www.bwconfidential.com The inside view on the international beauty industry March 31 - April 13, 2016 #128

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The buzz 2 Niche influences News roundup t’s no secret that the niche and high-end fragrance Netwatch 6 Imarket is attracting more attention from brands and retailers. This is mostly down to the growth in the sector: Social media monitor the category is seeing increases of around 20% a year, according to some sources. Interview 7 However, what is emerging as a new trend is the Qatar Duty Free senior vice increased focus brands are putting on their high-end and president Keith Hunter exclusive collections in terms of retail. In January, LVMH- owned Guerlain set out to reinforce its positioning as a Insight 10 fragrance expert with a new boutique in Paris devoted Make-up in Brazil entirely to scent. With the new store, the brand aims to put its fragrance heritage on show and celebrate the art of perfumery. Also at LVMH, Dior has just opened Show review 13 a pop-up store in Paris devoted to its high-end line, La Collection Privée Christian Cosmoprof Worldwide Bologna Dior. It is unclear whether this initiative could be a test for a permanent fragrance store. Store visit 15 Niche fragrance players have attached importance to having their own stores Dior pop-up store, Paris for some time—Jo Malone, Annick Goutal, Editions de Parfums Frédéric Malle, to name but a few, all have their own boutiques. In many ways, niche brands have pushed more mainstream players into new areas (they are credited with encouraging major companies to launch their own private-collection lines). The question now is whether these players will also lead the majors to take a different route when it comes to retail. Meet the BW Confidential team at:

Oonagh Phillips l Duty Free Show of the Americas, Orlando, April 3-6 Editor in Chief l in-cosmetics, Paris, April 12-14 l Luxe Pack Shanghai, April 13-14 [email protected] l BeautyEurasia, Istanbul, April 21-23 l TFWA Asia Pacific, Singapore, May 8-12 l Luxe Pack New York, May 11-12 l Beauty World Middle East, Dubai, May 15-17 News headlines daily on www.bwconfidential.com @BWCbeautynews News roundup At a glance...

n Avon to cut 2,500 jobs

n Revlon appoints new ceo The buzz n P&G to launch new Stella McCartney fragrance

Stay informed with our daily news headlines on www.bwconfidential.com

Strategy

US-based Avon Products is to cut 2,500 jobs as part of its three-year restructuring plan, which it outlined in January. The company expects to make 1,700 of the job cuts in 2016, and anticipates pre-tax savings of about $30m in the same year. It also expects to achieve annualized pre-tax savings in the region of $65m-$70m beginning in 2017. As well as job cuts, the company will move its corporate headquarters to the UK. Avon Products previously separated its North American business into a privately held company, in which Avon holds a minority interest. The company said that the North American business will not be affected by any of these moves.

Swiss group Nestlé’s Nestlé Skin Health is to take a majority stake in non-prescription acne brand Proactiv through a joint venture with the brand’s current owner and direct marketing company Guthy-Renker. The transaction is subject to competition authority clearances.

French group L’Oréal has signed an exclusive license agreement with augmented reality technology company Image Metrics for new make-up services. L’Oréal Paris first partnered with Image Metrics in 2014 for the launch of the brand’s Makeup Genius, an app that allows virtual make-up to be applied to users’ faces in real-time. The app aims to help consumers better choose their purchases. Almost 20 million users worldwide have downloaded Makeup Genius, according to L’Oréal. L’Oréal says the partnership will enable the development of new features and the addition of new products.

Swiss flavor and fragrance company Firmenich has inaugurated a plant in Buenos Aires, Argentina. The company says that the new plant will enlarge Firmenich’s footprint in Argentina, as well as serving more than 100 customers across 10 markets globally.

Flavor and fragrance company IFF has teamed up with French perfumery school ISIPCA to offer a master’s program in scent design and creation. The three-year course will take place at ISIPCA’s Versailles campus in France. IFF said that the new partnership represents an evolution of its existing perfumery school.

The 24th edition of the French FIFI Awards, which recognize perfume excellence and are organized by The Fragrance Foundation France, will take place in Paris on April 14. This year’s awards ceremony will be held at famous cabaret, the Lido de Paris. The event will include extracts of the Lido’s latest show choreographed by Franco Dragone n n n

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n n n and featuring singer Manon Trinquier. The ceremony will award a total of 16 prizes, including the FIFI d’OR, which is judged by a jury of artists. This year the FIFI d’OR jury is presided by designer Jean-Charles de Castelbajac. The French FIFIs are awarded to fragrances that launched in France the previous year in the market’s main distribution channels. The buzz Results

Swiss travel retailer Dufry reported a net loss of CHF36.9m ($37.3m) in 2015 compared to a net profit of CHF85.8m ($86.82m) a year ago, due to costs linked to its acquisitions of operators Nuance and World Duty Free. Sales rose 46.3% to CHF6.14bn ($6.21bn) last year. Organic sales, however, were down 5.3%, while on a like-for-like basis, sales fell 5.6%. Organic growth for the year was impacted by the volatility in emerging-market currencies, which reduced the purchasing power of certain emerging-market consumers, notably Brazilians and Russians. Organic growth excluding these two customer groups was 4.0%. Dufry said its main focus for 2015 was the integration of Nuance Group, which was completed by year-end. The company opened a total of 189 new stores in 2015. For 2016, Dufry will focus on integrating World Duty Free, which it acquired last year. The integration plan is expected to be completed by mid-2017.

France-based Interparfums SA generated net income of €29.2m in fiscal 2015, growth of 25%. The group reported a 10% increase in net sales to €327.4m for the year. The company cited strong growth from its Jimmy Choo and Montblanc brands, coupled with a favorable foreign exchange impact, as reasons for growth. In 2015, Interparfums boosted its marketing and advertising budgets. The company has a total marketing and advertising budget of almost €80m for 2016. It says it plans to allocate substantial resources to develop its brands, notably for the Coach launch this fall. For 2016, the company anticipates an operating margin between 12% and 13%.

BW Confidential French group Hermès posted a 13.2% increase in net earnings to €973m in 2015, 4 avenue de la Marne 92600 Asnières sur Seine, France after a heavier tax expense. The company saw an improvement in operating margin of [email protected] Tel: +33 (0)1 74 63 49 61 0.3 points (31.8% of sales), despite the impact of currency fluctuations. As previously Fax: +33 (0)1 53 01 09 79 reported, sales rose 18% (+8% at constant exchange rates) to €4.84bn for the year. www.bwconfidential.com ISSN: 2104-3302 Hermès said it increased its workforce by almost 500 people, including 400 in France, Publisher: Nicolas Grob Editorial Director: Oonagh Phillips mainly in its production facilities and sales teams. [email protected] For fiscal 2016, Hermès stated that due to economic, geopolitical and monetary Journalist & Copy Editor: Katie Nichol [email protected] uncertainties, sales could be below its medium-term goal of 8% growth at constant Contributors: Sophie Douez, Alex Wynne, Renata Ashcar, Mayu Saini, Raphaëlle Choël, exchange rates. Corinne Blanché, Naomi Marcoulet Subscriptions 1 year: electronic publication (20 issues) + print magazine (4 issues) + daily news: €499 Retail or US$699 [email protected] Advertising [email protected] Lancôme and Chanel were the big winners at retail group AS Watson’s first European BW Confidential is published by Noon Media Luxury Beauty Awards, which took place on March 17. Lancôme won prizes in the 513 746 297 RCS Nanterre Copyright © 2016. All rights reserved. fragrance, eye make-up, facial make-up and specialist products categories, while Chanel Reproduction in whole or in part without permission is strictly prohibited. took home awards in men’s fragrance, eye care and lip products. n n n

www.bwconfidential.com - March 31 - April 13, 2016 #128 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL The buzz group’s 175 countries. Theretailersaidthattheobjectiveofawardsispartlytocelebrate Perfume Shop.Thesecondroundofvotinginvolved12,270customersacross14 Watson’s 1,500storesacrossEurope,namelyinMarionnaud,ICIParisXLandThe quarter of2015,withthefirstroundvotingincluding3,400beautyadvisorsinAS for theirfavoriteluxurybeautyproducts.Thevotingprocesstookplaceinthefourth People People News roundup complexion-preparation productsthan falling, asconsumers lookmoreto sales declined. from onlinesales,whilebrick-and-mortar year. Inaddition,skincare’sgrowth came and accountedforallcategorygainslast combined shareofprestigeskincaresales clinical orientationnowrepresentthelargest ingredients. Brandswithanaturaland/or doctor endorsementsandnatural/organic are mostlikelytolookforproductswith skincare. Italsonotedthatmillennialusers fragrance andfewerofthemareusingfacial NPD Group. according tomarket-researchcompanyThe to changingpreferencesofmillennials, skincare forthefirsttimelastyear,due contributed moreannualdollargainsthan The Data president EasternEurope. L’Oréal UK&Ireland.Popoffjoinedin1989,and2013becameexecutivevice to hisroleofgeneralmanagerEasternEurope.TheappointmentiseffectiveJune1. L’Oréal hasnamedAlexandrePopoff,generalmanagerofAfricaMiddleEast,inaddition who announcedinFebruarythathewassteppingdown. Pacific, Eurasia,LatinAmerica,andmostrecentlyEurope.HereplacesLorenzoDelpani, Garcia spentthelast13yearsatColgate-Palmolive,whereheledbusinessinAsia- Revlon’s whollyownedoperatingsubsidiary,RevlonConsumerProductsCorporation. Garcia wasalsonamedtothecompany’sboardofdirectors,aswell US-based hold theawardseverytwoyears. Meanwhile, anti-aging skincare sales are Meanwhile, anti-agingskincare salesare NPD foundthatmillennialsareusingmore He replacesGeoffSkingsley,whowilltakeontheroleofnon-executivechairman n fragrance categoryintheUS To select the winners, AS Watson asked its beauty advisors and customers to vote To selectthewinners,ASWatsonaskeditsbeautyadvisorsandcustomerstovote has appointed Fabian Garcia president and ceo, effective April 15. Revlon hasappointedFabianGarciapresidentandceo,effectiveApril15. th anniversary this year and also to engage customers. AS Watson plans to anniversarythisyearandalsotoengagecustomers.ASWatsonplans

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BW Confidentialisthedestination forkeepingup-to-datewith News headlinescomplementanalysis andinterviewsinourelectronic All majornewsontheindustry published everydayonourwebsite • The electronic publication-everytwo weeks DAILY NE STAY INFOR • WS SERVICE MED WITHOUR The printmagazine -fourtimesayear @BWCbeautynews what’s News roundup

n n n correction and prevention items. CC creams and make-up primers alone contributed over $490m to the industry in 2015, growing 58% over two years. NPD also outlined the trend for skin supplements that work from the inside out. It said that dollar sales of face supplements have grown more than five-fold over the past two years, becoming a $4.1m market in the US in 2015. The buzz New global fragrance launches 2014 vs 2015 The number of new fragrances that launched on the global market in 2015 rose 2014 2015 to 2,044, compared with 1,768 in 2014, Feminine 915 954 according to data from Fragrances of the Masculine 357 349 World 2016 by industry expert Michael Shared 496 741 Edwards. While the number of men’s launches Limited editions 251 261 dropped slightly to 349, from 357 in 2014, women’s launches reached 954, up from Flankers 259 279 915 in 2014. Limited-edition launches rose to Celebrity 72 66 261, versus 251 in 2014. There was a marked Artisan 526 817 increase in the number of artisan fragrance Total 1,768 2,044 launches in 2015, with a total of 817 Source: www.FragrancesoftheWorld.Info introduced, against 526 the previous year. Michael Edwards 2016

France’s cosmetics exports grew 4.4% in 2015 to €11.8bn, according to French beauty industry association Febea. France’s trade balance for the cosmetics sector exceeded €9bn for the first time last year. The make-up category put in a strong performance, with lip make-up exports up 17%, while those for powders rose 12%, and eye make-up shipments increased by 10%. Skincare products represented 42.5% of France’s beauty exports and fragrance 33%. In 2015, some 48.9% of France’s cosmetics products were exported to the European Union, up 5.8% from 2014. Germany, the US, the UK, Spain and Italy were the biggest importers of French products last year. Some 16.2% of France’s beauty exports were to Asia. However, exports to China slowed, with an increase of 8% on the previous year, compared with growth of 16.5% in 2014. Shipments to the Middle East rose 12%, driven by the UAE (+14%) and Saudi Arabia (+11%.) The only region to record a decrease was non-EU Europe, due to Russia’s difficult economic climate. Febea said there was a 44% drop in the trade balance with Russia. Launches

US-based P&G is set to launch a new fragrance for the Stella McCartney brand this summer. Called Pop, the scent is aimed at young consumers and combines notes of tuberose and sandalwood. The bottle is an inverted version of the Stella fragrance flacon and features a metallic pink cap with an integrated spray button. Pop will launch in July in the UK and will retail for £42 ($60) for the 30ml EdP.

L’Oréal-owned Lancôme has teamed up with the designer Sonia Rykiel for its fall make-up collection. This latest partnership is in line with the brand’s strategy of collaborating with the art, fashion and jewelry worlds. The limited-edition Sonia Rykiel x Lancôme collection will be available from mid-August this year. n

www.bwconfidential.com - March 31 - April 13, 2016 #128 - Page 5 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL beauty. Upper Marais:forallbrandswhose DNAspellsthefutureofperfumeand Alternative Fragrance& Beauty, the pop-up expo in the heart of Paris’s

The views expressed in this section are those of bloggers and do not represent the opinions of BW Confidential Netwatch water to produce a gelatinous formula that dries after it is applied into a rubber-like mask. water toproduceagelatinousformulathatdriesafteritisappliedintorubber-likemask. The from theusual‘photoshopped’modelsthatrepresentbeautybrands. The actress,whofirstfrontedthebrand13yearsago,isdescribedasawelcomechange Bloggers arehailingLancôme’sappointmentofIsabellaRosselliniasspokesmodel. properties, charcoalhasbeenusedbybrandsincludingYesto,BioréandSanctuarySpa. popularity tocultbrandGlamglow’ssuccess.Praisedforitscleansingandpurifying Charcoal hasagainbeenhighlightedasanewtrendyingredient.Someattributeits internet, somebloggersarewaryoftheirfavoritebrandsgoingmainstream. of niche.Withanumberbrandsofferingsalesorwideningtheirdistributiononthe The riseinnichefragrancelauncheshasmorebloggersquestioningthedefinition lasting colorandeye-catchingquiltedbottledesign. of themostinterestingnailcolorlauncheslate.Itislikedforitseasyapplication,long- L’Oréal Paris’ Social mediamonitor BW Confidential BW Shanghai China Beauty Expo SISTER EVENT trend is a hit online. The powder product is mixed with Korean modelingmasktrendisahitonline.Thepowderproductmixedwith oil-infused Color Riche L’Huile Nail Varnish has been described as one oil-infused ColorRicheL’HuileNailVarnishhasbeendescribedasone reportsonwhat’sbeingsaidaboutbeautysocialnetworks Bangkok Beyond BeautyAsean 2 daysforprofessionals, 1dayforconsumers. 2016 june, Le CarreauduTemple 4 RueEugèneSpuller,75003Paris alternativebeautyparis.com Dubai Cosmeeting 16/17&18 ORGANIZED BY Dubai Spameeting AND PARTNER :

design by centdegrés Qatar Duty Free senior vice president Keith Hunter Paying the price Qatar Duty Free senior vice president Keith Hunter calls for suppliers to rise to the challenge of tackling price concerns Interview driven by currency fluctuations

How is beauty performing and which factors are driving growth? Beauty is performing well, but it has been a tough year. Beauty grew by around 8% in 2015 over the previous year, and with duty free overall we were up 18%. Arabic and oud-based fragrances are a big growth area for us. This region is dominated by fragrance, which drives around 70% of our beauty sales. We have placed a lot of focus on skincare. We have had to do discounting on that to keep the category moving, but it is massively up on last year. Unfortunately, beauty is behind the general trend and it is one of the categories heaviest hit by pricing. Beauty still has a lot more potential, but is struggling under pressure from currency exchange. Some brands have risen to the challenge and invested heavily in support to keep the products moving by looking at pricing and at initiatives and experiential activations focused on marketing and advertising and additional training. We are trying to How is the strength of the US dollar against currencies such as the euro impacting the business? “encourage brands Ultimately brands have to wake up and stop taking advantage—personally I believe they to bring something are all doing very well out of this. That said, there is no denying the business has gone backwards in a lot of locations so I’m sure they are struggling with some of our peers new to travel around and outside the region who have seen a decline in beauty. retail and launch Some brands have come to support it and others have said there is nothing they can do and they need to wait and see. We found this a very lax approach and we have tried into this channel to be a lot more demanding with how they can address some of those pricing concerns. first before the It’s not just about what money they make in the back end due to the currency difference. We have got to present a value offer to our customers. We continue to invest to grow this domestic market market across the Middle East, not just in Qatar. I feel that now a lot of the brands have taken that for granted, and while it has been difficult elsewhere they are ignoring any proactive stance here to address some of those price concerns. Qatar Duty Free senior vice president Keith Hunter Will you look to scale back space with brands that are not proactive? Absolutely. We have had to stop pushing some brands as heavily and focus on those that ” are supporting us so we can achieve the correct growth. It has to be commercially viable, so there’s no point in pushing brands that aren’t supporting us because they are making money, while we are losing it. We are over a year and a half in at the new airport and we are beginning to see different trends and patterns. We are reacting by either adding new installations to certain areas or relocating brands into either more prolific areas or vice versa depending on how they are performing. With that re-allocation of space we have to tackle the brands that just aren’t moving. We are trying to encourage brands to bring something new to travel retail and launch into this channel first before the domestic market.n n n

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n n n How is your product assortment changing? We carry the big brands and sometimes feature global debuts, but on top of that we are showcasing something travelers don’t normally see. We have a lot more work to do on this and we are looking at the opportunities in fragrance factories where you can blend your own scents. The main thing is how we integrate some of these new opportunities Interview alongside the main areas so they do not detract or cannibalize [that business]. Originally, the P&C area was set up a bit like a journey of discovery with a meandering Beauty is struggling space, which takes you from the big three-axis brands into the single fragrance labels. So under the weight of where we situate new and niche offers is very important. We have a big project underway “ reworking a lot of those spaces. Outside this space we have added a lot more to the pressure from currency category. A few months ago we opened the Blush emporium and went more for the exchange […] Some mass offering there. There’s no denying we have a lot more work to do in-store. The nail salon is a good complement and we have to work a lot harder at letting consumers know brands have come to the service is here. We also have express stores all over the terminal that bring together support it and others the best of the best. We installed experiential pop-ups on the concourse, but also on the peripheries of the South node. This gives a bigger footprint to the category. have said there is nothing they can do. What would you like to see beauty brands do better? There needs to be more focus on newness, and not just inventing the same fragrance in We found this a very a different bottle. More novelties, an increased focus on range, bundle products, bringing lax approach together collections, more exclusive packaging for travel-retail and more initiatives that offer engagement to passengers are needed. There is a lot more potential for services too.

Qatar Duty Free senior vice How do you see the impact of consolidation among travel retailers? president Keith Hunter I can see why [operators] are doing it, but what threat does it pose? When you get other bigger retailers coming in they generally have a very established portfolio and when ” they take over a new airport you tend to see a lot of replication. We have seen it very close to hand here where one big retailer took over an airport and removed half of the key product that was selling very nicely but it didn’t fit within their portfolio. We are very much about being profile specific. You have to tailor the offer; it’s not a one size fits all.

What digital initiatives are you putting in place? We recently relaunched the Qatar Duty Free website and are in the process of testing our click & collect service on the site, which will allow passengers to pre-order their duty-free and collect it at departures or arrivals. We are using mobile geo-targeting pushing relevant offers and messages to passengers in the terminal in their own language. We are also using the Hamad International airport mobile app to push store messages and promotions. E-commerce is not a replacement for traditional duty-free, it’s an additional prospect. With online, everyone said it was a threat and yes it is to a degree as people will use it for ease. But most people in airports aren’t buying what they absolutely need. They are impulse purchases and that’s why we have the pop-ups to s In addition to big brands, Qatar Duty Free is looking to stop them in their tracks. n showcase lines and services that travelers don’t normally see

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s Avon and Grupo Boticário’s Quem Disse, Berenice? continue to perform well in

Insight make-up in Brazil

Make-up in Brazil Color surge Brazil’s beauty market is going through tough times, but there has been much development in the country’s make-up category

razil may be seeing a slowdown, and the make-up category has seen sales fall due Bto the general economic climate, but the color category has nonetheless witnessed strong developments over the past few years. It is estimated that total color sales in Brazil fell 5.2% in 2015 to R$2.78bn (US$753.83m), according to preliminary figures from Brazilian beauty association ABIHPEC. But some sub-categories are holding their own. The lip category for example, saw sales rise by 2.4% last year to R$750.86m (US$203.53m)—good growth given the overall market. Nail polish, however, saw a steep decline (as is the case in other markets). Recent developments in the category are down to the entrance of new players and Brazil make-up sales by category 2015* stronger growth outside the traditional Category Sales R$m Sales % change door-to-door channel, whether it be through 2015 US$m 2015/2014 new retailers or the web. LVMH-owned 2015 perfumery chain Sephora for example, has Lip products 750.86 203.53 +2.4 had a strong impact on the market. Indeed, Eye products 723.05 195.99 -1.5 this is one of the reasons that in 2014 Nail products 639.63 173.38 -13.0 premium color cosmetics performed better Face products 584.00 158.30 -5.2 than mass products in the category. Multi-functional 55.62 15.08 -36.8 Sephora and MAC drive color products Sephora moved to Brazil in 2010 through Pre-make-up 27.81 7.54 -5.2 the acquisition of local e-commerce player products Sacks, although the first brick-and-mortar Total 2,780.98 753.83 -5.2 store in Brazil was inaugurated in n n n Source: ABIHPEC *2015 estimate

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n n n 2012 in São Paulo. Today, Sephora operates 17 stores in four states in Brazil and five pop-up stores, and it covers the entire country with its e-commerce operation. One of the main changes that the retailer brought to the market was its move to give consumers Insight the chance to test and experiment with the products in-store, which in a market dominated by direct selling was not always possible. The development of color brand MAC in the country is also said to have fueled growth of the make-up category. The Estée Lauder Companies–owned brand, which has 52 stores in Brazil, also puts a strong focus on testing and playing with the products. Other foreign brands making progress in the market include Bourjois (now owned by Coty). In 2013, Bourjois diversified its distribution with a move to sell though the direct- sales channel in a deal with Brazilian door-to-door company Racco. The national Although the trial was not a success, through the operation, the brand learnt to come agency of sanitary out with more competitive prices and it gave Bourjois access to a new class of consumers. Since 2015, Bourjois has been in the hands of a new distributor, Prestige Cosmeticos, surveillance managed by Evelyse Britto, the former general manager of LVMH and Chanel in Brazil. ANVISA increased The brand is now repositioned in retail channels with a portfolio of almost 300 skus distributed in 230 points of sale. “With more affordable prices and adjustments under the cost for the exchange rate, we democratized the brand, thereby obtaining excellent results in brands registering 2015 when our sales rose 40%. Today we are in the main retail outlets: perfumeries, pharmacies and even e-commerce, which allows us a national distribution. We expect to products in Brazil, see 25% growth in 2016; the market has a great growth potential,” says Britto. inhibiting the Local players expand entry of imported In addition, local players have been eager to tap into the potential in the make-up brands that now category. Quem Disse Berenice?, the make-up brand from Grupo Boticário that launched in 2012, is a response to the demand for more affordably priced products in the category. have to pay even In just three years the brand has built a network of 155 stores and a portfolio of 482 skus, more to bring and it plans to continue at this pace of development. Another local brand called Océane launched in 2009 with nail polish removal wipes. their products to Océane executive director Michel Chehaibar identified a gap in the market for attractive, a market that was quality products with competitive prices. This has led to the expansion of the brand over the years and the opening of its first concept store at Paulista Shopping Center in São already expensive to Paulo city, last year. operate in The brand markets about 500 skus (beauty products and make-up accessories) in around 6,000 points of sale (perfumeries and drugstores) in the country. “The Brazilian market still has much room to grow and consumer habits in recent years have changed a lot. Although lipstick and nail polish are the entry-level products for the category, facial products are expanding. Nevertheless, our biggest challenge is still to be able to sell the products in stores where the products can be tested and experimented with.” Internet retailers have also boosted the market. E-commerce sites such as Sephora.com and local player Belezanaweb have done well due to the price promotions they offer on a large number of premium brands and aggressive payment conditions, such as payment in interest-free monthly installments for 12 months. But despite these new growth drivers, the market’s traditional companies, such as direct sellers Natura and Avon continue to play a key role in the market. According to Euromonitor International figures, Avon Cosméticos maintained the leading position in color cosmetics in 2014 (2015 figures are not yet available) with a value share ofn n n

www.bwconfidential.com - March 31 - April 13, 2016 #128 - Page 11 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL This document is published by Insight n to choosefromawidevarietyofproductsandbrandsinallpricesegments. At theendofday,thisislikelytobebeneficialforconsumers,whowillable multichannel distributionstrategyarealsoexpectedtoseecompetitionintensify. as thenumberofplayersincolorcosmeticsgrows.Brandslookingtowardsa beginning ofthisyear. Minerals forexample,announcedtheclosureofitsoperationinBrazilat expensive tooperatein. now havetopayevenmorebringtheirproductsamarketthatwasalready registering productsinBrazil,therebyinhibitingtheentryofimportedbrandsthat national agencyofsanitarysurveillanceANVISAincreasedthecostforbrands floundering economyandconsumers’lowerpurchasingpower,inMay2015,the these items. cost oftheproductsandbenefitsitbringsiscrucialtoconsumerswhenbuying the market.AccordingtoAvonresearch,inBrazil,relationshipbetween R$26.99 (US$7.44),whichisconsideredaninterestingpriceforconsumersin The latestlipsticklaunchfromAvon,UltramatteLipstickwithSPFsellsfor Make-up inBrazil Despite this, analysts say that competition in the category is likely to increase Despite this,analystssaythatcompetitioninthecategoryislikelytoincrease This hasbeentoomuchforsomeplayers.BrandslikeShiseido-ownedBare However, Brazil’smake-upmarketisnotallrosy.Inadditiontothecountry’s 24%. The company accounts for one in every two lipsticks sold in Brazil. 24%. ThecompanyaccountsforoneineverytwolipstickssoldBrazil.

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products in-store experiment withthe chance totestand consumers the its movetogive to themarketwas [Sephora] brought changes that One ofthemain Cosmoprof Worldwide Bologna

Unearthing new trends BW Confidentialreports on what was seen and heard at Cosmoprof Worldwide Bologna and Cosmopack, which took place in Italy from March 17-21 Show review

his year’s edition of Cosmoprof Worldwide Bologna highlighted beauty’s emerging Cosmoprof Worldwide Tproduct sectors. For example, for the first time, the show had an area dedicated to Bologna halal beauty hosting 15 companies. The area devoted to green cosmetics was bigger, Took place: March 17-21, with a 22.15% increase in space, and Natrue, the international association for natural Bologna, Italy cosmetics, attended the show for the first time. As for the Extraordinary Gallery, which Exhibitors: 2,510 is reserved for niche and high-end brands, some exhibitors complained that the space is Visitors: 250,000 not as visually attractive as it could have been. In terms of other product trends highlighted at the show, there was a big focus on environmental issues, while bands sporting vegan-friendly claims were also more prominent this year. As for the buoyant make-up sector, many brands aimed to show the fun aspect of color cosmetics through scented lip gloss or nail polish. In the nails sub- segment, which has see a decline in sales over the past few years, manufacturers said they were aiming to come up with new delivery systems, such as nail polish sprays or nail markers to revive consumers’ interest in the category. Key players, especially in the packaging sector, and small-to-medium sized companies in make-up said that the show is an important international platform. “Cosmoprof is the only show we are committed to because our biggest customers and the decision-makers are here,” commented Anisa senior director marketing and communication Jules Dykes. In terms of the show itself, this year’s edition saw a slight increase in the number of visitors—250,000 versus 248,000 last year, and hosted 2,510 exhibitors (73% from abroad), a 5% increase on last year. Next year, Cosmoprof Worldwide Bologna will celebrate its 50th birthday, when the show will be held from March 16-20.

Seen in show France-based Albéa presented a new extra-slim fiber mascara collection called Cats’Eye (pictured) of two very thin brushes with short fibers to enable ease of application even for small, straight and stiff lashes. It specifically targets the Asian market. Panther Brush claims to offer extra curl thanks to the curved brush, while Lynx Brush due to its threaded rod, can coat the lashes from root to tip in one stroke thereby creating a volume effect. The company also presented Cera-shibo technology developed in partnership with German surface specialist Eschmann Textures. It is based on the use of a patterned sheet of ceramics to create textured mascara packs.

Italy-based Drop Nail (Intercos group) launched its Polish Writer Nail marker, which is easy to apply and dries instantly, and Revolution Spray Play that enables nail polish to be sprayed on. “We are aiming for more products that you apply and remove easily, n n n

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n n n rather than long-lasting gels”, explained Drop Nail managing director Alessandro Recupero. This was the thinking behind the launch of The One and Only, a one-stroke product enriched with new organic pigments that stay on the nails after a single application. Another innovation is the Plump Up base coat with a volume effect formulated with micro-sphere powders and an ingredient extracted from plant stem cells claimed to strengthen the nails.

Luxembourg-based Il cosmetics showcased its Hybrid nail polish, which according to Show review the company is a safe alternative to gel. The application of the nail polish is followed by that of the top coat. The photo initiator in its formula reacts with the oligomer contained in the color coat meaning there is no need for an LED or UV light. The company claims the formula provides shine for over a week and lasts up to 11 days. Although the nail market has lost 18% of its value in the past six years, Il Cosmetics says its sales have increased. The company reported sales of €55m in 2015 and is forecasting revenues of €59.5m for 2016. The company also claims to be the number-one supplier of nail polish products in Europe. It aims to reinforce its presence in the US.

Italy-based Chromavis (Fareva group) used the show to highlight its nail polish collections. The focus was on the Nail Polish Spray, which won the Cosmopack Wall Special Avant-Garde Award. The product is sprayed on the nails after the application of a base coat and is available in 11 semi-matte shades. A range of special effect products were also presented. The Ice Cream Collection for example, is scented with fruity fragrances and has a cooling effect, while The Crazy Light UV top coat is applied after a black base coat and glows under UV lamps in discos.

US-based brush manufacturer Anisa used the show to unveil its news that the company has stopped using pony hair in its brushes and has replaced them with synthetic fibers. The company plans to eliminate the use of animal fibers completely by the end of 2017. This is not only for environmental reasons, but also to better control costs. A focus was also placed on the new brush care collection, which includes a practical Refresh brush spray that cleans the brush and dries instantly.

German company Faber-Castell Cosmetics presented new lines of pencils reflecting upcoming trends. Vegan Beauty is composed of eyeliners and lipsticks containing no animal-derived ingredients and enriched with organic jojoba oil, chamomile or sea buckthorn. The wooden pencils in a neo-nude style are lightly colored with a lacquer layer containing only 4% of solvent. Jelly Baby is a line of lip balms composed of scented plastic Jumbo pencils with a gel-like texture and glitters. Gorgeous Glow is a duo highlighter (matte on one side and pearly on the other) that claims to make the eyes appear wider.

Turkish make-up brand Note (group Altona Cosmetics, a branch of Germany’s ACT group) presented a complete line of 450 skus at the show. The brand, which launched in 2013, also introduced its new Mineral line. Note’s general manager Americas Jeffrey Ten announced the brand’s US launch next July. “Note has the characteristics of a professional make-up line at affordable prices, and our objectives are ambitious: in five years we aim for $60m in sales in the US,” said Ten. Note is currently sold in 500 pos in Turkey and in 40 other markets. n

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Fragrance forward Dior opens a temporary store for its high-end fragrance collection

VMH-owned Dior opened a pop-up store in Paris, exclusively devoted to its Lhigh-end fragrance line La Collection Privée Christian Dior in March. The brand did not reveal how long the store will stay open for. Located on the French capital’s rue Saint-Honoré, the pop-up store features black and white lacquer displays and is designed to highlight the raw materials used in the collection, according to the group. Dior’s fragrance collection, composed by the brand’s in-house perfumer François Demachy and comprising 16 signature scents, is sold at the store as well as the brand’s candles and Elixirs. Dior pop-up store Dior is one of several brands to focus on their own retail spaces for their l Opened: March fragrance offers. In January, Guerlain, also part of LVMH, opened a fragrance- l Location: Paris, France only boutique in Paris that was designed to pay homage to the role of the l Special features: perfumer, put the brand’s fragrance heritage on show and celebrate the art assortment of Dior’s Collection of perfumery. n Privée fragrances

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