www.bwconfidential.com The inside view on the international beauty industry Jan 8-21, 2015 #104

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The buzz 2 More of the same? News roundup t may be the beginning of a new year, but the beauty Netwatch 5 Iindustry is likely to be in for more of the same in 2015. Markets in Europe continue to be sluggish (the situation Beauty blogger review in some countries in the region may well worsen this year, according to some industry watchers), more volatility is Interview 6 expected in emerging-market currencies and two of the Cartier managing director BRICS—Brazil and Russia—continue to worry economists. fragrance Léa Vignal-Kenedi On the bright side, the US is forecast to continue to grow again this year. Insight 8 All this may sound familiar, and is even something companies M&A Update have got used to post 2008. But another factor that the industry is likely to see again this year, and one that is perhaps in some ways more daunting, is the fast-paced change Store visit 12 in consumer behavior. Largely driven by digital developments, brands and retailers will Burberry, Seoul no doubt find that this year again they will have to constantly re-think how they reach and sell to consumers and try to make sense of a market whose rules continue to shift and where tried and tested strategies are no longer always relevant. Another challenging year lies ahead.

Oonagh Phillips Editor in Chief [email protected]

Meet the BW Confidential team at:

l PCD, Paris, February 4-5 l Cosmopack, Bologna, March 19-22 l Cosmoprof Worldwide, Bologna, March 20-23 l Duty Free Show of the Americas, Orlando, March 22-25 l Esxence, Milan, March 26-29 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz Stay informedwithourdailynewsheadlinesonwww.bwconfidential.com News roundup Strategy 2014, but withdrew its offer citing unfavorable market conditions. 2014, butwithdrew itsoffercitingunfavorable marketconditions. America. Intercoshadannounced planstolistontheItalianstockexchangeinSeptember contract manufacturerIntercos . Thedealwillfuelexpansionin theUS,ChinaandLatin US-based private-equitycompany CattertonistoacquireaminorityshareinItalian haircare brand. consumer-goods sectorswhereitisalreadystrong.Henkelmarkets theSchwarzkopf reports. Thecompanyisreportedtohavesaidthatitwants improveitspositionin German groupHenkelisconsideringalargehaircareacquisition,accordingtopress vendors, suchasfashionretailerJ.Crew. The brandissoldthroughchannelsincludingdirectsales,e-commerce, andthird-party and personal-careproductsthatclaimtouseonlyingredients thatare“safe”fortheskin. skincare brandBeautycounter.Foundedin2013,Beautycounteroffersarangeofbeauty Private-equity playerTPGGrowthhasacquiredaminorityshareinCalifornia-based Mexico aspartofthetransaction.Thedealistocloseinfirsthalfthisyear. outside ofNorthAmericaandtheCaribbean.P&Gwillalsosellamanufacturingfacilityin Unilever. ThedealinvolvestheglobalsaleofCamaybrand,aswellZest P&G announcedinDecemberthatitwassellingitssoapbrandsCamayandZestto company andwilljoinL’Oréal’sinternationalresearchinnovationnetwork. fiber opticalreadertechnology.ColorightceoSagivLustigwillcontinuetomanagethe company ColorightinDecember.TheTelAviv-basedstart-upisspecializedhair In amovetoreinforceitshaircareR&Dcapacities,L’OréalacquiredIsraelihairtechnology This month,thebrandwilllaunchanewrangeofmud-to-foamdailycleansers. skinmaskproducts,formulatedwithapatentedTeaoxileaf-steepingtechnology. and hadsalesof$103min2013withjustthreeproducts.Itnowmarketsfivemud-based and hascreatedabuzzonsocialmedia.Itissoldin112countriesprestigedistribution mask brandGlamglow.Foundedin2010,GlamglowhasastrongHollywoodfollowing announcement inDecember2014thatitwouldpurchaseCalifornia-basedtreatment Estée LauderCompanies(ELC)continuestoridetheacquisitiontrailwith TPG Growth acquired a share in make-up brand e.l.f. in February 2014. TPG Growthacquiredashareinmake-upbrande.l.f.Cosmetics inFebruary2014. Glamglow isELC’sfourthacquisitionsinceOctober2014. n n n n At aglance...

Douglas rebrands43storesinFrancetoNocibé French CompetitionAuthorityfinesbeautygroupsforprice-fixing L’Oréal buysIsraelihairtechnologycompanyColoright ELC acquiresskincarebrandGlamglow www.bwconfidential.com -Jan8-21, 2015#104 -Page 2 n News roundup

n n n The French Competition Authority handed down a decision in December that fines personal-care product manufacturers a total of €605.9m for alleged price fixing between 2003 and 2006. The 11 companies ordered to pay fines include L’Oréal, Beiersdorf, Unilever, Procter & Gamble and Henkel. L’Oréal has been ordered to pay the

The buzz heaviest fine, at €189.5m. The beauty group is appealing the decision. In a statement, L’Oréal said the fine was “totally out of proportion” with the accusations.

Retail

Walgreens shareholders approved the merger of Walgreen Co. and Alliance Boots on December 31 to form Walgreens Boots Alliance Inc. Walgreens is now a wholly owned subsidiary of Walgreens Boots Alliance Inc. Existing shares of Walgreens common stock were converted into shares of Walgreens Boots Alliance common stock.

Following the acquisition of French perfumery chain Nocibé by German retailer Douglas in June 2014, some 43 Douglas franchise stores in France have been rebranded Nocibé. The stores will no longer operate as franchises, but will be wholly owned. Nocibé also signed an agreement to sell 13 of its wholly owned stores to Athénaïs, a perfumery chain with 10 locations in France owned by French group Jacques Bogart. Following these two transactions, Nocibé will operate more than 600 stores.

People

Canadian retail group Hudson’s Bay has named Gerald Storch as ceo. Storch was formerly ceo at toy retailer Toys R Us. He will be responsible for Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks Off 5TH, Home Outfitters and HBC Digital.

American pop star Lady Gaga is fronting a new ad campaign this month for in BW Confidential 4 avenue de la Marne Japan. The campaign will feature a series of selfies taken by the celebrity. 92600 Asnières sur Seine, France [email protected] Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 Data www.bwconfidential.com ISSN: 2104-3302 Publisher: Nicolas Grob The number of consumers shopping in France’s selective channel is declining, Editorial Director: Oonagh Phillips [email protected] according to a report from Kantar Worldpanel. One in four consumers shops for beauty in Deputy Editor: Alissa Demorest [email protected] selective retail, and the channel (department stores, perfumeries and their websites) has Editorial Coordinator & Assistant: lost 1.6 million shoppers since 2011. This has penalized the fragrance category the most, Katie Nichol [email protected] as some 45% of consumers visit the selective channel only to buy fragrance. Contributors: Tina Clark, Alex Wynne, Renata Ashcar, Mayu Saini, Raphaëlle Choël, However, despite value sales of and beauty products rising just 0.5% Corinne Blanché between January and November 2014 in France, consumers’ average annual budget Subscriptions 1 year: electronic publication (20 issues) + is said to be increasing year-on-year. Between June 2013 and June 2014, the average print magazine (4 issues) + daily news: €499 or US$699 annual spend reached €168, and consumers are said to make 14 purchases per year. [email protected] Advertising Kantar notes that personal-care products are the biggest growth drivers. [email protected] Other channels continue to encroach on selective retail’s shares. Pharmacies in France BW Confidential is published by Noon Media 513 746 297 RCS Nanterre were said to account for 15% of all beauty sales between June 2013 and June 2014. Copyright © 2015. All rights reserved. Reproduction in whole or in part without Online sales, meanwhile, made up 7% of beauty purchases in the period, with 12% of permission is strictly prohibited. French consumers buying online and spending an average of €60 per year. n n n

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n n n Sales of prestige make-up in the US increased by 6% to US prestige make-up sales Dec 2013-Nov 2014 $4.3bn between December 2013 and November 2014, Category Sales % change according to NPD Group. The category’s main driver, lip color $bn Dec 2013-Nov 2014 products, saw an increase of 13% in the period and reported Lip make-up 0.7 The buzz +8 sales of $417m, due mainly to a rise in unit sales. In November 2014, prestige lip color sales were up by 24% Lip color 0.4 +13 in the US, with close to 1.8 million units sold in the period, an Total make-up 4.3 +6 increase of 22% over November 2013. Source: NPD Group/Beauty Trends NPD research shows that some 33% of women in the US use a lip color product more than once a day.

Sales of fragrance gift sets were disappointing in Europe for Fragrance gift set sales* in Europe the month of November 2014. According to NPD, value sales % change Nov 2014 vs Nov 2013 fell 5% in the UK, were down 11% in Spain and declined 2% Country % change in Italy. In France however, fragrance gift sets put in a growth Nov 2014 vs Nov 2013 rate of 4%. France +4 Spain -11 Launches UK -5 Italy -2 Coty is launching a new women’s fragrance from Source NPD Group * Value sales Italian fashion designer Roberto Cavalli. Called Paradiso, the floral woody fragrance was created by Givaudan perfumer Louise Turner and features notes of citrus, bergamot and wild jasmine. The launch will be supported by an international print and television advertising campaign featuring Lithuanian model Edita Vilkeviciute. Paradiso will launch in February and will retail at €47 (30ml EdT), €68 (50ml EdT) and €89 (75ml EdT).

LVMH-owned Benefit’s major make-up launch this year is a new mascara called Roller Lash. Launching in March, Roller Lash is inspired by 1950’s era hair curlers, and claims to curl the lashes for up to 12 hours. It features a brush with two different bristle sizes that are said to grasp all of the lashes, both long and short, and a lightweight formula conditioner that holds the curl. Priced at $24, Roller Lash is launching exclusively at retailer and at Benefit’s standalone store network. n Beauty blogger review BW Confidential reports on what the bloggers are saying about beauty

UK-based Rodial has created a buzz on the web following the launch of its sculpting and contouring make-up line late last year and its Sculpting Bar, which opened at Harvey Nichols in the UK. The new line is praised by bloggers for its sculpting approach to make-up, which

Netwatch contrasts with the more common concealing claims.

Bloggers have been hailing the innovative packaging that has emerged for end-of-year promotions. Favorites include Roger & Gallet’s Christmas cracker packaging for its hand creams, and products presented as Christmas tree decorations from brands like L’Occitane, Birchbox, Sephora, Fresh and Eve Lom.

Pantone’s trend color for 2015, Marsala, a reddish wine shade, has been praised by writers who say it will have far more applications in beauty compared to recent Pantone shades like Radiant Orchid and Emerald. Bloggers say Marsala is “made for beauty” and an easier color to wear, and expect that it will find its way into categories including mascara.

Christian Louboutin’s beauty offer has stolen the limelight in the nail category following the launch of Starlight, a limited-edition whose bottle is decorated with 1,500 hematite strass crystals and is priced at $675. Only 1,000 pieces will be made. The product has been described as “serious luxury” and “genuinely breathtaking”. The views expressed in this section are those of bloggers and do not represent the opinions of BW Confidential

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Interview Interview ceo Interview Coty ceo Laurent Boillot Ferragamo Parfums ceo Michele Scannavini Luciano Bertinelli Market watch: Market watch: Brazil What’s next for Mexico, Travel retail: Europe The ins & outs of doing Argentina & Colombia? How the region is faring & business in the country the continent’s top airports Travel retail: Travel retail Brazilian travelers Market watch: Africa Data, digital & How they shop & how The potential & challenges of the CIVETs to reach them the next big region for beauty

Packaging Packaging Packaging Sector outlook & Decoration techniques How make-up packs luxury trends for 2014 & trends are evolving

Insight: Fragrance Insight: Make-up Insight: fragrance creation Global market analysis Doing color better What’s next for the industry?

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DemiPage-210x148NEW.indd 1 07/08/14 11:34 Cartier managing director fragrance Léa Vignal-Kenedi

Interview Value-added scents

Cartier’s Léa Vignal-Kenedi tells BW Confidential how she sees the brand’s fragrance business developing

La Panthère has been described as a key launch for the brand. How has the fragrance performed so far? There have been several important dates since the launch of Cartier’s first fragrances Must and Santos in 1981. The launch of Declaration in 1998 was a milestone, and it has become a classic men’s fragrance. Another important date for us was the arrival of our in-house perfumer Mathilde Laurent in 2005, which positioned us as a true maison de parfum. This came through strongly with the the launch of Baiser Volé in 2011. Our next step was to launch an iconic women’s fragrance in the form of La Panthère. La Panthère is an important part of our development strategy. It is the biggest women’s fragrance La Panthère is an success the brand has ever seen, and achieved key rankings in the first half of 2014. “important part of our Was there more marketing investment behind this launch? development strategy. We don’t give figures, but we had already invested a lot in Baiser Volé. We decided to support La Panthère more at the point of sale, as it needs a certain presentation It is the biggest and level of service. We focused on merchandising, training and different animations. women’s fragrance We also looked for strong partners to support us on this launch and had several retail exclusives. success the brand has ever seen, and Given the size of Cartier’s fragrance business, how can you ensure more space for new launches in-store? achieved key La Panthère received a lot of support from our retail partners, as they saw it as a quality rankings in the product with a different olfactory signature that brings value. There is no other way to gain market share today in fragrance than to create value. We have a tailor-made first half of 2014 approach to retail as our competitive universe is very small. We aren’t a big three-axe brand and probably never will be, but we aren’t niche—our sales are much bigger than those of niche brands. Our strategy for the past three years has been to innovate and Cartier managing director fragrance Léa Vignal-Kenedi shake up the market as a challenger. This is the only way we can find our place in a market where there is little innovation and risk taking. ”

Will you expand distribution for the brand? We have a very selective distribution. We prefer to work each point of sale rather than race to open new distribution. So in local markets, we are not looking to expand our distribution, apart from in some key regions. In China for example, we can open doors. However, in Europe, our distribution is coherent and in the US we have chosen to be in the big department stores and we see no reason to change that. n n n

www.bwconfidential.com - Jan 8-21, 2015 #104 - Page 6 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Cartier managing director fragrance Léa Vignal-Kenedi

n n n What is size of Cartier’s fragrance business today, and what are your ambitions in terms of development? Even if we double our business today, fragrance would still be a small part of the Cartier business in value, as there is a big price difference between jewelry and scent.

Interview Our ambition in fragrance is to reach a sufficient critical mass to develop the business within the Maison Cartier. This year we will cross this threshold, which allows us to be properly thought of by the trade and have more long-term partnerships. The year 2014 was a record year for Cartier fragrances—we saw double-digit growth in all markets. Our big priority is Declaration is still positive in a market that is negative globally, and Baiser Volé is holding travel retail, which its own despite the launch of La Panthère. There is always some cannibalization when you “ have a new launch, but it is along the lines of what we expected. Pasha Edition Noire, a accounts for around tactical product for certain regions, is also doing extremely well, and obviously La Panthère is our big growth engine. 15% of our fragrance sales and we need this What are your priorities for the brand by region? Our big priority is travel retail, which accounts for around 15% of our fragrance sales and figure to be at least at we need this figure to be at least at 20%. So we have a lot of room to grow. We have 20%. So we have a already seen good success in a few key airports, like in Dubai Duty Free, where we have moved up in the rankings. We are personalizing our spaces in Dubai Duty Free and at lot of room to grow London Heathrow, and plan to present the brand with a complete portfolio and service. We will begin selling our collections, Les Heures de Parfum and Les Heures Voyageuses, in Cartier managing director the best airports. fragrance Léa Vignal-Kenedi Today, Europe represents the biggest part of our business, with France and Italy the two locomotive markets. We are in the top 15 in Italy and we have seen strong progression ” with La Panthère there. In France, we are now number 21. In the Middle East we gained six ranks. In the US, where the Maison Cartier has strong awareness, we saw double-digit growth in 2014.

How do you plan to expand in Asia? The Maison Cartier has a good business in Asia, so we can’t be absent from this market. But today our strategy in China is based on having personalized counters in key high-end department stores and focusing on just a few doors. We ended 2014 with 10 doors in China and want to double that figure this year. Nevertheless, today in China, fragrance is not exploding and make-up and skincare still get the space at retail, so we are taking a careful approach to this market. n

s s La Panthère (top) is Cartier’s most successful women’s fragrance. The brand will launch its Les Heures collections (left) in travel retail

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s The main purchases in 2014 included (left to right) Editions de Parfums Frédéric Malle, Carol’s Daughter, Le Labo, Glamglow, NYX, Bite Beauty, Tarte, Niely Cosmeticos, e.l.f and Rodin Olio Lusso

M&A update Changing hands Beauty saw a host of acquisitions last year. BW Confidential looks at where the major players are investing and what’s to come

ake-up made a comeback on the acquisitions front in 2014. L’Oréal bought Mmasstige color brands NYX and US-based Sayuki Custom Cosmetics, while Japanese group Kosé snapped up Tarte Cosmetics, Bite Beauty became part of LVMH’s Kendo Brands and private-equity company TPG Growth bought mass brand e.l.f. Coty, meanwhile, is in exclusive negotiations to acquire Chanel-owned mass brand Bourjois. This marks a new turn of events. Historically, make-up has not been a favorite The market is seeing acquisition target as it is seen as a complex category to manage given its high number a return to color of skus and the need to renew collections several times a year. But the category is seeing “ robust growth—in the US, prestige color cosmetics outperformed skincare for the first cosmetics deals, time in 2014, says NPD Group. “The market is seeing a return to color cosmetics deals, which had long been ignored by strategists. Now it’s clearly making a comeback,” which had long been confirms investment firm Ohana & Co managing partner Ariel Ohana. Color brands’ ignored by strategists. digital marketing skills are also spiking interest in the category. One reason behind L’Oréal’s purchase of NYX was what the color brand had done to harness the power Now it’s clearly of social media and digital marketing. “The Holy Grail is being able to bypass retailers making a comeback and forge relationships directly with consumers. Some companies have distinct online personalities and very close connections with consumers, making them highly desirable acquisition targets,” says US-based Hatch Beauty managing partner Tracy Holland. Ohana & Co managing partner Ariel Ohana The niche segment is also seeing much activity, due in part to the lack of large-scale acquisition targets in the market. In the second half of 2014, Estée Lauder Companies ” (ELC), which had not made a major acquisition since its purchase of Smashbox in n n n

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n n n 2010, bought niche fragrance brands Editions de Parfums Frédéric Malle and Le Labo, as well as indie skincare brand Rodin Olio Lusso. The size of these acquisition targets has been questioned, however. “The market was expecting Lauder to make Insight larger-scale transactions. It seems that they are building up a collection of niche brands, the question is, did they buy the right ones? I’m not sure that acquiring small niche brands will really move the needle for them,” comments one US-based analyst. However, ELC’s announcement in December 2014 that it was to purchase US mud mask specialist Glamglow was applauded by industry watchers. Founded in 2010, the brand had sales of $103m in 2013 with just three products and has a strong social media following. The Holy Grail is Karen Grant, global beauty industry analyst at NPD Group, believes that the group is being able to bypass positioning itself for longer-term growth opportunities, a view which ELC group president “ international Cedric Prouvé confirmed to BW Confidential in late 2014 .“We are not retailers and forge looking at high-scale targets, but at brands we can make bigger and where we can get a relationships directly good return. Le Labo is exceptionally small, so it’s not going to be that material right away in terms of integrating it into the group. But we started with a lot of brands that were with consumers. very small, such as Tom Ford and Smashbox. We’re not so much looking at how big the Some companies brands are today, but more at how big they can become tomorrow.” Another area where beauty groups could look to is beauty devices. Yet, there are few have distinct online targets on the market today. “The problem is that a lot of these brands don’t have personalities and strong DNA and many don’t own their technology, so what are you really buying? Device brands need to get into daily-use products and own their technology, then they could be very close an interesting target,” comments US-based Brand Growth Management partner Kelly connections with Kovack. Ohana adds that there are simply not that many interesting device companies on the market. “Either these brands already belong to a big group or they are simply too consumers, making small. But companies are certainly keeping a lookout in this area,” he adds. them highly desirable American brands back in vogue acquisition targets While there have been a string of acquisitions in emerging markets in recent years (most recently L’Oréal’s purchase of Magic Holdings in China, Interconsumer Products in Africa and Vogue in Colombia, as well as ’s acquisition of Turkish brand Flormar), Hatch Beauty managing partner Tracy Holland today American brands are on companies’ radars—of the 15 or so acquisitions in 2014, nine were North American brands, and only one, Niely Cosmeticos in Brazil (purchased by ” L’Oréal), was in an emerging market. “Growth is coming back in the US; companies are realizing that [business] isn’t just happening in emerging markets today,” says Ohana. There is also more momentum from Asian companies, given their interest in acquiring Western brands to become more global players. Japan’s Kosé purchased New York-based Tarte Cosmetics and Korean company LG said in April that it was interested in acquiring to boost its international business. (The group backed off when Arden announced it was embarking on a major restructuring plan.) Analysts also predict that Chinese companies will make a move to buy Western targets. China-based Shanghai Jahwa, for example, is said to be looking closely at several Western brands. More Asian brands could also make interesting targets. The rise and strength of Korean brands across Asia are likely to see Western companies want to add them to their portfolios in a bid to strengthen their position in the region and have a tailored offer for consumers there. As to 2015, analysts forecast that the M&A landscape will see a continued focus on make-up and niche players, as well as brands that are strong in the digital arena. n n n

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n n n Beauty’s latest acquisitions Glamglow – Estée Lauder Companies (ELC) is to purchase California-based mud

Insight mask brand Glamglow. Founded in 2010, Glamglow is sold in 112 countries in prestige distribution and had sales of $103m in 2013 with just three products. This month the brand will launch a new range of .

Coloright – In a move to reinforce its haircare R&D capacities, L’Oréal acquired Israeli hair technology company Coloright in December 2014. The Tel Aviv-based start-up is specialized in hair fiber optical reader technology. It was the second company L’Oréal acquired last year for its technology, after US-based Sayuki Custom Cosmetics.

Soap & Glory – Drugstore operator Alliance Boots purchased UK-based skincare, bath and body and make-up brand Soap & Glory in November 2014. Alliance Boots became a minority shareholder in the company in 2011.

Bite Beauty – LVMH-owned Kendo, which was a division of Sephora until earlier this year, purchased Canadian color brand Bite Beauty in November 2014. The brand is specialized in , and also operates a Lip Lab in , where consumers can create their own lipstick.

Editions de Parfums Frédéric Malle – ELC announced last November that it would acquire the niche high-end fragrance brand. The brand has a range of 21 fragrances and operates five standalone stores in Paris and New York.

Rodin Olio Lusso – ELC said that US premium niche facial oil brand Rodin Olio Lusso, which it bought in October, has the potential to be a global skincare player.

Le Labo – ELC bought indie fragrance brand Le Labo in October 2014. Founded in 2006, the brand operates 10 standalone stores with locations in New York, Paris, Los Angeles, San Francisco, Tokyo and Hong Kong. It is also sold at department stores and concept boutiques.

Carol’s Daughter – L’Oréal acquired the US ethnic brand in October 2014. Carol’s Daughter, which markets haircare, bodycare, skincare and fragrance, was founded in 1993 and reported net sales of $27m for the 12 months ended September 2014. The acquisition will enable L’Oréal USA to build a multi-cultural beauty division. Carol’s Daughter is sold in the US in specialty stores, mass outlets, on TV network HSN and online. It also operates two freestanding stores.

Bourjois – Coty is in exclusive talks to purchase mass make-up brand Bourjois from Chanel in exchange for 15 million Class A Coty shares, valued at around $239m. Bourjois is sold through 23,000 doors in more than 50 countries and is strong in Western Europe, where Coty is looking to grow. “In terms of Western make-up brands that were available, had scale and could provide a significant boost, Bourjois was one of the rare options, and Coty seized that opportunity,” says Ohana & Co managing partner Ariel Ohana. n n n

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n n n Sayuki Custom Cosmetics – In September 2014, L’Oréal acquired

Insight this two-year-old California-based make-up brand, mainly for its color- matching technology. The group said that the technology will allow its brands to offer personalized foundations.

Payot – Spanish beauty group Puig sold the Payot skincare brand to an investment consortium managed by Italian businessman Andrea Surliuga in September 2014.

Niely Cosmeticos – L’Oréal purchased Brazilian brand Niely Cosmeticos in September 2014. Niely Cosmeticos claims to be the largest independent hair color and haircare company in Brazil and reported net sales of R$405m (€140m) in 2013. The company markets two main brands: Cor & Ton hair colorant and Niely Gold and care products, through retailers, wholesalers, supermarkets, pharmacies and perfumery chains in Brazil.

NYX – L’Oréal acquired US-based masstige make-up brand NYX in June 2014. An expert in social media, the brand is particularly strong in North America. Analysts estimate the group paid twice the brand’s annual sales. NYX’s sales from January to May 2014 were said to be around $93m.

Tarte Cosmetics – Japanese beauty group Kosé bought New York-based make-up and skincare brand Tarte Cosmetics in March 2014 for $135m. The brand gives Kosé a stronger presence in North America, where the brand is sold in doors including Sephora, Ulta and Macy’s and on TV network QVC, as well as expertise in the color segment.

Decléor, Carita – L’Oréal purchased French skincare brand Decléor and haircare brand Carita from Shiseido last year for €227.5m. Both brands have been integrated into the group’s Professional Products division. L’Oréal aims to bolster its presence in the beauty salon channel, which, the group says, is complementary to its hair salon business.

Aromatherapy Associates – Investment fund B&B Capital Partners purchased UK brand Aromatherapy Associates from investment company Optivi Limited in February 2014. Aromatherapy Associates markets bodycare and skincare in 40 countries throughout Europe, North America, the Middle East and Asia.

e.l.f. Cosmetics – In February 2014, US-based investment company TPG Growth bought a majority share in US budget make-up brand e.l.f. Founded in 2004, e.l.f opened its first standalone store in New York City in 2013. The brand now has three US stores and is sold in 14 countries outside of the US, mainly online. TPG Growth also bought a minority share in US brand Beautycounter in December 2014. n

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Burberry unveils first Beauty Box store in Asia Burberry’s second Beauty Box location, in Seoul, offers new services and digital tools

K-based fashion and beauty brand Burberry opened its first Burberry Beauty UBox store in Asia in December 2014. Located in Seoul’s Coex Mall, this is the brand’s second Beauty Box location following the opening of the London flagship in December 2013. The Seoul boutique, whose design was overseen by Burberry ceo and creative director Christopher Bailey, offers the brand’s make-up and fragrance ranges as well as accessories including eyewear, scarves and small leather goods. Burberry’s scent, My Burberry, which launched in September, takes a central place in the store. My Burberry Digital Experience, for example, is a large screen that presents the range and broadcasts the fragrance’s advertising campaign. Visitors can use the screen to create their own virtual monogrammed bottle. (The actual bottle can also be monogrammed at the store.) A second large digital screen broadcasts Burberry Beauty Box, runway shows from Burberry’s Prorsum collection. Seoul Another service, Fragrance Discovery, is a 20-minute one-on-one consultation l Opened: presenting the brand’s entire fragrance collection to help consumers find their December 2014 perfect scent. l Location: Coex Mall, Seoul, Make-up is also a focus at the store. The Digital Lip & Nail Bar (also a feature at the South Korea London store) allows shoppers to virtually try on products by placing a lipstick or nail l On offer: polish bottle on an RFID-enabled platform. Real and virtual fragrance Shoppers can get make-up touchups from the boutique’s Beauty Stylists in the bottle monogramming; Beauty Refresh area. Make-up Master Classes are also available, where consumers Digital Lip & Nail Bar; Beauty can learn tips from Burberry make-up artist consultant Wendy Rowe. Bespoke Refresh make-up touch-ups; make-up and fragrance consultations are also offered. Make-up Master Classes; The store has a gifting area called the Burberry Beauty Box Bar, where stylists help bespoke fragrance and make- shoppers chose the right make-up, accessories and fragrance. n up consultations; gifting area

www.bwconfidential.com - Jan 8-21, 2015 #104 - Page 12 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Store visit

s The Seoul store puts a major focus on Burberry’s latest fragrance launch, My Burberry

s The brand’s entire make-up range is on display (left), and services, including touch-ups, are on offer. Beauty Stylists help shoppers put together fashion accessories and beauty items at the gifting bar (right)

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