www.bwconfidential.com The inside view on the international beauty industry February 20-March 19, 2014 #88
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The buzz 2 New hope for old Europe? News roundup usiness may not have been great over Christmas in Netwatch 6 Bmany European countries, but some industry players predict that things may get easier in the region this year. Beauty blogger review At French group L’Oréal’s annual results conference, ceo Jean Paul Agon said that he was seeing some positive Interview 7 signs in Europe, even in the south of the continent. “We AS Watson coo think we may see some good surprises for Western Europe Malina Ngai this year. The market is coming back a little and we continue to gain market share. We are also more hopeful Insight 9 about southern Europe, where we may be coming to the Digital strategies end of the tunnel,” he commented. The company has even invested in new ventures in Spain, with the opening of Show review 12 a standalone store for the L’Oréal Paris brand in Madrid (see p.14). Last year PCD in Western Europe the group saw sales increase by only 1.1% (+1.9% like-for- like), although it managed to post strong market share positions—its consumer Store visit 14 division claimed a 29% share in the region in 2013. L’Oréal Paris, Madrid A better Europe would certainly make a difference to many companies, given the years of crisis the region has come through. However, any growth in Europe should be put into perspective—it would be coming against years of a flat or negative market, or paltry increases. In addition, any growth in the region is likely to stem more from rising prices rather than increases in volume.
Meet the BW Confidential Oonagh Phillips team at: Editor in Chief [email protected] l Duty Free Show of the Americas, Orlando, March 9-12 l Make Up in Seoul, March 13-14 l Esxence, Milan, March 20-23 l In-cosmetics, Hamburg, April 1-3 l Cosmoprof, Bologna, April 2-7 l Luxe Pack Shanghai, April 16-17 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz Strategy News roundup company Optivi Limited.Thebrandmarketsits bodycareandskincarein40 countries. September 2013,hasacquired UKbrandAromatherapyAssociatesfrominvestment B&B CapitalPartners, an investment fund created by UK group Alliance Boots in of purchasingalltheintellectual propertyrightstoKorresproductsintheregion. major marketswhereAvonoperatesinLatinAmerica,andprovides Avonwiththeoption market the company’s products inDirect sellerAvonhasinkedadealwithGreekskincarebrandKorrestomanufacture and Latin America. This long-term partnership includes all name inMay. Vespa scooter.Cotywilllaunchaduooffragrancesformen andwomenundertheVespa US-based CotyInc has signed a fragrance license with Piaggio Group, maker of thenetwork willtotal625stores. fourth in the French market. Followingis ranked the third acquisition, after Sephora the combinedandto goaheadwiththepurchase.Nocibéoperates455storesinFranceand Marionnaud. Douglas is currently Charterhouse CapitalPartners,hasreceivedapprovalfromitsshareholders ranked negotiations to acquire French German perfumerychainDouglas,chain which Nocibé has been from in current exclusive owner to 33.31%. that L’Oréal founding family Bettencourt The share Meyers’ buyback share means will Nestlé’s increase€3.4bn incash.ThebuybackwillnotrequirethedisposalofSanofisharesheldbyL’Oréal. share from in 30.6%L’Oréal will fallusing from 21.229.4% million to 23.29% L’Oréal and shares.to Nestlé. For the Nestlé remaining will 27.3pay formillion pharmaceuticalsthe disposalshares, L’Oréalof companyGalderma will Galderma forpay anmove thatwillbepartlyfinancedbythesaleofits50%stakeinSwissdermatological enterprise(a 50/50 joint value venture of €3.1bn between French groupL’Oréal is Nestlébuying andback L’Oréal) 8% of its share capital from food group Nestlé, a Stay informedwithourdailynewsheadlinesonbwconfidential.com n n n n n n n At aglance... n
Aveda founderHorstRechelbacherpassesaway Estée LaudernamesGuillaumeJeselglobalheadofinnovation Marionnaud ceoWilliamKoeberlétoleaveretailer B&B CapitalPartnersacquiresAromatherapyAssociates Coty inksfragrancedealwithVespa Avon signsdealwithKorresinLatinAmerica Douglas shareholdersapproveNocibéacquisition L’Oréal buysback8%ofitscapitalfromNestlé;2013salesup2.3% www.bwconfidential.com -February 20-March19, 2014#88 -Page 2
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n n n Results French group L’Oréal saw sales reach €22.98bn in 2013, an increase of 2.3% or +5% on a like-for-like basis. Profitability reached a “record level” according to ceo Jean Paul Agon, with net profit up 3.2% to €2.96bn. The buzz The group’s Luxe business saw one of the best growth rates of all divisions, with sales up 5.3% (+6.8% like-for-like) to €5.87bn, thanks to a solid performance from Lancôme especially the La Vie est Belle fragrance, which the group claims now ranks in the top- four globally, and to strong growth from the brand’s skincare lines. Skincare sales for the division were up 10%. Armani also put in a good year, with sales up 8.3%. Its Sì fragrance now ranks in the top five in Europe. The consumer products division saw sales rise 1.5% (+4.9% like-for-like) to €10.87bn. The division had a good year in Western Europe, where it now claims a market share of 29%, while in North America the business was affected by the market slowdown and an adjustment in retailer inventories. The division said its share of the North American market is now 19.8%. The professional division’s sales fell 1% (+2.1% on a like-for-like basis) to €2.97bn, while the active cosmetics division saw sales increase 4.9% (+7.8% like-for-like) to €1.6bn. By region, the business in Western Europe remained difficult, with sales up by just 1.1% (+1.9% like-for-like) to €7.48bn. North America sales were up 2.8% (+3.8% like-for-like) to €5.36bn in a disappointing market. L’Oréal estimates that the North American market only grew by 2.6% last year. Asia Pacific sales were up by 2.2% (+8.4% like-for-like) to €4.38bn. The group said that apart from South Korea, the region is dynamic, despite slower growth in China and India. L’Oréal’s sales in China were up by 10%. Agon called the move to stop selling mass brand Garnier in the country a good business decision. “Garnier never made a breakthrough in the market. It was a small brand and lost money, so we decided to close it, and this was also because we had the acquisition of Magic in sight,” he explained.
L’Oréal estimates that the Chinese market grew by 7% last year. BW Confidential L’Oréal predicts that the beauty market will grow by between 3.5% and 4% in 2014. 4 avenue de la Marne 92600 Asnières sur Seine, France [email protected] Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 Beauty group Coty reported sales of $1.32bn in the second quarter of its fiscal year, a www.bwconfidential.com ISSN: 2104-3302 decrease of 4%, while operating income was down 35% to $143.5m, and net income Publisher: Nicolas Grob fell by 33% to $82.5m. According to the company, sales in mature markets were Editorial Director: Oonagh Phillips [email protected] impacted by the under-performing mass fragrance and nail categories, in addition to high Deputy Editor: Alissa Demorest [email protected] levels of discounting in the US over the end-of-year holidays. Editorial Coordinator & Assistant: The group’s emerging-markets business posted growth of 6% in the period, with strong Darlene Lim [email protected] sales in Brazil, Southeast Asia and South Africa. Contributors: Tina Clark, Alex Wynne, Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché Subscriptions 1 year: electronic publication (20 issues) + Luxury-goods group Hermès reported sales of €3.75bn for 2013, a 7.8% increase on print magazine (4 issues) + daily news: €499 last year. At constant exchange rates, sales were up 13%. The perfumes business saw a or US$699 [email protected] sales increase of 15% at constant exchange rates, and the company highlighted the good Advertising [email protected] reception of its women’s fragrance Jour d’Hermès, and sustained growth of men’s line BW Confidential is published by Noon Media 513 746 297 RCS Nanterre Terre d’Hermès. Copyright © 2014. All rights reserved. Given the strong sales performance at the end of 2013, Hermès expects its operating Reproduction in whole or in part without permission is strictly prohibited. margin to be slightly above its all-time high of 32.1%, achieved in 2012.
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz People Retail business in2013. 40% toR$1.13bn(US$467m).LatinAmericaaccountedfor14.4%ofNatura’s cosmetics segment. second halfoftheyear.ThegrouplostmarketshareinBrazil,mainlycolor a “year of recovery” for its domestic market,(US$664m) with formarked the salesperiod, improvement an increase in ofthe (US$2.89bn) less than 1%. in Natura2013, upsays 10.5% that over 2013 the was previous year. EBITA reached R$1.61bn News roundup Intelligent Nutrients in2008. Aveda in 1978 and sold the brand to EstéeNutrients, Lauder Companies passed awayin 1997. on February He founded 15 followingHorst Rechelbacher, the founder an illness. of natural-based Rechelbacher brands founded Aveda and Intelligent board memberandchairman. Pierre Hemar. Rollier was previously a board Packaging specialistIleosGrouphasnamedJeanRollierpresidentandceo,replacing member of the group. Hemar has become Buglisi Weiler. America marketing, effective March 10. She will report to global brand president innovation,Karen package development. will report to Carl Haney, evp, global research svp andgm,globalcorporateinnovation.Jesel,whohasbeenwithELCfor14years, and development, corporate product and NorthAmericamarketingforMACCosmetics,tothenewlycreatedpositionof Estée LauderCompanies(ELC)hasappointedGuillaumeJesel,currentsvpglobal August 2013. She will be seconded by Daniel Giroud, whoreplaced was named by Eileen director Yeo, of who operations took on thein roleincluding of co-managing two and a directorhalf years last as January.head of leave thegroupthissummer.KoeberléspenteightandahalfyearsatMarionnaud, Marionnaud France. In France, he will beWilliam Koeberlé,theceoofASWatson-ownedperfumerychainMarionnaudisto Paulo in December 2013 and plans to expand its network this year. The 52m model. The company opened its first store French brandYvesRocherhasreturnedtothecountrywithastore-basedbusiness at the Morumbi shopping mall in São After an unsuccessful experience with door-to-door sales in Brazil during the 1990s, brand officerofYvesRocherforBrazilandwillruntheoperation. the secondhalfofyear.Italsoplanstolaunchanonlinebusinessincountry. 10 ofitsownstoresin2014Brazilandwillthenbeginafranchiseoperationfrom store has the same format as its boutiques in other markets. It plans to open around n Natura’s international business (Latin America and France) saw net sales increase Natura’s internationalbusiness(LatinAmericaandFrance)sawnetsalesincrease MAC, meanwhile, has appointed Laura Elkins senior vice president, global and North Silvia Ganbim, former general manager of L’Occitane Brazil has become the chief Silvia Ganbim,formergeneralmanagerofL’OccitaneBrazilhasbecomethechief reported net sales of R$7.01bn Brazilian direct-salescompanyNaturareportednetsalesofR$7.01bn n www.bwconfidential.com -February 20-March19, 2014#88 -Page 4 2 (560ft
2 ) CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIA CONFIDENTIA L L The buzz n Launches News roundup Prices fortheline rangefrom€42-€52.n Cleansing Balm, Multi-use Exfoliating Clay and Protective Moisturizing Lotion. seeds and leaves: Infused Facial Water, Radiance Boosting Powder, Nourishing range features five skus, whose formulas are based on extracts of distilled flowers, Diptyque is launching L’Art du Soin, its first facial skincare line, in March. The Following the introduction of a bodycare range in 2008, French fragrance brand (30ml), €48 (50ml) and €69 (100ml). Parfums Salvador Dali’s e-boutique beginning April 1, and will retail for €34 a transparent cap. It will be available in perfumeries as well as online on Firmenich’s FabricePellegrin. eau detoilette,thisspring.Thefruityfloralfragrancewas createdby Cofinluxe brandParfumsSalvadorDali is launching DaliA, a new women’s Rhythm fragrance bottle on burberry.com, retailer websites and on digital ads. an initiative that allows users to pre-order a scented tattoo in the shape of a Brit blossom and vetiver. The fragrance is described as a powdery floral with notes of lavender, orange first feminine fragrance since it took its beauty business in-house in April 2013. Burberry launched a women’s version of Brit Rhythm in February, the brand’s for €39.90. department stores. The 30ml EdT retails for €29.90 and the 50ml retails photographer OliviaBee. white musk base. The advertising campaign was shot by 19-year old American Olivier Cresp and Dora Baghriche, features crispy pear and cacao notes and a a Cacharel spokesperson. Premier Délice, created by Firmenich perfumers new generation of young women, between the ages of 13 and 20,” explains we felt it was time to bring the fragrance back into the limelight and address a Anaïs Premier Délice. “Anaïs Anaïs launched in 1978—35 years ago—and Anaïs Anaïs franchise with the launch of a new scent this spring called Anaïs L’Oréal-owned fragrancebrandCacharel is embarking on a renewal of its strategies. and will explore how luxury companies can integrate these changes into their luxury business in the future, with regard to manufacturing and consumption, Luxury 2025 conference will examine the impact of technological change on the edition ofitsLuxuryOutlookconferenceintheFrenchcapitalonMarch20.The Paris-based InternationalLuxuryBusinessAssociation is to host the fifth DaliA comes in a pink glass bottle, engraved with petals and topped with DaliA comesinapinkglassbottle,engravedwithpetals andtoppedwith The 90mlBritRhythmforherEdTretailsat€90. Digital will be at the heart of the communication campaign, and will include Anaïs Anaïs Premier Délice launches on April 1 in perfumeries and Events BW Confidential BW isapresspartneroftheevent. www.bwconfidential.com -February 20-March19, 2014#88 -Page 5
Beauty blogger review BW Confidential reports on what the bloggers are saying about beauty
The latest Dove ad campaign, a short film on the perception of beauty entitled “Selfie”, inspired by the influence of social media and the selfie (a self-portrait photograph taken with a mobile phone), has made waves on the blogosphere. Although some applaud what is seen as the brand’s efforts to
Netwatch empower women, the campaign has also drawn criticism for using the theme of female empowerment to sell its products, and the film has been described as contrived and misleading.
Gift ideas for Valentine’s Day were much in evidence on the web, with the latest innovations praised for their sensorial appeal. Favorites included a Neon Love bath and body products gift set by Lush and a Fizzy Heart bath product that contains a secret message inside, from Sephora’s private-label brand.
UK-based drugstore operator Boots’ international website, which has expanded delivery throughout Europe, has been described as a ‘goldmine’ of products. While Boots is liked for its reputed N°7 brand, bloggers are also keen to try products not widely sold outside the UK, like Cowshed and Neals Yard.
Although reviews of men’s products are less prominent on the net, men’s grooming brand Remington has sparked the interest of bloggers. The Remington Vacuum Beard & Grooming Kit features a built-in vacuum chamber to catch beard trimmings. The product is said to
appeal to fastidious men, who will appreciate the spotless sink after a beard trim. The views expressed in this section are those of bloggers and do not represent the opinions BW Confidential
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Interview Interview Interview Interview Interview Interview Interview Interview Interview Interview Market watch Interview Market watch Market watch Market watch South East Asia Interview Market watch: Market watch Middle East Market watch: US Market watch: China Market watch: US Market watch: China Market watch: The US Travel retail Travel retail Travel retail Insight: skincare Travel retail special Travel retail Digital focus Travel retail Packaging Travel retail Packaging Packaging Packaging Travel retail: Asia Packaging Packaging report Travel retail: Asia Packaging Packaging Packaging Beauty insight Luxury insight Make-up Market watch Fragrance insight Skincare insight Insight: Haircare Fragrance insight Make-up insight Skincare insight Insight: Fragrance Make-up insight Facts, figures, trends & innovations What’s changed and An analysis of market data, Make-up insight Insight: Fragrance Creation what’s to come? Figures, retail initiatives & trends How prestige is set to develop Data, trends & retailer views China, Japan, Korea trends and new opportunities Color makes a comeback What’s next for the category? What’s next for the category? Trends, opportunities & challenges Ups, downs & new directions What’s in store for 2013? AS Watson coo Malina Ngai
Talking shop AS Watson coo Malina Ngai explains how she sees the
Interview development of the group’s luxury beauty retail division for 2014 and beyond
Will parent company Hutchison Whampoa list AS Watson on the stock market and if so, what will the funds be used for? Hutchison Whampoa is conducting a strategic review of its retail group AS Watson, which entails all options for maximizing the value and future growth potential of the company, including potential public offerings of all or some of its businesses in appropriate markets. Hutchison Whampoa confirmed that it will not consider giving We plan to invest up control of any of the business. “€33m in new stores What are your priorities for the luxury division for 2014? and store upgrades in Last year, our luxury division in Europe saw 3% growth for sales of €1.6bn and for the Christmas period, we had a 2% increase in sales. In the UK, Christmas sales at The 2014. There should Perfume Shop were up 6%. In the Netherlands, we saw an increase of 14% for the be around 90 to November-December period. Ici Paris XL took over 12 Sephora shop-in-shops in the Netherlands and last year, we overtook Douglas to become the leader there. Ici Paris XL 100 new openings has a market share of 43% in the Netherlands. and 120 major store What we have achieved in 2013 gives us a strong foundation for 2014 and we will continue to increase our market share in this challenging environment. We have three upgrades this year key brands with Marionnaud, Ici Paris XL and The Perfume Shop and we plan to invest €33m in new stores and store upgrades in 2014. There should be around 90 to 100 new AS Watson coo Malina Ngai openings and 120 major store upgrades this year. We will also put a big focus on improving service. We have just invested in a major change in our CRM and e-commerce platform, with new technology that allows us to ” be more user friendly. We have 20 million loyalty cardholders for luxury and around 80 million for the group. AS Watson Luxury We also want to better engage the younger customer and we have put in place a special l Total stores: 1,699 younger customer loyalty program for The Perfume Shop and have installed more digital l Sales 2013: and interactive elements in some of the stores. In Romania, we have also introduced €1.6bn, +3% vs 2012 new elements in some stores, with more color and fun units aimed at attracting younger l Retail brands: consumers and we have seen a good sales lift. Marionnaud: France, Italy, Spain, Austria, Switzerland, How is the Marionnaud chain revamp progressing and what will be the Poland, Hungary, Portugal, impact of management changes that will see ceo William Koeberlé leave? Romania, Slovakia, Czech In France, the business was relatively good at +0.2% for Christmas. For the full year, Republic, Morocco; like-for-like sales were up 0.2%, while overall sales were down 1.5%—in line with Ici Paris XL: the market—as we closed 16 stores. In France, we are continuing to re-engineer the Netherlands, Belgium, network, an exercise that began in 2010, to improve the quality of sales per store. We are Luxembourg, Germany; opening new stores and upgrading existing outlets. Last year, we had a net increase of 10 The Perfume Shop: stores and refitted 60, while in 2012 we refitted 72 stores. By the end of the year we n n n UK, Ireland
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n n n should have completed re-engineering around 70% of the store network. We will open 15-20 new stores this year. The recent management changes will have no impact on the operation of Marionnaud France as Eileen Yeo has been md of Marionnaud France since January 2013. We are currently
Interview You are also closing markets like Poland and reducing store count in Spain. The re-engineering process is not just about France, but also Italy, Spain and Central “testing a more Europe. In Spain, we are consolidating the network; we have 128 stores in Spain and premium store Portugal, and half of them are profitable. So we have to focus on stores that can be commercially viable, as we have decided not to close the market. We have reached an concept in Malaysia agreement with the workforce and have decided to keep 55 stores. [with] a masstige In Poland, we had 17 stores, but the locations were not good and our business is better in four other [Central European] markets: Romania, Czech Republic, Hungary and positioning [to see] Slovakia, so we prefer to put our energy into those markets. We also have Rossmann in how we can go up Poland, which has 850 stores and we are seeing double-digit growth with this chain. In Italy, the market was down 4% last year, but we saw positive sales and we are 3 to a level. We will wait 4% above the market since last January. We have 123 stores in Italy and have a lot of until the store has supplier support, especially given what is going on in the retail sector of the market [near bankruptcy and restructuring of Italian perfumery chain Limoni]. been open for one year to evaluate Will you export the Marionnaud selective beauty retail concept to China? We have three choices when it comes to developing a premium concept for China, the results either through Marionnaud—we have already been running some tests of the name with Chinese consumers—with Ici Paris XL, which may be interesting due to the inclusion of the Paris name or under a name like Watson Premium. AS Watson coo Malina Ngai We are currently testing a more premium store concept in Malaysia with a 200m2 (2,153ft2) store called Muse by Watsons, which opened in July last year. It has a ” masstige positioning and it is a way of testing how we can go up a level. We will wait until the store has been open for one year to evaluate the results and then decide about transporting it to other markets, such as a Hong Kong, Singapore and China— with Hong Kong and Singapore being the first priorities. The group has been expanding rapidly in China. We open over 1,100 stores a year worldwide, of which 700 are under the Watsons brand, and we open about 400 stores in China annually. We now have 1,700 stores in 297 cities in China. We have been going into the third- and fourth-tier cities for the past three years and have got favorable location and lease terms. This is a good process of rapid expansion, although we are very careful to properly select and analyze our locations. But it is also important to test the environment for luxury in China, as luxury is growing faster than mass. It is also because at the moment, our offer is mainly for 18-30 year-old customers, but after the age of 30, these customers tend to look for more luxury brands, and so going to a more premium concept would be a good complement to our existing s AS Watson is testing a masstige concept in Asia called format in Asia. n Muse by Watsons
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 8 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Digital strategies What’s next? Insight BW Confidential analyzes recent digital initiatives from beauty brands
or tech-savvy consumers, the process of finding out about, or buying, beauty brands Fis probably still not fast enough. Brands now have to deliver immediate responses, providing transactional options on ad campaigns or fleshing out product reviews with live Twitter feeds. Video content is key, Meanwhile, new strategies are driving consumers from social media sites to other giving“ consumers platforms in more innovative ways. Last year, for example, Twitter teamed up with media and technology company Comcast to launch a feature called ‘See It’, which enables users the ability to learn to access an NBC TV program from a Twitter message. “We will start to see devices about products or the becoming even more connected, making content seamless and accessible across any device without ever having to think about it,” says Emmy Samtani, content strategist at latest trends. In 2014, digital agency Reborn. “We know that video content is key for beauty brands, giving brands need to think consumers the ability to learn about product features, application tips or the latest trends,” says Samtani. “In 2014, brands need to think beyond Facebook and YouTube, beyond Facebook and embrace platforms such as Vine [a Twitter-owned app that allows users to create and and YouTube, and share short, looping video clips].” Instagram and SnapChat are currently hot tools, especially useful for reaching the embrace platforms younger demographic, but Samtani also points to emerging platform Jelly, which is a such as Vine visual search engine that uses pictures and people. Video call technology, like Skype and FaceTime, more interactive features like Augmented Reality, and futuristic concepts like Google Glass are also set to change the way beauty is viewed in the future. “Ultimately, it is about ensuring that content is localized and sustainable, that channels are working Reborn content strategist effectively together and there is a continual process of evaluation for emerging platforms,” Emmy Samtani sums up Samtani. ” Case studies Nars on SnapChat As Shiseido-owned make-up brand Nars recently demonstrated with its campaign on SnapChat, a lot of attention can be garnered by embracing the hottest apps or tools as they emerge. Claiming to be one of the first major beauty brands to launch on SnapChat, a mobile app which lets users chat with photos and videos that self-delete once viewed, Nars used the technology to preview the Guy Bourdin collection in a 10-second video, prior to its release last October. The brand announced the preview on its @NARSissist Twitter and Instagram accounts, creating a buzz among fans. The brevity of the appearance provoked reactions from users about the purpose of the one-off preview. “While they received initial criticism over the fact that it only lasted 10 seconds, fans expressed excitement that the brand was using this new platform. This reinforces Nars’ status as an innovative and digitally savvy beauty brand,” says Samtani. “It’s the brands that are nimble that will be successful in exploring these new channels and keeping on trend.” n n n
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 9 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Digital strategies
n n n L’Oréal OnBeauty for CTV Amid the buzz around mobile apps and social networking, L’Oréal has quietly Insight been looking at the bigger picture. In December, L’Oréal USA announced the launch of a beauty app for internet- Connected Television (CTV), called OnBeauty. L’Oréal claims it is a first for beauty in the US and describes the app as the go-to beauty hub, designed to be viewed and explored on internet-connected television screens. The app offers regularly updated how-to and entertainment videos, a Look Book of themed looks, and a Product Gallery featuring most of L’Oréal USA’s brands. Consumers can also purchase products using the app. “This is a smart move and will no doubt be followed by others soon,” says Samtani. “It’s worth noting that the content that L’Oréal will produce for OnBeauty could also be repurposed for their existing channels. This would further drive interest around their brands.”
Matrix Class for Glass While the Google Glass technology has been largely experimental, L’Oréal-owned haircare brand Matrix is spearheading a marketing strategy that uses the wearable technology to give its consumers a unique view from the hairstylists’ eyes. In an effort to embody “the next generation of beauty education,” Matrix unveiled a program dubbed Class for Glass, which consists of three phases, which will roll out this year. The first phase is a Blogger Video Series, featuring tutorials from Matrix Celebrity Stylist, George Papanikolas and Matrix Artistic Director, Amman Carver, which uses Google Glass technology to offer a “unique view from behind the chair”. The series will showcase bloggers who share their experience live on social media channels. Later this spring, The Matrix Eye for Style Chair will allow consumers to book an exclusive appointment with Papanikolas, who will record the session via Google Glass and later, email the video to the client, to serve as a personalized at-home tutorial. The third phase is the Salon Professional Education Platform for salon professionals, which will showcase tutorials focusing on key salon techniques and styles.
Guerlain on Tumblr Digital tools like Twitter, Instagram and Facebook have helped LVMH-owned beauty brand Guerlain connect with new consumers. In its latest initiative, the brand also started graphically presenting its history on Tumblr, a strategy aimed at giving younger consumers a new vision of its roots. The content makes full use of the power of visuals to highlight the brand’s luxury aspects and provide information about its iconic beauty products. n n n
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 10 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Insight Digital strategies beauty videosareviewedperday. top influencers,” says StyleHaul.engaging According with tobeauty-centric the company, content120video million contentvia onlinehow-to strategy videoand totutorials reachfor a createdyoung,reaching influentialby younger YouTube’s consumers. demographic,Makeup). “Beauty who Inarebrands addition sharing need toanda strategiccapitalizingthat and has oninnovative beenthe virtuesused by ofMaybelline video, YouTube (Recreate is athe key Runway) platform and Bobbiand CarliBybel(theBeautyBybel). Brown (I Love videos werepresentedbyfourYouTubestars,includingbeautyvloggersDulceCandy The strategy of using bloggers in the videos taps into the popular beauty vlogger trend
The premier show for creative packaging n starring key YouTube bloggers. The starring keyYouTubebloggers.The to create fashion and beauty videosprogramming company StyleHaul retailer Macy’s partnered with YouTube programs.Lastfall,US video beauty brands to launch their ownchannels in beauty, prompting majorYouTube is one of the most influential n Macy’s onYouTube APRIL2014 1 NEW YORK I 6 -17 MONACO I www.luxepack.com SHANGHAI
NEW VENUE ! PCD Packs on show BW Confidential reports on what was seen and heard at packaging show PCD, which took place in Paris from February 5-6
Show review igger and better is how industry executives described this year’s edition of Paris- Bbased beauty packaging show PCD. This year marked the 10th edition of the show, which welcomed 220 exhibitors, compared with 180 in 2013. There was also a more international flavor to the event, with executives from 66 countries attending. The conferences were a strong point of the show, with sessions on technical issues and purchasing proving popular. Most exhibitors were satisfied with the show, although they expressed caution about the business in 2014. Many suppliers commented that January had been a slow month and that they lacked visibility about how the year would pan out. Next year’s PCD show will take place from February 4-5.
Seen in show MWV says it has seen a positive response to its Emotions of Spray Collection, a range of pumps that claim to tailor the spray experience to the personality of the fragrance, and that it may further expand the concept. “This is a real turning point, as before pumps were considered a commodity. From our consumer research we have found that people make a difference between precise or focused sprays or all-enveloping sprays, so for prestige it is important that brands take this into account,” comments MWV marketing manager fragrance division Sandy Gregory. She continues: “We could even consider a customized option, whereby brands have their own particular spray experience.” The Emotions of Spray Collection includes pumps that provide a prolonged spray, fine atomization and voluminous spray mists.
Quadpack showcased Dahlia, a glass bottle that features airless technology. The bottle is composed of an outer glass container that surrounds a rigid airless cylinder. Quadpack says the glass bottle adds weight and a luxury feel to airless technology, which protects formulas from contamination. The glass bottle can be personalized with a range of decoration options, including pearlized effects on the inside or outside. The aluminum collar and cap can be embossed, punched and polished.
Glassmaker Pochet presented the bottle for Viktor & Rolf’s new fragrance, Bonbon. The company said it was a technical challenge to create the shape of the bottle, given the engravings and relief effects (intended to resemble a candy wrapper) and because its shoulders are higher than its neck. The company also revealed that it is seeing more demand for make-up items in glass packs. Brands are no longer just asking for foundations in glass bottles, but are testing out mascara and eyeshadow in glass packs, according to the company. n n n
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 12 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Show review an embossedeffect. used in traditional screen printingcreated through for Braille, the process can also be director FeliceNardiello. Bormioli Luigi container divisionreduce sales the effects of breakage,”options, explains and this kind of technologyis moving will towards more lightweight from shattering.“Theperfumerymarket glass bottle breaks,thecoatingkeepsglass 30%, according to the company. increasesWhen a a bottle’s resistance Shatterproof isavarnishcoatingthat to shock by Originally conceived for its tablewarecurrently division in the testingand adapted phase to Italian glassmakerBormioliLuigi andpresented its is fragrance forecast its Shatterproof bottleto launch activity, on technology, the market whichwithin is nine months. 12ml versions. mono-dose product or sample canmore be re-used.mono-dose The products. Coraligne The line flacons3ml already and come 20ml offered with versions. a 7mlcap andandThe canadditions French companyCoradin behas sealed, extended to the meaning lineits Coraligne camea in response range of to supple client flacons demand tofor include50ml sizesandisdesignedforskincaremake-upformulas. can alsobecustomizedwithpearlormetalliccolors.TAGLuxeaisavailablein30mland TAG, called Glass Enhancer, whereThe innercompany spray has lacqueringalso introduced enhances However, despitethenewshape,entirebottlesurfacecanbecustomdecorated. a decoration the glass techniquebottle; it specificallya glass developedbottle. Called for Tag Luxea, Italian groupLumsonhascomeoutwithanewshapeforitsTAGairlesssystemin the new bottle comes in a semi-spherical shape. was mergingwithMultiPackagingSolutions. of differentiation for their packs. touch, deepembossingandarangeoffinishesintenedtoprovideclientswithanelement In November last year, Chesapeake presented differenteffectsthatitcanproduceonpaperandcard.Theincludesoft announced that it n PCD Packaging groupChesapeake, which exhibited at the PCD show for the first time, the production run. Originally to remain uniform throughout uses precisecontrolmeasures print thedotsonplasticand uses a high-build varnish to packaging. The technology lettering directlyontoplastic new process for printing Braille M&H Plasticswasshowingits UK-based packaging company n Store visit
Mass appeal L’Oréal Paris’ first branded boutique in Spain offers a mix of products tailored to the local consumer and a range of complimentary services
ass beauty brand L’Oréal Paris inaugurated its first standalone store in Spain Min the city of Madrid in January. Conceived as a “laboratory”, according to the company, the boutique gives consumers the chance to test and purchase an edited range of the brand’s products, while providing access to “high added-value” services. “We want to support the Spanish market by innovating and responding to the local consumer’s new expectations,” commented L’Oréal Paris Spain general manager L’Oréal Paris Inès Caldeira. Madrid Located on the city’s trendy Calle Fuencarral, the 100m2 (1,076ft2) store features l Location: products from all segments, but make-up represents the bulk of the offer at 70%. Madrid, Spain Skincare accounts for 15% and haircare makes up 5%. The boutique also stocks l Size: 100m2 L’Oréal Paris’ skincare line for men, Men Expert. (1,076ft2) The store has a staff of seven beauty advisors and make-up artists. In terms of l On offer: Edited services, the boutique features a lip bar, nail bar and cleansing bar. There is also range of L’Oréal Paris a lounge area and a make-up mirror, which allows consumers to virtually try on products, lip bar, nail make-up looks and create their own video tutorial. n bar, cleansing bar
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 14 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Store visit
s Skincare accounts for 15% of the store’s offer; there is also a lounge area and make-up mirror
s The boutique was created to be a “laboratory” that would cater to local consumers’ beauty needs
www.bwconfidential.com - February 20-March 19, 2014 #88 - Page 15 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Get the latest news, analysis and commentary on the international beauty industry
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