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BW Confidential www.bwconfidential.com The inside view on the international beauty industry June 9-22, 2016 #132 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside The buzz 2 Color buys News roundup n terms of niche acquisitions, the focus has been mainly Netwatch 6 Ion fragrance over the past year and a half. However, more purchases are likely to come in the color category, Social media monitor especially given the growth of make-up and the number of new, creative brands emerging—many of which have Interview 7 expertise in social media and target the much-talked L’Oréal travel retail Americas strategic about millennials. business development director Last week, Shiseido announced that it would take over Gabriela Rodriguez the Laura Mercier make-up brand (as well as the Révive skincare brand), as part of a strategy to capture a greater Insight 9 share of the fast-growing color market—a key objective for the Japanese group. Japan It is likely that other multinationals are eyeing up middle-sized players, as well as start-ups in the market in a bid to fill gaps in their portfolios. One executive from Show review a major color brand recently told BW Confidential that it is no longer competing Luxe Pack New York 12 with traditional companies, but is trying to keep up with newer brands in the Cosmopack New York 13 market. Perhaps the easiest way to keep up with these new players is simply to buy them up. Store visit 14 Yves Rocher, Paris Oonagh Phillips Editor in Chief [email protected] Meet the BW Confidential team at: l World Perfumery Congress, Florida, June 13-15 l Alternative Fragrance & Beauty, Paris, June 16-18 News headlines daily on www.bwconfidential.com @BWCbeautynews News roundup At a glance... n Shiseido to acquire Laura Mercier, RéVive n Johnson & Johnson to acquire Vogue International The buzz n Revlon acquires Cutex’s international business from Coty n YSL launches new fragrance Stay informed with our daily news headlines on www.bwconfidential.com Strategy Shiseido Americas is to acquire US-based Gurwitch Products, which markets prestige make-up and skincare brand Laura Mercier and luxury skincare brand RéVive. Gurwitch Products is a wholly owned subsidiary of Alticor Inc. In 2015, Gurwitch generated net sales of $175m. Financial details of the transaction were not disclosed. The deal will be funded with existing cash and loan facilities and is expected to close in the third quarter of 2016. Shiseido said the move is in line with its Vision 2020 strategy to accelerate global growth, and is expected to enable the group to strengthen its foothold in the fast-growing prestige make-up market. US-based Johnson & Johnson Consumer is to acquire US-based haircare company Vogue International for $3.3bn in cash. Vogue International markets haircare and other personal-care products. The acquisition will include the company’s OGX collection of hair, bath and bodycare products, the FX line of hair styling products and the Maui Moisture and Proganix haircare lines. Its products are sold in the US and in 38 countries. The acquisition is expected to close in the third quarter of 2016. J&J said that the deal is not expected to impact its 2016 sales and BW Confidential earnings forecasts. 4 avenue de la Marne The deal follows the announcement in April that Johnson & Johnson Consumer is 92600 Asnières sur Seine, France [email protected] to acquire dermocosmetics specialist NeoStrata Company. Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 www.bwconfidential.com ISSN: 2104-3302 US-based Revlon has acquired nailcare brand Cutex’s international businesses Publisher: Nicolas Grob from Coty. The international businesses are mainly in Australia and the UK. Revlon Editorial Director: Oonagh Phillips [email protected] already owns Cutex’s US business and the addition of international operations Journalist & Copy Editor: Katie Nichol [email protected] under Revlon management is aimed at expanding the brand’s geographical reach Journalist: Hannah Ikin and moving into new categories. Coty stated that the deal ties in with its strategy of [email protected] Contributors: Sophie Douez, Alex Wynne, focusing on fewer brands. Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet Subscriptions 1 year: electronic publication (20 issues) + Brazilian direct-seller Natura has begun selling its Sou line in vending machines. print magazine (4 issues) + daily news: €499 The vending machines are located in metro stations, a university and at the or US$699 [email protected] Congonhas Airport, São Paulo. Natura has also launched an app for the Sou line, Advertising [email protected] which lets consumers order the products online to receive them at home. This move BW Confidential is published by Noon Media into vending machines and apps is part of Natura’s strategy to diversify its 513 746 297 RCS Nanterre Copyright © 2016. All rights reserved. distribution and be less dependent on direct sales. The company began selling Sou Reproduction in whole or in part without permission is strictly prohibited. through pharmacies in March 2016. n n n www.bwconfidential.com - June 9-22, 2016 #132 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n Retail UK-based retailer The Perfume Shop opened a pop-up fragrance cocktail bar at London’s Mahiki nightclub last month in a move designed to showcase its fragrance The buzz expertise. The Perfume Bar was open from May 24-26, and interested consumers were invited to apply to win tickets to the event. Mixologists created six cocktails infused with notes from a selection of perfumes, which the retailer said would enable consumers to taste their favorite fragrances. The cocktails included a Marc Jacobs Daisy Margarita, a Thierry Mugler Angel Colada and a Chloé Signature Martini. Sephora has launched The Beauty Board platform on its French website. The Beauty Board, which already exists on the retailer’s US website, is a community feature, which is described as Sephora’s own version of Pinterest for beauty. Clients can create their own social pages on The Beauty Board, post photos, identify the products used to create their looks and share advice and beauty techniques. France-based L’Occitane en Provence has launched a packaging recycling program at its stores. The brand has partnered with recycling company Terracycle, which will treat the used packs. L’Occitane will offer 10% off purchases when consumers bring three packs to its stores to be recycled. Data French women are increasing their annual make-up budget, spending more in this category than on skincare despite the latter’s higher prices, according to a study on cosmetics consumption trends from strategy consultancy Simon Kucher & Partners. The study, carried out among 1,000 French consumers in February 2016 in partnership with Research Now, found that those surveyed spend an average of €225 per year on make-up compared with €188 on skincare. Some 26% spend less than €100 on make-up annually, while 33% spend less than €100 on facial skincare. While 27% spend more than €300 on make-up, just 19% do so on facial skincare. There are psychological thresholds when it comes to price—50% of women think €10 is an acceptable price for a lipstick, above €15 is expensive and above €25 is very expensive. Meanwhile, 50% consider around €15 to be an acceptable price for an anti-aging day cream, above €15 to be expensive and above €25 to be very expensive. The study revealed a higher usage rate of make-up items than skincare products: 74% of consumers use mascara, 65% use nail polish, 64% use lipstick and 61% use eye pencils and eyeliner. In comparison, only 40% of women surveyed said they use day cream, although 90% of those who do, use it every day. More than half of French women buy make-up on impulse, with consumers in this category less loyal to brands and more responsive to promotions than skincare consumers. US consumers are spending more on prestige fragrance candles and diffusers and purchasing more of these items, according to market-research company The NPD Group. This category is driving much of the growth in the fragrance category, NPD reports. Candles saw an 18% rise in dollar sales and a 15% increase in unit sales in the n n n www.bwconfidential.com - June 9-22, 2016 #132 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n 12 months ending April 2016. Candles represent the largest segment within home scents, and the category has grown by over $11m in the past two years, according to NPD. The average candle retail price increased 2% to nearly $29. Fragrance diffusers saw a 36% increase in dollar sales and a 27% rise in units over the last 12 months, and sales have nearly doubled in volume during the last two years. Their The buzz average retail price grew 7% to nearly $37. Sales for room fresheners grew 26%. The home scents market in the US is worth $49.9m. People Shiseido has created the position of chief sustainability officer for the EMEA region and said that Daniel Guillermin will fill the new role from July. Guillermin was previously president of Shiseido International France. Guillermin will be replaced by Hervé Ronsin, who is to become general manager, EMEA operations and president of Shiseido International France, effective July 1, 2016. Ronsin was most recently vp in charge of packaging development, procurement and supply-chain. L’Oréal USA has appointed Marc-Alexandre Risch to the newly created position of chief retail officer. In his new role, Risch will help to establish omni-channel consumer experiences across L’Oréal USA’s brand portfolio, the company said.
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