Bright Future

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

BRIGHT FUTURE

HOW A MULTICULTURAL MARKETING APPROACH IS ENERGIZING U.S. BEAUTY

nless you’ve been living under a rock, you’ve doubtless heard of the Ice Bucket Challenge Unlocking to support ALS research. The Challenge the key to a involves people getting doused with a bucket In This Issue million-dollar of ice water on video, posting the video to door. 8 Well Oiled 20 Come As You Are Usocial media, then daring others to do the same. You Sales of oils The oil juggernaut shows As the U.S. undergoes a can either accept the challenge or make a donation to rose 40 percent no signs of slowing, with a demographic revolution, in the first half an ALS charity or do both. Launched around August of 2014. slew of launches for fall. beauty marketers are 6, the campaign went viral and by August 22—16 days transforming their approach later—$55.3 million had been raised. Can you think 10 Like-Minded Spirits to retail—on a door-by-door Fast friends Drew basis—accordingly. of a more timely example that illustrates the power of Barrymore and Gucci digital? More and more, beauty brands are tapping into Westman gab about all 26 The Ever-Expanding that power and are radically rethinking their approach things beauty. Social Orbit How the to digital and traditional marketing. Discover how in As social media becomes influence the “The Ever-Expanding Social Orbit” on page 26. 12 Entrepreneur of the an entrenched part of of digital is Month: Sabrina Tan the marketing mix, brands giving rise Beauty marketers are also tuned into another GE CHINSEE A former tech exec–turned are radically rethinking their to a new era radical change taking place—that of the demographic of emotion- skin-care pro is bringing approach to digital. based transformation across the U.S. Again—you’ve probably her line stateside. marketing. seen the numbers: By 2050, 54 percent of the U.S. Inside Artdeco’s 30 California Dreaming population will be composed of non-Caucasian ethnic first-ever 14 The Beauty of Paris Hot on the acquisition trail? boutique, Jennifer Weil visits the Here, 10 innovative brands groups, with the Asian-American population expected plus a slew newest spas, shops and from the Golden State that to increase by 142 percent and the Hispanic by 167 of launches inspired by the salons in the capital of chic. analysts say may be next. percent. Already, as WWD’s executive editor of beauty City of Light. R GEO BY O IL PHOTO VITA; D OLCE OUCHES/ Pete Born reports, the ﬁgures have had a signiﬁcant 17 Page Turners 34 Beauty Nation impact on beauty, as retailers and brands tailor their Books from some of From body jewelry to brightly The latest hair

beauty’s biggest names are colored locks, bold beauty T ANIE R DES

and makeup P approach on a door-by-door basis to better reﬂect the . due to hit shelves this fall. was the name of the game trends as changing face of America. For a full report, turn to at BeautyCon Los Angeles. worn by beauty “Come As You Are” on page 20. 18 Shopper Stalker bloggers and One company that understood early on the What makeup artists are the girls who evolution of both digital and demographics was NYX buying—and why—at two love them. pro stores in Manhattan. O ODOLPHE INTE R IO BY Cosmetics, the Los Angeles-based makeup brand that Rounding L’Oréal acquired in June for a reported $500 million. up the latest makeup artist R OWNING; According to ﬁnancial sources, 17 companies were vying must-haves. ON THE COVER: Photograph by Ruven for NYX at one point, which got us to wondering who Afanador. Styling by Isabel Dupré. Hair by Italo Gregorio at Bryan Bantry Agency. Makeup by would be next. Read our assessment of California’s Joanne Gair for Walter Schupfer Management top-10 indie brands on page 30, and get ready for using Nars Cosmetics. Manicures by Elissa what one analyst says is going to be a “record-breaking Ferri at See Management. Models, from left: Bianca at Supreme Management; Jing Ma and

year.” The gold rush, it seems, is on. —JENNY B. FINE Rachelle at Muse; Marina at The Society. BR ROSIE BY PHOTO ELIZABETH

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 208, NO. 50. S UNDAY, SEPTEMBER 7, 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.

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Celebrating 15 years of brilliance.

Target.com/SoniaKashuk EDWARD NARDOZA EDITOR IN CHIEF, WWD

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 MASS MARKET BEAUTY EDITOR ANNA DYSINGER 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 Alexandra CARRIE PROVENZANO PHOTO DIRECTOR Elizabeth on LEXIE MORELAND ASSOCIATE PHOTO EDITOR the runway at JENNA GREENE ASSISTANT PHOTO EDITOR CARTER LOVE Versace... BOOKINGS EDITOR

VERSACE, VIKTOR & ROLF, AND CHANEL PHOTOS BY GIOVANNI GIANNONI; CR FASHION BOOK BY ROSIE BROWNING ROSIE BOOK BY GIANNONI; CR FASHION GIOVANNI BY AND CHANEL PHOTOS & ROLF, VIKTOR VERSACE, 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 PAMELA FIRESTONE ASSOCIATE PUBLISHER ELLIE GHADIMI ADVERTISING DIRECTOR, BEAUTY ...AT VIKTOR & ROLF... 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 KRISTEN M. WILDMAN EXECUTIVE DIRECTOR, EVENT MARKETING JILL WEISKOPF DIRECTOR, PUBLIC RELATIONS MARY KATE CALLEN MARKETING DIRECTOR JENNIFER PINCUS SENIOR DIRECTOR, INTEGRATED MARKETING GAFFNEY BARNETT CREATIVE DIRECTOR TIM SCHULTHEIS ART DIRECTOR ANNE ICHIKAWA COPY DIRECTOR JENNIFER BORCK ASSOCIATE DIRECTOR, INTEGRATED MARKETING ...IN CR FASHION BOOK... ALISSA GROSS SENIOR INTEGRATED MARKETING MANAGER MICHAEL FOUNTAS SENIOR MARKETING MANAGER, EVENT MARKETING SHAMILA SIDDIQUI INTEGRATED MARKETING MANAGER JULIE JACOBY EVENT MARKETING MANAGER OLIVIA SPADAFORE MARKETING MANAGER ELLYN PULEIO DIGITAL DEVELOPMENT MANAGER AMANDA MULLAHEY ASSOCIATE INTEGRATED MARKETING MANAGER CHRISTOPHER SANTORELLA DIGITAL DEVELOPMENT COORDINATOR CHRISTINA MASTROIANNI PUBLIC RELATIONS COORDINATOR JESSICA MARRA MARKETING ASSISTANT

PRODUCTION GENA KELLY VICE PRESIDENT, MANUFACTURING CHRIS WENGIEL GROUP PRODUCTION DIRECTOR KEVIN HURLEY PRODUCTION DIRECTOR JILL BREINER ASSOCIATE PRODUCTION MANAGER ...AND AT CHANEL. CONSUMER MARKETING ELLEN DEALY SENIOR EXECUTIVE DIRECTOR PEGGY PYLE CONSUMER MARKETING DIRECTOR JANET MENAKER SENIOR DIRECTOR, DIGITAL MARKETING & STRATEGIC DEVELOPMENT ALEXANDRA ELIZABETH During Fashion Week, all eyes JOHN CROSS PLANNING & OPERATIONS DIRECTOR GIRL SUZANNE BERARDI SENIOR ONLINE MANAGER are expected to be on Estonian beauty Alexandra Elizabeth, ALISON CHRISTIE ASSISTANT MARKETING MANAGER OF THE who strutted her stuff on the catwalk in eight Paris haute MOMENT FAIRCHILD FASHION MEDIA couture shows including Dior and Chanel. It’s been a busy SUZANNE REINHARDT CHIEF OPERATING OFFICER summer for the 17-year-old, represented by The Society, who MELISSA BRECHER CHIEF MARKETING OFFICER CR Fashion Book DAN SHAR VICE PRESIDENT, GENERAL MANAGER, DIGITAL has also appeared in in a beauty editorial NICOLE ZUSSMAN VICE PRESIDENT, HUMAN RESOURCES shot by photographer Rosie Browning. “Alexandra has a real MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT DEVON BEEMER FINANCE DIRECTOR presence and conﬁdence,” says Browning. “I’m certain she JANET JANOFF BUSINESS MANAGER can pave herself a powerful path in fashion.” —JAYME CYK CARMEN MENDOZA ASSISTANT OPERATIONS MANAGER

GINA SANDERS PRESIDENT & CEO

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BEAUTY BULLETIN

SHU UEMURA Art of Hair Essence Absolue Nourishing Oil for Body and Hair WELLA PROFESSIONALS LuxeOil Keratin Boost Leave In Conditioning Spray MATRIX Oil Wonders Micro-Oil Shampoo PHYTO PARIS Huile Suprême Rich Smoothing Oil BAREMINERALS Mineralixirs Facial Cleansing Oil

SONIA KASHUK Radiant Boost Restorative Facial Oil L’OCCITANE EN PROVENCE Huile de Jeunesse Divine OLAY Regenerist Luminous Facial Oil Daily Treatment DARPHIN PARIS The Revitalizing Oil for Face, Body and Hair

SHELF LIFE Well Oiled Oils is one of beauty’s fastest growing categories— up 40 percent in the ﬁrst half of 2014, according CAUDALÍE PARIS to NPD. If these launches are any indication, the Polyphenol momentum shows no signs of slowing down, with Overnight Detox Oil AVEDA Shampure a slew of products for the face, body and hair set Composition Calming to soon hit store shelves. BY ANNA DYSINGER Aromatic Oil for Body, Bath and Scalp ELIZABETH AND JAMES Nirvana Perfume Oil SISLEY PARIS Black Rose Precious Face Oil STRIVECTIN LABS High Performance Booster Oil

PHOTOGRAPHED BY GEORGE CHINSEE

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BEAUTY BULLETIN

DOUBLE MAJOR Like-Minded Spirits

DREW BARRYMORE and GUCCI WESTMAN dish on their favorite topic—beauty.

ntroduced by their mutual friend Cameron Diaz about 15 years ago, Drew Barrymore and Gucci Westman are fast friends with the gift of the gab, particularly when it comes to beauty. Barrymore, an actress and producer who added entrepreneur Ito her résumé in 2012 with the launch of Flower, and Westman, the star makeup artist who also serves as global artistic director of Revlon, share an encyclopedic knowledge of products past and present, iconic photography and legendary looks. Celebrating their wins Get them going on the subject, and the duo speaks in at the 2013 exclamation points punctuated with bursts of laughter WWD Beauty Inc and lively riffs on everything from contouring to Awards. —JENNY B. FINE communication strategies. Snaps from a friendship: How did you first meet? Barrymore and Westman as DREW BARRYMORE: It was the year 2000. seen on their New York City. Cameron Diaz. Girl’s night out. Instagram feeds. GUCCI WESTMAN: I remember specifically the first time I did your makeup was for a Harper’s Bazaar cover, photographed by Peter Lindbergh. I remember that so vividly—I don’t remember what I had for dinner last night, but I remember that very energetic and fluid collaboration. so much beyond a makeup artist. She is an artist. vividly. I did a greasy black eyeliner and you sent me When you’re together do you talk shop? Not only do I want her to go for it on my own face, I flowers after and I was like, “Gosh, she is so classy.” D.B.: Oh yeah! I loved talking about old-school love watching what she does on fashion shoots when D.B.: Yes, you did a greasy lid. It was the height Shiseido double-ended lipsticks, where one end was there is no-holds-barred makeup going on. of the Max Factor lip gloss—Elizabeth Arden Eight matte and one was shiny but it was the same color, Drew, when you were developing Flower did Hour Cream love affair. and why did they discontinue that? And the Kevyn you consult Gucci? G.W.: We’ve always had this makeup bond, haven’t Aucoins and Dick Pages and Pat McGraths and D.B.: I showed her a ton of stuff I was dong, we? When I was working with Lancôme... people like that, who just came from doing runway absolutely. D.B.: You asked me to be your girl. shows. I knew Gucci was in that world and I loved to G.W.: I’ve always given you and Cameron lab G.W.: I did! I remember you weren’t sure and talk about those artists. Gucci and I have been doing samples of things. I’ll use it on them because I can’t you were like, “Can I come over to your apartment shoots for so long, there’s been a lot of tremendous wait till it’s made. I get so excited. Cameron loves a because we need to talk about this.” You wanted to larger-than-life figures who have traveled through lab sample, but Drew will be interested in the depth hear what ideas I had. that circuit. I always loved talking about those of it. How it is made, what I was thinking. What is it about Drew and her face that people or makeup itself or formulas or why does D.B.: Makeup artists have so many tricks and inspires you? this work or why is this necessary, how do you make techniques and skills. Sometimes when I look at a D.B.: Oh god! an eye even, why don’t they make that product makeup line as a consumer, knowing what a lot of G.W.: Pretend you’re not here. anymore, was it really just only used in fashion? those tricks are, I am always wowed by why there D.B.: Okay. I am going to close my ears. I’m going Those are the things that are fun for us to discuss. is such a discrepancy between what goes on in to leave one ear open. G.W.: Drew has always been integrated in the the world of makeup artists and what you buy in G.W.: Drew has one of those faces that is so whole cosmetics world. She is very good. She can tell makeup products. There is so much highlighting incredibly beautiful and you can really transform you exactly what to use to color my hair, your hair and shadowing and widening of the eyes and it. She can wear so many different types of and her own hair. I remember for a Lancôme shoot evening-out the eyes and brow bone and nose makeup. She has this little movie-star face that I wanted to do this Faye Dunaway Chinatown thing bone and cheekbone and skin-evening tricks. With is so classic and petite, but it is also very sultry. and I was like, “Is it okay if I tweeze your eyebrows Flower, I want to bring some of those things to the There are so many things you can hone in on—the really thin?” Remember? And you let me! Actresses table that people have taught me over the years that mouth, the skin, the eyes, the eyebrows. It is so often don’t want to wear a lot of makeup when are so crucial to why it looks so good when you see much fun. Definitely I would say one of my top- they’re doing makeup campaigns, but Drew is fully people on a red carpet or in a magazine. It is not just three favorite faces to paint ever. And also because invested in it. She wanted to be that person that airbrushing and lighting. It’s because that artist has she loves makeup, she is always so appreciative I was trying to create. done something really interesting that isn’t always and inspiring to work with. It’s always been an D.B.: I worship Gucci’s skills and artistry. She is on the shelves.

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Now that you’re ensconced in the business side, lose a layer of the emotionality. The most important is it more difficult to make that a reality than you thing is trying to balance emotions with graphic HAVE THE envisioned? nature. Women love to be emotionally provoked. If D.B.: Some things don’t sell because they’re not you can pull at our heartstrings or make us feel like obvious. I understand that, but maybe there is a way we can fly, that is all we want. If you can strike that BEST IN we can communicate to people. magic where something looks really good but it’s G.W.: People love description and guidance. making you feel good, I see romance. Gucci is right. Women are just intimidated. If you have a little bit It is easier in a fragrance ad because you are telling BEAUTY? of a how-to, it makes it so much easier. a story, whereas makeup seems to be about the face D.B.: Yes, and if you build it into products—like and the color and the skin. How do you make that making tinted moisturizer with a luminizer that’s emotional? It’s tougher. going to help give some type of glow for someone G.W.: It is tough. And then you have to do it in a who might not know how to highlight on her own. certain way. There are so many people involved. It is G.W.: It frustrates me when products don’t do not spontaneous on any level. what they’re supposed to do because You’ve traveled a lot together. What the masses think the color is too dark. inspiration have you gleaned about For instance, a shadow and highlight IN BRIEF the other’s beauty routine? palette can be incredibly intimidating G.W.: Drew loves a Ziploc bag. DREW BARRYMORE if it is the right color, which is dark, D.B.: And Gucci always has the Drew Barrymore shot so you have to make it lighter in order to fame at age six latest product. for the consumer to understand. But in the movie E.T. the G.W.: I’m very interested in skin then it doesn’t do the job. Extra-Terrestrial, but care and lasers and the lights and all D.B.: It is tricky. Two years ago the actress-producer- that. I had a lipstick in the Flower line author also has a long- D.B.: Gucci knows skin innovation that was quintessential to what was standing relationship like no one else. happening on every magazine cover with beauty. She served G.W.: I find it so interesting. As we and every runway—black-burgundy as a face of Lancôme age we need to preserve what we have lips—nothing had trended so hard and an ambassador and make it as good as we can. and co-creative and for so long, and I couldn’t move What’s your latest discovery? director of Cover Girl, the product. I couldn’t give it way. G.W.: I’m really obsessed with before introducing G.W.: It is more difficult in mass her own line, Flower, this mask by Déesse. It has four because you don’t have the option to in 2012. Launched in different light fixtures and four ENTER test many things. Communication is conjunction with Maesa different functions—skin tightening, essential. With Revlon, social media Group, the brand is sold acne, collagen reproduction and NOW! is incredibly important, any kind of exclusively in Wal-Mart. line reduction. You can use it every how-to videos or instructions I can This fall, Flower is day, 20 minutes a day. I’ve gotten so provide help tremendously. entering the fragrance many compliments on my skin since category with a trio of CEW.ORG D.B.: The other half of that coin is I started using it. It’s expensive but mood-based scents. that women also need aspiration. I’m worth it. I’m obsessed with all of these DEADLINE: sitting here in sweats, but that isn’t gadgety things. GUCCI WESTMAN what motivates me. It is seeing beauty, Drew, what’s your latest obsession? Born in California, Sept. 24, 2014 feeling a moment of beauty. Beauty raised in Sweden and D.B.: I am in love with highlighting should be attainable and relatable educated in Paris at under my eyes before I put concealer but it always has to be aspirational. the Christian Chauveau on. Having two [kids] under two, I Where you lose people is when it Ecole de Maquillage, haven’t really slept in two years, and becomes austere and alienating. Gucci Westman is one I had been feeling very unattractive NEW CATEGORY! Beauty advertising imagery tends of the most sought-after and run-down looking. So I have to be very one-dimensional. How makeup artists on the been highlighting under my concealer HAIR would you like to see it evolve? global style scene. She and giving an illumination and has become the go-to G.W.: Personally, I wish it could be reflector of light. It has totally been TOOLS artist for celebrities a little bit more pared down and less a game changer. I always felt like including Kate Winslet, considered. Fragrance ads always concealer was a mood lifter. The Gwyneth Paltrow and resonate more for me than some Cameron Diaz and second I use it, I feel better about cosmetics ads. They are more iconic, photographers such myself. I feel empowered and prettier there is more dimension, there is as Mario Testino and and less distracted. All of a sudden > TRUSTED BY CONSUMERS more life. There is something that has Patrick Demarchelier. when that wasn’t cutting it for me, been lost with all of the retouching Westman serves as the I was like, [laughing] No! So, I’ve > RECOGNIZED BY MEDIA and testing. global artistic director been experimenting with different D.B.: I can’t stand the retouching. of Revlon. products and now I want to create it > FEATURED BY RETAILERS With every layer of computers you because I just think it’s a great trick.

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MAC THE ENTREPRENEURIAL EDGE The Matte Lip Lipstick Eight new shades in poppy brights and SABRINA TAN, SKIN INC neutrals join MAC’s matte line, along Singapore-based Skin Inc is bringing its mix-and-match with coordinating lip aesthetic to the U.S. The brand was founded by Sabrina pencils and blushes. Tan, a former technology executive who was overwhelmed The supersaturated hues go on smooth by her vast assortment of skin care products and set out and won’t bleed. to streamline her routine. “Skin care has to work, be fun, be effective and be simple,” says Tan. “It cannot be BUTTER LONDON intimidating and it has to suit [a consumer’s] lifestyle.” Lippy Moisture Available in Singapore, Barcelona, Madrid and 13 other Matte Lipstick Available in 12 cities, Skin Inc launched in 2007 and is known for its shades, this customized skin care—nine serums that include seaweed- hydrating formula encapsulated ingredients such as chlorella, hyaluronic features mango, murumuru and acid and coenzyme Q10. To create a custom blend, cupuacu butters for consumers visit Iloveskininc.com and take a short test a creamy ﬁnish, plus that highlights key skin issues. Each customer is given a specialized pigments for long-lasting color. “prescription” consisting of three serums. “The individual and customization has become more and more critical to success,” says Tan.

TOM FORD Now, Tan is bringing her successful line stateside to Sephora’s 34th Street and Lip Color Matte Times Square locations in September. She hopes to grow with Sephora as an Part of the holiday exclusive partner and explore strategic distribution into channels like QVC. collection, this new formula leaves a “[Consumers] want to be on this empowering [skin care] journey,” says Tan. satiny matte ﬁnish “[They] want to do it online, anytime.” —JAYME CYK and is available in eight shades ranging from plums to pinks.

CLINIQUE COLOR CHARTS Long Last Soft Matte Lipstick Available in eight INDEPENDENT SPIRIT shades, this has IN TOKYO, A TRIO OF HOME-GROWN MAKEUP-ARTIST BRANDS ARE a formula that PICKING UP STEAM. HERE, HOW THEY STACK UP AGAINST EACH OTHER. incorporates silica beads to set the color THE LINE: Addiction THE LINE: Three THE LINE: RMK and shea butter to MAKEUP ARTIST: MAKEUP ARTIST: MAKEUP ARTIST: prevent drying. Ayako Yoshimura Rie Omoto Kaori Yanagida COOL QUOTIENT: COOL QUOTIENT: COOL QUOTIENT: Unique variations Products are infused Since its launch with former BOBBI BROWN on color and texture with natural, plant-derived creative director Rumiko Creamy Matte Lip Color are designed to ingredients such as in 1997, RMK has enjoyed This highly pigmented accentuate the essential oils; the line success both in Japan and formula keeps color wearer’s individuality; includes skin- and hair- internationally. Its popular vibrant for up to 8 the brand also has a care, plus makeup and Delicious Skincare line hours, while soft popular sunscreen, tools. includes more than 20 waxes help lock in primers, concealers STAR PRODUCT: products that draw on edible THREE and a full range of The Flawless Ethereal ingredients. moisture. Available in brushes. four new shades. Fluid Foundation has STAR PRODUCT: RMK STAR PRODUCT: an SPF of 36, PA+++, is The Powder Soap was The Tint Lip Protector free of parabens, artificial recently named best cleanser NARS (about $25), a tinted fragrances, animal-derived by Japanese magazines lip balm with an SPF ingredients and mineral Maquia and Biteki, while the Velvet Lip Liner of 20, was rated best oils. It was recently rated blusher Ingenious Powder This deﬁnes lips with lip color in 2014 by the best foundation by Cheeks, the UV Powder rich color that stays popular Japanese Japanese magazines Voce Foundation, the Glow Stick put and prevents women’s magazine and Maquia. highlighter and the Nail Color feathering. Available Spur. PRICE RANGE: also came away with top in 12 shades. PRICE RANGE: 2,200 yen (about $22) for nods. 1,200 yen (about an eyeliner pencil to 6,000 PRICE RANGE: $12) for an eyebrow yen (about $59) for an eye From 1,200 yen (about pencil to 6,200 yen shadow quad. $12) for a lip balm to 6,000 (about $61) for an eye DISTRIBUTION: yen (about $59) for an eye PRODUCT WATCH shadow quad. In addition to a flagship shadow quad. DISTRIBUTION: shop—which also includes DISTRIBUTION: Carried at 36 a spa and café—in Tokyo’s Roughly 100 points of sale department stores Aoyama neighborhood, across Japan, including a Lasting Power and cosmetics Three is carried at more flagship in Tokyo’s Aoyama retailers across Japan, than 40 department stores and department store Matte lips are back with this season’s including Isetan and specialty retailers counters. RMK is also carried newest launches. BY ANNA DYSINGER Shinjuku and Ginza across Japan. It also has in 30 stores internationally, Mitsukoshi in Tokyo, distribution in Taiwan and including Selfridges in ADDICTION and Hankyu Umeda in Thailand. London and Sogo in Hong

Osaka. Kong and Taiwan. CHINSEE GEORGE BY AND SKIN INC PHOTOS LIPSTICK JOHN AQUINO; BY PHOTO TAN

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THE PENINSULA SPA Opened: August 1 For a pampering pause, there’s The Peninsula Spa, opened in tandem with the hotel’s debut in Paris, on the Right Bank. The 20,000-square-foot location boasts a relaxation room, hamam, sauna and eight single and two ARTDECO Opened: June double treatment rooms fitted out with wooden fixtures and floors plus slate German cosmetics brand Artdeco opened its first-ever boutique in Paris in early sinks. The service menu is extensive, using primarily Espa products and, spring. The choice was made due to the city’s image, said Sandrine Hillou, for facials, Biologique Recherche skin care. The 120-minute Yin Yang Vitality who heads up the 1,888-square-foot shop a hop from the Galeries Lafayette flagship. treatment for stress relief using warm herbal poultices, body massage The boutique is divided into color cosmetics, skin care and nail polish areas, and head massage with cool jade stones is 340 euros, or $456 at current carrying—for the first time under one roof—the label’s approximately 2,000 exchange; a 90-minute restructuring and smoothing facial is $390. While stockkeeping units, including more than 200 varnish shades. There are two makeup there, guests can also indulge in the 72-by-16-foot indoor pool. bars, where people can have a makeover or attend a class, and a nail bar offering 19 Avenue Kléber; Tel.: +33.1.58.12.66.82; open daily from 9 a.m.-9 p.m. mini, à la carte and more in-depth services. Downstairs there’s a pedicure room and a treatment room for everything from “flash” 30-minute facials to an hour-long Japanese ceremonial treatment ritual. 53 Rue de la Chaussée d’Antin; RETAIL SAFARI Tel: +33.1.49.95.96.76; open Monday to Friday 10 a.m.-8 p.m., Saturday 10 a.m.-6:30 p.m. The Beauty COLORÉ PAR RODOLPHE Rodolphe Lombard (aka Rodolphe) of Paris parlayed his early desire to be a painter into the day job of successful JENNIFER WEIL scopes out hair colorist. After working with Bruno Pittini and Alexandre de Paris, he set the coolest places to indulge out on his own and opened a Parisian in the capital of chic. salon. Called Coloré par Rodolphe, the location fittingly was once the atelier of avant-garde painter Francis Picabia, just a stone’s throw from the tony Place Vendôme. Rodolphe— whose clients have included Madonna and Jodie Foster—uses a wide palette of colors and has likened himself to an artist employing everything from gouaches to aquarelles. The colorist also sells his own natural hair OLCE VITA

products, such as Le Rituel oil and D Le Carpe Diem repairing shampoo,

which are all free of parabens, OUCHES/ silicones and sulfates. T 26-28 Rue Danielle Casanova;

Tel.: +33.1.42.61.46.59; open Tuesday ANIER DES P . to Saturday 9:30 a.m.-6:30 p.m. O

FRENCH TOUCH UNEZ; RODOLPHE INTERIOR BY

Paris’ je ne sais quoi has inspired many a song, movie and book. And N

now, beauty products are taking their cue from some of the city’s REG iconic landmarks. Ladurée, the tearoom known for its scrumptious G macaroons, recently introduced a makeup collection. The famed Harcourt photo studio came out with eyebrow products. Luxury hotel Fouquet’s Barrière and the Miss France beauty pageant each has its own fragrances, while the writer Marguerite Duras served as muse for a trio of scents by Maison Irié, and Marie Antoinette’s scented gloves were reproduced for Versailles’ Cour des Senteurs boutique. What’s driving this burgeoning trend? “In the international collective conscience, Parisian women are all lingering smoke rings, inappropriate liaisons, elegant heels and red lips,” says Louise Rosen, founder and chief executive officer of The Message Inc., a Paris-based consultancy for luxury brands. “Not only does this play well into the elusive sex appeal that beauty products sell, but the fact that Parisian fashion clichés are anchored in time, are part of history even, makes them more powerful. It has soul where other clichés just have a story. And in branding,

nothing is more powerful than a story that also has a soul.” PRODUCT PHOTOS BY GEORGE CHINSEE; RODOLPHE PORTRAIT BY

ILLUSTRATION BY BRETT AFFRUNTI

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BEAUTY BULLETIN

Essie’s top products, by airport.

U.S.

WHAT’S SELLING WHERE JFK

MOTHER KNOWS BEST MANI ON THE MOVE THE FAMILY BUSINESS Calling all jet-setters: If you’re traveling coast to coast and ﬁnd yourself in need of a color boost, look for Essie’s new For mother-daughter beauty pros the Color Boutique. The self-service kiosks launched in select OAKLAND Bonofiglios, work and personal life have airports in July, including Oakland International Airport always been linked. Daughter Liz, senior and JFK’s Jet Blue terminal. When it comes to color, director, programs and events at Cosmetic pastel shades are popular across the country, hot red and cobalt blue dominate in New York, a rich jade green DALLAS/ Executive Women, grew up immersed in the FORT outpaces other hues in California and Texans are tending beauty industry: Her mother, Virginia, now WORTH towards the medium-brown Fierce No Fear. the chairperson of cosmetics and fragrance marketing and management at the Fashion Institute of Technology, was a perfumer for 35 years. “In our family, everything was about PRODUCT WATCH sensory experience. If my sister Olivia or I

saw an ad on TV for something, mom would FALL’S NEWEST FRAGRANCES RUN say, ‘Let’s go try it. Let’s touch it and smell it,’” THE GAMUT FROM WOODY TO FLORAL SCENTS. BY ANNA DYSINGER remembers Liz. On a recent trip to Sephora, the High Notes pair held to that tradition, sniffing and spritzing BURBERRY BOTTEGA VENETA ANNICK GOUTAL JO MALONE CALVIN KLEIN Knot Eau de their way through several scents. “Fragrance My Burberry Vent de Folie Eau Wood Sage Reveal Christopher Bailey Parfum de Toilette & Sea Salt Raw salt and is a very personal conversation for us,” says and perfumer Designed after the Tangy blood orange, Cologne a heart of orris Virginia. “We discuss what we like and what Francis Kurkdjian brand’s popular geranium rosa, Combining the blend with the looked to the clutch and paying sweet blackcurrant fresh sea air with classic Calvin works well on us. I recently discovered Daisy brand’s iconic homage to the and raspberry fuse salty ocean spray, Klein base note, trench for inspiration Italian Rivera, Knot this features a top sandalwood, to Dream by Marc Jacobs. It’s not something I’d with white musk for this floral scent blends peony, and cedar bark for a note of ambrette create a mixture wear, but I like it as a part of the collection.” with notes of sweet mandarin, rose, scent inspired by the seeds with a of freshness pea, bergamot, lavender, neroli and energy of New York heart of sea salt and warmth. When they’re not shopping, the pair is still geranium, freesia, tonka bean. City’s women. and a drydown of talking shop. “I call her when I’m making centifolia roses and sage. patchouli. a business decision,” says Liz. “We have a great relationship, so we can turn the industry talk off and on—but often it’s on.” Virginia says personal discovery and exploration are necessary practices in an ever-changing business like beauty. “I introduce her to classic products like Elizabeth Arden Eight Hour Cream and she showed me Marc Jacobs color cosmetics. We’re each a professional resource for the other.” And that’s a rarity in mother- daughter relationships, she notes. “We’re lucky to have each other,” says Virginia. “Plus, we get

along—most of the time.” —CRYSTAL MARTIN CHINSEE GEORGE BY PRODUCT PHOTOS IANNACCONE; THOMAS BY PHOTOS AND MESHULAM BONOFIGLIOS

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Celebrity makeup artist One of the most sought Due out in October and YouTube sensation Michelle Mally Roncal spoke at after—and fearless— showcasing some of Phan counts nearly seven BOOK CLUB the WWD Digital Forum hairstylists in the fashion his most iconic images, million subscribers, a about the importance of world, Guido Palau has from Lara Stone styled as namesake beauty brand PAGE TURNERS connecting with customers created 70 new looks for his Madonna to a nude Lydia marketed by L’Oréal and via personal anecdotes. second book, Hair (Rizzoli Hearst, Kenneth Willardt’s subscription service Ipsy A BEVY OF BEAUTY BOOKS ARE So it comes as no surprise New York, $75), out in first book, The Beauty as a few of her many BEING RELEASED THIS FALL, that her first book, Love, September. Palau partnered Book (teNeues, $125), accomplishments. Make Up: INCLUDING HELPFUL HOW-TOS Lashes, and Lipstick: My with long-time collaborator epitomizes his different Your Life Guide to Beauty, AND ART-HOUSE WORTHY Secrets for a Gorgeous, David Sims to photograph interpretations of beauty. The Style and Success—Online RETROSPECTIVES. Happy Life (Ballantine the intricate weaves and photographer selected his and Off (Harmony Books, BY ANNA DYSINGER Books, $25) is part tips daring spikes; fashion favorite shots from sittings $23) her first book, out in and tricks, part memoir. journalist Tim Blanks delves done over the last 15 years. October, is an extension of her Out in late September, into Palau’s inspiration, his Accompanying the book’s lifestyle site and ventures, filled it’s filled with step-by-step relationship with the late publication will be an app with her trademark beauty and lessons and intimate stories Alexander McQueen and enabling readers to access fashion tips as well as advice whose subjects range from more in a revealing Q and bonus content such as an on the most asked-about Roncal’s mother to her A interspersed throughout interview with Willardt and topics from her viewers, like famous clients like Beyoncé. the book. behind-the-scenes videos. careers and digital etiquette.

Lu Camarena MENTOR ME Meshulam Lu Camarena Meshulam As a young girl in Colorado, Lu “LuMesh brings order to the “A big part of my vision is to grow Camarena Meshulam always dreamed complexity of beauty through a LuMesh in a way that it will be an of becoming a makeup artist. When focused assortment of products. Our attractive acquisition target for a she moved to New York and started growth will be through launching large-scale beauty company. to live her dream, Meshulam had complementary products across lip, What do you recommend we do to an epiphany: There wasn’t a lot of face, eye, nail, skin and hair care, differentiate my company from makeup on the market suited for as part of a five-year innovation others?” the wide array of skin tones she saw pipeline. What categories and MENTOR: Claudia everyday, including her own. In 2008, sequence of introduction for those Poccia, president and she launched LuMesh, a collection categories would you recommend to chief executive ocer, of five lip glosses with undertones maximize growth?” Gurwitch Products designed to suit any skin tone. “[The MENTOR: Sonia Kashuk, “What impresses me about industry] was oversaturated, yet there founder, Sonia Kashuk Beauty your business model is that was huge open space for products that “If you’re positioning you developed it with a specific were multifunctional and versatile for yourself as a makeup artist consumer in mind, and it was women,” says Meshulam, who briefly and a color brand, that should be your born out of an understanding of stepped away from the business, but initial focus, especially lip. It’s an easy this consumer’s needs. You have a clear MENTOR: Ying Chu, executive is now back with a revamped line pick-up and people are willing to try it. and distinct point of view that is now beauty director, Glamour consisting of Hydrating Lip Gloss As you go into the next phase, an integral part of the LuMesh brand “You have a great vision and Blendable Lip/Cheek Tint and I would talk about face. This is the DNA. Remember that both consumers for your brand in creating the same philosophy targeted to a most difficult customer to get because and brands evolve over time, so the makeup that works for tricky-to- multicultural consumer. This fall, it is a loyalist. It took me a few years key to long-term success is staying true match skin tones. Now don’t dilute the brand will launch on Birchbox. to really own a foundation guest at to your brand’s DNA and ensuring that vision by trying to be everything com and on Meshulam’s own Web Target, but once you do, you watch that your innovations always map back to everyone. Instead, focus on making ANNACCONE; PRODUCT PHOTOS BY GEORGE CHINSEE GEORGE BY PHOTOS PRODUCT I ANNACCONE; site, and this time, she’s thinking big. that business explode. That’s when to your original vision.” your brand’s point of difference “My aspiration is to become a prestige you go into other categories, be it bath absolutely clear. Your personal story global brand which offers products and body or skin and hair. Get your “The brand is designed to resonate and client base feel relatable and that are practical, minimal yet not customers believing in your expert with all women since it works with the genuine to ethnic women—start typical,” says Meshulam. Here, in the advice and then guide them into undertones of the skin. Still, it’s a fine here. As an editor, I’ve seen hundreds first of an ongoing series in WWD different aspects with your expertise. line to walk between being a brand of beauty lines come and go. The Beauty Inc, we asked three industry It takes time. I introduced bath and that works on women of all ethnicities ones that thrive are focused and stay veterans to weigh in on the issues body 14 years after I had established versus an ethnic brand. What do you true to brand DNA. I look for that confronting Meshulam as she paves my brand.” recommend to maintain our appeal to sharp identity when I’m editing for

PHOTOS BY T HO M AS BY M PHOTOS AND MESHULA B ONOFIGLIOS the way for growth. —JAYME CYK all women?” Glamour.”

BB1409-PG0X-Mix.a;21.indd 17 8/26/14 5:42 PM 08262014174521 Approved with warnings 7 LASH, $17 EACH Welcher purchased BEAUTY BULLETIN two sets of these; he he MATCHMASTER SPF likes that they gradually 15 FOUNDATION, SHEEN SUPREME get longer toward the outer edge of the eye. $35 EACH LIPSTICK IN TEA “I love this formula CEREMONY, $18 because it’s matte Welcher and looks great on LIPGLASS, $15 EACH purchased one of television,” says Welcher picked up the last tubes of Welcher, who three new shades to this discontinued bought two shades. add to his collection. color. SHOPPER: Terrance Welcher DATE/TIME: 8.5.2014, 2:47 p.m. * STORE: MAC $307.00 LOCATION: 7 West 22nd Street, TOTAL SPENT New York What’s in Terrance’s Bag? CREMESHEEN GLASS IN DYNASTY AT DUSK, $20 He says MAC has an Terrance Welcher, a 30-year-old makeup artist, visited the amazing color selection Flatiron MAC pro store to add punchy new colors to his kit, for lip products. and to be inspired by the offerings. “I consider this store a lab. You can come in and concoct new things,” he says. “I’m working with Remy Ma, an urban artist and rapper, and she has some shoots coming up so I like to come in here and be PLUSHGLASS IN creative.” Welcher, who spends $6,000 a year on makeup OVERSEXED, $20 LIPSTICK, $16 EACH “The artists here and skin care, likes MAC products because of the quality and “As an artist, I opened my eyes affordability. “You get a bang for your buck. People forget that sometimes stay in PRO LONGWEAR to new colors that my comfort zone,” we are artists and invest in tools,” he says. “We need to have LIP PENCIL IN I wouldn’t have he says. “I wanted BITTERSWEET, $20 thought to use,” clean things like mascara and lipstick so we can give those to expand with more says Welcher. colors.” He chose this to away [to our clients] when we use them.” For Welcher, makeup coordinate with the is all about how it makes a client feel. “Beauty really is in the eye lip colors. of the beholder,” he says. “You never know what you are going to put on someone that will spark them to see their own beauty.” SHOPPER PHOTOS BY JOHN AQUINO; PRODUCT PHOTOS BY GEORGE CHINSEE GEORGE BY PRODUCT PHOTOS JOHN AQUINO; BY SHOPPER PHOTOS

SHOPPER STALKER ARTIST SHADOW, $21 EACH HD HIGH DEFINITION LIP PENCIL, $18 EACH “I got a range of neutrals, FOUNDATION, Offers prefers sparkly and iridescent $42 EACH nude lip pencils [shades],” says Offers. “You can mix because they mimic The Buy Side “They are really easy to shades together a woman’s natural blend.” to find the perfect skin tone. tone,” says Offers, ANNA DYSINGER HEADS TO TWO PRO who bought eight MAKEUP STORES IN NEW YORK CITY shades. TO DISCOVER WHAT THE ARTISTS CAN’T LIVE WITHOUT.

AQUA LIP WATER- PROOF LIPLINER PENCIL IN 16C, $19 SHOPPER: Elaine Offers She chose a bright DATE/TIME: 8.5.2014, 12:20 p.m. pink to complement her lipsticks. STORE: Make Up For Ever $981.00* LOCATION: 8 East 12th Street, TOTAL SPENT New York EYELINER BRUSH, $24 She loves the extra- fine point of this What’s in Elaine’s Bag? eyeliner brush. LIQUID LIFT While in New York City to do Helen Mirren’s makeup FOUNDATION, for a press event, Santa Monica, Calif.-based artist Elaine $44 EACH MEDIUM PRECISION Offers picked up EYE BLENDER, $25 Offers visited the Greenwich Village outpost of Make Up three colors of Offers uses this for For Ever for the ﬁrst time. “They are celebrating their 30th this foundation, blending eye colors. anniversary and I wanted to stock up on the new launches, which she says goes on super especially the eye shadows,” says Offers. “I came at the right smooth. moment because there was hardly anyone in here, so it was very relaxing.” The 50-year-old, who spends $10,000 annually on beauty, prefers shopping in-store rather than online so she can play with the products. “Beauty is an all-sensory thing with the colors and textures,” she says. “It makes it fun.” But her go-to item is all about utility: blotting papers. “I like to use creamy textures that melt into the skin, ROUGE ARTIST NATURAL, $20 EACH but they layer up, so I’m constantly lifting up the oil as I “I do a lot of red apply makeup,” she says while habitually patting her face carpet and you have ROUGE ARTIST to give the girl a lip!” INTENSE, $20 EACH with a tissue. “When I don’t have them I freak out.” she says. Offers selected three new colors for her kit. 18 WWD BEAUTY INC *Pretax total.

BB1409-PG0X-ShopStalker.a;11.indd 18 8/26/14 4:40 PM $QQSPWFEXJUIXBSOJOHT ADVERTISEMENT RECOGNIZING EXCELLENCE IN LUXURY SERVICE L’ORÉAL LUXE IS PROUD TO PARTNER WITH WWD BEAUTY INC TO RECOGNIZE JENNIFER 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 luxury beauty. In this issue we honor

Jennifer Garcia, Urban Decay “My favorite: the Eyeshadow Primer Potion in 4 amazing beauty advisor at Macy’s shades.” Stoneridge Shopping Center in Pleasanton, California.

Excellent service, to Jen, is giving customers a magical experience at the Urban Decay counter. “It’s taking the initiative to help them “Helping clients should be fun for crave something they didn’t even everyone.” know about. We are beauty with an edge. And every customer interaction involves the Urban Decay Trinity: Feminine, Dangerous, Fun.”

GO TO: urbandecay.com/careers/jobs

TO LEARN MORE ABOUT JENNIFER’S “Upbeat, energetic, positive – COMMITMENT TO LUXURY SERVICE that’s the Urban Decay vibe.”

“Urban Decay is for the everyday woman – it ﬁ ts every style.”

COME AS Y OU ARE

BB1409-PG0X-WELL-MultiCultural.a;15.indd 20 8/27/14 12:29 PM 08272014123110 TUNED INTO THE DEMOGRAPHIC TRANSFORMATION TAKING PLACE ACROSS THE U.S., SAVVY MARKETERS ARE REENERGIZING THE AMERICAN BEAUTY MARKET.

BY PETE BORN COME AS Y OU AREPHOTOGRAPHED BY RUVEN AFANADOR

BB1409-PG0X-WELL-MultiCultural.a;15.indd 21 8/27/14 12:29 PM 08272014123134 cal retail scene. But once inside the gleaming Macy’s ended in 2013, the fastest growing groups of tourists to across the street, the world comes alive, pulsating with the U.S. were Brazilians, which grew 15 percent, and the energy of the newly renovated beauty counters Chinese, with a growth rate of 23 percent. The 2.9 mil- and the lilt of Mandarin, Cantonese and Korean being lion visitors from Brazil spent $9 billion while here; the excitedly spoken in the ground floor department. It is 2.2 million Chinese tourists spent the same amount. a dynamo of beauty retailing, particularly skin care. The two groups ranked fourth and seventh, respective- t was a typical chance encounter for Wei Li. While Macy’s executives would not break out store ly. The number-one group, those from the U.K., spent A tall, striking young woman from Shenyang, rankings, industry sources speculate that Flushing $13 billion but the growth was only 2 percent. a city of more than six million in Northeast Chi- could place number two in beauty-category sales, es- The stakes become higher when one considers the na, Wei spends her day in a store, speaking Man- pecially skin care, among the retail chain’s 660 beauty global game of reverse innovation of product develop- darin to customers and selling beauty products. stores. Beauty alone—skin care and cosmetics—is es- ment and L’Oréal’s doctrine of universalization. Local On this day, a female customer approached. timated by industry sources to have generated more relevance has worldwide reverberations. She had made a couple trips to the store previ- than $30 million last year, one third of the store’s total “We look at the Chinese consumer regardless of ously, scoping out the possibilities. She was final- volume, driven by Chinese and some Korean shop- where she shops, capturing the biggest amount of her ly ready to buy, but not for herself. Wei showed pers who spend much more than average—or “over- dollars and servicing her. That’s where it’s a much big- her a product, Nutritious Vita-Mineral Moisture index”—on skin care. All that productivity is generated ger concept, ” says Hamilton. “The significance of this Creme, sold in a four-item set, then quickly real- by a beauty department that takes “only 30 seconds to is that the world now, through the Internet, is glob- ized the woman was buying skin care for a friend. walk across,” in the words of a staffer. But Flushing’s al. You can’t sit back and ignore it because then your “She, like any Chinese customer, has a question: beauty business has scored double-digit gains for the brick-and-mortar experience does not match your ‘Do you have any value sizes? Any promotions, last five years. e-commerce experience. We know that e-commerce any specials,’” Wei relates. “She was looking for The Flushing Macy’s has also become a Mecca for is the most important channel globally in terms of which is the best day for the value [to] buy.” hip beauty marketers who describe the U.S. as a new growth, so it’s a mirror.” Chinese shoppers are known for their insa- emerging market, fueled by the explosive growth Indeed, Breen points out that Lauder is now in the tiable curiosity and their discipline. They of- touched off by striving, ambition-minded minor- process of launching a product in the States, a watery ten come into the store with a picture on their ity groups—not only the much-heralded ascendancy lotion called Micro Essence, that is simultaneously phone of a particular product, which they have discov- of the Hispanics but the meteoric rise of the Asian- launching in Asia. “We look at the global calendar ered mining the Internet. Americans and the pervasive influence of African- here,” she says. Another launch in the works is Nu- Sometimes men come in to make a purchase for Americans. This demographic shift pushes granularity tritious Rosy Prism, which was developed to freshen their wives. Before buying, they step away from the to the max. By the year 2050, 54 percent of the U.S. fatigued, yellowish skin and was originally aimed at counter and call home to double check. population will be composed of non-Caucasian eth- Asian women. This new ethnic frontier is being ex- It’s a long-distance call, because Wei’s store is not nic groups, according to U.S. Census projections. As plored within Lauder, brand by brand, door by door. “If Iin Shenyang or even Beijing. It’s a Macy’s in Flushing, of 2000, the nonwhite population’s share was only 30 this is deemed a Latina door, what does that mean in N.Y., in the borough Queens. But as far as the store’s percent. In California alone, Latinos currently com- terms of components that Bobbi Brown would have?” clientele goes, it might as well be in the heart of China. prise 39 percent of the population, about 14 million Breen asks. “What does it mean in terms of shades? In More than 80 percent of its customers are of Asian people, making Spanish-speakers the state’s largest terms of print material? In terms of tester units?” descent, according to estimates by industry sources, ethnic block. Asians make up another 13 percent. the majority of them Chinese immigrants or tourists. “If you look at California, that’s the biggest prestige “They come with their luggage and we know they’re market there is and a majority of those doors are in- uring a press briefing last year, Fabrizio tourists,” says Wei, who goes by her American name, fluenced by the Latina consumer,” says Thia Breen, Freda, president and ceo of Lauder, Livia, at work. She is the counter manager for the Es- group president of North America at the Estée Laud- drove home the importance of micro- tée Lauder brand in the store and has worked for the er Cos. Inc. targeting based on demographics and cosmetics company for four years, after coming to the Zrihen quotes other studies to further dramatize D geography. “When you calculate it with U.S. five years ago. Before Lauder, she had transferred the pace of growth. From 2010 to 2050, the Asian- the concept of growth in mind, what you understand is her Chinese college credits to the University of Kansas American population will grow by 142 percent and the that 80 percent of the growth will come from ethnici- and graduated with a degree in finance. Hispanic by 167 percent, while the general population ties other than Caucasian in the U.S. in the next 7 years Wei—and her clients—are the face of a new Amer- is expected to expand by only 42 percent. Zrihen esti- and 65 percent of all future growth will come from the ica, one which is inexorably emerging, pushed by a mates that Hispanic purchasing power in the U.S. will aging of the population,” he said. “You understand the profound transformation of the nation’s demographic grow to about $1.5 trillion, a figure that would rival opportunity to direct the company’s resources to tackle map. “It’s an evolution of embracing diversity at a re- that of some of the top 20 countries. these huge growth opportunities and understand why tail level with goods and services,” says Jonathan Zri- Already, the numbers have had a significant impact I say the U.S. is my biggest emerging market.” hen, president and chief executive officer of Clarins on beauty. Today, 47 percent of U.S. fragrance buyers Beauty marketers and retailers have always prided Groupe Americas. are non-Caucasian, as are 35 percent of skin-care con- themselves on drilling down into the consumer psyche, Speaking of the growing wave of multicultural in- sumers and 32 percent of makeup purchasers, accord- door by door. Now they are riding the multicultural clusiveness in both marketing a broader spectrum of ing to studies cited by Carol Hamilton, president of dynamic into a new world. The stakes are enormous. products and recruiting counter personnel who speak the Luxe Division of L’Oréal USA. African-Americans As an example of the possible payoff, after Clarins be- a boatload of languages, he adds, “If we don’t evolve to have a lower household income, she adds, “but their gan reaching out to the Hispanic audience, its coun- create a sense of intimacy with our consumers, we are retail spend is 30 percent higher on beauty than the ters in the Dadeland and West Dade malls, in Florida, not doing our jobs.” total population.” grew from about $500,000 to $1 million in sales over Back in Queens, Roosevelt Avenue, which is lined The ethnic quilt is made all the richer not just by three- and four-year periods, respectively, according to with a low-lying collection of shops festooned with native-born members of ethnic groups and immigrants industry sources. The Macy’s flagship in Boston, con- bright-red Chinese signs, seems unremarkable, a typi- but also tourists. According to data from the fiscal year sidered an Asian door, also hit $1 million a year. The

22 WWD BEAUTY INC

BB1409-PG0X-WELL-MultiCultural.a;15.indd 22 8/27/14 12:29 PM 08272014123229 Approved with warnings Clarins counter in Flushing, which was renovated this Manheimer says. These strategies have paid off. Indus- spring, reportedly did $800,000 last year and is aim- try sources estimate that Shiseido has about 30 doors, ing for $1 million this year. Industry sources calculate all considered “multicultural,” that do at least $1.5 mil- that the counter could reach $2 million in two years. lion in sales each. Clarins had no comment on the figures. Manheimer, herself a retail veteran, sees the new For Hamilton, the new demographic opportunity has emphasis on tailoring and micromanaging marketing brought new focus to the industry. “We’re taking every door by door as part and parcel of the dramatic shifts single door and profiling our business based on what is in American retailing of the last decade. “When we selling there versus the general population. Obviously talk about having these large Asian doors, 10 years ago in an African-American market, the darker shades in they were easier to track. Now, consumers are shop- foundation sell better, but they are still not at their po- ping online, they’re shopping in self-service, they’re tential. It’s tricky and it requires a lot of resources shopping in department stores, they can’t even tell you to get every single counter right.” where they’re shopping anymore. Each consumer base has its own nuances. “This just adds to making sure that each counter is “The most important thing if you’re in an Af- understanding their customer base, getting in touch,” rican-American market is to make sure your beauty she continues. “It goes back to the department stores’ advisers are primarily African-American, not just need to be focused on service and knowing their con- because they understand what their consumer base sumer so that we can better meet their needs.” wants but because their consumer base trusts them,” At Coty, Marc Rey, president of Coty USA and se- says Hamilton. Turning to Latina markets, she says, nior vice president of North America in the Global “We know that signage in Spanish is extremely im- Markets division, says he is not so sure that the U.S. portant, plus [having a] BA who speaks Spanish. And is a newly emerging market. “The U.S. is the world,” then tailoring the mix for them as well.” he states, noting that parts of it may be emerging but When it comes to dealing with different ethnic other parts, like the traditional Caucasian base, are groups from Asia, one common error marketers make maturing. “If you look at the Caucasians,” he says, “they is grouping them together. As an example, Hamilton tend to stop using fragrance. The penetration of the points to Flushing, which consists mostly of Mandarin- Caucasian is dropping. But African-Americans and speaking Chinese and Koreans. A contrasting example Latinos are overindexing like crazy.” is the Eastridge Center mall in San Jose, Calif., which As an example, he points to the Calvin Klein Eupho- is dominated by shoppers of Vietnamese descent. “All ria brand. Latinos overindex in sales of Euphoria by Asian counters are not alike,” she says. “We’re trying to 130, or 30 percent above the average. Caucasians, on tailor not only our [beauty advisers] but the way we the other hand, underindex at 85. Rey says that for all train them to talk to the consumers.” the fuss made over Flushing, Dadeland in Florida is the Latino equivalent, with Portuguese and Spanish as the main languages. He speculates that Dadeland f there is one company that understands the ranks fourth nationwide in fragrances. Asian customer, it is Shiseido, which arrived in Succeeding in a store like Dadeland or Flushing re- the U.S. in 1965 and established a foothold in quires understanding buying habits and also quirks. markets with strong concentrations of Asian As has been often stated, Asians tend to use seven Ishoppers. While trying to Westernize its sell- skin-care products daily—starting with a cleansing ing strategy, the Tokyo-based company continued to lotion or cleansing oil then working through a serum nurture its original base. In some of the bigger doors and finally a moisturizer—compared to three for a frequented by one large ethnic group or another, “we typical American. have been doing all of our communications not only “Latinos are the group that are most into beauty,” in English but in Vietnamese, Japanese and Chinese says Hamilton. “They overindex on virtually every for years,” says Heidi Manheimer, chief executive of- single category. For skin care, acne, uneven tone and ficer of Shiseido Cosmetics America. Part of this effort discoloration are their top concerns. In makeup, after is in the staffing, too. According to industry sources, mascara, the most important priority for Latinas is in the Macy’s in Eastridge Center, which draws on a eyeliner, and they are heavy, heavy users of traditional large Vietnamese population, Shiseido has seven Viet- lipstick and liners.” namese beauty advisers and the brand ranks second For Asians, the prime concern is skin care—whit- in its department. In the Macy’s in the Westminister ening, antiaging, hydrating, pore reducing; African- Styled by Isabel Dupré. Mall in southern California, all nine of the staffers are Americans are deeply interested in hair products. In Hair by Italo Gregorio at Bryan Bantry. Makeup by Vietnamese and the counter is a top performer. Since terms of color cosmetics for African-Americans, “their Joanne Gair for Walter the early days, Shiseido has printed sales pamphlets top concerns are uneven skin tone, difficulty in find- Schupfer Management in the different languages; more recently, it has been ing the right shades of makeup, then finding the right using Nars Cosmetics. Manicures by Elissa Ferri at “hugely successful” with multilanguage iPad selling shades in eyes and lips that show up and have a good ■ See Management. Models: tools. “If we have a customer now, no matter who is pay off,” says Hamilton. Bianca at Supreme behind the counter and what language they speak, we Both Hispanics and African-Americans are attracted Management; Rachelle and Jing Ma at Muse; can service them in English, Spanish, Chinese, Viet- to strong fragrances. Hamilton cites sales figures from Marina at The Society. namese, French, Korean, Portuguese and Japanese,” Viktor & Rolf’s Flower Bomb showing a high index of

WWD BEAUTY INC 23

BB1409-PG0X-WELL-MultiCultural.a;15.indd 23 8/27/14 12:29 PM 08272014123207 African-American and Hispanic purchasers, and says Latinos comprise more than 50 percent of fragrance sales in some doors during the Christmas season. These pools of consumer demographics are scat- tered across the U.S., forming a U-shaped pattern on the map, stretching from the Asians and Latinos on the West Coast, Hispanics in the Southwest and African- Americans crossing the South to a concentration in Atlanta, Spanish and Portuguese speakers in Florida and Asians in the East and Northeast. Philip Shearer, chief executive officer of the parent Paris-based Groupe Clarins, is a walking encyclopedia of department-store demographics in the U.S.—by the zip code—from his days here at L’Oréal USA and Estée Lauder. Shearer, who maintains that the most impactive trends start in California, says, “What has changed dramatically is the mix of the people you find here. This new emerging market in the U.S. is more due to the extraordinarily changing mix of the ethnic groups that make up America and that’s what makes it very different. You will see that the U.S. is one of the few countries that still has a decent demographic.” Zrihen estimates that there are at least 250 sol- idly ethnic department-store doors, 150 with large Hispanic populations and 100 dominated by Asians. Hamilton puts the number at 173. But the ethnic influence is powerful, considering that 250 doors is about one quarter of the department-store distribution of a brand like Clarins, and they tend to be among the highest-grossing stores in the country. Zrihen estimates that the basket of purchases in those doors could be 20 percent higher than the average because the Asians’ beauty routine is more expanded or “the fact that we can sell body products in addition to face [makeup] to the Hispanics.” A number of manufacturers credit Macy’s with its My Macy’s program of tailoring doors to specific locations, as well as Nordstrom in providing the department store backbone for multiculturalism. Muriel Gonzalez, executive vice president and general merchandise manager of cosmetics, fragrances and shoes at Macy’s, says the

retailer exercises great advantage by being a national Opening spread and cover: chain with the added beneﬁt of being able to focus local Bianca wears clothing by stores to satisfy demographic pockets. Moschino, boots by Betsey Johnson, sunglasses by “In the old operating divisions, Macy’s East might Ray-Ban; sock, worn as scarf, have had a few Asian doors, Macy’s West might have by Betsey Johnson. Ling had a few Asian doors, but neither of them had enough wears clothing by Moschino, boots by Jerome Dreyfuss, to really put together a complete strategy,” she says. socks by Betsey Johnson, “One Macy’s gave us the opportunity to look at our bracelets by Ben-Amun, hat doors based on the customer who shopped there and by A Peace Treaty. Rachelle wears clothing by Moschino, fur be able to do things that were not just one off, but that collar by Tanya Taylor, sneakers were scalable. by Manish Arora, socks by “We deﬁnitely do a tremendous amount of Hispanic Betsey Johnson, bracelets by Ben-Amun. Marianna wears TV,” she continues. “We also participate in local pub- clothing by Moschino, socks lications that reach the Chinese or Korean consumer and boots by Betsey Johnson, or even the Vietnamese consumer in southern Los bag by Manish Arora, bracelets by Alexis Bittar. Angeles. We are able to take the national strategy and, This page: Ling wears dress in the doors where it’s appropriate, add to it. We now by Manish Arora, boots by have the scale to ask a manufacturer to produce col- Betsey Johnson. Bianca wears clothing by Betsey Johnson, lateral in Mandarin or in Spanish or in Korean. We boots by Jerome Dreyfuss, have the scale to be able to look at the images that we bangles by Cara Croninger.

24 WWD BEAUTY INC

BB1409-PG20-WELL-MultiCultural.a;16.indd 24 8/27/14 12:37 PM 08272014123756 show. Many of our manufacturers have multiple inter- Zrihen says that Clarins realized that in the ethnic ters by Breen. She described a triangle between Man- national models and we can customize them, based on doors, the company had to offer the products that hattan, Queens and Brooklyn. First came the heavily the demographics of the door.” many visitors knew from home, which may not be Asian Flushing, 12 miles from Manhattan. Then she Gonzalez cites examples such as the Flushing available in the U.S. The counters have to be designed moved six miles to Macy’s in downtown Brooklyn, door stocking brands like Clé de Peau Beauté and La with sensitivity, too. “In Asia, they sit, they don’t stand, which has a large African-American clientele and a Prairie that are not found elsewhere in the chain in and they don’t like to have high chairs,” he says. Often, strong fragrance business. The third leg was Rego response to its strength in skin care. “There is no shoppers bring their friends or family along. “That’s Park, also in Queens, with a large Latina audience and question that in our heavily Hispanic doors in why in Japan, you have all these consultation tables a vibrant makeup business. “I said, ‘Here’s 12 miles Miami and in Texas we have enormous fra- with five or seven seats,” he says. apart in Manhattan, three different Macy’s doors. One grance businesses,” Gonzalez says, noting Breen agrees. “The counter design is different. You dominant in skin care. One strong business in terms of the Miami International store is 88 per- put much more in terms of consultation areas so that fragrance. Another strong business in terms of make- cent Hispanic. “All the collateral there is there’s room for people to sit down, because it’s not go- up,” she concluded. in Spanish,” she says, adding that there ing to be one-offs. You’re generally going to be selling Breen readily agrees that Lauder is out to promote are other malls heavily influenced by to two or three people at a time.” its growth, but points out, “It’s also the consumer ex- African-American customers or young Demonstration is key, especially in selling skin care, perience. We want her to have the best experience at people where celebrity fragrances, such to Asians. “Their routine has a lot of layering,” Zrihen any counter she goes to. Of course we’re looking for as Jay-Z’s Gold, are a big hit. says. “At all our counters we have a demonstration of growth, but it’s got to be with her experience at the “It’s important that the whole staff is how to apply the products. Typically in the U.S., we core of it.” diverse and reflects the community around try to be smart and efficient and quick and easy so you While Lauder has always focused and tailored the them,” says Gemma Lionello, executive vice have two or three steps and you’re done. presentation and product offering of each door to the president and GMM of cosmetics at Nordstrom. “In Asia, they want to have six to eight layers and local audience, the game has reached a more sophisti- As part of the drive to make customers feel at home, they will note each order. They want a full regimen,” he cated level. “We’re using information much more rig- Lionello cites Nordstrom’s Santa Anita store in South- says, adding that an entire education team is needed, orously in terms of determining what’s right; we’ve got ern California. “[It] is an amazing store because it per- complete with someone from Asia. For Hispanic cus- more globalization in terms of the consumer base and forms very well in skin care and color. More than half tomers, the consultation also is involved, but more like we also have much more sophisticated tools in being of our employees are bilingual. There are Hungarian, a party, complete with makeup artists and a makeover. able to identify these things,” says Breen. Italian, Spanish, Armenian, Mandarin, Cantonese, “You put out five chairs, a bit of music and you make it As an example, Lauder has developed metrics that Ethiopian, Thai and Vietnamese speakers. a fun event,” Zrihen says. “We created this happy hour allow marketers to pinpoint what stores can be con- “Some stores will skew one way or another in per- of beauty, which they loved.” sidered Asian or Hispanic or African-American. “For centages of ethnic customers,” she says of the 117-store instance, there’s a new product that we have in Estée chain. “We make sure we have the right selection for Lauder,” Breen says, “and I said, ‘Well, where are we them,” says Lionello, who pointed to the Ala Moana atinas make emotional connections going to introduce it?’ They said, ‘We’re going to put store in Hawaii, which is one Nordstrom’s highest per- with the brand and relationships, in- it in the Asian doors.’ They know exactly where these forming units in luxury skin care. In response to cus- troducing their daughters to the coun- Asian doors are, and so that product goes to the Asian tomers’ requests, the store recently added La Prairie, ter people. “With the Latina consumer, doors,” Breen says, estimating that there are nearly 100 SK-II and Amore Pacific. L it’s very much—in most cases—a family such doors in the Macy’s chain. During August, Nordstrom had a merchandis- situation,” says Breen. “She’ll come in with a sister, “If we have products for brows, the Latina consumer ing focus on foundation to emphasize the depth and a daughter, a mother. There’s a lot of strong family loves eye products,” Breen continues. “We know exact- breadth of its offerings to consumers. “As we grow as shopping happening.” ly how many doors there are. The product differentia- a company, we have to make sure we do a good job, “I built my Dadeland business by doing applications tion is important, the service expectation is different, taking care of each market in a unique way, as needed,” and events at the counter, not with additional gift-with- the makeup artist and/or beauty adviser and the look

Opening spread and cover: says Lionello. “Staying in tune by market is probably purchases, and no promotions,” Zrihen says. “It was all of that makeup artist has to be reflective of the con- Bianca wears clothing by our biggest challenge; that’s about learning about the about service. It’s the same for the Asians. They have to sumer in that particular door or that mall.” Moschino, boots by Betsey immediate customer base in the immediate market.” have great service. You have to have patience, you have Meanwhile, back at the Lauder counter in the Macy’s Johnson, sunglasses by Ray Ban; sock, worn as scarf, by But this multicultural flowering puts more on the to spend time with the customer, sitting down in chairs, in Flushing, Wei is talking about the future. “Makeup Betsey Johnson. Ling wears hiring and training capabilities of the brands. “When listening to their beauty concerns.” is a challenge for us, but it is also an opportunity,” she clothing by Moschino, boots you think about it from a macro-historical perspective, In recounting what he has learned, Zrihen says, “You says, explaining that most Chinese women are afraid by Jerome Dreyfuss, socks by Betsey Johnson, bracelets it’s really just another manifestation of the American need service for the Asians and you need trust for the to put cosmetics on their face. “That’s the biggest prob- by Ben-Amun, hat by A dream that you can have these amazing clusters of Hispanics. To build trust, you need also to spend time lem, application. They don’t know how to put it on.” Piece Treaty. Rachelle wears stores that cater to immigrants or to tourists who are and to create intimate relationships. With the Asians, it Wei sometimes tempts customers by wearing differ- clothing by Moschino, fur collar ent colors. “They are curious, but they want something by Tanya Taylor, sneakers coming to America, and we’re not treating them as one will be more an expertise relationship; Hispanics will be by Manish Arora, socks by suit fits all but realizing that there is real value in ad- more community or a close relationship. They basically that is simple, easy, fast to use,” she says. Wei believes Betsey Johnson, bracelets by dressing them as respectful of the culture from which operate by trusting one another.” there is such maniacal adherence to skin care because Ben-Amun. Marianna wears women are afraid to use color, partly because of age-old clothing by Moschino, socks they came,” says Hamilton. Hamilton says that presentation is also important. and boots by Betsey Johnson, On the subject of providing more personalized “When you have either a Latino or African-American Chinese taboos which frowned upon makeup usage, bag by Manish Arora, bracelets service, Hamilton says a different kind of training is door, it’s important to have the darkest shades promi- meaning their skin must look perfect naturally. by Alexis Bittar. But the dam is cracking. Recently Wei’s team did ■ This page: Ling wears dress required. “It’s another evolution towards the luxury nent at the beginning of the range, going from dark to by Manish Arora, boots by market needing to invest in service that is extremely light, rather from light to dark.” four makeovers at once in Flushing, when an ecstatic Betsey Johnson. Bianca wears micro-targeted to each door, according to the custom- Perhaps the most dramatic illustration of the op- customer called her friends and relatives. “Right now, clothing by Betsey Johnson, everybody wants to look fancy and pretty,” Wei says. boots by Jerome Dreyfuss, er clusters in that door. The more you master that, the portunities of emerging multiculturalism came in the bangles by Cara Croninger. more you’re going to drive your business,” she says. form of a presentation inside Estée Lauder headquar- “Everything will change, a big change; it’s open.” ■

WWD BEAUTY INC 25

BB1409-PG0X-WELL-MultiCultural.a;15.indd 25 8/27/14 12:29 PM 08272014123253 AS DIGITAL BECOMES A CORE COMPONENT OF BEAUTY MARKETING, BRANDS ARE RETHINKING THE VERY ESSENCE OF THEIR APPROACH.

BY JENNY B. FINE ILLUSTRATION BY HE STEPHANIE DALTON COWAN T VER- E XPANDINGCIAL E O S

ow that social media is firmly established as an essential aspect of the marketing mix, beauty brands are radically rethinking how they approach their digital initiatives. ORBITContent and commerce are increasingly intertwined; online and offline are converging in unexpected ways, and speed and agility differentiate the winners from the losers. “Digital has moved from the peripheral to the center, and it is influ- encing everything,” says Marisa Thalberg, vice president of corporate digital and content marketing worldwide at the Estée Lauder Cos. Jennifer Aaker, a professor of marketing at the Stanford Universi- ty Graduate School of Business, has tracked the evolution first hand. “Social media has been a catalyst for organizations to take digital seriously—both in terms of budget and resources,” she says. “At first, brands raced to accumulate as many fans and followers as possible; it was a landgrab rather than a thoughtful approach. Now, brands are examining more thoughtfully the approach they want to take.” The results of a survey that Tribe Dynamics conducted with about 30 major U.S. beauty brands for WWD Beauty Inc bear Aaker out. In terms of content creation, 85 percent of the respondents said they planned on increasing their Instagram activities, 73 percent their mobile content, 72 percent their blog content and 67 percent their YouTube content. Planned budget increases follow suit: More than

26 WWD BEAUTY INC

BB1409-PG0X-WELL-Social Media.a;15.indd 26 8/26/14 6:12 PM N08262014181337 AS DIGITAL BECOMES A CORE COMPONENT OF BEAUTY MARKETING, BRANDS ARE RETHINKING THE VERY ESSENCE OF THEIR APPROACH.

BB1409-PG0X-WELL-Social Media.a;15.indd 27 8/26/14 6:12 PM 08262014181355 75 percent report they will increase their budgets in content creation, mobile and gram is incredibly valuable, as we’ve seen brands like NYX capitalize,” he says. “We video production, and more than 60 percent will increase their spending in search, have to take into account its relative ‘newness’; there is less data available, so draw- e-mail and social-network marketing. On average, brands expect to increase their ing conclusions about its relationship with offline sales may be premature.” budgets by 21.3 percent next year. Almost 60 percent expect to increase their budget Still, there’s no denying that staggering numbers of people are engaged in online by at least 16 percent; over 35 percent expect their budget to grow by more than 25 dialogues. According to statistics cited by Thalberg, in 2012, there were 1.4 billion percent and 14 percent expect it to increase by at least 56 percent. active social-network users globally, a figure expected to reach 2.44 billion by 2018. “The emphasis on content creation is important and people are investing,” says Much of the conversation is now happening on mobile: Nearly 65 percent of the Conor Begley, cofounder of Tribe Dynamics. “Brands are moving from a mono- global population will use a mobile phone at least once a month in 2014, or 4.65 bil- logue to a dialogue.” lion users, according to statistics cited by Unilever. Smartphone users will account Moreover, brands are starting to see a return on their online investments. Tribe for just under one-quarter of the worldwide population, or 38 percent of all mobile Dynamics collaborated with The NPD Group to determine the relationship be- users, by the end of 2014. In North America, 52 percent of the population will use a tween online content creation and offline sales, comparing its social influence smartphone this year, while in Western Europe that number is 47 percent. data with normalized offline sales data from NPD for 10 top beauty brands. “We “When you look at our top 10 brands, 40 percent of the traffic to our Web site is found a direct correlation between the actual amount of content being created coming from mobile,” says Kristen D’Arcy, vice president of global digital at Coty. about a brand online and the amount of revenue they are generating offline,” says “We are thinking about how we design for mobile first. Consumer behavior is evolv- Begley. “The relationship exists.” ing as quickly as technology. So taking something that might happen traditionally Specifically, the results show that collectively, across the six major platforms, on a desktop and bringing it to life at point of sale is where we are starting to look.” when the amount of earned media value generated across a brand increases 50 per- The primacy of mobile and emergence of social media has also changed the cent, brand revenue increases 24.9 percent, a near two-to-one correlation. Breaking nature of how we communicate. “People want to be talked to, not at,” says Tamar it down to individual channels, Facebook most closely mirrored revenue, YouTube Yaniv, cofounder and chief executive officer of Preen.me. “As an example outside was second, then came Pinterest, Twitter, Instagram and blogs. That there was only of beauty, look at celebrities. On Twitter, you can engage directly with your fa- a minor correlation with Instagram surprises Begley. “There’s no doubt that Insta- vorite celebrity. You can still read about them in People magazine, but you can

WHO’S DOING WHAT

Tribe Dynamics surveyed about 30 major U.S. beauty brands for insight into how they plan on allocating their resources for digital in the year ahead, then synched its data with sales ﬁgures provided by The NPD Group to shed insight on the roi of online marketing initiatives. Visit WWD.com for an expanded group of charts.

DO YOU PLAN ON INCREASING DO YOU ANTICIPATE INCREASING CONTENT CREATION FOR YOUR CURRENT DIGITAL BUDGET IN HOW MUCH DO YOU ANTICIPATE YOUR DIGITAL THE FOLLOWING PLATFORMS? THE FOLLOWING AREAS? BUDGET WILL INCREASE NEXT YEAR? Instagram: 85% Mobile: 79% 3% of respondents: 0 percent increase Mobile Content: 73% Content Creation/Management: 79% 17% of respondents: 1-5 percent increase Blogs: 72% Video Production: 76% YouTube Content: 68% 17 % of respondents: 6-15 percent increase Social Network Marketing: 71% Pinterest: 65% E-mail Marketing: 64% 20% of respondents: 16-25 percent increase Articles on Other Web Sites: 63% Search Marketing: 61% 9% of respondents: 26-35 percent increase Twitter: 54% Analytics: 52% Facebook Posts: 45% Blogs: 42% 3% of respondents: 36-45 percent increase E-newsletters: 41% Website Design/Maintenance: 38% 6% of respondents: 46-55 percent increase Mobile Apps: 29% 14% of respondents: 56+ percent increase Tumbler: 28% Vimeo: 25% 11% of respondents Declined to answer Vine: 17%

DOES SOCIAL MEDIA ACTIVITY GENERATE OFFLINE REVENUE? WHAT IS THE IMPACT OF SOCIAL MEDIA ACTIVITY ON REVENUE?

100 100 90 90 80 80 70 70 60 60 50 50

40 CORRELATION 40 IMPACT ON REVENUE IMPACT 30 30 20 20 10 10 0 0

Source: TRIBE DYNAMICS and THE NPD GROUP

BB1409-PG0X-WELL-Social Media.a;15.indd 28 8/26/14 6:12 PM also engage directly with them in a way that doesn’t feel manufactured.” for example. “This is a sea change in terms of how we communicate with the con- That kind of access has empowered consumers, giving rise to user-generated consumer,” says Landau, “because you will also see that tonality shift in our advertising. tent, an approach that has had a significant impact in beauty already—to wit, Mi- You are going to see the conversation become more about emotionally connecting— chelle Phan. “User-generated content has disrupted the industry and created new I’m not going to talk all the time about 20 percent less wrinkles. We’re adding into habits,” says Yaniv. “If you look at the path to purchase, consumers are crowdsourc- the conversation how this is going to make you feel.” ing their reference material.” Unilever, too, has honed the technique of creating superengaging social media Data from WSL Strategic Retail bears Yaniv out, particularly when it comes to campaigns around an emotional insight connected to one of its brands—think Dove pre-shopping. In its recent How America Shops survey, one-third of the respondents and its multifaceted Campaign for Real Beauty—and more recently, it has started to reported they pre-shop fragrance, skin care, body care, hair care and cosmetics: 58 explore how it can leverage its brand’s DNA to enhance its real-time digital market- percent read online reviews, ratings and discussions, 53 percent visit retailer or ing capabilities. “It’s not just a war room. We systematically approach planning for product Web sites, 35 percent visit independent review sites and 28 percent talk agility,” explains Rob Master, vice president, media, Americas and Europe for the online with friends and family. “We always knew that people did their homework Anglo-Dutch giant. “We talk about the brand DNA: What do we stand for and what before going to a store,” says Wendy Liebmann, ceo of WSL. “What is so powerful, space does our positioning afford us to play in? What campaigns do we have coming though, is that nine out of 10 people who do this don’t change their mind when they up and where can we play with them in today’s pop culture?” get in the store. The Google ‘zero moment of truth’ is empowering decision making.” Master and his group have found there are two types of events that impact pop cul- That has huge implications for brands according to Liebmann, who notes: ture—things that just happen, such as unpredictable weather, and things that inevita- “Brands have to engage consumers at a much earlier stage. If people have made up bly happen, like celebrities behaving badly or a phenomenal sports feat—and come up their minds before getting to a store, if you’re not on the list, you lose out altogether.” with ideas tailored to each. For example, Axe created a campaign called Kiss for Peace, Sephora has always been at the forefront of digital experimentation, and it re- which was designed to be triggered by what Master calls “grand gestures of love.” So cently completed two major initiatives to better integrate its content and com- during the 2014 Grammy awards, when Macklemore and Ryan Lewis performed merce components that reflect the evolving consumer behavior Liebmann refers their song, “Same Love,” as 33 couples, some gay, some straight, exchanged marriage to—integrating content both into sephora.com’s search path and into product vows, Axe was ready with a social-media campaign that capitalized on the hoopla. pages. “Seven or eight years ago, the constant discussion was ‘Is it worth investing “It didn’t require getting a ton of people to sign off—we identified a key trigger, and in content if you’re a commerce player?’” remembers Julie Bornstein, chief mar- boom! Axe was there on Facebook and Twitter, being part of the story,” says Master. keting and digital officer of Sephora Americas. “Content online was still figuring Likewise, during the 2014 World Cup, Unilever was able to demonstrate that agil- itself out. It is definitely now the primary place that people consume information, ity in Mexico around its local ice cream brand, Holanda, when the Netherlands and so for us, given the brand we are and the experience we are dedicated to creating, Mexico squared off against each other. Nestle, its primary competitor in the market, it is super relevant and core to the shopping journey.” launched a “boycott Holanda” campaign. Thanks to the pre-work it had done, Uni- lever responded across a host of digital platforms with efforts like, “We should be eating Holanda for dessert.” “We even got a statement from the President of Mexico saying, ‘Take a moment and take a bite out of Holanda,’” says Master. “We turned the or many marketers, that dynamic has fundamentally altered whole situation on its head.” (For the record, the Dutch won the game 2 to 1.) their communications approach, from one that pushed out a Unilever is also exploiting the disintermediation between brands and traditional specific product-based message to an emotional appeal that media strictures by taking content directly to consumers. For example, rather than pulls consumers into its orbit. About a year ago, for example, launch its Dove Evolution ad during the Super Bowl, the 90-second spot, which Clinique hired 360i, a digital marketing agency whose “Dunk features an attractive woman being air-brushed into supermodel territory, debuted in the Dark” tweet for Oreo during the 2013 Super Bowl blackout has reached icon on YouTube, where it immediately garnered the attention of the chattering class— status.F “They helped us put our brand in the context of what it means to the con- Oprah, Ellen, et al. “[Digital] presents a new opportunity for us to think about how sumer” says Agnes Landau, senior vice president of global marketing of Clinique. we develop our own content and drive it through distribution,” says Master. “We started thinking about what our DNA is from an emotional standpoint. ‘I am a But it’s not just reaching out directly to consumers at a macro level. It’s micro dermatologist brand and allergy-tested and fragrance-free’ is not a personality. If a as well. Nars has one of the most sophisticated social-media strategies in beauty, brand is a person,” continues Landau, “that is what we do. But it is not who we are.” but at the end of the day, it’s the one-on-one interaction that its digital activities After a lot of “social listening,” Clinique hit upon the concept that it is a life-stage make possible that has really fueled its most-ardent brand advocates. “The kind of brand—often the first department-store brand a young woman tries, introduced to engagement our users want is either to be entertained or they are seeking value or it by her mom; the brand that many women turn to when they get married or have service or information,” says Heather Park, executive director of global consumer a child or start a job. In May, Clinique launched its #StartBetter campaign with a strategy and digital media at Nars. “Most importantly, they want to be heard or video on YouTube that starts out, “When was the last time you did something for the recognized that they are valued by the brand.” In other words, high tech has led to first time?....Let’s make more of those moments happen.” There is nary a product to high touch. In the case of Nars, hand-written notes and product samples are sent be seen, although the video does feature the brand’s signature pastel color palette. out to about 50 “Narsissists” around the world every month. “People Instagram the “We had to put the consumer at the center of the conversation,” says Landau. package down to the ribbon we wrap it in,” says Park. “It’s not about me and what message I, as a marketer, want to give you, the con- Detail oriented? You bet. But it’s just those details that are driving brand success- sumer. It is about what you are doing and how I integrate the brand message in es today. Consider NYX Cosmetics, the California-based indie makeup brand that an authentic way with what you are doing in your life.” L’Oréal reportedly paid $500 million for in June. In its 15-year history, the brand The video generated the brand’s highest engagement numbers to date, garnering never ran a print advertising campaign in consumer magazines—it relied solely on about 1.4 million views in six weeks, a strong performance for Clinique. Phase two digital media, a fact which analysts say rendered it especially attractive to L’Oréal. of the campaign, rolled out in August, featured various artists’ interpretations of the “At NYX’s inception, we sold almost exclusively to the professional beauty class of Start Better idea, while in September, October and November, the brand will start trade,” says Scott Friedman, ceo. “As word of mouth transitioned into formal social ■ phase three with its in-store sales consultants telling their stories about how they media platforms, we had an existing audience within the online beauty community help people. In December, to coincide with New Year’s resolution-making, Clinique to actively engage...While NYX wasn’t founded to be a social media–driven brand, will introduce an in-store piece with advice culled from Glamour magazine experts instead one driven by word-of-mouth growth, this platform has helped build our about the things that matter most to its community—how to start better in your job, strong industry credibility and connection with the consumer.” ■

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BB1409-PG0X-WELL-Social Media.a;15.indd 29 8/26/14 6:12 PM 08262014181415 CALIFORNIA DREAMIN’

INNOVATIVE BEAUTY BRANDS ABOUND IN THE LAND OF OPPORTUNITY. BY RACHEL BROWN

California is nicknamed the Golden State, but for beauty brands, a better moniker might be the Green State. Beauty conglomerates and private equity firms are pouring cash into California at an unprecedented rate. L’Oréal is perhaps the state’s biggest beauty sugar daddy. In less than two years, it bought three Southern California brands: NYX, Baxter of California and Urban Decay. But it’s hardly alone. The Estée Lauder Cos. nabbed Smashbox, Coty Inc. snapped up OPI Products Inc., Henkel AG added Sexy Hair Concepts earlier this year and the list goes on. What’s behind the great innovation machine that is California? “It’s in the water. It’s in the sunshine. It’s in the creativity,” quips Mona Monaghan-Kelliher, who recently moved from New York to L.A. to become chief marketing officer of Milani. Vennette Ho, managing director at Financo, says, “The West Coast is a huge center of innovation for the beauty industry, and is its own little microcosm in terms of talent.” In particular for beauty, California’s pole position in digital technology, celebrity culture, the health and wellness movement and as the gateway to Asia makes it fertile ground for beauty upstarts. No wonder, then, companies born there have become attractive acquisition targets, a fact not expected to change soon. Talking about the mergers and acquisitions market, Andrew Charbin, senior vice president at The Sage Group, says, “Deal volume will stay high for the rest of this year. There are all kinds of records that could be broken. We’ll see a good number of companies that aren’t in market now consider going into it fourth quarter this year or beginning of next.” Here, 10 California-based brands that industry insiders say beauty buyers would be happy to get their hands on.

STILL-LIFE PHOTOS BY GEORGE CHINSEE LOCOTE BY TREES MEDIA; PALM EPIC STOCK BY PHOTO SURFER B.SULLIVAN; BY ILLUSTRATION PHOTO

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BB1409-PG0X-WELL-California.a;13.indd 30 8/26/14 1:31 PM 08262014133454 JOSIE MARAN GLAMGLOW TOO FACED Josie Maran personifies the golden girl ethos of Mud, of course, isn’t usually that sexy. But As two kids working behind cosmetics counters Southern California, but the former model has throw in a Hollywood backstory (Shannon in the Nineties, Jerrod Blandino and Jeremy channeled the business savvy of her birthplace and Glenn Dellimore, the husband-and- Johnson peered out at a sea of brands packaged into her role as beauty entrepreneur. “I’m from wife cofounders of GlamGlow, whipped up in black and dreamt of creating an oasis of pink. DREAMIN’ Silicon Valley, so it’s in my DNA,” says Maran. the initial batch for actors who wanted to “We saw first hand the need for fun, inspiration Undeniably, the change-the-world, go-with-your- look good on camera), a slew of advanced and femininity,” says Blandino. Thus was born gut gusto of Silicon Valley is ingrained in Maran, ingredients (SuperMud Clearing Treatment Too Faced in 1998, with an unabashedly girly who launched her prestige eco-conscious has a six-acid AHA & BHA blend and activated approach that was embodied in glitter eye INNOVATIVE BEAUTY BRANDS ABOUND cosmetics brand in 2007. “I would always ask charcoal, for instance) and choice distribution shadow, a hit out of the gate. Today, Sephora, makeup artists if they had something that was (Neiman Marcus, Sephora, Harrods and Ulta and HSN are its largest retailers; prices range IN THE LAND OF OPPORTUNITY. healthier, but they would say it was impossible Selfridges) and mud becomes quite alluring. from $17 to $49. The Irvine-based brand is sold to have healthy, natural products that were Alluring enough for GlamGlow to generate in some 3,000 doors globally, and 25 percent BY RACHEL BROWN good enough. I really wanted to prove them $3.2 million in sales at retail in 2011, when of its business is international. “Year after wrong,” she says. The argan oil that’s become it launched, $17.5 million the next year and year, we have had thrilling comps, but in the a centerpiece of Maran’s line was a fortunate $106 million the year after that, according to last three years, we have skyrocketed to a accident. “I discovered it on a modeling trip and Glenn Dellimore. Alluring enough to spread whole other place,” says Blandino. Bestsellers fell in love,” she recalls. Today, argan oil is used GlamGlow to more than 6,000 retail doors include the mascara Better Than Sex, which in everything from her mascaras to moisturizers, in 87 countries, almost 1,000 spas, 26 airline Blandino says is up 200 percent: and accounts for a third of sales. Prices range carriers and a handful of the world’s best hotel “Having 200-plus percent comps is from $6 to $96 for the L.A.-based company. properties. Each of the five stockkeeping not normal.” A brand so dependent upon a single units is priced at $69. Dellimore attributes It’s also not normal for a brand California is nicknamed the Golden State, but for beauty ingredient might seem like a risky bet. But argan GlamGlow’s rise to its positioning and the to stay independent with that kind brands, a better moniker might be the Green State. Beauty oil is the liquid gold that transformed the format immediate results. “Consumers love that the of performance. Blandino says he and conglomerates and private equity firms are pouring cash into into a significant category in the U.S. “Josie products work. They can see the results after Johnson rebuffed offers for Too Faced for California at an unprecedented rate. L’Oréal is perhaps the Maran will keep its first-mover status,” says one use,” he says. state’s biggest beauty sugar daddy. In less than two years, years, but finally decided to relinquish a majority it bought three Southern California brands: NYX, Baxter of Jani Friedman, vice president of new brand Potential buyers might love different stake to Weston Presidio in 2012 to better California and Urban Decay. But it’s hardly alone. The Estée development at Guthy-Renker and a former results: the ones that show on a balance support its substantial growth. Eric Hohl, chief Lauder Cos. nabbed Smashbox, Coty Inc. snapped up OPI managing director at Demeter Group. “They’ve sheet. Dellimore says he and Shannon operating and financial officer, says, “Jeremy and Products Inc., Henkel AG added Sexy Hair Concepts earlier made it very easy for people to get into oils.” receive calls at least every other week from Jerrod are the right blend of creative with business. this year and the list goes on. If Maran wanted to sell—which she and her people interested in buying or investing in the The history of the company is nothing but pretty What’s behind the great innovation machine that is husband, brand president Ali Alborzi, insist Hollywood-based brand. Financial sources say solid growth in the top line, and it has been California? “It’s in the water. It’s in the sunshine. It’s in the they have no intention of doing—Friedman The Sage Group is marketing GlamGlow. A profitable since Day One.” Sources estimate Too creativity,” quips Mona Monaghan-Kelliher, who recently and financial sources say it would field plenty GlamGlow spokeswoman clarified that Sage Faced’s yearly retail sales volume at about $150 moved from New York to L.A. to become chief marketing of offers. Alborzi said sales have grown from has been advising it on business matters for million. At multiples of two times revenues on the officer of Milani. Vennette Ho, managing director at Financo, $1 million in 2009 to more than $100 million years. Sage declined to comment. Dellimore low end to five times on the high end, Too Faced says, “The West Coast is a huge center of innovation for the annually, which could garner $200 million to is in no hurry to sell GlamGlow. “The company beauty industry, and is its own little microcosm in terms of could be worth $200 million to $750 million. talent.” In particular for beauty, California’s pole position in $500 million in an acquisition based on recent doesn’t need money. We have incredible Financial sources believe Too Faced could digital technology, celebrity culture, the health and wellness multiples. EBITDA. We have no debts. We have cash in attract similar parties to those that were interested movement and as the gateway to Asia makes it fertile ground “We are self-funded, and we plan to remain the bank,” he says. in Tarte and Urban Decay. Names mentioned for beauty upstarts. so. I meet with people because it’s important to Prospective buyers would be intrigued by include Kosé, L’Oréal, Estée Lauder and No wonder, then, companies born there have become understand the climate,” says Alborzi. “Our vision its rapid growth, says Financo’s Ho, but they’d Shiseido. One financial source says, “Too Faced attractive acquisition targets, a fact not expected to change is to pass it down to our kids, but who knows “have to decide if it is a [long-term] trend is kind of the last great indie brand, and there is soon. Talking about the mergers and acquisitions market, what the climate can look like, though we have or a fad.” They may be willing to come in at a scarcity there. If I’m a strategic and I don’t have Andrew Charbin, senior vice president at The Sage Group, definitely gotten over the hurdle of needing a the lower end of a valuation range that goes an indie-type brand that speaks to Millennials and says, “Deal volume will stay high for the rest of this year. money injection through a partner.” from $200 million to $500 million, but higher social media, I’d be interested.” Zach Grannis, There are all kinds of records that could be broken. We’ll Currently sold on QVC and in Sephora in the valuations could be difficult without additional business development analyst at CircleUp and see a good number of companies that aren’t in market now U.S., the brand is expanding internationally and time to prove its model. No matter. Dellimore consider going into it fourth quarter this year or beginning of formerly an investment banking associate at next.” Here, 10 California-based brands that industry insiders considering infomercials and stores. “We have indicates he’s not in the beauty business for a Piper Jaffray, stresses Too Faced’s social media say beauty buyers would be happy to get their hands on. gotten here through intuition and Josie’s drive,” quick buck. “For Shannon and I, money doesn’t prowess. “They do a great job at social marketing. says Alborzi. “We think there is a huge potential motivate us,” he asserts. “We have a lot more to Their founders really drive the authenticity of the

STILL-LIFE PHOTOS BY GEORGE CHINSEE LOCOTE BY TREES MEDIA; PALM EPIC STOCK BY PHOTO SURFER B.SULLIVAN; BY ILLUSTRATION PHOTO to grow even bigger.” give to the company that we’ve created.” brand,” he notes.

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BB1409-PG0X-WELL-California.a;15.indd 31 8/26/14 2:45 PM 08262014144748 Approved with warnings MURAD KATE SOMERVILLE DOLLAR SHAVE CLUB Dermatologist Howard Murad is the Kate Somerville brings the clinic to the Dollar Shave Club, founded in Los guy who arrives at the party before the cosmetics counter with an aura of in-the- Angeles, is for dudes with attitude. guacamole is whipped: He opened a know cool. The aesthetician opened her The brand’s sensibilities are captured day spa in 1987 when only a smattering clinic in West Hollywood in 2004 and with perfect pitch in the 2012 video existed in the U.S.; he started his cultivated a clientele plucked from the “Our Blades Are F**king Great,” doctor brand in 1995 before there pages of People magazine. “It was hip and which has collected almost 16 million was a category known as such, and he felt comfortable, but you would also get YouTube views, and in profiles DSC cultivated an omnichannel approach results, and you wouldn’t look beat up after,” does of members in its magazine to retail long before it became a says Somerville. “The celebrities really intended for bathroom reading. buzzword du jour. Being first has paid started talking in the press about it. Back “These are guys who quit their off. Murad’s 2013 sales are estimated then, it wasn’t $40,000 to tweet something. job to start a BBQ business or to have gained 12 percent to hit $206.6 It was just a bunch of great girls like Kate bike business. They’re people million, and the El Segundo-based Walsh and Debra Messing saying ‘Kate who drive around Asia to raise brand, with products priced from $16 to Somerville’ when they were asked about money for charity or start a high school $150, has been profitable most of the their beauty secrets.” robotics program,” says DSC founder years its been in business, says Murad. What celebrities get, noncelebs want. Kate Michael Dubin. They are also guys who Over the next five years, Murad’s Somerville’s number-one product, ExfoliKate, care about what they look like. goal is to double sales. “The trend is grew out of a service at the spa and sold out Dubin estimates Dollar Shave Club more growth in professional and in in four minutes at its launch on QVC in 2006. has captured 7.5 percent of the U.S. retail, and less growth in direct,” says Somerville brought on the private equity cartridge market and is on track to Murad’s nephew and the brand’s firm JH Partners in 2007, when her business, generate $60 million in revenues this general manager, Richard Murad. between the clinic and the skin care line, was year after hitting $20 million last year. “We are supporting that by using more estimated to be about $12 million. Today, There are more than 800,000 active direct to drive traffic to retail. Frankly, I sources estimate brand sales of $30 million members who pay from $1 to $9 for don’t care where the sales come from to $40 million, with 12 percent coming from blades monthly. Now, Dubin wants to as long as we are touching the right international. Product prices range from move beyond razors to, in his words, customers.” International will certainly $22 to $195. “Our compound growth rate “own the men’s bathroom.” Already, he play a larger role. Murad recently in Nordstrom and Sephora is 20, 30, 40 says, 40 percent of members are using bought its U.K. distributor, and Richard percent a year over the last five years,” says the brand’s nonrazor products. Murad explains the brand will use it “as ceo Michelle Taylor. When asked about Dollar Shave a staging point for Europe because the The JH chapter of Kate Somerville’s story Club, financial sources swoon. “Love, U.K. has been a great success for us.” may be coming to an end. “The Lauders, the love, love,” exclaims one. But there are Murad is also opening a Hong Kong L’Oréals, the Cotys of the world have proven notes of caution about its profitability office to shepherd its Asian operations. that they can build brands, and they have and valuation. Dollar Shave Club The size and scope of the enterprise teams that they can plug you in to. I feel like has raised around $23 million in has attracted suitors. In 2007, Murad I have gotten the brand to a place where that venture capital, and venture capitalists had serious discussions to sell to the is needed now. Whoever does come in at may aim above the multiples of at Estée Lauder Cos. “It just wasn’t the this next juncture can just blow it up,” says minimum two to at maximum five times right time,” says Howard Murad. “We’re Somerville. revenues customary in beauty. Ho a family company. We enjoy what we Sources say Kate Somerville would says, “A transaction for a company [like do.” Even though the brand could fetch be a pretty small purchase for a flush Dollar Shave Club] is less likely to be as much as $500 million to $1 billion, conglomerate—estimates range from $100 multiple-driven. It’s more likely to be sources estimate, Murad is in no rush. million to $400 million based on recent about someone paying an outsized “It would take a significant amount multiples and the brand’s sales—and that price today for the future potential of a of money to dislodge ourselves, and it it’s premium positioning is valuable. “Your trailblazing business model or brand. would have to be a company that we crowd [of prospective buyers] is quite large There is a lot of money right now that felt could grow the brand better than if you have a successful prestige skin care needs to be put to work, and there are we could,” says Richard Murad. For brand. It really comes down to the scale. a lot of strategics who can theoretically now, Howard Murad says, “I look at this How proven is it? How much does it work in afford to be less price and multiple- as a wonderful time in my life.” Why different geographies? It has been built very sensitive because it ends up being a change? thoughtfully,” says one financial source. drop in the bucket for them.”

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BB1409-PG0X-WELL-California.a;15.indd 32 8/26/14 2:45 PM 08262014144701 TRIA BEAUTY YES TO MILANI DERMALOGICA How’s this for differentiation: Tria Beauty Yes To might say yes to a deal, if the price With E.l.f. Cosmetics snapped up by Dermalogica is like a dancing elephant has the sole FDA-cleared at-home laser is right. According to financial sources, the TPG Growth and L’Oréal paying a that refuses to join the circus. Perennially hair-removal device on the market. brand was on the market, but an acquisition pretty penny for NYX earlier this year, chased by hungry suitors, husband-and- Founded in 2003 by a team of failed to materialize. “It was a busted all eyes are now on Milani. A long-time wife Ray and Jane Wurwand, who launched scientists who had previously process. Their valuation expectations were staple of retailers like Walgreens, CVS the line in 1986, have steadfastly remained developed LightSheer laser too high,” speculates one source. With and Wal-Mart, the brand started life on the acquisition sidelines. This year, it hair removal for physician’s estimated yearly revenues north of $50 in nail and lip, and targeted African- was rumored that L’Oréal bid $1 billion offices, Tria didn’t really million, typical beauty multiples equate to American shoppers. The owners of to win over Dermalogica, but the brand catch on until Clarisonic a valuation of $100 million to $250 million Jordana Cosmetics, Ralph Bijou and continues to be owned by the Wurwands. broke into bathrooms. But for Yes To. But Burt’s Bees established a Laurie Minc, picked up Milani from With annual sales estimated between $200 now it’s on fire, with devices towering benchmark in natural personal Nina International in 2001 and swiftly million and $300 million, the offer would priced from $299 to $495, and care by selling to Clorox for around $925 went about broadening its range and have placed the L.A.-based company in retail sales estimated at $100 million in 2007 when the brand was reach, although Monaghan-Kelliher the rarefied world of beauty brands that million for the Dublin, Calif.-based expected to generate $170 million in sales. says a perception still exists that have nailed down a multiple of more than firm. “We’ve gone from a handful of San Francisco-based Yes To may not Milani, based in Los Angeles, is an three times revenues. Questioned about early adopters to the mainstream,” says command that much on the open market African-American brand. To extend its a potential deal with L’Oréal, Dermalogica Kevin Appelbaum, ceo. As the beauty- or have nabbed its preferred price yet, but reach, Milani has been emphasizing president Jerry Wenker said, “Lots of equipment sector evolved, so has Tria, it does have traits that make it an attractive its multicultural orientation, a strategy rumors have abounded over the years into the acne and antiaging segments. candidate. It’s achieved girth in a category that appears to be paying off. “We have concerning Dermalogica, but there is “Our fastest-growing device is antiaging, where few brands have, with a door count over 67 percent market share for that absolutely no truth [to the rumor] that which launched in January, and is already of more than 20,000 in the U.S., including audience,” says Monaghan-Kelliher, L’Oréal is acquiring Dermalogica or even a quarter of our business,” says the ceo. CVS, Walgreens, Wal-Mart and Kroger. noting that half of Milani’s customer that Dermalogica is for sale.” Rather than go the acquisition route, Prices range from $2.99 to $19.99. Steven base is Caucasian, and half is a What’s so intriguing about Dermalogica? Tria was headed toward trading on the Davis, partner and managing director at multicultural melting pot of African- Vera Sandarová, a marketing manager at NASDAQ until it pulled the plugged on an Intrepid Investment Bankers LLC, says, Americans, Asian-Americans and Kline & Co., says, “It is very stable. It is a IPO in 2012. Today, Tria would consider “Natural and organic continues to be hot. Latinas. “The common denominator cornerstone of the spa industry and it has either an IPO or an acquisition. “Over the Beauty and personal care tend to follow is that these are women who love to a great reputation.” One financial source course of the next 12 months, I expect food and beverage. You’re starting to see experiment with color.” says, “It is just a powerful brand within its that one of those two things will happen,” a lot of momentum there.” Naming Clorox, Milani has also beefed up its channel. I’ve seen studies that found it says Appelbaum. Still, venture-backed Unilever, Beiersdorf and Johnson & Johnson executive ranks, with a new chief has the highest brand recognition within Tria faces hurdles due to profitability as potential acquirers of Yes To, another financial officer, senior vice president the spa marketplace.” Dermalogica has concerns and pricing expectations. “They source says, “I don’t know why no one has of product development, vice president approximately 120 products, and is available have been through institutional financing bought them. I am frankly surprised.” of sales and business development in 7,000 skin-care centers, spas and salons that can be viewed as a more intensive Joy Chen, who was brought in as Yes To’s and vice president of regulatory in in the U.S. The brand is sold in around 80 bridge to a broader liquidity event. It is ceo in 2009 by its private equity backers, addition to the new cmo, bolstered its countries, and sources figure international not the typical beauty brand that had a San Francisco Equity Partners and Simon pipeline of product innovations and sales account for half of its business. But private equity sponsor for a few years,” Equity Partners, can envision it as part of amped up its social media presence. its strength in the professional segment is says Grannis. When Tria was weighing a larger entity. “We would benefit from a The hires fueled speculation that Milani what makes it particularly appealing. “You an IPO, its valuation was roughly $289 scaling perspective,” she says, adding, could be setting itself up for a sale, leverage your options with distribution,” says million, and it was coming off of 2011 “There are still a lot of opportunities that which Monaghan-Kelliher firmly denies. Friedman. Jane Wurwand doesn’t seem net sales of $45 million and losses of we feel we can do independently. That’s At the moment, Milani, which willing to let that happen. “The advantages $34.8 million. A comparable multiple why we’ve held off to date.” Yes To has sources estimate generates $60 of being an independent company is that we would put its current worth in excess of been going after those opportunities, million to $100 million in annual are agile, nimble and can respond to what’s $600 million. One source says, “They repositioning itself to speak to a broader sales, is unlikely to lure an offer that happening on the ground,” she said in GCI got some really high valuations from early customer base, adding a host of fruits and matches NYX’s, but its enhanced magazine’s March issue. “It allows us to investors. It’s going to be hard for those vegetables to address a variety of concerns. internal prowess and the burgeoning react quickly to situations and opportunities groups to get a valuation that will appease Yes to Cucumbers has become its biggest multicultural population make it an as they arise without having to go through them.” Appelbaum’s pitch is that Tria line; this year’s priority is making Yes to attractive prospect. “They [Minc and any red tape. We can develop products that has a sustainable competitive advantage Coconut a success. Predicts Chen, “Natural Bijou] are positioning this business to we feel are interesting, unique and niche. through its intellectual property and that beauty is in its infancy, and it is going to double, and it is doing extremely well,” We are planning for the long-term brand topicals are a significant opportunity. continue to grow.” says Monaghan-Kelliher. identity—not just the next quarter of profits.”

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BB1409-PG0X-WELL-California.a;13.indd 33 8/26/14 1:32 PM 08262014133541 LAST CALL A twist on casual braids.

The age of embellishment.

BRAIDS

BOLD LIPS

FACIAL JEWELS

Girly colors with an edge.

STREET STYLE BEAUTY NATION ERICKA FRANKLIN TRACKS THE HIPPEST HAIR AND MAKEUP TRENDS AT BEAUTYCON L.A. BRIGHT HAIR Beauty gurus and fans gathered at the L.A. Mart in late August for the third-annual BeautyCon Los Angeles summit, showcasing a slew of emerging trends. A large number of attendees turned out with brilliantly colored hair in shades of purple, blue and pink, and equally bold-colored lips. Texture and braids made a strong statement, while body jewelry found a spotlight among a coterie of girls donning nose rings or decorating their eyebrows with gemstones. Although most beauty mavens rocked just one trend at a time, others went the extra mile combining several looks together for maximum effect.

Black and white and red all over.

NAILS KEENAN STEFANIE BY PHOTOS

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