL NICOLE ZUSSMAN VICE PRESIDENT, HUMAN RESOURCES MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT DEVON BEEMER FINANCE DIRECTOR JANET JANOFF BUSINESS MANAGER CARMEN MENDOZA ASSISTANT OPERATIONS MANAGER

LOUIS VUITTON GINA SANDERS PRESIDENT & CEO

WWD BEAUTY INC 7

BB1407-PG07-Color_Masthead.a;16.indd 7 6/10/14 2:42 PM  $QQSPWFEXJUIXBSOJOHT BEAUTY BULLETIN Clockwise from top: La Prairie Cellular Eye Essence Platinum Rare, Shiseido Ultimune Power Infusing Concentrate, Chanel Le Lift Sérum, Clinique Smart Custom- Repair Serum, Lancôme Absolue L’Extrait Ultimate Rejuvenating Concentrated-Elixir

SHELF LIFE Heavy Hitters

Blockbuster skin-care launches from beauty’s biggest names are looking to drive sales for the latter part of the year. “Typi- cally second-half sales increase for holiday with self-gifting,” says NPD’s Karen Grant. “Retailers and manufacturers want to use these launches to capitalize on foot traffic.” To that end, Clinique has created Smart Custom-Repair Serum, said to zero in on a consumer’s specific skin-care needs, while Shiseido is addressing the immunity of skin with its Ultimune Power Infus- ing Concentrate. Chanel, La Prairie and Lancôme are banking on new iterations of current star franchises. “The innovation is coming from familiar lines,” says Grant. “The consumer [al- ready] trusts the innovation. It’s like the iPhone 6.” —JAYME CYK PHOTOGRAPHED BY GEORGE CHINSEE

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* When compared to T3 dryer www.conair.com/infiniti ** When compared to 3Q dryer without patent- pending noise reduction technology ©2014 Conair Corporation *** When compared to AC motor hair dryer models HAMMER & NAILS Opened: November 2013 “Although I’ve gotten manicures and pedicures, I’ve always felt uncomfortable because, let’s be honest, traditional nail salons aren’t designed with men in mind,” laments Michael Elliot. So he set out to create a nail salon specifically for men. “I want to be the Starbucks of this category. In four years, this could be like getting a haircut,” he says. Hammer & Nails has darkened windows, for guys who want to be discreet, and masculine grey walls. The rusted end of a 1953 Chevy pick-up truck serves as the front desk; the spa chairs are oversize leather affairs. Prices start at $23. 8257 Melrose Avenue; 323.302.5435

DIPTYQUE Opened: January 2014 Quaint neighborhood retail thoroughfare Larchmont Boulevard is getting more cosmopolitan by the minute, with Diptyque bringing its international flair to the street. “Our designer imagined the store like a promenade, where customers can stroll and discover the brand at their leisure,” says Donna DiDonato, managing director, SELECTS APOTHECARY Diptyque USA. The process is aided by Diptyque’s new vase ritual, which allows Opened: January 2014 customers to experience fragrance after fragrance without the scent filling up the Adjacent to the Benjamin with retail space, to give them a better idea of what a Diptyque eau de parfum will smell Negin Zand salon that hairstylist like when they take it home. 202 North Larchmont Boulevard; 323.962.3622 Benjamin Mohapi opened three years ago, 500-square-foot Selects is a place for Mohapi and cofounder Genavieve Lynch to channel their shared passion for product hunting. “I’m a product junkie,” says Lynch. In putting together Selects’ assortment of some 50 brands, including Fig + Yarrow, Juniper Ridge, Morihata Charcoal and Prospector Co., the duo were especially interested in aesthetics. “If you go into your bathroom and everything looks great, you feel good. It’s not just about what you put on your skin,” says Mohapi. 8908 Melrose Avenue; 424.249.3296 ULTA BEAUTY Opened: February 2014 Ulta Beauty has broken into the Los Angeles market with a 10,000-square-foot store at Midtown Crossing. Pamela Lent, Ulta’s vice president, says, “This store is a bit unique in that the project was one of the first multilevel developments in a very dense and demographically diverse urban area of Los Angeles, where retailers and consumers have not seen traditional large power centers or retailing opportunities of this scale.” Ulta plans multiple openings for L.A. this year and next. 4550 W. Pico Boulevard; 323.934.3692

RETAIL SAFARI Ooh La L.A.

T GALLERIA BY DFS AT LAX’S TOM BRADLEY RACHEL BROWN discovers Tinseltown’s newest INTERNATIONAL TERMINAL Opened: September 2013 beauty emporiums, big and small. The $2 billion remake of LAX’s Tom Bradley International Terminal has been a boon for beauty, where LVMH-owned DFS poured $25 million into its duty-free units spanning more than 25,000 square feet. The result is the largest airport beauty floor in the country, with more than 20 makeup and skin-care brands including Dior, Chanel, Benefit, SK-II, MAC, Bobbi Brown, HANS SCHLUPP BY T GALLERIA DANIELS; ELIZABETH BY PHOTO APOTHECARY SELECTS Crème de la Mer and Smashbox, and upwards of 45 fragrance brands, including Jo Malone, Hermès and Guerlain. Los Angeles International Airport

ILLUSTRATION BY BRETT AFFRUNTI

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BEAUTY BULLETIN

DOUBLE MAJOR The Originals Though they hail from dierent worlds, ELIZABETH MUSMANNO, public relations executive and president of the Fragrance Foundation, and ALEX WIEDERIN, creative director extraordinaire, thrive on taking creative risks.

ow did you meet? Alex Wiederin ELIZABETH MUSMANNO: Alex was working with the and Elizabeth jeweler David Webb and was looking for somebody Musmanno photographed to buy the media, and somehow I landed on his in the oces of doorstep. We chatted and he said, “Yep, we would be Buero New York. okay working with you.” So it was fast. HALEX WIEDERIN: I still think it was the right decision. E.M.: They were also looking for a public relations company and Alex said, “I think Elizabeth would work very hard for you.” Since then I have brought every single client to Alex. What he does is They are showing a moment in life, something that you could see IN BRIEF translate a voice for them. Some creative directors have a look that is yourself in. It’s not always about sex. implemented no matter who you are. Alex does something different A.W.: How often can you redo something? There is a certain recipe ELIZABETH with every client, and what he also does from a public relations which everybody cooks again and again and again. Look at what’s MUSMANNO standpoint is think about what will get press. For instance, for one happening in photography, where pretty much every fashion and Public-relations client, a small jeans company, Alex hired a girl named Sky Ferreira, beauty photographer looks at what Helmut Newton and Guy Bourdin executive Elizabeth and just for that hiring, I was able to get press. and those big guys in the past did, and we all try to achieve that Musmanno began her career in the What did you think when Elizabeth came to you about working again, a remake of a photograph which was done 40 or 50 years ago, beauty industry, on the visual presentation of the Fragrance Foundation? believing that is the aspiration of beauty now. I’m not saying that it working for Yves A.W.: It was definitely first about the logo and looking at the isn’t a great picture, but we should move on, we should progress. Saint Laurent, Oscar organization. It was hard because the Fifi awards was tough for me E.M.: Where is our Helmut Newton today? Who is it? de la Renta and to swallow. Fifi sounds like a nickname. It doesn’t sound positive and A.W.: But we are also not searching for it. Everybody feels more Calvin Klein, before definitely doesn’t sound luxurious. comfortable with things they know. In order to do something creative, moving to the fashion E.M.: For me, coming in to run the Foundation, from a creative you have to go out of your comfort zone, and find something which world as head of standpoint, most people in the industry agreed it needed a revamp. you may be familiar with but you don’t know 100 percent. That’s worldwide marketing It would be a stretch to say we were given carte blanche, but when it starts to become interesting. and communications certainly everyone said there are no sacred cows. Alex, you work a lot with fashion companies, and you’re working at Christian Dior If you were given creative carte blanche in fragrance, more with beauty. How similar are the two? Couture. She founded her firm, The what might you do? A.W.: What I’ve realized with beauty is, as you go down the line in Musmanno Group, A.W.: Definitely challenge everything a little bit more. When you terms of what happens to the photo shoot after the concept is done, in 2010, and was look at fragrance advertising, it is very classical. Few have really tried the emotional aspect is almost retouched out at the end of the thing. named president to get out of this. Most of it has become such a recipe. I’ve been to That doesn’t just include the photography, but also the concept and the of the Fragrance meetings where the client showed me boards of what they would message. Fashion is still a little bit more open. I don’t think it’s that big Foundation in 2012. like to have. That’s not really interesting. I want to create something of a difference, though. The reason might be that it’s pretty much all rather than fulfill an assignment. owned by the same big companies. The more you own, the more you ALEX WIEDERIN E.M.: We just had lunch with the milliner Stephen Jones, who control, and the more it becomes your way of looking at things. As founder and launched a fragrance called Wisteria Hysteria with Rei Kawakubo E.M.: It would be interesting if some of these big companies started creative director of of Comme des Garçons. We asked him if Rei influenced or changed an incubator moment. Every launch doesn’t have to be massive. It’s Buero New York, anything, and he said, “Absolutely not.” That’s the reason she wants to OK to start in a smaller, more creative, organic way. Alex Wiederin works on creating work with people like him. She wants their point of view. She doesn’t A.W.: Another major question is how launches are done right now. the brand identity, change what they do. It would ruin the enterprise. There’s a reason They are all done like they were 10 years ago. The only difference is, are packaging design the indie brands are popular. They’re not doing the market-research we going to make the event even bigger than last time? There could be and advertising point of view. They are creating what they like and it’s resonating. so many different ways. Maybe there is a viral launch. We have to define campaigns for clients Can that point of view be made more accessible? the target group before we even start talking about those things. Who such as Valentino, A.W.: The real problem existing right now is stagnation. The is it for? Then you can find a new way of communication. Versace and Carolina market is definitely a little confused. People are just not finding E.M.: I look at my kids—they are not going in stores, certainly not Herrera in the fashion what they’re looking for. Buying fragrance used to be a far more for fragrance. It’s a big conversation that has to happen. How are we realm and Sonia emotional experience. I think the emotions are far too controlled in going to reach these kids and get fragrance to them? Kashuk and Oribe in our communications right now. Therefore, I don’t think advertising A.W.: I believe the nose is one of the organs which is not as polluted, beauty. Prior to that, in the fragrance [category] works that well. not as confused, as our eyes are. There is still a lot more to be developed he was cofounder of AnOther Magazine. E.M.: One brand that does it well is Beautiful by Estée Lauder. and to be done.

12 WWD BEAUTY INC PHOTOGRAPHED BY JOHN AQUINO

BB1407-PG0X-Double Major.a;10.indd 12 6/10/14 12:57 PM 06102014125846 BEAUTY BULLETIN

EYE ON DESIGN COLOR COOL

Collistar’s range of Italy-themed JOHN DEMSEY cosmetics this year included a special AND ALINA CHO limited-edition makeup collection developed with Sardinian fashion designer ANTONIO MARRAS, whose playful sketch of a woman’s face with ruby- red lips adorns the packaging. The line includes a bronzer and blush, ultrashiny eye shadows and lip glosses and a Mille Baci, or “thousand kisses,” lipstick in a TORY BURCH ribbed Murano glass case. The products’ DONNA KARAN colors are all named after Italian cities, AND SIR ELTON JOHN from Milan to Cortina to Syracuse, and the collection’s distribution was equally cosmopolitan: For press, top clients and select VIPs only, Collistar distributed the makeup in 400 pop-up boxes with AERIN, WILLIAM AND JANE LAUDER. Marras’ designs inside. —CYNTHIA MARTENS

ROBERT ELIZABETH KRAFT HURLEY

REVELERS AT THE HOT PINK PARTY

RETAIL REPORT FLASHPOINT BCRF HOT PINK PARTY THINK BIG Monday, April 28, The Waldorf Astoria “We are going to rid the world of this dread disease,” Leonard A. Lauder said to a packed Hong Kong’s newest luxe beauty destination is a 20,000-square-foot megastore called Beauty Avenue. Owned by ballroom at the Breast Cancer Research the Dickson Group and located at Langham Place in Mongkok, the store is the first in an ambitious rollout planned Foundation’s annual Hot Pink Party, which for Hong Kong and mainland China. “We see growth shifting from traditional [shopping] areas like Causeway Bay raised more than $5.4 million. “Evelyn Lauder and Central to the New Territories and emerging areas of Kowloon,” says chief executive officer Sarah O’Donnell. was a philanthropic force to be reckoned The two-floor store features more than 50 brands, including Estée Lauder, Chanel, Dior, MAC and SK-II on the with,” said Sir Elton John, who has performed at BCRF galas for more than a decade. “She ground level, and an assortment geared towards younger shoppers upstairs, such as Shu Uemura, L’Oréal and CK was a dear friend, and I am proud to keep One Color. Both floors feature full-service counters—there is no open sell. “We see the opportunity for a concept her extraordinary legacy alive.” John recruited that offers luxury and a high service level,” says O’Donnell, who adds that more than 1.5 million shoppers visited Grammy nominee Sara Bareilles for the the store during its first four months. Thus far, the consumer base consists of about 55 percent locals and 45 per- musical part of the evening and Elizabeth cent tourists from mainland China; skin care comprises 65 percent of sales, makeup, 30 percent, and fragrance Hurley, another loyal supporter, served as emcee. The BCRF, founded by the late Evelyn the remainder. While Dickson has high hopes for the concept, O’Donnell notes that securing high-performing real Lauder in 1993, has to date raised more than estate is an increasingly tough proposition in China. “Finding the right location is tricky,” she says. “There are a lot $480 million to fund breast-cancer research. —JENNY B. FINE PRODUCT PHOTO BY GEORGE CHINSEE; BCRF GALA BY STEVE EICHNER STEVE BY CHINSEE; BCRF GALA GEORGE BY PRODUCT PHOTO of underperforming doors in China—there’s big hype, but the reality is often different.” —PETE BORN AND JULIE NAUGHTON

WWD BEAUTY INC 13

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TIME BOMB $22 to $75 Created by Federici Brands, Time Bomb is a 13-sku antiaging range best known for Collagen Bomb Essential Skin Fuel, which is said to dramatically prevent the breakdown of collagen in the skin. RETAILER: QVC SIDE BY SIDE

WHERE LOYALTY LIES A QUICK GUIDE TO BEAUTY’S HOTTEST REWARDS PROGRAMS. –J.C.

SEPHORA ULTA DR. JACKSON’S NATURAL PRODUCTS $15 to $120 Based on LEVELS: the study of medicines from natural products, the Beauty Insider: Ultamate: line contains ingredients Free to join Free to join extracted from sources VIB: Platinum Status: including baobab, Spend $350 in a Spend $400 in kigelia and marula oils, calendar year a calendar year and was founded by VIB Rouge: CHEERS! pharmacognosist Dr. Simon Jackson. Spend $1,000 in a calendar year BOTTLES UP RETAILER: NET-A-PORTER Would you like Guerlain by the PERKS: glass? Or perhaps a pour of Beauty Insider: Ultamate: SU-MAN $62 to $164 OEarn 1 point per OEarn 1 point per Penhaligon’s? The newly opened Created by celebrity $1 spent $1 spent on any facialist Su-Man Hsu, this product or service Fragrances bar at Berlin’s OBirthday gift antiaging skin-care line OMember-only contains dragon’s blood, a OFree beauty Ritz-Carlton has a menu full of classes e-mails with bright-red resin extracted coupons (up to perfumed libations with theatrical from a tree native to the OPoints are $75 a year) Amazon rainforest. redeemed for presentations. Ritz bar manager RETAILER: SHEN BEAUTY product rewards OFree CK One Signature Mascara Arnd Henning Heissen spent two OSeasonal as a birthday gift promotions plus double points months smelling fragrances at VIB: on all purchases stores throughout the city. The Beauty Insider during member’s benefits + birthday month

resulting 15 cocktails and five OFirst dibs on new OMember-exclusive DEEZIGN KAE BY OW products magazines (up to nonalcoholic drinks he developed 15 a year) OSeasonal VIB- pull inspiration from diverse only gifts OMember-exclusive events OAdvance access brands—Amouage to Armani, CHARLOTTE TILBURY to sales ORedeem 100 Lalique to L’Artisan Parfumeur. $22 to $95 Makeup points, $3 off artist Charlotte Tilbury’s OPrivate VIB-only Visitors to Fragrances start in the new skin-care and shopping events ORedeem 250 makeup line includes her VIB Rouge: points, $8 off dimly lit bar’s entry exhibit, dubbed signature Magic Cream, Beauty Insider and ORedeem 500 a supermodel favorite, VIB benefits + points, $17.50 off the “Hall of Fame,” where they can as well as a wide range OFree shipping ORedeem 750 sniff scents, peruse ingredients of colors to achieve her on all orders points, $30 off signature glam looks. and view images of Heissen’s own RETAILER: NORDSTROM OUnlimited access ORedeem 1000 to The Beauty points, $50 off blends, served up with a dash of Studio ORedeem 2000 whimsy. For example, Nuit Étoileé, OExclusive events points, $125 off OSpecial Platinum Status: based on the Annick Goutal scent, surprise gifts All Ultamate rewards + features Grand Marnier Cuvée Du TRENDWATCH OEarn 1.25 points Centenaire and pine-spearmint per $1 spent syrup, as well as celestial sugar THE OExtra gift during birthday month shapes to deliver the sensation of 111 SKIN $70 to $350 BRITISH ARE swallowing a falling star. Cocktails Talk about far out: This antiaging skin- MEMBERS: are mostly priced at 14 euros, or care line, developed COMING! by plastic surgeon $19; nonalcoholic blends are $15. Yannis Alexandrides in 13.6 million More than U.K.-BASED BRANDS 13 million —SUSAN STONE collaboration with two scientists from the Soviet MAKE THEIR U.S. DEBUT. Space Program, was –JAYME CYK first created for astronauts to protect their skin while in orbit. RETAILER: BARNEYS NEW YORK VENEFFECT PRODUCT PHOTO BY GEORGE CHINSEE; FERRETTI PORTRAIT BY NATHAN RICHTER/COLEMAN-RAYNER NATHAN BY PORTRAIT CHINSEE; FERRETTI GEORGE BY PRODUCT PHOTO VENEFFECT FRAGRANCE BAR PHOTO BY TREVOR GOOD; BRITISH PRODUCTS BY GEORGE CHINSEE; HALLIWELL BY DAVE BENETT/GETTY IMAGES; CRUSHED EYE SHAD CRUSHED IMAGES; BENETT/GETTY DAVE CHINSEE; HALLIWELL BY GEORGE BY GOOD; BRITISH PRODUCTS TREVOR BY PHOTO BAR FRAGRANCE

14 WWD BEAUTY INC

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T NEW FACE OF CEW THE ENTREPRENEURIAL EDGE CECIL BOOTH AND DR. REBECCA BOOTH, VENEFFECT Sisters and cofounders of VENeffect, Cecil and Rebecca Booth never thought their professional lives would in- tersect. The former, an Alberto Culver executive, and the latter, a gynecologist, teamed up, though, when they saw white space in the market for an antiaging line addressing hormonal fluctuations. The duo discovered the power of phytoestrogen, a plant-based molecule that promotes the development of collagen and hyaluronic acid. “Rebecca explained about the direct connection between collagen and estrogen,” says Cecil Booth. “This was something in the beauty industry no one had been talking about.” The brand launched at Neiman Marcus in spring 2012, where industry sources estimate sales reached $750,000; VENeffect rolled out to Space NK in March. Noting that personal interaction and master classes have driven brand awareness thus far, the found- ers are looking at expanding into spa and medi-spa distribution. “Increasingly women value the knowledge that other women provide through professional and personal experience,” says Cecil Booth. “Our goal is to improve the lives of women by providing solutions for the way we uniquely age.” —J.C. OW BY KAE DEEZIGN KAE BY OW

PASSIONS CELLAR MASTER Hair stylist and luxury salon innovator Rossano Ferretti is celebrating 20 years in the beauty business, but his interests extend well beyond the perfect cut. WILL BE Ferretti, who owns 20 salons worldwide with a client roster that includes Angelina Jolie and Jennifer Lawrence, is a passionate oenophile. With an estimated 3,500 wine bottles in REVEALED his personal cellar, Ferretti insists he doesn’t “enjoy drinking a wine just because it’s famous. I like to discover wines, to live them,” he says. “For example, Sassicaia is one of the most famous Italian wines, but I know at least 15 Tuscan wines that are even better,” he says. Ferretti also owns some 650 bottles of whisky, and has visited Scottish distilleries such as 06.23.14 Auchentoshan, Macallan and Balvenie. Still, his love of Italy runs deep. “To understand what craftsmanship is, you have to come to Italy, because people here still work with their hands in the most extraordinary way,” says Ferretti, citing the country’s tailoring. “This Italian side of CYNTHIA MARTENS Visit CEW.org this Monday. VENEFFECT PRODUCT PHOTO BY GEORGE CHINSEE; FERRETTI PORTRAIT BY NATHAN RICHTER/COLEMAN-RAYNER NATHAN BY PORTRAIT CHINSEE; FERRETTI GEORGE BY PRODUCT PHOTO VENEFFECT FRAGRANCE BAR PHOTO BY TREVOR GOOD; BRITISH PRODUCTS BY GEORGE CHINSEE; HALLIWELL BY DAVE BENETT/GETTY IMAGES; CRUSHED EYE SHAD CRUSHED IMAGES; BENETT/GETTY DAVE CHINSEE; HALLIWELL BY GEORGE BY GOOD; BRITISH PRODUCTS TREVOR BY PHOTO BAR FRAGRANCE me, I hold it very close.” —

BB1407-PG13-Mix.a;20.indd 15 6/10/14 3:07 PM  $QQSPWFEXJUIXBSOJOHT BEAUTY BULLETIN

$103.49* $132.00* TOTAL SPENT TOTAL SPENT

BOBBI BROWN LIP GLOSS KISS MY FACE IN NUDE 8, $25 KIDS 100% NATURAL Atkins wears this alone WHITE SUN STICK or layers it on top of another shade. SPF 30, $13.49 Birman picked this up for her kids. MAC MINERALIZE CONCEALER, $21 MAVALA CUTICLE OIL, $12 “I needed something for my pesky undereye A Clyde’s circles,” she says. sales associate suggested this for MAC her dry cuticles. MATTE LIPSTICK IN CHILI, $16 “This is the perfect DURI NAIL red,” says Atkins. GROWTH SYSTEM “I always get REJUVACOTE, $18 compliments when The sales associate I wear it.” told Birman this item would produce quick results. MAC PRO LONGWEAR SPF 20 FOUNDATION, $31 CLARINS Atkins wanted HAND AND NAIL a light-weight TREATMENT CREAM, foundation to even $30 out her skin tone. “This keeps my hands hydrated,” says Birman. SHOPPER STALKER

BY TERRY GLOSS TERRYBLY NARS THE MULTIPLE IN The Buy Side SHINE IN HONEY- MOON KISS, $30 SOUTH BEACH, $39 Birman bought this “This is my favorite JAYME CYK HEADS UPTOWN for the first time in bronzer for the AND DOWN TO DISCOVER Paris and became summer,” says WHO’S BUYING WHAT a big fan. Atkins. —AND WHY.

UPTOWN DOWNTOWN What’s in Maythe’s Bag? What’s in Erica’s Bag?

Whenever Maythe Birman visits New York, she Erica Atkins hit the downtown outpost of always stops into Clyde’s on Madison. “I can Bloomingdale’s hunting for tinted moisturizer. The always find everything here,” says Birman. “I love 35-year-old, who spends around $1,000 a year on the mix of pharmaceutical and beauty products.” beauty, looks mostly for all-natural products and The 40-year-old stopped in today to stock up often makes her own skin care and body products on a few necessities before heading home to São out of ingredients like coconut oil, jojoba oil and Paulo. “My hotel is right by Clyde’s and I like to shea butter. “By making my own products, I’m walk on this block,” she says. “I prefer to go here able to control exactly what I’m putting on my because the sales associates are knowledgeable, skin,” says the children’s clothing designer. But for whether it’s a question about medicine or makeup, it’s a different story. “Even though I tend SHOPPER: Maythe Birman SHOPPER: Erica Atkins DATE/TIME: 5.14.2014, 12:32 p.m. beauty.” Birman, who spends $5,000 annually DATE/TIME: 5.14.2014, 2:57 p.m. to look for natural ingredients, I’m still crazy about STORE: Clyde’s on Madison on beauty and is always looking for something STORE: Bloomingdale’s Soho color, and natural color cosmetics don’t always LOCATION: 926 Madison Avenue, new, doesn’t like buying products online, LOCATION: 504 Broadway, have the best payoff or long-lasting qualities.” New York, N.Y. preferring to touch and feel them before she New York, N.Y. While Atkins is a lover of beauty products, she makes her final purchase. When asked why claims it’s about pleasing herself, rather than she likes shopping for beauty, Birman says, following a trend. “It gives me more confidence,” “There’s always something new.” says Atkins. “It’s not for anyone else.” SHOPPER PHOTOS BY KYLE ERICKSEN; PRODUCTS BY GEORGE CHINSEE GEORGE BY PRODUCTS ERICKSEN; KYLE BY SHOPPER PHOTOS *Pretax total. 16 WWD BEAUTY INC

BB1407-PG0X-ShopStalker.a;9.indd 16 6/10/14 1:10 PM  $QQSPWFEXJUIXBSOJOHT ADVERTISEMENT RECOGNIZING EXCELLENCE IN LUXURY SERVICE L’ORÉAL LUXE IS PROUD TO PARTNER WITH WWD BEAUTY INC TO RECOGNIZE ROSALIA GARCIA FOR EXCEPTIONAL CUSTOMER SERVICE IN LUXURY BEAUTY

Throughout 2014, L’Oréal Luxe will partner with WWD Beauty Inc to recognize beauty advisors who best exemplify the L’Oréal ideals of customer service in “There’s such joy in making a luxury beauty. In this issue we woman feel special.” honor Rosalia Garcia, Lancôme Business Manager at Macy’s in Springfi eld, IL.

Rosie lives and breathes beauty – on and off the job. “It’s a small “Lancôme makes women happy to look in the mirror.” store. I have to plan. If I don’t have appointments, I don’t have customers, and I don’t have a sale.” She recommends Génifi que to every client, whatever her age, and DreamTone is her personal favorite. To Rosie, Lancôme means power. “We empower women to look and feel their best.” “A Lancôme visit can change a client’s day, maybe even her year!”

GO TO: lancome-usa.com/careers TO LEARN MORE ABOUT ROSIE’S COMMITMENT TO LUXURY SERVICE

“It’s my dream job. It fulfi lls my passion for beauty and helps others.”

AS GUYS BECOME INCREASINGLY IMAGE CONSCIOUS, THE MALE GROOMING CATEGORY LOOKS SET TO DELIVER ON LONG-ANTICIPATED EXPECTATIONS. BY JENNY B. FINE / PHOTOGRAPHED BY JIM WRIGHT THE EVOLUTION OF MAN

ANITY, THY NAME IS MAN. AFTER YEARS OF FITS AND STARTS, THE MALE GROOMING MARKET IS FINALLY GAINING TRACTION. IN AN OVERALL MARKET THAT IS SLUGGISH AT BEST, SALES OF MEN’S PRODUCTS—PARTICULARLY IN CATEGORIES SUCH AS HAIR CARE AND BODY CARE—ARE ON FIRE, AS A NEW GENERATION OF STYLE-CONSCIOUS GUYS BECOME EVER MORE IMAGE AWARE. “IF YOU LOOK AT THE DEGREE OF INVOLVEMENT OF GUYS IN THEIR GROOM- ING ROUTINES AND COMPARE IT TO 10 OR 15 YEARS AGO, IT IS DRAMATICALLY DIFFERENT,” SAYS PATRICE LOUVET, GROUP PRESIDENT OF GLOBAL GROOM- ING AND SHAVE CARE AT PROCTER & GAMBLE. “WE ARE SEEING A MUCH BROADER SWATH OF MEN WHO CARE ABOUT THEIR GROOMING ROUTINE. MEN ARE MORE INTERESTED IN TAKING CARE OF THEMSELVES FROM HEAD TO TOE, AND THERE ARE MANY MORE OPTIONS THAN 10 YEARS AGO.” “IT’S BEEN A SLOW, SLOW ROLL, BUT IT IS HERE AND IT’S HERE IN A BIG WAY,” AGREES DANIEL KANER, COFOUNDER AND COPRESIDENT OF ORIBE HAIR CARE, WHICH ALSO MARKETS THE V76 BY VAUGHN LINE OF MEN’S PRODUCTS. “THIS ENTIRE CATEGORY IS AWAKENING.” V18 WWD BEAUTY INC

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Body art by Anastasia Durasova at Artmix Creative. Grooming by Matthew Monzon at Tracey Mattingly. Styled by Luis Campuzano. Model: David Miller at Soul Artist Managemet. Towel by Frette.

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TAKE 13 WELCOME TO THE WONDERFUL NEW WORLD OF MEN’S PHOTOGRAPHED BY GEORGE CHINSEE PRODUCTS. –JAYME CYK STYLED BY STEVEN ENDICOTT

1. AXE Matte Effect Ultra Strong Arnica and allantonin stimulate Cleaner Face Wash: Formulated with aftershave contains notes of 20. CLINIQUE FOR MEN 24. DOLLAR SHAVE CLUB Structuring Fiber This light-weight circulation and reduce lavender, aloe and soap bark, this tobacco, leather, bay rum and Moisturizing Lotion This light- Dr. Carver’s Easy Shave Butter Vitamins balm provides a structured hold for puffiness; jojoba oil and shea preps the face for a clean shave. barber’s talc. weight moisturizer controls oil A, C and E, golden barley and short to medium hair. butter hydrate. and strengthens skin. sea algae fight razor bumps and 12. TWEEZERMAN G.E.A.R. Mous- 16. DOVE MEN + CARE prevent ingrown hairs. 2. RUSK Putty Hydrolyzed quinoa, 7. THE ART OF SHAVING tache Comb: Tweezerman’s new Expert Shave Intense Post-Shave 21. KIEHL’S Oil Eliminator Deep silk amino acids and keratin deliver The Body Soap Essential oils help range of men’s tools includes a Repair Balm Part of a five-piece Cleansing Exfoliating Face Wash for 25. GARNIER FRUCTIS a pliable hold without stiffness. condition and cleanse skin. mini comb for moustaches. luxury skin-care range, this Men Crushed apricot seeds Style Order Power Hairspray for Men reduces irritation and rehydrates. help remove dead skin and re- Humidity-resistant styling polymers 3. FELLOW BARBER Texture Paste 8. NIVEA Men Sensitive Gel Mois- 13. GILLETTE Fusion Proglide with duce the appearance of pores. give hair a neat, finished look. Designed to tame waves, this matte turizer Chamomile extract and Flexball Technology: Ergonomically 17. ZIRH Soothe-Gel Post-Shave styler works best on dry hair. aloe vera soothe and moisturize. designed to make contact on Solution This calms redness 22. HEAD & SHOULDERS 26. EVERY MAN JACK curves when shaving, Gillette’s and protects skin against MEN Full & Thick Advanced Body Wash and Shower Gel in 4. PRORASO Aftershave Balm 9. AXE Harmony Body Spray Flexball technology follows the environmental aggressors. Thickening Tonic Formulated with Sandalwood Sandalwood essential Aloe vera and vitamin E hydrate This calming scent mixes citrus, contours of a man’s face. panthenol, caffeine and nia- oil, coconut-derived surfactants just-shaved skin. pepper and ginger. 18. OLD SPICE Cruise Control cinamide, this thickens hair. and glycerin help calm, cleanse 14. BAXTER OF CALIFORNIA Forming Crème This cream delivers 5. BULL DOG Skincare for Men 10. BILLY JEALOUSY Beard and maintain skin’s moisture. Sweet Ash Scented Candle: Inspired a natural hold and adds shine. 23. V76 BY VAUGHN Original Eye Roll-On Equipped with Wash Aloe vera, soy protein, by campfires, this blends cedar, Brightening Conditioner for Silver- 27. CONAIR FOR MEN a cooling roller ball, this helps re- honey and green tea extract 19. JACK BLACK Deep Dive Gly- pine, jasmine and patchouli. ing Hair Created by celebrity Club Brush Made of 100 percent duce the appearance of wrinkles. hydrate, soften and protect the colic Facial Cleanser Glycolic acid, grooming expert Vaughn Acord, boar bristles, this adds shine and beard and skin. 15. CROWN SHAVING CO. kaolin and volcanic ash diminish 6. ANTHONY High Performance this brightens grey, white and smoothness by distributing healthy After Shave Tonic This refreshing fine lines and smooth skin. Continuous Moisture Eye Cream 11. GROOMING LOUNGE Mug blonde hair. oils to the hair.

BB1407-PG18-WELL-Men's Grooming.a;17.indd 20 6/10/14 5:41 PM 06102014174436 Approved with warnings BIG VS. BIG For years, P&G and Unilever have duked it out for supremacy in the men’s market. The numbers show that such optimism is well- “It’s a terrible word,” he contin- P&G owns the shaving and of your appearance,” says Kirsch. placed. According to IRI, sales of men’s grooming ues, “and you don’t hear people blades category with its power “It requires more attention because products in U.S. mass merchandisers, not including using it anymore because it is a brand, Gillette, while Unilever you’re putting yourself out there.” the shave category, grew 3 percent in 2013 to reach ridiculous supposition to say you dominates the toiletries sector That’s not to say that marketers $2.2 billion, versus 1.8 percent growth for the mar- shouldn’t be spending time, en- with its Axe, Dove and Suave are breaking out the bells and whis- ket overall. Hair care and body wash, in particular, ergy and money on your groom- labels. In the last few years, tles commonly seen in women’s are fueling the increase, as opposed to the traditional ing and skin care.” though, P&G’s Old Spice products. Men are still, well, men. growth engines of blades. Moreover, the paradigm of has become an increasingly “The biggest challenge is keeping it In fact, when taken as a whole, mass-market sales handsome has evolved and dominant player in toiletries— simple,” says Louvet, who attributes of men’s products dipped slightly to $5.77 billion in widened. “It’s not just Brad Pitt at the expense of Axe. disappointing sales in the skin-care 2013, versus $5.82 billion the prior year, a decrease or George Clooney today,” says According to IRI, in 2012 Old category to an offering that doesn’t 19 which can be attributed to the slowdown in shave. Tev Finger, president of Luxury Spice had sales of $562 million speak to men in a language they Dig deeper, says Larry Levin, executive vice president Brand Partners and V76 by versus $518 million for Axe in understand. “Men say it’s just too of IRI Worldwide, and the numbers paint a picture of Vaughn hair care. “The celebri- U.S. mass merchandisers. In complicated. They are looking for a market in transition. Sales of men’s soap, including ties today are different than 10 2013, Old Spice sales zoomed simpler products, more obvious bar soap and body wash, increased 9 percent. Ditto years ago. Look at Kanye West. to $641 million, while Axe rang propositions.” for shampoo sales. Hair-growth products skyrocket- Whether you like him or not, he in about $531 million. “Old Based on a similar insight, Du- ed 8.6 percent. Tools were up 2 percent, reflecting the is really into style. Same with Spice has taken over,” says bin has adopted what he calls the trend towards body-hair grooming, i.e., manscaping, Pharrell Williams. These guys IRI’s Larry Levin, “because a lot spinach omelet theory. “Guys want rather than traditional shave. (According to Louvet, are very fashion forward.” more items are being sold. things easily—we don’t want to 44 percent of guys aged 18 to 44 shave their body in It’s not just hipsters, either. The product development have to add an extra step,” he says, one way or another.) Jeff Laub, Josh Boyd and Adam that P&G has [initiated] is citing as an example a post-shave Global spending reflects the trends. Citing figures Kirsch opened Blind Barber in working.” While that’s good moisturizer with antiaging benefits. from Euromonitor, Simone Bolotin, a graduate of New York City’s East Village four news for P&G, it’s also good “We all want to eat healthy food, 18 the FIT Master’s Program class of 2014 who studied years ago geared towards men. news for the market overall. but we don’t want it to be painful. the men’s market closely with a group of classmates “Not necessarily gentlemen,” “It shows that old brands can We bake in benefits during product for their final-year research project, notes that men’s says Laub, “but men—guys who be reinvigorated,” says Levin, development to add extra value.” toiletries had global sales of about $18.2 billion, while can fix a car and mow the lawn. “and that a new group of That translates to the shopping men’s shaving rang in at $17.3 billion. “It’s the first time I envisioned a barbershop as be- consumers is responding to environment as well. “Men want to that toiletries have surpassed shaving,” she reports. ing more than a place where you the widening of the message get in and out,” says Boswell, who get a haircut, but a place where and product portfolio.” has coined the term “commando men felt at ease, where it’s cool to shopping” to describe it. “They are uch of the growth can be at- feel good about yourself, but it’s highly efficient. They don’t want to tributed to the enlightened not a froufrou salon.” spend too much time finding what male who is no longer will- Today, Blind Barber has locations in Brooklyn, they need. It’s important to have a meaningful assort- ing to use female-oriented Manhattan and Los Angeles, as well as a two-year- ment and sometimes that means not too much. They products. “A lot of the growth old product line sold in about 100 doors, including don’t want to be bogged down with too many sku’s.” is coming from bifurcated Barneys New York. Bolotin and her team found that there is often a Mbrands, so with body washes, for example, having a Ian Ginsberg, the president of C.O. Bigelow, has benefits barrier, too, pointing out that how men think male body wash that smells not female has been driv- seen the phenomenon firsthand. “The thing I find in- about their appearance is vastly different from the fe- ing the category and is something we expect will con- teresting,” he says, “is you have guys with beards and male point of view. “Women are driven by the idea of tinue to grow,” says Gina Boswell, executive vice pres- crazy hair, guys with clean hair and the fade, and they hope in a jar and their motivations are to look young- PHOTOGRAPHED BY GEORGE CHINSEE ident of personal care at Unilever North America. study products like hair pastes and muds and gels like er,” she says. “For men, society celebrates the silver fox STYLED BY STEVEN ENDICOTT “Hair grew almost 10 percent from last year—that’s it is a science, whereas years ago, they would just take look. If you look at Botox, women get it because they not too shabby. It tells me that when you create solu- anything off the shelf and throw it in their hair. Today, feel they look old,” she continues. “Men get it because tions for men that deliver male-specific benefits bet- they have a strong opinion.” they’ve been told they look angry and they fear it will ter than unisex or female products, it pays off.” It turns out men have developed those opinions hold them back professionally.” 24. DOLLAR SHAVE CLUB Dr. Carver’s Easy Shave Butter Vitamins Demographically, both Boomers and Millennials much the way women have—through online re- Going forward, most industry analysts expect the A, C and E, golden barley and sea algae fight razor bumps and are leading the way. The number of men aged 55 to search. “Everywhere you look,” says Ginsberg, “there momentum to continue. For one, there’s the oppor- prevent ingrown hairs. 64 is expected to grow 8 percent by 2018, while men are so many more men’s magazines, blogs, content. tunity presented by emerging markets such as China 25. GARNIER FRUCTIS aged 65 to 74 is expected to increase 21 percent. “We’re It’s made men more comfortable.” and Brazil, where P&G is growing in the double dig- Style Order Power Hairspray for Men seeing Boomers getting divorced at an increased rate “Seven out of 10 men think it’s important to look its, and India, where it’s eschewing a more-incremen- Humidity-resistant styling polymers give hair a neat, finished look. and putting off retirement due to economic challeng- good physically in order to succeed professionally and tal approach to trading up and instead rolling out its 26. EVERY MAN JACK es,” says Bolotin. “This is a huge opportunity because personally, and three-quarters of men agree there is newest innovations fairly aggressively. Body Wash and Shower Gel in men need to look younger and better longer.” more pressure now than in the past to be dressed well Then there’s skin care, which has seen 73 percent Sandalwood Sandalwood essential oil, coconut-derived surfactants Open-minded Millennials are eagerly devoting their and groomed,” says Boswell. “They are willing and growth globally but comprises only 8 percent of the ■ and glycerin help calm, cleanse hard-earned resources on the way they look. “Social able to be educated.” U.S. market versus 30 percent in China. “Post-reces- and maintain skin’s moisture. media has removed the stigma of metrosexuality,” says Then there’s the impact of the selfie. “With Face- sion, we’ve seen the American male evolve to encom- 27. CONAIR FOR MEN Club Brush Made of 100 percent Michael Dubin, the founder and chief executive officer book and Instagram and all these things, you’re much pass a new masculinity,” asserts Bolotin. “Now is the boar bristles, this adds shine and of Dollar Shave Club, the e-commerce phenomenon. more in the face of your peers and more conscious time to revisit it.” ■ smoothness by distributing healthy oils to the hair. WWD BEAUTY INC 21

BB1407-PG18-WELL-Men's Grooming.a;17.indd 21 6/10/14 5:41 PM 06102014174405 THE Direct CONNECT

TECHNOLOGY IS BREATHING NEW LIFE INTO DIRECT SELLING, WITH A FRESH GENERATION OF BRANDS CHOOSING THE CHANNEL AS THE MOST EFFICACIOUS MEANS OF REACHING CONSUMERS.

When you pair late-night talk-show host Conan O’Brien with the Internet and the marketing power of social media. direct-selling stalwart Mary Kay the resulting footage is bound The changes are prompting many new companies to launch to go viral. in the space and literally redefine the channel, choosing phrases O’Brien visited Mary Kay’s Dallas headquarters to receive such as “social selling” or “social commerce” in lieu of direct sell- training from a consultant, and later donned a black Mary Kay ing. Even Avon Products Inc., one of the largest beauty direct “beauty coat”—“It feels like maternity wear for a ninja,” he said— sellers, is looking at its business in a new way. to attend a house party, where he told guests sitting around a din- “We are trying to build social shopping with a true service ning room table, “No pressure, but I need to leave this house with model,” says Angela Cretu, group vice president of Eastern Eu- $25,000.” rope and Turkey at Avon. She explains that by enabling online The cringe- and laugh-inducing video, which aired on Conan shopping and a host of mobile platforms, Avon aims to cater to in April, has garnered more than 650,000 views on time-starved representatives and consumers, and O’Brien’s “Team Coco” YouTube channel, and its im- also build its sales force with younger women. pact on Mary Kay has been equally as sizeable. BY Avon and others, including Mary Kay, Amway “We saw an amazing pickup in social media,” says MOLLY PRIOR and Nu Skin Enterprises Inc., are all working to Sheryl Adkins-Green, chief marketing officer for integrate digital into their selling platforms. Mean- PHOTOGRAPHED Mary Kay Inc. BY MICHAEL while, an influx of newcomers—namely Rodan O’Brien gave Mary Kay a glimpse of the power of NAGLE + Fields, Katherine Cosmetics, Willa and Beau- going viral. But Mary Kay is no newcomer to the dig- tycounter—are choosing direct selling as the most ital landscape. The company, along with many of its effective channel to reach consumers, incorporating Willa and her girls: peers, is embracing digital technology—the very thing that many digital capabilities to communicate their brand message in a way The brand’s young once predicted would lead to the demise of direct selling—to re- that many say retailers simply cannot for a developing brand. cofounder, wearing cast the channel as viable and vibrant. “Our story is best told person-to-person and not in a tradition- a yellow dress in the center of the top The notion of selling door-to-door has been replaced by sales al retail environment,” says Gregg Renfrew, founder and chief row, makes a surprise representatives wielding smartphones, iPads and mobile credit- executive officer of Beautycounter, a company dedicated to of- appearance at a card readers. fering skin-care products free of parabens, phthalates, synthetic Willa Girl party held in Connecticut in May. Technology has widened a seller’s potential customer fragrances, PEGs and other ingredients. base from her town to far beyond, thanks to the reach of Rodan + Fields shifted from a retail strategy to a direct-

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BB1407-PG22-WELL-Direct Selling.a;13.indd 22 6/11/14 11:48 AM 06112014114932 BB1407-PG22-WELL-Direct Selling.a;13.indd 23 6/11/14 11:48 AM 06112014114934 selling model in March 2008, after founders Kathy Fields and Katie Rodan, both derma- tologists, repurchased the brand from the Estée Lauder Cos. Inc. the prior year. This past Febru- ary, Willa, the three-year-old natural skin-care range tailored toward young girls, pulled its products from 350 retail doors—including Tar- get, Henri Bendel and Harrods—to launch in the direct-selling channel. “I wish I had focused on this channel from the very beginning,” says Christy Prunier, founder and ceo of Willagirl Inc., who notes the idea for direct consultants, also hosts parties, in which global Above from left: selling came after the brand tapped a young girl to talk about the brand at Ben- makeup artists offer advice to Mary Kay social media fol- Conan O’Brien tries his hand at hosting a del’s and the results were “electric.” The girls were exchanging Instagram and lowers. Its sales force can utilize the available technology Mary Kay gathering; Twitter information. “Girls don’t want to be sold something. They want to learn to present a skin-care class, for instance, using an iPad. Annie Finch of and discover new things from their friends,” says Prunier. She says that since the The company is also active on Facebook, Pintrest and Katherine Cosmetics demonstrates her switch, Willa is growing 30 percent faster in the direct-selling channel than in Instagram, with more than 6 million global followers, says wares. Opposite: an retail doors. The company currently has a cadre of 42 teenaged “Willa Girls” who Adkins-Green. She notes that over the last two years Mary Amway gathering mirror the brand’s target demographic of 12- to 22-year-olds. Kay has worked to modernize and expand its product line in India. with a particular emphasis on attracting younger women, with additions such as the skin-care line Botanical Effects. Amway, which sells nutritional, beauty, personal care and home products, has created a number of assets for its more than 3 million sales representatives, or distributors, as it refers to them. They include videos, commercials, online evalua- tions, podcasts tailored for various products and compare-and-contrast informa- tion. “We’ve developed responsive design,” says Candace Matthews, Amway’s chief marketing officer, explaining that the company ensures that all its creative is com- patible and consistent across all screen sizes and platforms. “We create assets that or newer companies, the direct-selling model is can be easily translated across the globe,” says Matthews, noting that Amway is particularly attractive. As Amy Robinson, senior attracting legions of young distributors. More than one-third of its distributors are vice president and chief marketing officer at the under the age of 35, according to the company, and most sell across all Amway’s Direct Selling Association, points out, it requires product categories. The company’s skin care and color cosmetics brand Artistry much lower overhead than working with retailers, utilizes a blog, Facebook and Twitter. Maud Pansing, Amway’s vice president of it can generate robust cash flow and the products benefit from demonstration and beauty, says, “The Amway business owner often uses Facebook as a platform to personal endorsement. “Beauty is a great example of why direct selling works,” she start building the home market, and then expand from there.” says. “At a party, youF can turn to a friend and say, ‘How does it look?’” Consumers are able to order directly from the company’s Web site. Once there, But a gathering of friends is not the only option for sales representatives these they are asked if they’d like to be connected to a distributor. If they choose not to days. There are virtual parties, one-on-one consultations over a mobile device and be, the commission will be shared among consultants in that particular area. The of course e-commerce sites, where the end customer can order a product directly company said that more than 90 percent of orders are placed online. from the company. (Most companies, but not all, require customers to link with a Avon envisions digital as the gateway to an entirely new channel: social shop- nearby sales representative, who will receive commission on the sale.) ping, which Cretu sees as the combination of e-commerce and direct selling. In “Direct selling is increasingly relevant now because of the social aspect around Central and Eastern Europe, the company is working to make a suite of digital re- selling, particularly through social media,” says Wendy Liebmann, chief executive sources available to its sales representatives that would allow them to sell from any officer of WSL Strategic Retail. “It’s the ability to find a like-minded group of con- mobile device. The technology—which includes a selling app and robust online sumers who are passionate about the category and to create a place where they can development, is slated to roll out to the Middle East and Africa later this year, says experience a brand either virtually or face-to-face.” For the companies involved, Cretu. She notes that there are areas where Avon can ship products directly to the she points out, it’s a relatively low-cost start-up operation. consumer, but that it depends on the direct-selling rules of each country. “We knew a long time ago that people weren’t answering doorbells as women “The ultimate goal is to provide the same type of experience,” she says. went to work,” says Liebmann, who adds that whether it’s a physical interaction or a Cretu says that in Central and Eastern Europe, Avon has a key focus on the youth digital one, the essence of direct selling is the same. “It’s all about the connection,” she generation, and has adapted its tools and training specifically for this age group. says. Liebmann named monthly subscription or auto-fulfillment concepts such as Rodan + Fields also is using digital technology to tap into a social connection as Dollar Shave Club and the online hair-color company Madison Reed, and paid sam- it builds its business across the U.S. “It starts with people and community and then pling sites, such as Birchbox, as modern outgrowths of the direct-selling channel. the product populates from that,” says Lori Bush, president and ceo, who empha-

Established beauty direct-selling companies are looking to fully incorporate sizes that Rodan + Fields is first and foremost a skin-care company. “The aspect A NDREW M AGUIRE BY PHOTO AMWAY OCO; digital capabilities throughout their businesses. of community is a real important part of the recruitment.... We actually think the Mary Kay, for instance, has invested in an online makeover app, which allows term direct selling is too limiting. We call it social commerce.” women to virtually try on thousands of makeup looks, hairstyles or accessories. Each of its more than 50,000 consults rely on two Web sites, a personal Web The app is accessible across all mobile platforms, says Adkins-Green. The com- site to manage their business and a product Web site. The company employs social pany allows consumers to shop via its Web site, select a consultant through a lo- media to spotlight products, but also to showcase perks earned by the top per- cal-consultant locator (for the purpose of distributing commission) and have the formers, such as trips to Napa Valley, gifts and a white Lexus. Rodan + Fields also

products shipped directly to them. The company, which has more than 3 million provides social assets that consultants can customize and then post. C T EAM BY STILL O’BRIEN VIDEO CONAN

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BB1407-PG22-WELL-Direct Selling.a;13.indd 24 6/11/14 11:48 AM 06112014115012 Approved with warnings regulatory concerns in a timely manner.” Avon is still trying to reach a settlement with govern- ment officials tied to its six-year foreign bribery probe in China and other countries, and in late May, Amway In- dia’s ceo Bill Pinckney was arrested on charges of violating laws protecting consumers from fraud. Amway stated the arrest was “unjustified and unnecessary,” adding “Amway India and Mr. Pinckney have always cooperated with in- vestigative authorities and abided with standing judicial orders.... The complaint against Amway contained nu- merous false statements and showcases a lack of under- standing about our business.” Whether true or untrue, those are the type of allega- tions that newcomers to the direct-selling space are work- ing to distance themselves from. As one direct-selling ex- ecutive points out, many companies are either too focused on recruitment and not enough on product, or they are too focused on product and not on building and maintain- ing their sales force. Annie Finch, founder and ceo of luxury direct-sales beauty brand Katherine Cosmetics, prefers the term “so- cial selling” over direct sales, too, and says the company is “I see this as crowdsourcing our marketing program,” says Bush. not a multilevel organization. Formerly a veteran executive at the Estée Lauder The company has its eyes on international markets, and is in the exploratory Cos., Finch says going the direct-selling route allows her to focus on the product phase of accessing several Asian countries. and the people. “It’s not direct selling where you buy product and store it in your As several large direct-selling firms can attest—with Nu Skin, Avon and Amway garage,” she says. Katherine Cosmetics relies on “makeup stylists” to present the among them—growth and international reach can sometimes bring big challeng- collection at trunk parties; they receive a 20 percent commission on each item es. Regulations on direct selling vary country by country, and the perception of the they sell. Finch notes that the company interviews and trains each potential styl- channel is not always a favorable one. ist. Once approved, the company provides her with samples, business cards and The troubles of several direct sellers have been very public over the last several a full line of testers and products for free. Each stylist also uses a Square Reader, years. Activist investor William Ackman of Pershing Square Capital Manage- or mobile credit-card reader, to facilitate sales. The company, which launched ment has spent the last year and a half asserting that nutritional supplements direct selling in August, currently has 25 stylists and expects to reach 50 by direct-seller Herbalife Ltd. is a pyramid scheme. In March, the firm revealed yearend and 500 in four years time. “I wanted to avoid the quality perception. that it received an inquiry from the Federal Trade Commission, and stated it will Direct-selling companies don’t always look at the end consumers. I care about cooperate fully with the FTC. Nu Skin, which sells the AgeLoc skin-care range, the person who is putting on the products,” says Finch. launched its own internal review of its China operations following reports from Prunier of Willa says newer firms have an advantage on the digital front. “The the Chinese newspaper People’s Daily in January that questioned the direct sell- mobile piece of this is so critical. A lot of companies are playing catch-up, but er’s recruiting and selling practices. That same month, Nu Skin also voluntarily that’s where we started,” says Prunier, noting that the Willa Girl can conduct suspended business promotional meetings and applications for new sales repre- business on a desktop or any mobile device. They also are armed with Square sentatives to fully cooperate with the regulatory reviews. The company resumed Readers, microsites and virtual party capabilities. The sales model allows the promotional activities in China on May 1. Truman Hunt, Nu Skin president and Willa Girl to build a team, which helps young women develop skills such as chief executive officer, told analysts during the firm’s May earnings call, “With training and public speaking, says Prunier. respect to China, our team took aggressive, proactive steps to address media and Renfrew of Beautycounter chose direct selling to educate consumers about what she says are harmful chemicals found in many personal-care products. She declares that Beautycounter is about information first and products second. Renfrew launched the Web site in March 2013, after taking four years to formu- “I see this as late her line. To date, the company has 23,000 independent consultants, some of whom work on teams and others who work directly with the company. But crowdsourcing consumers can also shop the site and choose whether or not to link with a con- sultant. “We allow our customers to shop in the way that they prefer,” she says. “People want to be able to approach companies and businesses through multiple our marketing touch points.” Renfrew adds, “We tried to create a platform where women can be

OCO; AMWAY PHOTO BY A NDREW M AGUIRE BY PHOTO AMWAY OCO; entrepreneurial, contribute to a social mission and earn money.” Beautycounter does events across the country and has also struck high-profile program.” partnerships. It partnered with Gwyneth Paltrow’s Goop, creating a pop-up shop —Lori Bush, Rodan + Fields in Los Angeles in May, for example. Regardless of size, the elements of a successful direct-selling enterprise re- main the same. Wall Street analyst Mark Astrachan at Stifel says, “You need to offer a higher

EAM C T EAM BY STILL O’BRIEN VIDEO CONAN quality, aspirational product and the right income-generating opportunity.” ■

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BB1407-PG22-WELL-Direct Selling.a;13.indd 25 6/11/14 11:48 AM 06112014114955 WWD BEAUTY CEO SUMMIT

Changeis in the Air

BY JENNYILLUSTRATION B. FINE BY JOSUE EVILLA

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BB1407-PG26-WELL-Beauty Summit.a;12.indd 26 6/10/14 2:17 PM  $QQSPWFEXJUIXBSOJOHT NSFO TRA R E M H A T T S IO A N W T H C E IS WA I HOS S A IN F P RP IT D T O U O I S N T T M R G Y A G IS C T T U N R I R E E H N L I T M E L A Y M V E E E X

P A R P E T R E T I H E H T N E E C R 2 E I 0 H N 1 W G 4 IT, W M ring motifs of the Summit, as, collectively, the present- . W SUM D BEAUTY CEO ers pointed the way forward for beauty. Here, five key ideas from the three-day conference: Adapt “It is no longer survival of the fittest, but rather the survival of the adaptist,” declared Lynn Tilton, chief executive officer of Patriarch Partners, which owns Stila and Jane Cosmetics. “And if you hold on tight, you will die. So we have no choice but to let go. To dream the dream, to close our eyes and build the vi- sion that we see.” ne of the most buzzed-about In other words, companies who choose to do busi- speakers at the WWD Beauty ness as usual, who exist in a state of denial about the CEO Summit, held in May at radical shifts taking place, will quickly become extinct. The Breakers in Palm Beach, “How many of us really, in terms of our businesses, will O was someone few in the in- be here in five years time?” asked Chris Sanderson, ceo dustry had even heard of two of The Future Laboratory. “The expectancy of most years ago: Michael Dubin, the founder and chief ex- businesses is less than a human lifetime, and so that ecutive officer of Dollar Shave Club. sense of understanding of what we need to do to sur- Dollarshaveclub.com sells razor blades for as little as vive has never been so important.” $3 a month and as much as $9; in the two years—two Lest this sound alarmist, know that even behemoths years—it’s been in existence, the company has grabbed like L’Oréal and Procter & Gamble are radically re- about five percent of the U.S. blades market and is pro- thinking the way they create, market and sell beauty jected to hit $60 million in revenue this year. products. “At the end of the day,” said Frédéric Rozé, The rise of Dollar Shave Club and other companies L’Oréal’s executive vice president of the Americas and like it represents the absolute transformation wrought president and ceo of L’Oréal U.S., “our success comes by the digital revolution and changing global dynam- from our capacity to transform ourselves, to metamor- ics and demographics on the beauty industry. As Ce- phose ourselves.” dric Prouvé, the group president of international at “We either do what’s right, what’s exciting,” agreed the Estée Lauder Cos. Inc., told attendees during his Shelley Rozenwald, senior vice president and general keynote presentation, “The kind of change we are ex- merchandise manager of beauty at Hudson’s Bay and periencing now, the degree, the magnitude, the speed Lord & Taylor, “or we’re not going to be around.” is unlike anything we have experienced before.” At P&G, that has translated into a new way of think- The resulting revolution is shaking traditional mar- ing about the consumer. While consumers have always keting precepts to their very core, as was outlined by been top of mind at P&G, the way the company thinks Michele Scannavini, the chief executive officer of Coty about them, studies them and involves them in the Inc. The traditional four P’s of marketing—namely, product-development process is changing dramati- product, price, promotion and place—have given way cally. “The world is changing fast and the consumer is to the advent of the four C’s. “Where we used to have changing with it,” said Deb Henretta, group president product, today we have content. Where we used to of global beauty at P&G. “The consumer is no longer have price, today we have a much broader concept of a passive recipient of brand innovation and messages. convenience,” explained Scannavini. “Where we used She is much more active and much more in control.... to have promotion, we have the influential power of And her influence is growing stronger as the 21st cen- community, and where we had point of sales, today we tury takes hold. She is disrupting selling models with have a curated environment with a blend of physical crowdsourcing. She is replacing traditional products and digital experiences.” with inventions of her own. She is using her powers to Those dynamics, which Scannavini summarized positively enforce change in the world. The new con- with a fifth C—connection—proved to be the recur- sumer is the new force of change.”

BB1407-PG26-WELL-Beauty Summit.a;12.indd 27 6/10/14 2:17 PM  Scenes from the Summit ILLUSTRATOR MARK SIMON SKETCHED HIS IMPRESSIONS OF THE BEAUTY CEO SUMMIT WITH A WACOM BAMBOO STYLUS AND IPAD.

Focus Envision In a world where people are subject to broadcast- When Flowerbomb launched in 2004, it lived up to ing from multiple platforms, narrow-casting a finely its name with an explosive launch strategy—from the honed message to an equally targeted group of people packaging to the in-store presentation to the juice it- will drive growth for companies big and small. Many self—that broke new ground in the fragrance category. of the emerging brands that presented attributed their That level of meaningful innovation has become in- success to focusing on a single aspect of the business, creasingly rare in today’s cluttered landscape, lending rather than trying to be all things to all people. Dubin’s even more currency to products and brands that truly singular goal, for example, is to own the men’s bath- break new ground. “You have to have vision and you room, while Drybar offers only blowouts—no cuts, have to have ideas,” said Carisa Janes, the founder of no color. “We focus on just one thing,” said Drybar Hourglass cosmetics. “When we develop products, we founder Alli Webb, “and we do it better than anybody. always ask the question, ‘Is this from the future?’ If the The biggest keys to our success are personality and answer’s no, it doesn’t make it.” passion, our attitude, our attention to detail, our spirit Janes called her method “intuitive innovation,” and that permeates through every single thing we do.” Al- cited as an example Hourglass’ Ambient Lighting though the four-year-old company now has more than Powders, which mimic the effect of flattering light on 37 salons, 2,000 employees and performs 100,000 the skin. “We’re very focused on product driving the blowouts a month, plus a product line, Webb’s laser- marketing, not marketing driving the product,” she like attention on providing the ultimate blowout has said. “It’s not based on trend, it’s not based on what’s never wavered. happening in the industry. It’s really based on ideas or Such clarity of vision is how emerging brands com- products that don’t exist that we think women don’t pete effectively with the big guys. “The first rule is don’t even know they need or want, but they will.” follow anyone else’s rules,” said Gail Federici, today the It’s a strategy that has worked well for the U.K.- ceo of Federici Brands, who cofounded John Frieda based nail brand Ciaté, too, which is posting triple- hair care with the star stylist in 1989. “Our mantra be- digit comp-store sales growth in a category that has came ‘We must outthink because we can’t outspend.’” slowed down dramatically. “Creativity is not a process Back then, they started with one star product, Frizz- that is delivered to us. It is created by us,” said brand Ease Serum, which was the result of a “BGO” in Fed- founder Charlotte Knight. “We forever look for white erici-speak, or blinding glimpse of the obvious. “It’s a space and ask, ‘How can we realize our blue-sky think- blatant gap in the market that, for whatever reason, ing and translate it into a commercial commodity?’” has been overlooked,” she said. “And when you find a At Le Labo, a similar approach means the brand’s hole in the market, you obviously have no competition, founders eschew quantitative research and focus at least at first. Really helpful when you’re a startup.” groups. “We truly believe that if creation was a country, In 2002, Federici and Frieda sold their company to it wouldn’t be a democracy,” said cofounder Eddie Ros- Kao Corp. for $450 million, but Federici found herself chi. Added his partner, Fabrice Penot, “Great brands inescapably drawn back to beauty and last year launched don’t chase customers. Customers chase great brands. Color Wow hair care. “Personally, I think the big ideas And a great brand, in order to be chased, needs a are going to come from small companies,” she said. strong personality, like a human being.” “When you are faced with a seemingly endless tsunami That commitment to innovation is what it takes to of change, it’s amazing how inventive you can become.” win with consumers today, said Future Laboratory’s That point was reinforced by Rozé, who spoke of the Sanderson, who warned, “We have to be really, really correlation between size and focus, noting that niche mindful that we don’t just start paying lip service to can be big. “We must recognize that we see more and the word innovation. Use it at your peril, because if you more niche products—brows, oils for skin, oils for hair, use it cheaply, you use it at your cost.” etc.,” he said. “At L’Oréal, we think that niche can be big with tenacity, resilience, passions.” As an example Engage in the fragrance business, he cited Viktor and Rolf’s Innovation isn’t just relegated to the product realm. Flowerbomb, which, though in limited distribution, is The digital age has fundamentally transformed con- one of the top-three sellers in the U.S. “It has become sumer engagement, giving rise to a new generation of very, very big,” said Rozé. “Food for thought.” disruptors who are rewriting the rules of beauty when

BB1407-PG26-WELL-Beauty Summit.a;12.indd 28 6/10/14 2:18 PM 06102014142016 said. “We don’t believe businesses can be built in one care is built into the channel alone. They have to have lots of support.” DNA of its business, be it personal care or Advocate care of the planet. He Corporate social responsibility is no longer something told of the company’s that companies can afford to pay lip service to. “There life-saving educational pro- is a tremendous amount of value in a share price gram about washing hands that that has grown over 100 percent in five years, but it has thus far touched 180 million people, as well will never equal the value we see in partnering with as Unilever’s goal to reduce its environmental footprint brands and nonprofit organizations to save lives,” said across all aspects of its business. “It’s about responsible Shannon Curtin, group vice president and general capitalism, it’s about sustainable living,” said Lewis. it comes to capturing consumers. “The digital disrup- merchandising manager of beauty and personal care “That’s the footprint of our business, how do we togeth- tion that Google has been talking about is happening at Walgreens, who told of the retailer’s “Get a Shot, er take the big calls that make sure there’s responsible in front of our eyes,” said Patrick Bousquet-Chavanne, Give a Shot” campaign, in which it partnered with the profitable growth within this industry and that we don’t executive director of marketing and business develop- United Nations to vaccinate three million children in try to gloss over the problem.” ment at Marks and Spencer. “You cannot ignore it. You need. “These are the stories that the new generation of Brazil’s Natura has also made sustainability a core have to participate.” customers will want to know to insure that their hard- tenet. “We put this in the middle of our strategy, our Bousquet-Chavanne ticked off three key points— earned dollar is being spent wisely,” she continued. products and our corporate behavior,” said Alessandro that mobile, not desktops, is now the first port of call “Where the pre-Boomer generation spent their life Carlucci, chief executive officer. In fact, bonuses at the for search; that the amount and type of video content fighting for their country, the Gen Z generation will company are contingent on reaching certain economi- being watched online is radically changing, and that spend their life saving the world.” cal, social and environmental targets. consumers see online as a place for entertainment, Unilever’s president of personal care, Dave Lewis, “Beyond value,” said Henretta, “the consumer also browsing and learning. He then outlined three ways in used his presentation to explicate how the element of wants values.” Q which Marks and Spencer is responding. First, the re- tailer is doubling its digital media spend from 10 to 21 percent; second, it is broadening its presence on social media, and third, it is bringing new people into the or- ganization to beef up its content-producing prowess. MANY PRESENTERS AT THE BEAUTY CEO “Beauty is a content-hungry category,” said Bousquet- SUMMIT ALSO REVEALED NEW BUSINESS Chavanne. “Our customers are 24 percent more likely INITIATIVES AND STATISTICS IMPACTING THE to convert if they read content before they actually go BUSINESS TODAY. AMONG THEM: on a product landing page. So whether it’s in fashion, Of Note beauty or in food, we are responding daily with our >>> Unilever is focusing on “Most of you see Brazil as a big the U.S.), expand through strategic own perspective on what consumers are telling us they premiumizing its personal-care market,” he said, “and I believe partnerships and reenergize its want to talk about. business, with brands like Ioma that Brazil has the opportunity to legions of representatives. “If “When you look at our new Web site,” he contin- skin care, Tigi hair care and become a big country that is also a they are not energized, they don’t ued, “content is king and conversation is happening investments via a $500 million big market.” feel that they have the earnings venture fund. “An element of opportunity,” she said. “So we >>> Subscription-based every day.” metamorphosis for us has been always have to be on the mark to models are working, as evidenced As Dollar Shave Club’s Dubin pointed out, it’s not looking up the pyramid, looking at make sure that we’re doing the by the success of Dollar Shave just what you say, though. It’s how. “We inserted our- what we can do in a more-premium things that are helping them make Club, Madison Reed and Rodan way,” said Lewis. “That is a huge a difference in their life.” selves creatively and humorously into a conversation + Fields. “The most important part opportunity for us and has driven that was already happening,” he said, after screen- for subscription sales is to make >>> Emerging markets quite a lot of growth.” ing the brand’s “Our Blades are F--king Great” video, sure the customer understands continue to flourish, noted Lauder’s Great customer service which garnered 12,000 orders for the site in its first >>> and believes in why they should Prouvé, who said that four years is still elusive, said Walgreens’ commit,” said Amnon Rodan, ago, total annual consumption in two days online. The brand voice that Dubin created Curtin, who cited a study by Bain chairman of Rodan + Fields, emerging markets was $12 trillion, for the video spills over into every area of customer & Company that surveyed 362 who said that subscription sales a figure that is expected to hit interaction and engenders loyalty. After reading out large companies. More than 80 account for 56 percent of the $30 trillion by 2025, accounting some social media–generated customer feedback, Du- percent of the companies said they company’s revenue. for nearly half of the world’s total provide a superior experience for consumption. bin said, “Notice how these guys talk to us. They want >>> Marks and Spencer is customers, but when customers to be part of the brand. They want to be engaged. And aggressively expanding its global >>> Amore Pacific is on a were asked if they were getting footprint, and has opened 39 fast track for growth, particularly via they speak our language. It’s a language we’ve given superior service, only 8 percent stores in India, 15 in Shanghai and international expansion. According them. And we really have a deep emotional connection said yes. “This is a real reality 40 in Russia. Additionally, it has to vice chairman Jeonggy Baek, check for all of us,” said Curtin. with our guys, loyalists and champions.” opened about 100 beauty concept the worldwide craze for Korean Engaging consumers goes beyond the digital realm. >>> While growth in Brazil’s stores, ranging in size from 500 to pop culture has created a new Amy Errett, the creator of the online hair-color concept cosmetics, fragrance and toiletries 4,000 square feet. phenomenon called K Beauty, or market has slowed from the past the craze for Korean products, Madison Reed, which has one of the most advanced >>> Avon’s ceo, Sheri McCoy, 10 years, when it was as high as 20 helping Amore Pacific achieve apps in beauty, reported that when a hair colorist from is looking at ways to maximize its percent, the market should still post double-digit growth annually and geographic portfolio (more than 85 the brand’s call center consults with a customer over significant gains of 8 to 10 percent increase its market capitalization by percent of its business is outside of the phone, the conversion rate is 70 percent. “High annually, said Natura’s Carlucci. 40 percent since 2000. touch has to be integrated into everything we do,” she

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BB1407-PG26-WELL-Beauty Summit.a;12.indd 29 6/10/14 2:18 PM  LAST CALL THE BEAUTY SECRETS OF A BOMBSHELL SAMANTHA CONTI VISITS BEAUTY’S NEWEST ENTREPRENEUR, LEGENDARY ACTRESS .

Unlikely as it may seem, there was a Collins eventually learned to love Harrods. It’s Collins to the core: Colors people who drive a lot in California, as time when Joan Collins flaunted her makeup—provided she was in control of it. are bold, the pigments are built to last and they get older they have spots on the makeup-free face around Hollywood— The actress, who rose to worldwide fame the packaging is high-shine gold with an side of their face where the sun comes but it wasn’t exactly a hit with her studio in her role as Alexis Colby, the villainess Art Deco touch. There’s even a lip color through the window? It’s very important

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bosses. At the time, Collins was playing with the lavish war paint from , called Alexis. to protect yourself,” she says. Good skin E a famously beautiful showgirl in the 1955 first learned how to apply makeup from Collins spent roughly two years care and makeup have long been integral film, The Girl in the Red Velvet Swing. Allan “Whitey” Snyder, Marilyn Monroe’s developing colors and formulations parts of Collins’ beauty arsenal: “I’ve On the set, her face was caked in Pan personal makeup artist. To this day, her for the 40 launch products: Lipsticks, always said ‘base, not Botox.’ With the Stik, but in her free time, she took on contracts carry a proviso saying she must in particular, needed to be moist and proper application of makeup, you can the role of bohemian, wearing jeans, do her own makeup. “The only time I long-lasting—“I’m still doing television take 10 to 15 years off your age—easily.” zero makeup and bangs that grazed her don’t is when I play a character role, like appearances and movies, and there’s Collins says she’s learned a lot about nose. The director was horrified: “Oh my the Wicked Witch for the BBC. Other nothing worse than reapplying your the cosmetics industry from her new ven- God, I can’t even look at you, you’re so than that, I do my own,” says Collins, 81, lipstick,” she says—while foundations ture, but some things continue to amaze hideous!” she recalls him saying. “Put who is now sharing her wisdom with the needed to be sheer but buildable. her. “You have all this makeup, yet 50 per- some makeup on....And what is with the public via a new beauty line. Joan Collins Skin care is geared toward delicate cent of women don’t seem to be wearing I M AG ARCHIVE/GETTY H ULTON OLLECTION/ hair?” The studio bosses agreed. “I was Timeless Beauty, which launched in the complexions. The day cream, with SPF, is any! Is that true? Because that’s what I’m one of the last contract ladies at Twentieth U.K. in March, is a makeup, skin care called Sun Hat; Collins says she “slaps it getting from just looking at people.” Century Fox,” says Collins. “And the and fragrance collection that’s currently on” her face regularly when she’s having Collins’ younger, bohemian self would studios laid down the law.” sold on QVC and at Urban Retreat at a makeup-free day. “Have you noticed surely have something to say about that. PHOTO BY SILVER SCREEN C SCREEN SILVER BY PHOTO

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