www.bwconfidential.com The inside view on the international beauty industry April 14-27, 2016 #129

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The buzz 2 The unisex draw News roundup t looks like the re-emergence of the unisex fragrance Netwatch 5 Itrend is set to be around for some time to come. This trend for no-gender scents is largely driven by millennials, Social media monitor and more launches in the segment are set to hit the market as brands up their investment in targeting this Interview 6 consumer group. It is also a movement that can be Bluemercury founder and ceo Marla seen in the wider marketplace, such as in fashion with Malcolm Beck initiatives like retailer Zara’s collection of unisex clothing called Ungendered. Insight 8 Last year the number of new unisex fragrance launches Iran reached 741, compared with 496 in 2014, according to data from Fragrances of the World 2016 by fragrance expert Michael Edwards. This trend can be seen in Show review 12 all segments of the market, at the high end, with lines such as Hermès’ Le Jardin Esxence, Milan de Monsieur Li, in the mainstream with the major new initiative for the Calvin Klein brand, ck2, which was released earlier this year or Kenzo’s Totem, which Store visit 14 launched last year. The trend is also prevalent in the niche area. Indeed, at this Sulwhasoo, Seoul year’s Esxence trade show, which is devoted to niche perfumery and took place at the end of March in Milan, there was a strong presence of new unisex fragrances. Anything that can help the fragrance industry to recruit younger consumers can only be viewed as positive. And brands will no doubt comfort themselves in the thought that with this type of offer they will also widen their consumer base on one product by appealing to both sexes.

Oonagh Phillips Meet the BW Confidential Editor in Chief team at: [email protected] l BeautyEurasia, Istanbul, April 21-23 l TFWA Asia Pacific, Singapore, May 8-12 l Luxe Pack New York, May 11-12 l Beauty World Middle East, Dubai, May 15-17 News headlines daily on www.bwconfidential.com @BWCbeautynews l China Beauty Expo, Shanghai, May 18-20 News roundup At a glance...

n Chinese investment group Fosun acquires Ahava

n L’Oréal Paris to launch BeautifulSkin.com and Skin Genius

The buzz n Feelunique secures $28.2m in funding

Stay informed with our daily news headlines on www.bwconfidential.com

Strategy

Chinese investment group Fosun has acquired Israel-based Dead Sea mineral skincare brand Ahava for $76.8m. Fosun stated that it aims to expand Ahava to China and other countries. Ahava, which was founded in 1988, is sold in department stores, perfumeries and independent stores in 30 countries.

L’Oréal Paris is to launch a new website in June, which aims to aggregate skincare information. The site, called BeautifulSkin.com, is dubbed the Google for skincare. The site can be used to search for information (data and articles) based on skincare needs and concerns. It will also host live chats and aims to create a skincare community. L’Oréal Paris will also unveil the Skin Genius skincare app in July (in the UK, it will then launch in France in September). Following on from the Makeup Genius app launched in 2014, Skin Genius provides an aging mirror that acts as a personalized simulation of the way that the user’s skin is likely to age. Users take a photo with their smartphone and enter information based on their lifestyle and environment. They are then assisted by a skin coach, who offers a personalized skincare routine and solutions.

UK-based online beauty retailer Feelunique has secured £20m ($28.2m) in funding from its current shareholder Palamon Capital Partners, alongside two new unnamed BW Confidential co-investors. Feelunique says the investment will help boost international expansion. 4 avenue de la Marne The group recently launched a Chinese website, which it says is performing “beyond 92600 Asnières sur Seine, France [email protected] expectations”. It also moved into France in November last year through the acquisition of Tel: +33 (0)1 74 63 49 61 Fax: +33 (0)1 53 01 09 79 French perfumery chain Parfumeries Rive Droite, which operates four stores. Feelunique www.bwconfidential.com has opened a French distribution center and hired a local executive team. ISSN: 2104-3302 Publisher: Nicolas Grob The company reported total retail sales of £65m ($91.7m) for the year ending March 31, Editorial Director: Oonagh Phillips [email protected] 2016, up 23% on last year. It claims to have more than 1.6 million registered customers, Journalist & Copy Editor: Katie Nichol [email protected] of which 87% are female, with core repeat customers buying six times per year. Contributors: Sophie Douez, Alex Wynne, Feelunique’s website is available in five languages. Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet Subscriptions 1 year: electronic publication (20 issues) + Indian home and personal-care company Godrej Consumer Products Limited is to print magazine (4 issues) + daily news: €499 buy US-based haircare company Strength of Nature, which specializes in products for or US$699 [email protected] consumers of African descent. Strength of Nature’s brands are sold in 50 countries and Advertising [email protected] include African Pride, Profectiv, MegaGrowth, Motions, Just for Me, TCB, Beautiful BW Confidential is published by Noon Media 513 746 297 RCS Nanterre Textures, Dream Kids, Elasta QP, Proline and Soft & Beautiful. The company reported sales Copyright © 2016. All rights reserved. of $95m in 2015. The acquisition will give Godrej a larger footprint in Africa, where it now Reproduction in whole or in part without permission is strictly prohibited. hopes to double its business in the next four years. n n n

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n n n Avon Products is to collaborate with designer Kenzo Takada to launch a new fragrance collection. Called Avon LIFE By Kenzo Takada, the line will include a scent for men and one for women and will launch later this year. Avon and Kenzo Takada are also working together on a fashion line, which the group says will launch in fall 2016. Kenzo’s premium fragrances are currently marketed by French group LVMH. The buzz Results

France-based LVMH reported sales of €8.62bn for the first quarter of 2016, up 4% from the same period last year. On an organic basis (on a comparable structure and at constant exchange rates) sales rose 3%. Sales in the perfume and cosmetics division were up 7% to €1.21bn (+9% on an organic basis). The company said that Christian Dior had seen strong growth with the Sauvage men’s fragrance, while citing the launch of Poison Girl as a highlight of the quarter. It also noted that Guerlain expanded La Petite Robe Noire into make-up. In the selective retailing division, sales rose 4% on both a reported and organic basis to €2.75bn. The group said Sephora gained market share, while travel-retail operator DFS continues to be faced with an uncertain economic environment in Asia.

Swiss flavor and fragrance company Givaudan reported sales of CHF1.15bn ($1.21bn) for the first quarter of 2016, a 5.6% increase (+5.8% like-for-like) year-on-year. The group’s fragrance division sales were up 8.1% (+8.3% like-for-like) to CHF561m ($589m). Including Induchem, which Givaudan acquired in August last year, sales came to CHF6.1m ($6.4m). Fine fragrance sales rose 10.1% on a like-for-like basis, driven by new wins and a low level of erosion. In emerging markets, sales were fueled by Latin America, while double-digit growth in North America compensated for lower sales in Western Europe. In Western Europe sales were impacted by a weaker holiday sell through. In other news, Givaudan has rebranded its active cosmetics business Active Beauty. The aim is to bring the group’s recent acquisitions of bio-sourced active cosmetic ingredients company Soliance and cosmetic ingredients firm Induchem under one single brand name.

Retail

Pharmacy group Walgreens Boots Alliance has taken a 15% stake in Russian health and beauty retailer 36.6. The stake is in return for Walgreens Boots Alliance’s sale of its local pharmaceutical wholesale business, Alliance Healthcare Russia, to 36.6.

US-based beauty box subscription company Birchbox is to open four shop-in-shops in French department stores this month, reinforcing its brick-and-mortar retail strategy. The company will open a space on the ground floor of Paris’ Bon Marché department store, following on from its pop-up stores at the retailer last year. The space will enable shoppers to create their own beauty boxes using five travel- sized products. Birchbox will also open spaces in Galeries Lafayette stores in Strasbourg, Marseille and Toulouse. The assortment in these three outlets will include best-selling brands from Birchbox’s e-shop. n n n

www.bwconfidential.com - April 14-27, 2016 #129 - Page 3 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL The buzz of food ingredients in cosmetics. of foodingredientsincosmetics. labels inpersonal-careproductsarealsobecomingmorewidespreadduetoincreaseduse has beenadoptedbyabout500personal-careproductswithinafewyears.Gluten-free for personal-care,whilenon-GMOProjectVerifiedisthefastest-growingethicallabel,and a marketvalueofover$700m.Naturalandorganicremainthemostpopularethicallabels group OrganicMonitor. products astheygetfromnaturalandorganicfoods,accordingtonewdataresearch labels, asconsumersdemandthesameleveloftraceabilityandsafetyfrompersonal-care A growingnumberofNorthAmericancosmeticsbrandsareadoptingethicalfood Data Revlon’s global marketing director for distributors and travel retail. Revlon’s globalmarketingdirectorfordistributorsandtravelretail. markets outsideNorthAmericaaswellglobaltravelretail.Mourawasmostrecently taken ontheroleofsvpRevlon’sConsumerbusinessinternationally,incharge business. TheappointmentfollowstherecentpromotionofDavidCarvalho,whohas Revlon’s presidentandceo. NII Holdings.TheannouncementfollowstherecentappointmentofFabianGarciaas financial officer.Figuereowasmostrecentlyevpandcfooftelecommunicationscompany US-based n the show. show. Seeournextissuefora fullreporton offices inMiamicontinuedtoleave the a yearearlier,asmanymajorplayers with exhibitors attheshowfellto33, versus44 smaller delegations.Thenumber ofbeauty with 662in2015—theyaresending they numberedroughly640,compared major buyersarestillattendingtheshow— consolidation ofindustryplayers.Whilethe in muchofLatinAmerica,aswellthe anticipated, giventhechallengedmarket this representsastrongerturnoutthan show organizerIAADFSsuggestedthat which itselfsawa5%decline.However, to 2,400,comparedwithlastyear’sevent, April 3-6,reportedan11%dropinvisitors which tookplaceinOrlando,Floridafrom The Trade shows News roundup The company said 15% of natural personal-care products are now certified, representing The companysaid15%ofnaturalpersonal-careproductsarenowcertified,representing Revlon has also promoted Jerusa Moura as the new director of its global travel-retail Revlon hasalsopromotedJerusaMouraasthenewdirectorofitsglobaltravel-retail Duty FreeShowoftheAmericas, People has appointed Juan Figuereo as executive vice president and chief Revlon hasappointedJuanFiguereoasexecutivevicepresidentandchief n publicationandprintmagazine • • • goingonintheindustryand stayingaheadofthecompetition The website -dailynews News headlinesdailyonwww.bwconfidential.com BW Confidential, theinsideviewoninternational beautyindustry

BW Confidentialisthedestination forkeepingup-to-datewith News headlinescomplementanalysis andinterviewsinourelectronic All majornewsontheindustry published everydayonourwebsite • The electronic publication-everytwo weeks DAILY NE STAY INFOR • WS SERVICE MED WITHOUR The printmagazine -fourtimesayear @BWCbeautynews what’s Photo credit: Fotolia.com: adisa, Valua Vitaly, pressmaster INGREDIENTS of Cosmetics Development Trends & Innovations the in World inspired. Get for thedevelopmentandmarketingofyourcosmetics portfolio. Over 400supplierswillexclusivelypresenttheirideas andinspirations Time tostartplanningthe productconceptsofthefuture! 8 –9June2016,MOCMunich

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avant-garde | PRIVATE LABEL vision, but some vision,butsome www.cosmetic-business.com cosmetics supplying industry the of fair trade International Bluemercury founder and ceo Marla Malcolm Beck Next steps

Interview US-based beauty chain Bluemercury was acquired by department-store group Macy’s last year. Founder and ceo Marla Malcolm Beck explains the impact of the sale and gives her outlook for beauty retailing

What has been the impact of the Macy’s acquisition? We are a separately owned subsidiary and Macy’s sees us as an innovation platform. It is investing heavily in our digital capability. Macy’s is the number-seven digital e-commerce player in the country, so that’s a huge opportunity for us. In terms of expanding our footprint, we continue to open free-standing stores, with 24 openings planned for this year. We opened four shop-in-shops in Macy’s at the end of last year, which have our treatment rooms and services. We are bringing our expert skincare [Macy’s] is investing and make-up advice in an assisted open-sell format to Macy’s. Customers are responding heavily in our digital well and they are excited as they walk into an area where they can get advice on many “ brands; it’s bringing different formats to an existing customer base. capability. Macy’s is The department-store standard has been about selling everything brand by brand, but the number-seven if you open a consumer’s bag that’s not how she shops. That was the foundation of Bluemercury when we started; we’re set up for the customer and how she shops. She digital e-commerce wants the best of the best, and the best of the new, from every brand. So [there is a] player in the country, desire [from department stores] to explore this mode of shopping while continuing to drive expertise and volume in their core brands. Macy’s has very compelling counters like so that’s a huge Chanel, Clinique and Lancôme and these businesses are important. If you want a Chanel opportunity for us expert you go to the counter, for a multi-branded experience you go into Bluemercury.

How do you see the development of e-commerce? Omni-channel needs to be unique and individual for each retailer. We know that our Bluemercury founder and ceo Marla Malcolm Beck consumer is going online, looking at trends or my blog and she may transact online, but often she is coming into the store to touch and feel. When you look at the discovery ” process for beauty purchasing, it has fragmented in a powerful way: there are so many different sources of information now and the retailer as an omni-channel player has to understand what that is for their target consumer. Too much in e-commerce, everybody tries to do what everybody else is doing without looking at who their core consumer is. Bluemercury Social media is in its infancy, so it’s all opportunity. Only 6% of beauty purchases [in the l Founded: Georgetown, Washington, 1999 US] are online; 94% of transactions are still in store. It’s anybody’s game. As long as you l Acquired: by Macy’s in are looking at your customers and not at your competitors, you are in the right place. February 2015 for $210m l Number of stores: 79 How do you see the potential for skin diagnosis and customizing products standalone stores in the US, plus in store? four Macy’s shop in shops l Plans for store openings: Anytime you personalize a skin diagnosis using technology it is very compelling. The 24 new standalone stores to open technology needs to be a little bit more mobile, it’s a little clunky right now, but in 2016, with the aim of a total of equipment that enhances the skincare experience not just at home, but on the store n n n 115 stores in 2017

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n n n floor, will continue to be attractive to the consumer. There’s so much technology around make-up and you’re starting to see skincare technology based on a split face [before and after]. HSN and QVC have done before and after looks as part of their marketing for a very long time, and bringing that to the consumer on her own face and showcasing some of that based on science could be Social media is in Interview interesting. But you have to be careful about over promising. “its infancy, so it’s all How is Bluemercury responding to increased demand for services? opportunity. Only 6% We’ve always done a lot of events like mother/daughter makeover days, so we’re of beauty purchases exploring how we add digital to those events. The client doesn’t want digital for digital’s sake; they want it to enhance their shopping experience. They want to be able to walk [in the US] are into a store and do research as they look at a product, not just on the product, but on the online; 94% of the ingredients and what they do. transactions are still in How is your relationship with brands evolving? store. It’s anybody’s Brands are closer [to us] than they have ever been. We go brand-by-brand to talk about the future, how we are going to demonstrate their product to consumers, and what game. As long as you their reason for being in our store is. For example, we’ve added Clinique to a lot of our are looking at your locations. It’s not a brand we typically carry but we’re seeing a lot of teens come in with their mums and it’s a great starter brand for them. The reason for that brand being in customers and not at your store and working closely to figure out how it relates to your consumer is critical. your competitors, you

What is your approach to the development of your own brand M-61? are in the right place M-61 is only at Bluemercury and it is our number-one skincare brand. When we create products, we do so where there is white space. Everything is tested in the stores and spas before it’s brought to market. We have that unique opportunity of being close to the Bluemercury founder and ceo client. Our Hydroboost eye cream is our number-one eye cream and that’s because we Marla Malcolm Beck listened to what the client wanted—she wanted something that she could use morning ” and night, and under concealer.

How do you see the development of the skincare market? Every age group has a skincare need or a set of problems they need solving. The opportunity is huge to tailor your message by segment, you can’t be one size fits all. It’s about who is the target and making sure you communicate through all channels to the client you are looking for. The American consumer wants instant results in minimal time, so the powerful products do really well, as do naturals. We see it in urban cities especially; natural brands are starting to accelerate, as are highly technical brands. There are also categories that make resurgences from time to time, so you need to be watching that. For example, there is the rediscovery of the s Macy’s acquired Bluemercury last year to bring an open-sell mask category, which is hot right now. n format to its beauty offer

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Iran Eyeing up the market Iran’s beauty market is set to see fast growth over the next five years, but doing business in the country is far from easy. BW Confidential analyzes the state of the market

ll eyes are on Iran. The potential lifting of sanctions on the horizon for later Athis year suggests that doing business in this lucrative, yet complex beauty market is set to become easier. The country is already the world’s seventh- largest beauty market, and the second-largest in the Middle East after Saudi Arabia, despite many brands not yet being officially present there. Euromonitor International put the total beauty market in Iran at $3.68bn in Iran beauty sales* by category 2015 2015. However, according to industry Category Sales 2015 % change estimates, Iran imports some $4bn worth $m 2015/2014 of beauty products each year, of which Haircare 872.5 +4.6 around a quarter are prestige items. The parallel market for unofficial imports is Color cosmetics 666.0 +5.3 estimated to represent an additional Skincare 371.4 +4.5 40%. The country has a population of Fragrance 238.0 +5.3 nearly 82 million, more than 60% of Men’s grooming 189.4 +2.4 which is under 30, and 49% of which is Premium beauty 767.5 +7.5 female. Young women are avid beauty & personal care consumers, especially of make-up, and the fact that many live at home with their Mass beauty & 2,680 +4.0 parents means they have disposable personal care income to spend on cosmetics. It is Total beauty & 3,679 +4.7 estimated than Iranian women spend on personal care average 30% of their disposable n n n Source: Euromonitor International *Retail sales price, constant prices

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n n n income on beauty and fashion. “Per capita consumption is four times higher than in Europe,” comments ICB Innovative Cosmetics Brands, a division of German group ArtDeco managing partner Sascha Reinhard. The BeYu brand, Insight part of ICB’s portfolio, is the number-two prestige make-up brand in Iran after Bourjois, and has been present there for more than 10 years. Iranian consumers buy on average 23 bottles of fragrance per year, compared to three on average for a French woman, according to Iranian distributor NPH&I, owner of the Safir perfumery chain. In make-up, on average, Iranian consumers buy one mascara and one lipstick per month, NPH&I estimates. “The market exists, it’s not something new. It’s the seventh market in the world and has always been permeable and non-official imports from Dubai have always existed,” says Daniel Cressy, a consultant for NPH&I. “The Iranian woman consumes a lot, especially in make-up and fragrance. Culturally, you can see her face, so it’s traditionally a strong market for make-up and nails. In fragrance, she is very adventurous.” We focus on the Complexity continues best retailers Several players suggest that the size of Iran’s beauty market could double over “ the next five years if sanctions are lifted. Yet, despite Iran’s potential, those on because I can’t the ground warn of its ongoing complexity, with importing products a regulatory minefield, while difficulties in transferring funds and ever-changing regulations trust the rest of the mean it is not a country to rush into. “They are talking about lifting sanctions, retailers—they could but they are not lifted yet,” comments ICB’s Reinhard. “It’s still quite tough to import: every single product has to be registered by the Ministry of Health, disappear tomorrow and this registration process is difficult and takes a lot of time, paperwork and money. They say [the market] will open, but today, you can’t really see it.” In the past, it was impossible to transfer money out of Iran, making business Ervin Tejarat Nojan Ltd president relations difficult. “Four years ago, nobody could send a penny outside Iran, Kiavash Kashani so they couldn’t import any products,” explains Kiavash Kashani, president of ” niche fragrance distributor Ervin Tejarat Nojan Ltd, which has been present on the market since 2005 and represents brands including Amouage and Maison Francis Kurkdjian. This, however, is changing, with recent moves by the country’s government making it easier to transfer funds, one factor that is already making official business relations easier. Meanwhile, some sources suggest that the military government encouraged unofficial imports in the past, supporting the development of the gray market. This, however, is also changing. “Nowadays the controls are tougher and tougher, so you need a really good distributor,” says Reinhard. “Every product in official retail now has to be labelled with a special sticker proving it is registered with the Ministry of Health. The end consumer can see if the product is imported regularly.” American brands are still not allowed to enter Iran, although most of the majors are present in an unofficial capacity. Certain American players are reported to be preparing for official entry, but for the moment they cannot legally do so, and when it may be possible for them to launch remains an unknown. Many European brands, for which access is already easier due to better n n n

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L Insight n be fromthelocal playerswhoarealready there,”saysReinhard. double. “I’msureretailwill develop,butIamconvinced[thedevelopment]will significantly incomingyears, withthenumberofperfumeriesexpectedto remainder incitiesincluding IsfahanandShiraz.Retailisexpectedtodevelop comments NPH&I’sCressy. American brands.Ican’tseehowtheycouldreproduce thesamestoremodel,” Product registrationtakesbetweenfourandsixmonths, andthentheyhavethe be toocomplextoimportIran.“HowcouldSephora importitsprivatelabel? year, accordingtosources.However,certainplayersbelieve itsmodelwould the market,aswellSephorawithapotentialtwostores plannedforthis Reports suggestChalhoub-ownedbeautychainWojooh ispreparingtoenter present viaafranchisearrangement,istheonlydepartment-store operator. up mainlyoftraditional,independentperfumeries.UK retailerDebenhams, of themarket—estimatedataround200prestigeperfumeries—ismade plans for100overthenextthreeyears,andRoja,with11outlets.Therest in make-up,NPHI-ownedSafir,theleaderfragrance,with25doorsand disappear tomorrow,”Kashaniadds. on thebestretailersbecauseIcan’ttrustrestofretailers—theycould credit, pushingrentalsupandmeaninghighturnoverforproperties.“Wefocus Kashani. Asmorebrandsenterthemarket,thispressureisexpectedtointensify. very tough,itdoesn’tmatterwhattypeofbrandwearetalkingabout,”says to launchabrand,theyneedreplacesomethingelse.Thecompetitionis prices, meaningcompetitionamongbrandsisrife.“Whenever[aretailer]wants already saturated,asstoresaregenerallysmallduetohighpropertyrental Some suggestthatdespitehigh-qualityretail,thedistributionnetworkis Prestige retailsettogrow their relationships.” the ruleschangenearlymonthly.Itdependsanawfullotonyourpartnerand you aproperanswer.Theofficialgovernmentdoeswhatitwantsand where doyougetinformationfrom?Thereisnochamberofcommercetogive regulations, everypartnerwilltellyousomethingdifferent.Theproblemis, different partnersforallourbrands,”saysReinhard.“Ifyouasknew however, makingittoughtobuildrelationsfromscratch.“Wehavethree Africa SébastienGautier. it isaprojectforthisyear,”saysSisleyregionaldirectortheMiddleEastand now. “Noweverybodywantstoregister.Ifwego,willdefinitelygoofficially, Kashani states. “If youtalktosomeonewhosaystheydoit100%legally,arelying,” up to80%ofproductsareimportedunofficiallyavoidimportduties55%. market unofficially.Itisestimatedthatevenforthosewithofficialdistribution, Iran Some 70%ofprestigedistribution isconcentratedinTehran,withthe The mainretailplayersareMeisamATR,with24storesandastrongposition In addition,ownershiplevelsforpropertyarelowduetothelackofaccess Market playerscitethedifficultyofgettingreliablemarketinformation, Certain brands,likeChanelandSisley,havechosentoavoidthemarketuntil diplomatic relationswiththecountry,havealsochosentoenter www.bwconfidential.com -April14-27, 2016#129 -Page 10 n

“ Sascha Reinhard Brands managingpartner ICB InnovativeCosmetics really seeit but today,youcan’t [the market]willopen, money. Theysay time, paperworkand and takesalotof process isdifficult and thisregistration Ministry ofHealth, be registeredbythe single producthasto to import:every It’s stillquitetough ”

Iran

n n n Mall developments are booming, especially in Tehran, yet despite the potential for more retail space, players are wary. Many beauty brands, meanwhile, choose the pharmacy route, especially for

Insight skincare but also for make-up, as there are an estimated 11,000 pharmacy doors in the country, with high levels of service. Pierre Fabre’s skincare brands, for example, distributed by NPH&I, are present in 4,000 pharmacies. Those present on the market warn of the importance of working with a knowledgeable local distributor with awareness not only of legal issues, but also of cultural differences. They add that companies should not presume that it will be easier to approach the country with a master distributor from the Middle East. “You need a Persian company based in Tehran to do the business. It makes no sense to take someone in Dubai,” says ICB’s Reinhard. “There is a lot of opportunism from Dubai-based distributors, but they are not necessarily welcome,” comments Cressy. While political changes may make it easier for international brands to enter the country, they are also likely to mean immense structural upheaval as the market moves towards more transparency. Tapping into the Iranian cosmetics and fragrance market necessitates a long-term strategy based on a strong relationship with a local partner. Despite its potential, the Iranian market is no fast buck. n This document is published by

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Niche on show BW Confidentialreports on what was seen and heard at the eighth edition of the Esxence show, which took place from March 31-April 3 in Milan, Italy Show review

sxence, the show dedicated to niche perfumery, continues to expand, with this Esxence Eyear’s edition welcoming 206 brands compared to 165 in 2015, and 7,083 visitors. Took place: March 31-April 3, Esxence’s co-founder Silvio Levi says that the show has become a “cathedral of niche”, Milan, Italy which now acts as a complete networking platform for the niche community. Exhibitors Exhibitors: 206, +25% vs 2015 echoed this view and said there was a strong presence of international distributors and Visitors: 7,083 vs 6,490 in 2015 retail buyers. As was the case in 2015, this year’s show featured the Esxkin section, devoted to niche skincare, which housed 20 brands. In terms of trends on show, there was a strong presence of Arabic fragrances and unisex perfumes, while the personalization of scents was a key talking point.

Seen in show Perfumer trio Mark Buxton, Bertrand Duchaufour, and Geza Schoen presented their first collection of three scents at the show under the brand name Renegades. Each perfumer created a scent and each bottle features a removable magnet in the form of a caricature of its corresponding perfumer. The scents retail at €195 for 100ml and will be available online via the brand’s e-shop. Renegades will be sold in limited distribution and will target niche stores.

Qatar-based company S.Ishira showed Phi, its first collection, comprised of six scents. According to the brand, the perfumes are based on the mathematical principle of the golden ratio, which is used in both the creation of the juice and the flacons. The fragrances were created by perfumer Shaikha al Misned, who is also the brand’s owner. The brand has not yet launched in retail, but says it will target high-spending zones such as London and Paris. The 100ml EdP retails at €250.

Spanish company Ramon Molvizar presented its latest products, a unisex fragrance called art&silver&perfume, and a woman’s scent called art&gold&perfume. Part of the company’s Gold Collection, the two scents will launch this month and are priced at €254 for 75ml. According to the group, both scents draw inspiration from Istanbul’s Topkapi Palace. Ramon Molvizar is sold through luxury boutiques in more than 45 countries.

Italian brand Mendittorosa Odori d’Anima unveiled Nettuno, a unisex scent inspired by Marco Pesatori’s poem Neptune’s Flight. Created by Amélie Bourgeois of Flair Paris, Nettuno is the third extrait de parfum in the brand’s Talismans—Collezione Preziosa collection. The 100ml extrait de parfum retails at €225. The fragrance is available n n n

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n n n on German website Aus Liebe Zum Duft (First in Fragrance) and will launch on the brand’s own online store in the next few weeks. It will then roll out to niche perfumeries and concept stores. Mendittorosa Odori d’Anima is present in Italy, France, Germany, Poland, Dubai and Saudi Arabia.

Barcelona-based Carner Barcelona showcased its collection of seven perfumes, including its new offering, Costarela. Created by Shyamala Maisondieu of Givaudan, Costarela claims to evoke the Mediterranean sea breeze, and features a Show review marine accord, a sand accord and a base that includes Virginian cedarwood. It will be available on Carner’s e-store and roll out to other points of sale at the end of April. It costs €95 for 50ml EdP and €145 for 100ml EdP. Carner is sold in 30 countries, mainly in independent perfumeries in Europe. It plans to expand in the UK and the US, where it aims to launch in department stores.

Parfums Salvador Dali (Cofinluxe) presented its high-end collection of five perfumes inspired by the artist’s jewelry creations. The fragrances, composed by Firmenich’s Alberto Morillas, launched in Russia in January 2016. The 100ml EdP retails at €295.

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Brand building AmorePacific is thinking big with its new flagship store for the Sulwhasoo brand

eoul-based AmorePacific is looking to make a statement for its Sulwhasoo brand with Sopening of its first Korean flagship store. The company claims the 1,500m2 (16,146ft2) six-story boutique, which opened on March 30, is the largest store for a single beauty brand in the country. The opening of the store is part of Sulwhasoo’s strategy to become the number-one beauty brand in Asia this year and the number-seven beauty brand globally by 2020. Located in the fashionable Dosan-daero district of Seoul, the store aims to showcase the brand’s herbal medicine cosmetics heritage and puts a strong focus on services. The first floor is home to the Heritage Zone, which presents Sulwhasoo’s brand philosophy, as well as seasonal offerings and new products. The second floor hosts the brand’s complete collection of skincare and make-up products and consumers can also benefit from advice sessions with the store’s staff. This floor features a gift zone, providing a special packaging service. On the third floor is the Culture Lounge, where the brand will hold cultural events on a regular basis. There is also a VIP Lounge for loyal customers. In addition, the store houses two spas: the Sulwhasoo Spa offers anti-aging programs based on Korean Sulwhasoo flagship medicinal herbs, while Sulwhasoo Balance Spa proposes a casual spa experience with a l Opened: March 30 view of Dosan Park. l Location: Dosan-daero, Last year, AmorePacific said that Sulwhasoo became the first beauty brand in Korea to Seoul, Korea record annual sales of Krw1 trillion ($867.9m). It also claims that the brand has been the l Size: 1,500m2 (16,146ft2) number-one beauty brand (by sales) in Korean department stores since 2005 and saw l Special features: 40% growth in 2015. Sulwhasoo launched internationally in 2004 and is now available in two spas, heritage zone, culture Greater China, Singapore, Thailand, Indonesia, Malaysia, Taiwan, Vietnam, and the US. n lounge for special events

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s The second floor is home to the brand’s complete collection of skincare and make-up and features a gift zone, providing a special packaging service

s The Heritage Zone (left) presents Sulwhasoo’s brand philosophy, as well as seasonal offerings and new products. The store has two spas (right), one with a view of Dosan Park

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