confidential confidential confidentia l · l’oréal-owned nyx cosmetics has opened two standalone...

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Comment Inside CONFIDENTIAL T his week saw Coty make another acquisition, with the proposed purchase of hairstyling appliance brand ghd for $510m. The move was somewhat surprising, as it came just a few weeks after Coty closed the deal to take over P&G’s beauty brands. It was thought that Coty would take time to digest this deal (and also the acquisition of Brazil-based Hypermarcas, which it made at the end of 2015) before moving on to its next target. The fact that the acquisition was in the professional haircare arena also raised some eyebrows. Ghd may sit well with Wella, which Coty took over as part of the P&G deal, but analysts insist that the US-based group has much to learn when it comes to the professional haircare segment, which is very different to fragrance and cosmetics. What isn’t surprising, however, is that M&A continues apace. More M&A is set to be driven by an active start-up market, major groups looking to pick up the hottest new brand before their competitors do, the need for global groups to reinforce their presence in key areas such as digital and among the millennials and also because some of the multinationals’ brands are not seeing the growth that they used to. The only problem with all this is that the valuation multiples have never been so high. Buying growth has its price. The price of growth The buzz 2 News roundup Netwatch 6 Social media monitor Interview 7 Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel Insight 9 India Show review 12 Luxe Pack Monaco Store visit 14 T Fondaco dei Tedeschi by DFS, Venice Oonagh Phillips Editor in Chief ophillips@bwconfidential.com www.bwconfidential.com The inside view on the international beauty industry October 20 - November 2, 2016 #137 News headlines daily on www.bwconfidential.com @BWCbeautynews Meet the BW Confidential team at: l Intercharm Moscow, October 26-29 l Cosmoprof Asia, Hong Kong, November 15-18 l MakeUp in São Paulo, December 7-8

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Page 1: CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L · L’Oréal-owned NYX Cosmetics has opened two standalone stores in Paris, France this month. The brand launched a 100m2 (1,076ft2) store

Comment Inside

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

This week saw Coty make another acquisition, with the proposed purchase of hairstyling appliance brand ghd for

$510m. The move was somewhat surprising, as it came just a few weeks after Coty closed the deal to take over P&G’s beauty brands. It was thought that Coty would take time to digest this deal (and also the acquisition of Brazil-based Hypermarcas, which it made at the end of 2015) before moving on to its next target. The fact that the acquisition was in the professional haircare arena also raised some eyebrows. Ghd may sit well with Wella, which Coty took over as part of the P&G deal, but analysts insist

that the US-based group has much to learn when it comes to the professional haircare segment, which is very different to fragrance and cosmetics. What isn’t surprising, however, is that M&A continues apace. More M&A is set to be

driven by an active start-up market, major groups looking to pick up the hottest new brand before their competitors do, the need for global groups to reinforce their presence in key areas such as digital and among the millennials and also because some of the multinationals’ brands are not seeing the growth that they used to. The only problem with all this is that the valuation multiples have never been so high.

Buying growth has its price.

The price of growth The buzz 2News roundup

Netwatch 6 Social media monitor

Interview 7 Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel

Insight 9 India

Show review 12 Luxe Pack Monaco

Store visit 14T Fondaco dei Tedeschi by DFS, Venice

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry October 20 - November 2, 2016 #137

News headlines daily on www.bwconfidential.com @BWCbeautynews

Meet the BW Confidential

team at:

l Intercharm Moscow, October 26-29l Cosmoprof Asia, Hong Kong, November 15-18l MakeUp in São Paulo, December 7-8

Page 2: CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L · L’Oréal-owned NYX Cosmetics has opened two standalone stores in Paris, France this month. The brand launched a 100m2 (1,076ft2) store

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - October 20 - November 2, 2016 #137 - Page 2

News roundup

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At a glance...

Strategy

Coty is to acquire UK-based premium hairstyling appliances brand ghd from Lion Capital for around £420m ($510m) in cash. Ghd will become part of the Coty Professional Beauty division, where it will be managed as a standalone business led by ghd’s current ceo Anthony Davey. Davey will report to Coty Professional Beauty president Sylvie Moreau. The transaction is set to close by the end of fiscal 2016. Ghd generated revenues of £178m ($216m) in fiscal 2016. The brand was founded in 2001.

Shiseido is hoping to boost its share of the global fragrance market to 9% within five years thanks to the addition of the Dolce & Gabbana fragrance license. Shiseido’s market share in fragrance before the integration of D&G, (whose license was

formerly held by P&G) effective October 1, was 2.2%. Including D&G, it currently stands at 5.8%, making the group the world’s eighth-ranked fragrance player. Shiseido plans to turn the D&G brand into a €1bn business within 10 years, which would mean more than doubling its sales.Shiseido announced that from January 2017, fragrance arm Beauté Prestige

International, or BPI, will cease to exist, with global fragrance operations being managed under the Shiseido Group EMEA umbrella. Operating under Shiseido Group EMEA, Shiseido Fragrance Division will include operations for Issey Miyake, Narciso Rodriguez, Elie Saab, Alaïa, Zadig & Voltaire, Dolce & Gabbana and Shiseido Ginza Tokyo Fragrances. Serge Lutens will be managed under a separate division called The Boutique.

The CEW France Achiever Awards ceremony took place in Paris on October 10. This year, a total of 10 prizes were awarded, five of which were new, including a new award for men, representing the association’s decision to open its membership to men earlier this year. The Men’s Honorary Achiever Award went to Philippe Benacin, ceo of Interparfums, while the Women’s Honorary Achiever prize was awarded to Nelly Rodi, founder of NellyRodi trends agency. Other winners included Isabelle Parize, ceo of Douglas. The Achiever Awards recognize those working in the beauty industry for their success, originality and risk-taking. This year, BW Confidential partnered with CEW France to create a special-edition

magazine focusing on the winners. BW Confidential pledged to donate a portion of the advertising revenues of this special issue to CEW and its Centres de Beauté, which provide beauty treatments to cancer patients. See the full list of winners on www.bwconfidential.com.

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

n Coty to acquire ghd

n Shiseido aims for 9% share of global fragrance market

n Sephora postpones entry into Iran

BW Confidential4 avenue de la Marne92600 Asnières sur Seine, [email protected]: +33 (0)1 74 63 49 61Fax: +33 (0)1 53 01 09 79

www.bwconfidential.comISSN: 2104-3302Publisher: Nicolas GrobEditorial Director: Oonagh Phillips [email protected] & Copy Editor: Katie [email protected]: Hannah Ikin [email protected]: Sophie Douez, Alex Wynne,

Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet

Subscriptions1 year: electronic publication (20 issues) +

print magazine (4 issues) + daily news: €499 or US$699

[email protected]@bwconfidential.comBW Confidential is published by Noon Media513 746 297 RCS NanterreCopyright © 2016. All rights reserved. Reproduction in whole or in part withoutpermission is strictly prohibited.

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LVMH-owned perfumery chain Sephora has postponed its launch in Iran and will not enter the market before the second half of 2017 at the earliest, industry sources indicated to news agency Reuters. Sephora had originally planned to open stores in Iran from 2016. Sources say that the retailer is postponing store openings as the right financial and political conditions are not yet in place.

French company Chanel has opened its second beauty standalone store in Paris, located on the avenue des Champs-Elysées. The 100m2 (1,076ft2) location features both an events zone and a consultation area, which includes a perfume bar and make-up stations. Exclusive products and avant-premières will be included in the offering. Chanel opened its first Paris permanent beauty standalone, in the Marais district, in 2015.

Swedish beauty device brand Foreo has opened its first standalone store. Located in Paris at 188 Boulevard Saint-Germain, the 44m2 (474ft2) Foreo concept store stocks the brand’s facial cleansing devices and toothbrushes. Luna Go, a travel-size version of the Luna 2 cleansing device, is exclusive to the store. It is available for four skin types and costs €99.

Unilever-owned Dove is to open its first pop-up store globally, in November in Paris. The pop-up store has a strong focus on customization, with shoppers able to personalize a selection of products including shower gel, body lotion and body scrub. The pop-up store is open from November 9 to December 18.

Dubai-based luxury distribution company Chalhoub Group has opened five stores for its newly created oriental fragrance brand Ghawali. Since August, the group has opened two stores in Dubai, UAE, one in Riyadh and two in Jeddah, Saudi Arabia for the brand. It plans to open further stores in the region over the next five years. The brand offers 90 products, including fragrance, bath products and body oils.

L’Oréal-owned NYX Cosmetics has opened two standalone stores in Paris, France this month. The brand launched a 100m2 (1,076ft2) store on rue du Temple in central Paris, which followed the opening of an 88m2 (947ft2) boutique in Paris’ La Défense district. In-store services include a beauty bar with influencer tutorials.

UK-based beauty retailer Space NK is to open a new flagship store on London’s Regent Street in November, in partnership with property owner The Crown Estate. Called Innovation by Space NK, the store is designed to be a one-off concept, and to serve as a test-bed for the most innovative product launches zt the retailer. Innovation by Space NK is intended to offer ‘first look’ previews of launches, a range of beauty experiences for consumers and will also feature an on-site beauty school for Space NK staff.

UK-based online beauty retailer Feelunique opened its first Paris flagship in September 2016. Located in the French capital’s 16th arrondissement, the store combines a perfumery, a beauty institute and a hair salon. The perfumery space of close to 100m2 (1,076ft2) stocks traditional and niche brands. Beauty advisors are equipped with iPads, and customers can select and order products among the 20,000 skus and 450 n n n

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z News roundupn n n brands distributed on the Feelunique website. The beauty institute has three treatment rooms, while the hair salon caters to men, women and children. A manicure and make-up service is also available. Feelunique acquired French perfumery chain Parfumeries Rive Droite in 2015 in a bid to develop its footprint in France. The Feelunique flagship is the first of the four Rive Droite perfumeries to be rebranded under the Feelunique nameplate.

People

Shiseido Americas has appointed Jean-Marc Plisson as president of its newly created Beauty Prestige Group. The Beauty Prestige Group will include the Shiseido brand, Laura Mercier and the group’s designer fragrance brands. The group said that bringing together these US businesses will enable it to expand its footprint in the prestige market. Nars and Bare Escentuals will continue to operate separately. In his new role, Plisson will focus on integrating and growing the Dolce & Gabbana business, developing the Shiseido brand in the US and creating a global growth strategy for Laura Mercier. Plisson was most recently global ceo of LVMH-owned skincare brand Fresh. Shiseido Americas also appointed Claudia Poccia chief marketing officer of Bare

Escentuals. Poccia replaces Sandy Saputo and will report to the president of the company who will be appointed at a later date. Poccia held the role of president and ceo at Gurwitch Products from 2011 to 2015.

Ikdeep Singh has been appointed general manager of L’Oréal Paris USA. Singh, who is president of L’Oréal Canada’s Consumer Products Division, will report to Michel Brousset, president of L’Oréal USA’s Consumer Products Division. The appointment follows the announcement that L’Oréal Paris USA president Karen Fondu will retire at the end of 2016 after 37 years at the group.

New Avon LLC has appointed Anjana Srivastava president of health and wellness in the US. This newly created position marks Avon’s expansion into the health and wellness market, planned for 2017.

Fragrance trade association IFRA UK has appointed Nick Pickthall as chairman. Pickthall is coo at fragrance house CPL Aromas.

Data

The internet is now the fastest-growing source of make-up information in the US, despite being the least frequented four years ago, according to The NPD Group. The n n n

I N S P I R I N G Y O U R I N N O V A T I O N

Lipotec specializes in the research, development and production of innovative active ingredients - from peptides, synthetic and biotechnological molecules to botanical extracts - and delivery systems for application in cosmetics.

www.lipotec.com® 2016 The Lubrizol Corporation.

LPTC_banner_Corporate_110x1130mm_BW Confidential_ENG_AAFF.indd 1 3/6/16 10:25

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n n n market-research company found that women today use the internet to find information on make-up products and brands more than any other information source (surpassing print and broadcast advertising), an increase of 11 percentage points compared to 2014. Make-up users of all ages rely most on word-of-mouth to help them make buying

decisions, while millennials are most likely to count on online sources for make-up information. The internet is also among the top-five most common channels for purchasing make-up, just behind department stores and ahead of direct sellers, national chains and beauty supply stores.

Launches

Shiseido has created a new make-up brand called Playlist. The brand is based on the techniques of its in-house hair and make-up artists and is sold on online platforms in Japan. Distribution includes the brand’s own website and Shiseido’s beauty website Watashi+, as well as third-party sites. The only brick-and-mortar store where the brand will be sold is the Shiseido The Ginza store in Tokyo. The brand targets millennials and will focus on the web to build awareness. It focuses on the idea of play and the fun aspect of make-up. The brand’s spokesmodel is model Yumi Lambert.

Estée Lauder Companies-owned La Mer came out with its first major make-up collection this fall, called Skincolor. The line, which consists of a foundation, concealer and loose powder, is said to provide skincare benefits, as well as color coverage. The products contain the brand’s Miracle Broth, which is found in all its skincare

formulas and is said to hydrate, regenerate and smooth the skin. Skincolor launched in October. The foundation is priced at €95 for 30ml, the concealer retails at €60 for 5g and the loose powder costs €75 for 8g. The collection includes a foundation brush and a loose powder brush, each priced at €55.

Estée Lauder-owned Darphin is launching a new skincare franchise this month. Called Lumière Essentielle, the line consists of a serum and a cream that claim to hydrate and illuminate the skin. The Illuminating Oil Serum contains seven microencapsulated essential oils, marine extracts, hyaluronic acid to hydrate the skin and acetyl glucosamine for its regenerating properties. The Illuminating Oil Gel-Cream contains the

same seven essential oils, hyaluronic acid and acetyl glucosamine, as well as skin-strengthening plant sugars. The serum is priced at €59 for 30ml, while the oil gel-cream costs €49 for 50ml. n

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Net

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BW Confidential reports on what’s being said about beauty on social networks

Social media monitor

Gloss for eyes is claimed to be a big trend emanating from fashion shows. Bloggers like the easy, no-fuss application as well as the innovative vinyl or lacquer textures of the gloss products (such as NYX’s Lid Lacquer, pictured). Some reviewers see the gloss trend spreading into the blush, foundation and hair categories.

While bloggers have praised the success of the introduction of K-Beauty products in stores like Sephora and Walmart, many have also noted a slowdown in the popularity in this trend and suggest that K-Beauty is evolving to respond more to local tastes and needs.

Canadian brand Bite Beauty’s new Multistick is liked for its cream-to-powder texture and versatility. The cream formula can be worn on the eyes, lips and face, and is said to be blendable, breathable and buildable.

L’Oréal Paris’ first permanent boutique in Paris has been a hit on the web. Described as a natural next step for the brand, the store is seen as a great selling platform where digital touchpoints and events can enhance the experience of the products, according to bloggers.

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VISITOR’S GUIDE

Dates: January 23[Mon] - 25 [Wed], 2017 Venue: Tokyo Big Sight, JapanOrganised by: Reed Exhibitions Japan Ltd.  Concurrent Show:

All inclusive guidebook to plan your visit !

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- Show Hightlights- Hotel/Transportation Information- Useful Information for overseas visitors and more!

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Shiseido recently appointed Nathalie Helloin-Kamel as head of its new Fragrance Center of Excellence, designed in part to respond more quickly to market changes. Helloin-Kamel tells BW Confidential about Shiseido’s plans for the center and the group’s ambitions to grow its market share in fragrance

Fragrance forward

What are your priorities for the Fragrance Center of Excellence?Our first priority is to find the appropriate way to work with the other brands in the group and to make sure that the philosophy we have in Europe at the Center of Excellence for Fragrance is understood by everyone. The integrity of creation is key, and the respect for brand DNA is key. We have to be extremely careful of the way we are going to interact with our end consumer. The next level for the Center of Excellence is to create a community of the Centers of Excellence to be able to share what we have learnt across categories. I am obsessed with taking more creative risks and preventing the business being taken by niche brands. How will fragrance embrace the digital transformation? How to drive traffic to the point-of-sale and discovery? Those are my two obsessions of the moment.

Shiseido has announced plans to grow its share of the global fragrance category to 9% within five years. How do you plan to do this?We have to increase our market share by 3%, so we need to work differently. Growing 3% in five years is huge. Our challenge is how to radically change the way we work [without] losing what we have built for years. Everything starts from the brand and we have to be loyal to that. We have created an olfactory studio, with someone who is going to help us improve the way we work with perfumers and who will have a prospective vision for fragrance. We have also [created] a consumer insight and innovation department, which is going to help us connect and engage with our consumer. These teams have to work together from day one.

You plan to double Dolce & Gabbana’s sales to make it a €1bn brand in 10 years. How will you do this? I have a very clear four-step roadmap. First, we need to take care of the existing business. We are lucky; in the portfolio there are at least two amazing franchises: Light Blue and The One. We need to leverage these franchises, and then we need to keep updating [their] story. [Then] we need to add new stories and open a new chapter, but not before 2018 or 2019. [Our third step] is to keep investing in the brand; even when you are a big brand, you need constant communication investment. You have to be present in the mind of the consumer and the beauty consultant. The final point is to elevate the retail network and to close some doors, because the distribution is too wide for the brand. Dolce & Gabbana is very n n n

Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel

Shiseido Group EMEA

l Shiseido Fragrance Division brands: Issey Miyake,

Narciso Rodriguez, Elie Saab, Alaïa, Zadig & Voltaire,

Dolce & Gabbana, Shiseido Ginza Tokyo Fragrances

Shiseido fragrance market share: 2.2% (before integration

of Dolce & Gabbana); 5.8% including Dolce & Gabbana

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n n n generous and colorful. We don’t [see] that with the fragrance. When it comes to fragrance, the fundamentals of the brand have to be set. It’s very serious in fragrance; we need to [remedy that].

What is the initial response to the Zadig & Voltaire fragrances?Results so far have been very good; our market share is in line with our expectations. The real test will be the first holiday season, but both fragrances have been extremely well received by consumers, who have engaged with the story and the tone of the brand.

Will you expand your existing fragrance brands into other categories?This is not a priority for us. Dolce & Gabbana is a three-axe brand, and our vocation is to continue to develop it as such. But for our other brands for the moment we are sticking with just fragrance.

Do you plan to further develop the Shiseido brand in fragrance?I am working with my teams and with Tokyo on how to take Shiseido further in fragrance, but we have not planned a launch date, it’s a prospective reflection. We are asking what is the role of fragrance for the Shiseido brand, and how will we treat it? We will only develop something if we are certain we can bring something new and different to the market with a strong concept that supports the brand’s strategy and image. We continue to support and develop Ever Bloom, which was introduced two years ago.

Will you take on the Burberry beauty license?For the moment, we are a partner of Burberry because we distribute the brand in several regions—in travel retail, the US and certain European markets. It is no secret that we are thinking about developing our portfolio. We want to become a major player with a market share of 9% worldwide, so we are open to new ideas.

What needs to be done to boost declining volume sales in fragrance?When you look at the development of niche, even though the business remains small, it’s growing. We need to resuscitate quality and creativity in our industry. People who turn to niche do so because they think we have standardized creativity, and there is not enough risk-taking; they are sanctioning us by going towards niche fragrance. I’m convinced there is a way of bringing back creativity and risk-taking to our profession. When brands take risks, they are rewarded.

How important is digital to boosting the fragrance business?We have to find a way to be part of the digital transformation, which to date no brand has truly done. We cannot have people smell our products [online], and on top of that it is not that easy to talk about fragrance, as when you do, you talk about emotions, and that is so personal. The idea is to use digital to trigger an emotion or curiosity in the consumer so that he or she immediately goes to the store to discover the product. n

s Shiseido plans to turn Dolce & Gabbana into a €1bn brand in 10 years

”Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel

We need to resuscitate quality and creativity in our industry. People who turn to niche do so because they think we have standardized creativity, and there is not enough risk-taking; they are sanctioning us by going towards niche fragrance

Shiseido EMEA chief brand officer for fragrance & president of Fragrance Center of Excellence Nathalie Helloin-Kamel

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After a slow period over the past few years, the Indian beauty market is seeing a resurgence in 2016, say industry experts. Growth is being led

by prestige, which has grown by an estimated 25% over the previous year, according to estimates. While there have been relatively few new brand launches—either global or local—in India, existing brands have been extending their reach with new products, new retail locations and with more promotions using social media. The beauty market in India was estimated to be worth $11.66bn in 2015,

according to Euromonitor International. Although growth slowed from an average of 20% over the previous years to around 7% last year, certain segments continued to outpace others, particularly premium and masstige. “The mass market is not growing as fast as it was in the past—an estimated 8-9%. But what is growing really fast is prestige, at 20-25%,” says Salman Bukhari, an industry expert. Masstige has been growing at 16-17%, according to industry figures. In the premium market, brands such as MAC continue to see the best growth, along with Clinique, Estée Lauder, Lancôme and Chanel. This growth in higher-priced products is

largely down to better brand awareness. As Bukhari points out: “A lot of mass-market customers would rather n n n

The Indian beauty market is seeing good growth, thanks largely to the prestige sector

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Back on track India

India beauty sales* by category 2015Category Sales $bn % change

2015/2014Haircare 2.74 +7.5Skincare 1.62 +9.5Color cosmetics 0.839 +15.0Fragrance 0.282 +13.0Total beauty & personal care**

11.66 +7.2

Source: Euromonitor International *Retail sales price, constant 2015 prices **Sum of listed categories doesn’t add up to total as all categories are not included

s Local brands continue to command a sizeable share of the market

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n n n buy a smaller sachet of Ponds than an unknown brand. The mass market is not growing so well, it is so deeply penetrated that every corner and shop has products available, while the masstige and luxury markets are unexplored.” Market analysts agree that consumer spending is on a definite incline due to

growing disposable income, more women entering the workforce and more advertising from beauty companies. Vijay Shanker, chief operating officer, H&B Ltd stores, a subsidiary of Dabur Ltd, which runs multibrand, standalone beauty boutiques, says that the key reason for greater spend is growing awareness levels among consumers in India for beauty products. “Consumers today know the international trends, both current and emerging, and are increasingly seeking such products. Today, they are bolder and more willing to experiment when it comes to color and finish. This trend is not just limited to urban cities, but even consumers in small towns and non-metro cities are showing similar preferences when it comes to beauty,” he says.Analysts add that the high concentration of young consumers (more than 55%

of India’s population is under 27 years old) is fueling market growth, with these consumers more open to experimentation and buying more than in the past.

Multinational & local In mass, the big players in the market remain Hindustan Unilever (Fair & Lovely, Ponds, Lakme), L’Oréal India and Procter & Gamble (Olay). In the mass skincare market, Hindustan Unilever’s Fair & Lovely, a fairness cream, has continued to be the single biggest seller in the market. Over the last year, the brand has introduced more specialist products aimed at reaching out to younger consumers, from basic daily use cream to more sophisticated variants, including BB and CC creams, at higher price points. Fair & Lovely BB cream, for example, retails at Rs79 ($1.18) for a 18g tube, with a bigger pack for Rs169 ($2.53). In the mass color market, Lakme, also from Hindustan Unilever, continues to be a leading player, with other brands such as Revlon, Chambor and L’Oréal vying for market share. But local Indian consumer-goods companies such as Dabur, Marico

(Parachute), Emami Ltd (which captured a niche market for men) and Godrej Consumer Products continue to hold strong positions in the market. In addition, brands such as Fairever from Chennai-based consumer-products company Cavinkare, have been gaining popularity as well as Indian brand Lotus Herbals, which has been growing its market share with more specialist products.

Retail growth Although new malls have been slower to develop in the past two years, beauty brands have been opening more standalone stores. These include The Body Shop, L’Occitane, and Indian brands Forest Essentials, Kama and Shahnaz Husain. There has also been a faster play in the multibrand retail space. French perfumery chain Sephora relaunched in India with a new partnership in

2015, with Bengaluru-based Arvind Lifestyle Brands. After revamping its Delhi store, Sephora finally opened in Mumbai in January this year and in Bengaluru in March. It operates other stores in Gurgaon in the New Delhi capital region, two in Delhi and one in Pune, and has plans for aggressive growth. n n n

”H&B Ltd stores chief operating officer Vijay Shanker

Consumers today know the international trends, both current and emerging. Today, they are bolder and more willing to experiment. This trend is not just limited to urban cities, but even consumers in small towns and non-metro cities are showing similar preferences

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CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Insi

ght India

n n n “Sephora is planning to open 50 stores based in 15 more cities including Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Chandigarh, Jaipur, Indore, Lucknow, Ahmedabad and Surat,” comments Sephora business director Vivek Bali.

Online fuels growthMeanwhile, online sales have been adding to the beauty consumer’s beauty basket. According to a study by consultancy firm Bain & Company and online search engine Google, e-commerce sales for beauty and hygiene products are expected to reach $11bn by 2020. It is estimated that more than 130 million Indians will buy beauty and hygiene products online by that time. Online beauty e-tailer Nykaa, which has raised Rs1,600m ($24.03m) in three

rounds of funding over the past four years, has inverted the business model and begun to launch physical stores. Nykaa ceo Falguni Nayar comments: “With increased beauty consciousness among consumers, the Indian beauty and hygiene market is estimated to reach $18bn by 2020, and 20% of this could come from e-commerce players.”As consumers continue to increase their basket size, beauty companies are

stepping up education and online strategies to capture the imagination of the country’s new generation. n

”Industry expert Salman Bukhari

The mass market is not growing as fast as it was in the past—an estimated 8-9%. But what is growing really fast is prestige, at 20-25%

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The market’s difficulties were a key refrain at this year’s edition of Luxe Pack Monaco. Exhibitors commented that the market was flat at best, impacted

by recent political events, increased competition and a shortage of key launches. Niche however, was identified as an area of future growth. There were a range of interesting innovations on show, including a UV sensor ink

from HCP Packaging geared towards brands promoting SPF. The ink reacts to UV light, prompting users to reapply. Other trends at the show included environmentally friendly packaging, travel-size versions, colored digital printing, wooden caps, crackle finishes and paper caps. In glass, there was a focus on decoration techniques, with new ways to incorporate fine lines or waves of color, and metalized finishes, while sober, pared-down forms and apothecary-style bottles were also much in evidence.This edition of Luxe Pack saw the introduction of C2L (Connect to Luxury), which aims

to help companies with digital and facilitate contact between technology companies and packaging companies, according to Luxe Pack Monaco show general director Nathalie Grosdidier. “It was important to make this connection between the world of companies with digital and high-technology know-how and packaging manufacturers,” Grosdidier told BW Confidential. The C2L space hosted 20 companies focusing on digital. The organizers aim to expand C2L to Luxe Pack’s New York and Shanghai editions.In terms of show numbers, some 470 exhibitors attended (+4.4% on 2015), around

half of whom were from outside France (3% were from Asia). Despite organizers commenting that recent terrorist attacks had no impact on attendance, many exhibitors said that they saw fewer visitors than usual. Visitor numbers stood at 8,645, flat compared with last year’s edition, according to organizers.

BW Confidential reports on what was seen and heard at packaging show Luxe Pack Monaco, which took place from September 21-23

Unpacking innovation

Luxe Pack Monaco

Luxe Pack Monaco Took place: September 21-23, Monaco, France Exhibitors: 470, +4.4% vs 2015New exhibitors: 70 Visitors: 8,645, stable vs 2015

Seen in showFrench group Albéa put the focus on digital at its booth. It showed the Albéa Virtual Makeup App, a tool for its sales teams created in collaboration with YouCam Makeup founder Perfect Corp. With the app, users can view Albéa’s make-up packaging offering and virtually try on the products. The group also introduced its Albéa Mix & Match digital platform, which allows clients to design custom-made packaging solutions from Albéa’s standard offer, and personalize them with their own artwork. The platform has initially launched for Albéa’s Europe tube activity, and will expand to include its North America tubes offer and dispensing systems in the coming months. The brand’s new products included its Magic Lash mascara brush series

(pictured), which claims to suit all lashes, especially those that are short n n n

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Luxe Pack Monacon n n and thin. The line comprises the Astonishing Brush, which has multiple waves of bristles and claims to create volume, and the Mini Cashmere Brush, which is said to be extremely soft for a comfortable application.

Germany-based Geka presented its Blaze of Glory collection. This includes mascara brushes Curlqueen (pictured), which features wedge-shaped fiber tips and claims to minimize clumps, and Softsecret, which combines a hard brush core (designed to lift and separate), with soft bristles (intended to reach fine lashes). Also included are the Beautystylist lipgloss applicator, featuring a soft wiper lip that claims to adjust to the shape of the applicator, and the Precisionliner eyeliner, said to provide a precise application due to its 19 micro bristles that do not spread. These four products are packed in a rose gold bag by Geka Accessories, which also contains nail stickers and nail pearls.

Exhibiting under its new name, glassmaker Verescence (formerly SGD Perfumery) showed innovations including Bowie, its new androgynous bottle range said to be ideal for niche brands. Featuring a thick glass base, the Bowie range will be on the market from early 2017.

US-based WestRock previewed two new fragrance sprays. Melodie Touch is designed to provide a discreet and targeted dose for on-the-go applications and claims to be ideal for concentrated perfume formulas, which the company says is a growing trend among prestige brands. Melodie Mystery aims to combine a prolonged, fine spray with a focused application. WestRock also presented its skincare dispenser, Aria Luxe, which has a finger groove designed to increase comfort and control, as well as a locking feature. These three products will launch by the end of the year.

Texen presented its travel-size Mini Airless containers, which can be customized with tips such as stainless steel balls, and are meant for gifts, sampling or on-the-go use. The company also announced that it will present innovations designed to respond to specific consumer needs and desired application methods in the make-up, perfume and skincare categories in 2017.

Groupe Pochet showcased Epure, a new light glass jar for skincare by Pochet du Courval. Featuring a simple, sober finish, the light glass is part of an initiative to reduce the impact on the environment. The group also showed One Touch, which can be opened with one hand thanks to its on/off click function by the group’s Qualipac division.

This year the Aptar Beauty + Home stand featured an Oil Workshop, dedicated to its new oil applicator innovations. These included the press-to-dispense facial oil applicator Serumony Oil Edition and a new pump for all-over dry oils called Oilmist, which claims to enable a long, continuous mist-like spray. The group also previewed, a new version of its existing Note perfume for oils, suitable for perfume oils. This was presented in partnership with Firmenich for the formulation, and Verreries Brosse for the glass, and claims to dispense a measured dose resembling a drop of perfume. n

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e vi

sit

T Fondaco dei Tedeschi by DFS

l Location: Venice, Italyl Total store size: 7,000m2 (75,347ft2)

l Beauty hall size: 7,000ft2 (650m2)

l Special features: Emphasis on combining Italian and

international brands, a floor above the retail space dedicated to cultural events and exhibitions

LVMH-owned travel-retail operator DFS has unveiled its new luxury store in Venice’s historic Fondaco dei Tedeschi building, marking the operator’s first

entry into Europe.The 7,000m2 (75,347ft2) store, called T Fondaco dei Tedeschi, houses beauty,

watches, jewelry, accessories and Italian food, gifts and wine. A focus has been put on combining key luxury global brands with local Italian lines. The store’s 7,000ft2 (650m2) beauty hall is housed on the third floor, and

features a mix of Italian and international beauty and fragrance brands, including The Merchant of Venice, Acqua di Parma, Dior, Estée Lauder and Lancôme. In total, 36 beauty brands are sold at the store, which claims to be Venice’s largest offering of beauty and fragrance. The interior glass fixtures in the area are made of local Murano glass. T Fondaco dei Tedeschi boasts a floor above the retail space dedicated to

events and exhibitions. Featuring a rooftop terrace, it is open to the general public, and is designed to act as a meeting place and cultural venue for the city, promoting public events and cultural institutions, according to the group.The group entrusted the renovations of the historic building to architect and

urbanist Rem Koolhaas and his architectural firm OMA. The interior design was completed by architect Jamie Fobert, and aims to celebrate traditional elements, textures and shapes of Venice, DFS said. n

The travel-retail operator combines culture and shopping at its new store in Venice’s historic Fondaco dei Tedeschi building

DFS makes a splash with Venice store

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s Brands stocked include La Prairie, The Merchant of Venice, Acqua di Parma, Dior and Estée Lauder

s The store’s 7,000ft2 (650m2 ) beauty hall features a mix of local and Italian beauty and fragrance brands

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