OFC CBM 0515 cover_Passed_Layout 1 13/05/2015 09:34 Page 1 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. cosmeticsbusiness.com Market report Special focus Profiles twitter.com/cb_beautynews Premium fragrances rise Global leader Brazil hits $4bn, Penhaligon’s page 3 May 2015 Year 32 issue 5 and bloom in Europe despite weakened economy Nose page 5 US market shrinks by 2.4% page 34 page 6 MARKETS WOMEN’S FRAGRANCES Prestige power IFC CBM 0515 contents_Passed_Layout 1 12/05/2015 17:25 Page 2 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. MARKETS Year32 issue 5 May 2015 Front cover: Courtesy of Aveda THE WOMEN’S FRAGRANCES ISSUE Cosmetics Business Markets Company profile Retail profile HPCi Media Limited Penhaligon’s 3-4 Nose 5 The Tanneries Natraj Building Acquired by Puig and Parisian perfumery Nose has 55 Bermondsey Street London SE1 3XG celebrating its 145th anniversary: garnered critical acclaim for its www.cosmeticsbusiness.com 2015 is smelling sweet for the unique diagnostic tool and wide tel +44 20 7193 6862 luxury British perfume house selection of niche brands fax +44 20 3318 5305 email [email protected] Editor MARKET REPORT Jo Allen Summary 6-7 German Correspondent Report highlights, top 5 brands by country, usage data and key trends Annemarie Kruse France 8-11 Italian Correspondent Value growth returned to the prestige market for women’s Kathleen Armstrong w Spanish Correspondent fragrances in 2014, inching up 1% to 1.256bn, according to NPD Simeon Goldstein Germany 12-16 Sub-Editor IRI Germany reported a blooming year for women’s fragrances, up Austyn King 2.8% to w966.45m in 2014, with growth coming from eaux de parfum Art Editor Italy 16-20 Sibylla Duffy Women’s fragrances enjoyed sweet success in Italy, with Cosmetica Sales Director w Adrian Goldfinch Italia announcing a 2.3% rise in sales to 584.5m Subscriptions Spain 20-21 Julie Wilson IRI Spain noted a 4% fall to w390.5m, as consumers opt for cheaper Editorial Director brands Erika Hatva UK 22-26 Managing Director Kantar Worldpanel announced an overall decline of 2.8% to £809.78m, but Colin Bailey-Wood the prestige business continues to be a major positive for the UK market Editorial Russia 26-28 +44 1992 303 259 Russia’s fragrance market rose 1% to RUB72.21bn, according to Euromonitor [email protected] Global round up 29-32 Advertising Extended country coverage, reporting on the US, Austria and India +44 20 7193 6862 [email protected] Subscriptions +44 20 7193 1279 Special focus Product spotlight [email protected] Brazil 34-37 38 Brazil’s women’s fragrance Which women’s scents shone Each year Cosmetics Business Subscriptions market is the world’s largest, at the French FiFi Awards? Markets publishes a market report Cosmetics Business subscription on the following product categories: includes Cosmetics Business News but could the economic crisis and Cosmetics Business Markets threaten its position? January Bathroom (plus subscriber access to products cosmeticsbusiness.com). Full details on subscriptions can be found at February Facial skin care www.hpcimedia.com or email March Men’s lines [email protected] April Sun care May Women’s fragrances June Body care July Deodorants © HPCi Media Limited The paper used in this magazine is August Hair care obtained from manufacturers who operate September Aesthetics within internationally recognised standards. The paper is sourced from sustainable, October Spa products properly managed forestation. November Colour cosmetics Printed by ColourfastWorld Limited, London December Hands & nails ISSN 0957-1515 003 CBM 0515 company profile_Passed_Layout 1 12/05/2015 15:43 Page 3 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. PENHALIGON’S COMPANY PROFILE PENHALIGON’S PRESTIGIOUS AND POISED 2015 is already proving to be a landmark year for Penhaligon’s. The luxury British fragrance house was acquired by Spanish giant Puig in January, while it is also celebrating its 145th anniversary, as Katie Middleweek reports When Cornish barber William Penhaligon first world’s most successful perfume brands including arrived on the hustle and bustle of London’s Paco Rabanne, Nina Ricci, Carolina Herrera, streets in the late 1860s, few could have envisaged Valentino Parfums, Prada Parfums and Comme that the legacy he would create for himself would Des Garçons Parfums. Huband declined to still be going strong 145 years later. Originally comment on the acquisition directly, but Marc from Penzance, he took up employment cutting Puig, Chairman and CEO of Puig spoke to gentlemen’s hair at the famous Piccadilly Turkish Cosmetics Business Markets earlier this year Baths on Jermyn Street, then the epicentre of the and confirmed that the company is “planning to capital’s flamboyance and excess, and was soon maintain [both companies’] distinct personality at influenced by what he saw – or rather what he the same time that we continue nurturing their smelled – around him every day. His very first development”. No doubt, Penhaligon’s will benefit fragrance, Hammam Bouquet, launched in 1872, from its new owner’s strength and ongoing was directly influenced by the steam and international success in the fragrance business. sulphurous aromas of the baths themselves. Penhaligon’s number one market is the UK, Penhaligon’s keen eye for business led to him to where it now has 13 standalone stores throughout open a new salon just down the street a number of the country, as well as being stocked in a number years later, and he started to create scents and of boutiques nationwide and in Harrods, lotions for his discerning clientele. Selfridges and Harvey Nichols. There are plans to open a new UK store later this year as business Scent of history continues to thrive. Hammam Bouquet is still on sale today, and sits Huband continues: “In the UK in the past year within a portfolio of luxury fragrances which now we have launched a men’s grooming range (the totals almost 40. Penhaligon’s fragrances (and the Bayolea collection), three fragrances inspired by bath, body care and grooming collections which London’s historic trade in luxury goods (the Trade make up the rest of offering) are not exactly Routes collection) and Ostara – an interpretation inexpensive, priced at approximately £85 for 50ml of the Narcissus’ journey from bud to bloom of EdP, but Penhaligon’s attracts the discerning which uses the daffodil as its inspiration.” customer, as well as the discerning perfumer, having worked with such leading noses as Olivier In bloom Cresp and Alberto Morillas in the past. Ostara was created by master perfumer Bertrand Matthew Huband, Head of Global Marketing Duchaufour, taking inspiration from his childhood for Penhaligon’s, says the brand’s main memories of sweet narcissus flowers in Auvergne, achievement has been enduring 145 years of ups France, to capture the optimism and sunlight that and downs, while all the while maintaining its spring brings. Indeed the floral fragrance is named quality and integrity. He says: “We have, after the Goddess of Spring herself and has been a throughout all the years, remained relevant, which huge hit for Penhaligon’s garnering much has been vital to our success – we have adapted to excitement within beauty circles. the times and forged new paths while retaining Huband says that every Penhaligon’s launch who we are. starts as a moment of inspiration, from which the “For the past 145 years we have been an story evolves and the fragrance is built around established authority within perfumery and our that. The Trade Routes collection is a good reputation has helped us maintain our position within the competitive landscape.” Fact file: Penhaligon’s And on 23 January 2015, Penhaligon’s, together with its sister company, French perfume house Founded 1870, London, by William Penhaligon L’Artisan Parfumeur, forged a significant new path Address Penhaligon’s Ltd, Dragoon House, Penhaligon’s holds two when they were acquired by Spanish fashion and 37-39 Artillery Lane, London, E1 7LP Royal Warrants, from fragrance company Puig. Previously owned by Contact telephone +44 203 040 6120 HRH the Prince of Wales Californian private equity company Fox Paine & Website www.penhaligons.com and HRH the Duke of Company, Penhaligion’s and L’Artisan Parfumeur Edinburgh are now owned by the parent of some of the May 2015 CBM 3 003 CBM 0515 company profile_Passed_Layout 1 12/05/2015 15:43 Page 4 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. COMPANY PROFILE PENHALIGON’S example of this – the inspiration of luxury, manner, with the signature flacon echoing exoticism and surprise went all the way through William Penhaligon’s original design, complete from the juice through to the packaging. The line with its distinctive ribbon-wrapped stopper. comprises Lothair, which takes inspiration from When asked about a potential hero Penhaligon’s the famous Tea Clipper ships that brought exotic product, Huband muses: “Over the course of the goods to British shores; Empressa, inspired by the past 145 years we have seen many iconic moments precious silks and fine fabrics transported but one product stands out as our hero product – throughout London for women of power and Blenheim Bouquet. Created as a commission for influence; and Levantium, which evokes the rum, the Duke of Marlborough to celebrate his spices, woods and resins that found their way to ancestral seat of Blenheim Palace, the fragrance London from across the globe to be stocked high was groundbreaking at the time. A fresh citrus in a in the capital’s warehouses and wharves. landscape of heavy florals, the scent has devotees The Bayolea Collection, meanwhile, is billed by as diverse as the late Winston Churchill, and today Penhaligon’s as “male grooming for the modern designers Christopher Bailey and Tom Ford.” gentleman” and comprises a plethora of products, Coming back to the present moment, Huband We have, from a facial wash and hair pomade to a quirky emphasises that this year’s focus is on the 145th throughout all the moustache wax and traditional aftershave splash.