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DEODORANTS Propelling Innovations IFC CBM 0715 Contents Passed Layout 1 06/07/2015 11:34 Page 2 OFC CBM 0715 cover_Passed_Layout 1 06/07/2015 10:39 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 Unilever overtakes L’Oréal as India’s deodorant market to So...? Fragrances page 3 July 2015 Year 32 issue7 No.1 in France, rise by 26.8% in 2015 A.S. Watson page 5 Argentina and Iran burst forth page 30 page 8 MARKETS DEODORANTS Propelling innovations IFC CBM 0715 contents_Passed_Layout 1 06/07/2015 11:34 Page 2 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. MARKETS Year32 issue 7 July 2015 Front cover: Strella Skincare & Fragrance THE DEODORANT ISSUE Boutique Cosmetics Business Markets Company profile Retail profile HPCi Media Limited So...Fragrances? 3-4 A.S. Watson 5-6 The Tanneries Natraj Building This brand has been The world’s largest health and 55 Bermondsey Street London SE1 3XG successfully introducing teens to beauty retailer increased its www.cosmeticsbusiness.com the world of fragance via body turnover by 9% in 2014, with tel +44 20 7193 6862 sprays for more than 20 years strong performances in Europe fax +44 20 3318 5305 email [email protected] Editor MARKET REPORT Jo Allen Summary 8-9 Reporter Report highlights, top 5 brands by country, usage data and key trends Rachel Lawler France 10-13 German Correspondent An impressive 6% rise to w500m, according to Nielsen, was driven by Annemarie Kruse Italian Correspondent the innovative launch of compressed spray deodorants Kathleen Armstrong Germany 14-17 Spanish Correspondent IRI Germany noted a 2.6% gain to w668.45m, yet antiperspirants Simeon Goldstein experienced a steep drop for the first time in years Sub-Editor Italy 17-19 Austyn King Sales drifted in Italy as Cosmetica Italia reported a 1.2% dip to w405m Art Editor Sibylla Duffy Spain 19-21 Sales Director Worth w250.8m, Spain’s APD market remained flat despite gains in Adrian Goldfinch both the mens and women’s deodorant categories Subscriptions UK 21-25 Julie Wilson Kantar Worldpanel reported a 1.3% rise to £582.879m, but it has not Editorial Director been an easy year for deodorant brands in the UK Erika Hatva Managing Director Russia 26-27 Colin Bailey-Wood Deodorants was one of the best performing C&T categories in Russia in 2014. The market increased by 6.9% to RUB21.60bn, stated Euromonitor Editorial Global round up 28-29 +44 1992 303 259 This issue covers the high growth markets of Brazil, Argentina and Iran [email protected] Advertising +44 20 7193 6862 [email protected] Special focus Product spotlight Subscriptions India 30-33 34 +44 20 7193 1279 The deodorant category is The world’s first smart electric Each year Cosmetics Business [email protected] booming in India, with deodorant is about to be Markets publishes a market report on the following product categories: Subscriptions estimated growth of 26.8% launched. Could it revolutionise Cosmetics Business subscription the category? January Bathroom includes Cosmetics Business News products and Cosmetics Business Markets (plus subscriber access to February Facial skin care cosmeticsbusiness.com). Full details March Men’s lines on subscriptions can be found at April Sun care www.hpcimedia.com or email [email protected] 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 0715 company profile_Passed_Layout 1 06/07/2015 10:19 Page 3 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. SO...? FRAGRANCES COMPANY PROFILE Famously fickle, it’s rare for teenage consumers to stick to one brand for long. Rarer still for any SO...? FRAGRANCES generation to embrace a product previously favoured by their elders. Yet So…? Fragrances has just introduced its fifth generation to the world of FOREVER fragrance via body sprays. Countless girls have started their journey into fragrance with a can of the brand’s iconic scents YOUNG So…? Kiss Me and So…? Sinful. Versatility is key Teen trends tend to come and go, but So…? in this market, and So…? is well-placed, with its Fragrances have been keeping adolescents constantly updating range. But the brand isn’t just smelling good across the world for more than about new consumers. After more than 20 years, So…? also has a loyal following of older fans. But 20 years. Rachel Lawler speaks to the brand how does it manage to balance the needs of these about its success two very different consumers? In 1994, So…? launched with a view to capture “Some of these titles still exist, particularly the a younger audience for its parent brand, Yardley. music titles, but their circulation is now very Packaged in simple red, the original scent So…? small,” Patrick Spillmann, Creative Director, adds. was created. Yardley was very much focussed on Instead, the brand focuses its marketing efforts older consumers and decided to invest in this online. “Social media is the best way to connect promising sector. Five years later, Yardley with teenagers now,” Gangj says. The brand has So...? continues to soar went into receivership and So…? was bought by around 65,000 likes and follows across social in the UK, with a retail Incos Limited. media overall, including an impressive 50,000 likes value of £18m and y-o-y Since its launch, the brand has faced several on Facebook. The brand also works with fashion growth of 9% challenges. A surprising but notable problem arose and beauty bloggers to further tap in to the from the decline of the print industry. Karim growing online audience. Gangj, Financial Director, explains: “Cosmo Girl, In late 2003, the brand launched So…? VIP – Sugar, Bliss… these magazines were once part of an online club for the brand’s consumers, giving teenagers’ lifestyle. In the late 1990s and early them access to offers, competitions and brand 2000s we focused our advertising on these weekly events in reward for their loyalty. Members are teen titles but that’s really changed now.” Since offered samples of new products and attend press then, many of the magazines once adored by teen days, adding to the online buzz. Gangj says: “It consumers folded as the audience moved online. allows us to connect with our biggest fans.” Moving online will also help the brand as it conquers its next challenge – cracking other markets worldwide. Blooming in Indonesia Worldwide, license holders distribute the brand to 38 countries across the globe. Today, its biggest market is still the UK but it is rapidly growing its market share in Indonesia – which is now its second biggest market. In third and fourth place are Australia and Canada respectively. Gangj says: “If the Indonesian market continues in the same way it will overtake the UK in about five years time.” He says this is due to a number of factors, including the country’s larger population and younger demographic. Interestingly, the brand chose to market one of its most popular fragrances, So…? Sinful, under a different name in this region. “We went with So…? Sensual – our market researchers told us that the sinful name would not work in Indonesia at all,” Gangj says. The brand also has plans to break into the Indian market, using its progress in Indonesia as Fact File: So...? Fragrances Founded 1994 Owner Incos Limited Address Ambassador House, Cavendish Avenue, Harrow, Middlesex, HA1 3RW, UK Contact telephone +44 20 8869 4444 Website www.sofragrances.com July 2015 CBM 3 003 CBM 0715 company profile_Passed_Layout 1 06/07/2015 10:19 Page 4 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. COMPANY PROFILE SO...? FRAGRANCES a model. “I know another of our license holders The most successful of the brand’s recent We need to is interested in taking the brand into Brazil,” launches is So…? Sexy. This product demonstrates keep our loyal Gangj adds. Taking what they have learnt about the balances between old and new customers well, “ digital marketing and product selection from with a new fragrance and new packaging, but still customers happy Indonesia, the brand hopes to see similar success heavily inspired by the bestselling So…? Kiss Me. but we need in these markets. “We always knew that we would release So…? newness to “ Back home, the UK market is still hugely Sexy, as soon as we created So…? Kiss Me,” Gangj successful for So…?. The brand now has around says. “It was just waiting for the right time.” maintain interest 20 employees in its UK base in Middlesex, Gangj doesn’t believe multifunctional products in the brand manufacturing some of its products in the country will be of any importance to this sector now, or Karim Gangj, Financial too. Last year alone the company sold 10 million even in the future. “I think body spray is a Director, So…? items in the UK with a total retail value of around simplistic product at a set price. People have Fragrances £18m. For the financial year ending March 2014, trusted brands in body fragrance and trusted the brand reported an impressive 9% growth in brands in body care and it’s difficult to try and sales. “For an established brand that’s quite a lot merge the two,” he says. Instead, Gangj sees a real and our best result to date,” says Gangj.
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