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BW Confidential www.bwconfidential.com The inside view on the international beauty industry April 14-27, 2016 #129 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL Comment Inside 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 www.bwconfidential.com - April 14-27, 2016 #129 - Page 2 CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL News roundup 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 News roundup n n n People US-based Revlon has appointed Juan Figuereo as executive vice president and chief financial officer. Figuereo was most recently evp and cfo of telecommunications company NII Holdings. The announcement follows the recent appointment of Fabian Garcia as The buzz Revlon’s president and ceo. Revlon has also promoted Jerusa Moura as the new director of its global travel-retail business. The appointment follows the recent promotion of David Carvalho, who has taken on the role of svp of Revlon’s Consumer business internationally, in charge of markets outside North America as well as global travel retail.
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