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BW Confidential Ophillips@Bwconfidential.Com Team At www.bwconfidential.com The inside view on the international beauty industry March 3-30, 2016 #127 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside The buzz 2 Nurturing the niche News roundup he niche fragrance market is still hot. Last week, Netwatch 5 TEstée Lauder Companies (ELC) announced that it had acquired French fragrance house By Kilian. The move Social media monitor comes after the US-based group’s purchase of Editions de Parfums Frédéric Malle and Le Labo at the end Interview 6 of 2014, and is intended to reinforce its ultra-luxury RR Perfumes e Cosméticos ceo fragrance portfolio. Francisco Brizuela The continued interest in niche fragrance is hardly surprising. The category is seeing growth of around 20% Insight 8 a year, according to some sources, compared with an Argentina average of 4% for the mainstream prestige fragrance market. And while niche still represents only a small part of the overall market, some industry observers Store visit 12 predict that the category could account for 20 to 25% of the prestige perfume Guerlain, Paris market in the near future. ELC is of course not the only company to have shown interest in niche fragrances. Last year, Spanish group Puig acquired L’Artisan Parfumeur and Penhaligon’s. Given the niche category’s growth rates and consumer demand for more original, individual fragrances, more niche acquisitions are likely to be just around the corner. Oonagh Phillips Editor in Chief Meet the BW Confidential [email protected] team at: l Cosmopack, Bologna, March 17-20 l Cosmoprof Worldwide, Bologna, March 18-21 l Esxence, Milan, March 31 - April 1 l Duty Free Show of the Americas, Orlando, April 3-6 l in-cosmetics, April 12-14 l Luxe Pack Shanghai, April 13-14 News headlines daily on www.bwconfidential.com @BWCbeautynews News roundup At a glance... n Estée Lauder Companies acquires By Kilian n CDG takes majority stake in Per-fékt Beauty The buzz n Revlon ceo to step down Stay informed with our daily news headlines on www.bwconfidential.com Strategy Estée Lauder Companies (ELC) has acquired Paris-based fragrance brand By Kilian. Over the past year and a half, ELC has purchased a string of niche beauty brands, including fragrance companies Le Labo and Editions de Parfums Frédéric Malle. The acquisition is part of ELC’s strategy of focusing its fragrance portfolio on ultra-luxury brands. By Kilian was founded in 2007 by Kilian Hennessy and is sold in more than 40 countries through freestanding stores, department stores and perfumeries. Its key markets are North America, Europe and the Middle East. Cosmetics services company Cosmetic Design Group (CDG) has taken a majority stake in indie beauty brand Per-fékt Beauty. Hollywood-based Per-fékt Beauty was founded in 2005 and is sold in more than 700 doors globally, including Sephora and Ulta. The brand is known for its perfectors, or multi-functional make-up-skincare hybrid products. The group says that it is looking for further merger and acquisition opportunities. Takasago has acquired US-based natural fragrance and flavor ingredient company Centre Ingredient Technology (CIT). The move expands Takasago’s natural materials portfolio and is intended to improve quality and costs of natural ingredients. CIT produces natural ingredients through its biotechnology manufacturing processes. France-based perfumery chain Beauty Success has acquired French beauty salon company Esthetic Center. Esthetic Center is a franchise concept based on the idea of offering accessibly priced beauty services without an appointment. There are around 180 Esthetic Centers, located mainly in France. French start-up Saabelis has launched a new fragrance testing and sampling tool, called CapScent. The sample is a capsule, which when lightly pressed liberates the fragrance before returning to its original form. This means that consumers can test the scent without having to spray it on themselves. However, customers can also apply the fragrance directly to their skin. CapScent currently exists in four formats, including a sphere and a cube, although its shape can be customized and the capsules can be personalized with a brand name. n n n www.bwconfidential.com - March 3-30, 2016 #127 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n Retail Perfumery retailer Sephora France is putting the focus on Korean beauty. The retailer is spotlighting products from its own-brand inspired by Korean trends, such as its cushion The buzz products and masks, as well as brands such as Korean-inspired Erborian and Seoul-based Tony Moly, which will make its debut at Sephora’s French stores this spring. Tony Moly was founded in 2006 and markets around 3,000 products. Sephora has opted to stock skus from the brand featuring fun packaging. These include packs in the form of pandas (for eye serums and hand creams) and a range of fruit-shaped items (apples, bananas) for its lip balms and hand creams. The brand also markets Egg Pore, a blackhead steam balm in an egg-shaped pack that heats and exfoliates the skin and contains egg yolk to absorb excess sebum. Sephora also revealed that it has revamped its own-brand skincare range to be more ‘simple, serious and sensorial’. The new packs show designs that aim to represent the texture of the formula inside, highlight the ingredients and feature the term ‘clinically proven tolerance’. In fragrance, Sephora France revealed it will begin selling new scents from leisure-wear brands Abercrombie & Fitch and Hollister. People US-based Revlon’s president and ceo Lorenzo Delpani is to leave the company, citing personal reasons. He will continue to serve on Revlon’s board of directors and as a paid advisor. It was revealed in January that Revlon could soon be sold. The company appointed Gianni Pieraccioni as its new chief operating officer. Pieraccioni is currently executive vice president and global president of Revlon’s consumer division. In other news, Revlon reported that net sales rose 4.2% to $521.9m in the fourth quarter of 2015, while net profit came in at $24.8m. For the full year 2015, sales were down 1.4% to $1.91bn. Net profit for the year was $56.1m, up 37.2% on 2014. BW Confidential 4 avenue de la Marne 92600 Asnières sur Seine, France [email protected] L’Oréal has appointed Stéphane Rinderknech ceo of its China business. He will also Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 continue to head the consumer division of L’Oréal China. www.bwconfidential.com Rinderknech succeeds Alexis Perakis-Valat, who will continue to be in charge of the Asia ISSN: 2104-3302 Publisher: Nicolas Grob Pacific zone as executive vice president and member of L’Oréal’s executive committee, Editorial Director: Oonagh Phillips [email protected] based in Shanghai. Journalist & Copy Editor: Katie Nichol Rinderknech joined L’Oréal in 2001. After various management positions with the [email protected] Contributors: Sophie Douez, Alex Wynne, Luxe division in Japan and Korea, Rinderknech became vice president of L’Oréal China Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet in charge of the Luxe Division in June 2011. He took the helm of the consumer products Subscriptions 1 year: electronic publication (20 issues) + division at the beginning of 2015. print magazine (4 issues) + daily news: €499 or US$699 [email protected] German group Henkel has appointed Pascal Houdayer executive vice president of beauty Advertising [email protected] care, effective May 1, 2016. Houdayer, who is currently corporate senior vice president BW Confidential is published by Noon Media of the laundry and home care business unit, will also become a member of the group’s 513 746 297 RCS Nanterre Copyright © 2016. All rights reserved. management board from March. Reproduction in whole or in part without permission is strictly prohibited. Houdayer replaces Hans Van Bylen, who is to become ceo of Henkel. n n n www.bwconfidential.com - March 3-30, 2016 #127 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup n n n Flavor and fragrance company IFF has appointed Dionisio Ferenc as vice president, global fine fragrances. Ferenc, who joined IFF Argentina in 1994, was most recently vice president, regional general manager fragrances Latin America, a role he had held since 2007. The buzz Data Sales of prestige beauty products in France fell 0.9% in 2015 to €2.9bn, according to The NPD Group. The market, which was on an upward trend in 2015, was hit by slower traffic in perfumeries in November and December as a result of the terrorist attacks in Paris. In December, sales were down by 1.9%. The fragrance category saw sales fall 1.6% in value. Women’s fragrances were down 2.8% in value (sales of gift sets however, rose by 4.7%), while men’s fragrances reported a 0.6% decline. Skincare put in its best performance in two years, with sales up 0.6%. Despite a difficult month of December, make-up sales rose 0.4% in value, its highest growth rate since 2013. The category was fueled by growth in lipsticks, which saw sales up 8.5%. Launches YSL Beauté (L’Oréal) is launching a new mascara range aimed at millennials, called Mascara Vinyl Couture. The brand claims that the product has a vinyl-like texture and provides high-shine. It also says that the mascara has a highly pigmented formula, thereby producing vibrant color effects. The line comprises nine shades, including two sparkling top coats. The launch will STAY INFORMED WITH OUR be backed by an advertising campaign featuring model Cara Delevingne. The DAILY NEWS SERVICE mascara is launching in May, priced at €33.
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