CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L 10 Personalization ... The brand uses probiotics and is ......

18
Comment Inside CONFIDENTIAL A nother week and another acquisition of a small, independent fragrance brand. This time it was Maison Francis Kurkdjian, which was acquired by French conglomerate LVMH. The move continues the trend of large groups looking to woo today’s consumer who has tired of some of the big-name, marketing- driven brands and who wants artisanal, quality products sold by experts. And of course Maison Francis Kurkdjian had another ingredient that is becoming increasingly important to multinationals: its own store network, where it can sell the brand how it wants. As this trend intensifies, more analysts see it as a way for the major groups to buy growth. Others say it is also a way for them to buy innovation and hope it will have a transformative effect on other brands in their portfolio and the way they do business. (Indeed, through its latest acquisition, LVMH gains access to Francis Kurkdjian the perfumer, and industry watchers are wondering if the group will strike an agreement to have him create fragrances for other brands in the group). Optimists hope all this activity will create more of a buzz over some of the industry’s brands, and on a larger scale, make categories such as fragrance more fun, appealing and interesting—all of which would boost sales and encourage other market players to up their game. Buying appeal The buzz 2 News roundup Netwatch 7 Social media monitor Interview 8 Asos ceo Nick Beighton Insight 10 Personalization Show review 13 Cosmoprof Worldwide Bologna Store visit 16 Drogaria Onofre, São Paulo Oonagh Phillips Editor in Chief ophillips@bwconfidential.com www.bwconfidential.com The inside view on the international beauty industry March 30 - April 12, 2017 #147 News headlines daily on www.bwconfidential.com @BWCbeautynews Meet the BW Confidential team at: l in-cosmetics Global, London, April 4-6 l Luxe Pack Shanghai, April 12-13 l BeautyEurasia, Istanbul, April 27-29 l TFWA Asia Pacific Exhibition and Conference, Singapore, May 7-11 l Luxe Pack New York, May 10-11 l Beautyworld Middle East, Dubai, May 14-16

Transcript of CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L 10 Personalization ... The brand uses probiotics and is ......

Comment Inside

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Another week and another acquisition of a small, independent fragrance brand. This time it was Maison Francis Kurkdjian,

which was acquired by French conglomerate LVMH. The move continues the trend of large groups looking to woo today’s consumer who has tired of some of the big-name, marketing-driven brands and who wants artisanal, quality products sold by experts. And of course Maison Francis Kurkdjian had another ingredient that is becoming increasingly important to multinationals: its own store network, where it can sell the brand how it wants.

As this trend intensifies, more analysts see it as a way for the major groups to buy growth. Others say it is also a way for them to buy innovation and hope it will have a transformative effect on other brands in their portfolio and the way they do business. (Indeed, through its latest acquisition, LVMH gains access to Francis Kurkdjian the perfumer, and industry watchers are wondering if the group will strike an agreement to have him create fragrances for other brands in the group).Optimists hope all this activity will create more of a buzz over some of the industry’s

brands, and on a larger scale, make categories such as fragrance more fun, appealing and interesting—all of which would boost sales and encourage other market players to up their game.

Buying appeal The buzz 2News roundup

Netwatch 7 Social media monitor

Interview 8 Asos ceo Nick Beighton

Insight 10 Personalization

Show review 13 Cosmoprof Worldwide Bologna

Store visit 16 Drogaria Onofre, São Paulo

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry March 30 - April 12, 2017 #147

News headlines daily on www.bwconfidential.com @BWCbeautynews

Meet the BW Confidential

team at:

l in-cosmetics Global, London, April 4-6 l Luxe Pack Shanghai, April 12-13 l BeautyEurasia, Istanbul, April 27-29 l TFWA Asia Pacific Exhibition and Conference, Singapore, May 7-11 l Luxe Pack New York, May 10-11 l Beautyworld Middle East, Dubai, May 14-16

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 2

News roundup

The

buz

z

At a glance...

Strategy

Luxury group LVMH is to acquire a majority share in France-based fragrance house Maison Francis Kurkdjian. Maison Francis Kurkdjian was founded in 2009 by perfumer Francis Kurkdjian and ceo Marc Chaya. Both Chaya and Kurkdjian will continue in their current roles of ceo and creative director. The brand is present in 40 countries. The deal is the latest in a string of acquisitions of independent fragrance brands, including L’Oréal’s purchase of Atelier Cologne and Estée Lauder Companies’ investment in Editions de Parfums Frédéric Malle and Le Labo.

Exea, the industrial holding of the Puig family, has acquired a majority stake in Greek natural cosmetics company Apivita. Apivita, which was founded in 1972 by Nikos and Niki Koutsianas and sells products based on propolis, honey, royal jelly and beeswax, does sales of around €40m. The brand’s products are sold mainly in Europe through pharmacies, department stores and branded boutiques. Apivita founder Nikos Koutsianas will remain president of the brand. Hervé Lesieur, who invested in skincare brand Uriage with Exea in 2011, will also take a minority stake in Apivita. Exea owns Puig, Uriage and Flamagas, and has a 50% share in Isdin, a company held jointly with the Esteve family (Laboratorios Esteve).

German retailer Douglas is to acquire Madrid-based perfumery chain Bodybell, furnishing it with a leading position in Spain. Bodybell has more than 200 stores and two online shops in Spain. “Strengthening our market position in this country is a decisive step forward on our way to becoming number one or a strong number two in every market we serve,” said Douglas ceo Isabelle Parize. “The transaction promises great potential: While Bodybell has 43 years of experience of combining selective and mass beauty products in the Spanish market, Douglas brings to the table extensive know-how from its international operations, including the successful introduction of private labels and innovative omnichannel solutions.” Douglas opened its first perfumery in Spain in 1995. Its local subsidiary currently counts 57 stores. Financial details were not disclosed. Douglas has 1,700 stores in 19 European countries. It reported sales of €2.7bn in the 2015-2016 financial year.

Shiseido Americas Corporation has acquired full-service creative agency JWALK, a move that the company says is in line with its Vision 2020 goal to boost growth through better marketing and digital efforts. The company will be integrated into the n n n

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

n LVMH to take majority stake in Maison Francis Kurkdjian

n Douglas to acquire Spain’s Bodybell

n China’s HNA looks to take stake in Dufry

n Kiko to open Paris flagship in 2018

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) +

magazine (4 issues) + daily news + collector’s guide: €549/US$769

[email protected]@bwconfidential.comBW Confidential is published by Noon Media513 746 297 RCS NanterreCopyright © 2017. All rights reserved. Reproduction in whole or in part withoutpermission is strictly prohibited.

News roundup

The

buz

z

n n n Shiseido Americas organization and will work with Shiseido’s brand teams. Shiseido said the acquisition sets the group apart from the traditional approach to beauty marketing, and will enable it to work faster and with more flexibility. JWALK was founded in 2010 by Charlie Walk, Michael Lastoria and Doug Jacob. Jacob will be chief creative director, Shiseido Americas & founder, JWALK. He will report to Jill Scalamandre, president of Shiseido’s global make-up center of excellence. JWALK will continue working with new and existing, non-competitive clients as well as Shiseido’s brands. JWALK has worked with Shiseido for the past four years, notably on its bareMinerals and Buxom brands.

German group Henkel is to acquire Mexican professional haircare firm Nattura Laboratorios and its associated companies in the US, Colombia and Spain. Nattura Laboratorios, whose brands include Pravana and Tec Italy, reported sales of more than €100m in fiscal 2016. Henkel says the acquisition will complete its professional hair colorants category and reinforce its number-three position globally in this market. The deal will also enable Henkel to expand in the US and Latin America.

Interparfums says that it will likely to terminate its Karl Lagerfeld fragrance license early in 2024 rather than continue until the 2032 expiration date. The company said that product sales had not met with original expectations. Interparfums said that it made a mistake with the positioning of the brand. “We created a product that was quite expensive and geared for a very selective market, where today we think the brand is more accessible,” commented Interparfums cfo Russell Greenberg. The company plans to reposition the brand with two new fragrances for men and women that are 25% less expensive slated to launch this summer. “We still think that we are going to find some growth in the business, we just need to reposition,” said Greenberg. Interparfums also recently announced that it had ended its license with Balmain.

Private-equity firm L Catterton has made what it calls a significant investment in US-based probiotic skincare company Tula. The funding will be used for marketing, working capital and product development. Prestige brand Tula was co-founded in 2014 by Dr Roshini Raj, a gastroenterologist and internist, Ken Landis, co-founder of Bobbi Brown Cosmetics and Dan Reich, a tech entrepreneur. The brand uses probiotics and is based on the understanding that the same ingredients that are good for internal health are also good for the skin. Tula launched with QVC and is also sold at SpaceNK stores in the US. The brand claims to have built a strong online presence through partnerships with digital influencers. n n n

Sin título-1 1 24/01/2017 11:17:16

The

buz

z News roundup

n n n Brazilian cosmetics company Natura has unveiled a new structure to create distinct business units for each sales channel in Brazil. The move is designed to focus on Natura’s main business model of direct selling, while enabling its other sales channels to be more flexible and autonomous. Erasmo Toledo, who joined Natura in 1990, has been appointed head of Direct Selling in Brazil. Agenor Leão has been named head of Digital Businesses, which encompasses Natura’s digital consultants and its online sales platform Natura Rede. Leão will continue in his role as head of Digital Technology. Caroline Vlerick joins Natura as retail director, tasked with expanding Natura’s network of own-brand stores and its distribution in drugstores and B2B. Vlerick previously worked at retailers Sparta and Cortefiel.

Retail

Dufry saw a surge in its share price on March 28 on a Wall Street Journal report that Chinese conglomerate HNA Group is looking to buy a stake in the Swiss travel retailer. The report states that Dufry is valued at $7.6bn and that the travel retailer’s shareholders Singapore-based funds GIC and Temasek had been approached by HNA. HNA’s business encompasses the aviation, real estate, financial services and hotel sectors. In other news, Dufry subsidiary Hellenic Duty Free Shops has signed a 30-year

contract with Fraport Greece for the exclusive operation of airside retail at 14 Greek airports. With the deal the companies will aim to more than double the current retail space from 5,000m2 (53,820ft2) to more than 12,000m2 (129,167ft2). The agreement also enables Hellenic Duty Free Shops to continue its operations in the 14 airports. The agreement will take effect upon the start of the concession agreement between the Greek State and Fraport Greece, which has been awarded the operation of several Greek airports. The expansion and improvement of the retail spaces is set to start in 2017 and be completed in 2021. The agreement also adds floor space landside. Fraport Greece, a joint venture between Fraport and Copelouzos Group, has a 40-year concession contract with the Greek State for the operation of 14 regional airports.

Italian budget cosmetics brand Kiko is to open a flagship store on Paris’ avenue des Champs-Elysées. The store is scheduled to open in early 2018. Kiko currently has 11 stores in Paris. n n n

www.bwconfidential.com

BW Confidential launchesnew website

Up-to-the minute newsInteractive features, industry polls

More product, store & people visuals

Responsive design (desktop, tablet, smartphone)

Access to all BW Confidential content

BW Confidential: The complete information system for the international beauty market in print & digital

News roundupn n n Dubai-based luxury retailer Paris Gallery Group is to open 30 stores in five years, taking the company’s number of stores to 116 by 2021, as part of a strategy to strengthen its presence in the Middle East. The expansion will see Paris Gallery’s retail area reach 3.2million ft2 (297,290m2) by 2021 compared with 2million ft2 (185,806m2) currently and its workforce increase to 5,100 from 3,500 today. “Since 2006, the group has developed a gradual plan to move its brand focus from local to regional and global status. […] The group has recorded steady growth in the retail and distribution business since 2006,” said Mohammed Abdul Rahim Al Fahim, ceo of Paris Gallery Group of Companies. Paris Gallery currently operates 86 stores across the UAE, Saudi Arabia, Qatar, Bahrain, Oman, Iraq, Azerbaijan and other countries. It focuses on luxury products including fragrance and cosmetics, leather goods and fashion from more than 800 brands.

People

L’Oréal has appointed Cyril Chapuy to the newly created position of deputy general manager L’Oréal Luxe, in charge of international brands. Chapuy will report to Nicolas Hieronimus, president selective divisions. The group said that the role was created in light of L’Oréal Luxe’s recent growth and the growing number of brands in the division’s portfolio. Chapuy, who joined L’Oréal in 1993, was most recently head of L’Oréal Paris.

US-based Coty has appointed Laurent Kleitman president Coty Consumer Beauty, effective May 15, 2017. Kleitman will replace Esi Eggleston Bracey, who came to Coty from P&G in October 2016 following the acquisition of P&G’s specialty beauty brands by Coty. Eggleston Bracey will stay at Coty for a transition period until the end of March. Kleitman is currently executive vice president global haircare category at Unilever, a position he has held since 2015. Kleitman will be located at Coty’s Consumer Beauty headquarters in New York. He will report directly to Coty ceo Camillo Pane and will be a member of the Coty executive committee. During the interim period, Pane will directly oversee the company’s consumer beauty division.

Revlon has appointed Serge Jureidini president Elizabeth Arden & Fragrances. He will report directly to Revlon president and ceo Fabian Garcia. Jureidini replaces George Cleary, president Fragrances, who has left the company, and JuE Wong, president Elizabeth Arden, who is to leave the group on March 31. Jureidini was most recently president and ceo of sampling solutions company Arcade Beauty. Revlon has also named Stéphane Bonnet (pictured) as its new general manager of

global travel retail. Following Revlon’s acquisition of Elizabeth Arden last year, the two companies now operate in the travel-retail segment under a single organization headed by Bonnet. Bonnet was previously Elizabeth Arden’s general manager for distributor markets in Europe and the Middle East. The move is intended to allow the company to have a bigger impact when working with retail partners in the segment. The Elizabeth Arden brand, notably its service offer, will be a particular focus, Bonnet said.Plans also include the launch of the American Crew haircare brand into travel retail. n

The

buz

z

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 5

ONLY & UNIQUE

BtoB make-up event

I N A S I A

The

#MakeUpinAsia.

makeup-in.com

annonce presse MAKEUP fev#17.indd 2 07/03/2017 10:18

Net

wat

ch

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

Social media monitor

The Kylie Jenner pop-up store that opened in New York has been seen as a victim of its own success. Visits to the store were described as madness given the crowds, but the star has been complimented for knowing how to maintain a buzz around her business.

Clinique’s new Fresh Pressed line, comprising a daily booster and renewing cleanser powder, is liked for offering a refreshing change in skincare that focuses on revitalizing the skin. The booster and powder formats are also seen as original, even if the price is deemed to be high by some bloggers.

Clean beauty has been gaining traction with beauty reviewers. Brands cited by bloggers include Juice Beauty. Many say they are less skeptical of brands offering safe formulas, compared to brands with natural claims. They add that they feel brands over-state their natural credentials, and so doubt how natural products really are.

News of the possible sale of The Body Shop has not surprised the blogosphere. Commentators say they suspect that competition from hotter cosmetics brands in this territory and retail chains like Lush have taken its toll on the L’Oréal-owned brand.

The

view

s ex

pre

ssed

in t

his

sec

tio

n a

re t

ho

se o

f b

log

ger

s an

d d

o n

ot

rep

rese

nt

the

op

inio

ns

of

BW

Co

nfi

den

tial

APRIL 12 & 13, 2017EXHIBITION CENTER, SHANGHAINew York . Monaco . Shanghai www.luxepack.com

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 8

Inte

rvie

w

UK-based online fashion retailer Asos is looking to international expansion and has just opened an office in Paris. The company also has big ambitions for its beauty business. Asos ceo Nick Beighton tells BW Confidential how he sees the evolution of online shopping, mobile and the company’s development

Room for growth

You have just set up an office in Paris. What are your plans for international development? We have three priorities: keep the UK hot, turbo-charge the European market, especially France and Germany, and accelerate in the US. Currently, the UK represents 35% of our sales, Europe another 35% and the US 15%. We have 14 million active consumers and we aim to double that in the next three to five years. Our average basket is three items at £50 or €70, which is in line with the market’s figures.E-commerce is slower in France than in the UK, with 9% penetration in clothing

compared to 15%, but it is growing. Our unprompted awareness is still low, at around 60%, and we lack presence in menswear. We want to make our experience locally relevant, with a specific editorial and social-media content. You always have to look through the consumers’ eyes. It’s arrogant to think you can trade from London because you’re online. We already have offices in Berlin and Sydney, on top of our headquarters in London which employs 3,000 people.

What about Asia?Our biggest markets in Asia are Hong Kong, Taiwan and Singapore via the main site. We don’t have an office there currently and we don’t plan to open one in the immediate future. Our main goal is to expand in Europe and the US first.

How big is beauty in the overall business and how do you see this evolving?Our beauty offer accounts for less than €23m a year, compared with overall sales of €1.7bn in 2016. It could easily be 10 times the size it is today. With beauty and male grooming we have the same approach as with fashion: we want to find brands that are new, up-and-coming and increasingly exclusive to us. We stock 80 beauty brands in total, including 25 exclusive lines such as Korean brands Oh K!, When, Starskin and Kocostar. Ultimately we aim to have our own line, and we also need to attract some big players like Estée Lauder or L’Oréal.

You had a click & collect deal with Boots in the UK. How did this work? Will you look into similar deals with retailers in different markets? We deal with 80 click & collect stores in Boots and we are looking to expand in Europe with a goal of 3,000 operations. France has 8,000 click & collect points of sale, the same as in the UK, but French consumers use them twice as much. n n n

Asos ceo Nick Beighton

”Asos ceo Nick Beighton

Our beauty offer accounts for less than €23m a year, compared with overall sales of €1.7bn in 2016. It could easily be 10 times the size it is today

AsosHeadquarters: UKFounded: 2000Sales 2016: €1.7bn, +26% vs 2015Profit before tax and excep-tional items: £63.7m (€73.3m)Beauty sales: €23mSales split: UK: 35%; Europe: 35%; US: 15%; other: 15%Active consumers: 14 million Followers across social-media platforms: 19.3 million

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 9

Inte

rvie

w

n n n How can you compete against players such as Amazon or Sephora in European markets?Our competition is not only online shops, it’s all the people who offer relevant, fashionable products that appeal to consumers. To compete you must have great product, great service, great content with a fast experience, easy payment and free delivery and returns. Because we focus on the 20-something age group, we include specific messages in our packages and we manage our social-media accounts to give people inspiration and make them feel good about our products. We were one of the first advertisers on Instagram Stories, and Snapchat is a very popular platform for behind-the-scenes pictures.

How big is mobile shopping in your strategy?Mobile devices represent 75% of the traffic in the UK, 70% in Europe, and 50% of the sales. Young people use their mobile phones all the time and we want to be part of their day. We employ 100 people in technology to develop new shopping experiences and our Instagram account is shoppable. We noticed that they sometimes visit our site 150 times a day and save for later. Most purchases happen at lunchtime and between 7pm and 10pm, and also on Sundays in France because shops are closed.

How do you deal with pricing differences across different markets?We have one European price for our Asos brand. Some brands we work with have different pricing policies and we respect that.

How will Brexit impact your business?We don’t know yet but we did see an acceleration of our sales in Europe with the drop of sterling versus the euro. In the final quarter of 2016 the currency had an impact of 5% to 6% on our sales growth.

Would you consider opening a brick-and-mortar store or pop-ups?Never say never, but it’s not in our immediate plans. One of the benefits of an online store is the breadth of the range, which is difficult to replicate in a shop. With digital technology we collect data, we understand the behavior of our consumers and we can push recommendations. For instance, we can recommend sizes based on previous purchases, because brands have different sizings.[As for pop-up stores] they are more

marketing tools than trading tools. But we did organize a trailer tour of the main French universities in October 2016. It was a great way to bring content directly to our audience. n

Asos ceo Nick Beighton

”Asos ceo Nick Beighton

To compete you must have great product, great service, great content with a fast experience, easy payment and delivery and returns

s Asos stocks 80 beauty brands, including 25 exclusive lines

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 10

Insi

ght

How beauty brands are getting personal with their consumers

The bespoke beauty boomPersonalization

In a saturated market, the personal experience is becoming key to standing out. And personalizing the offer is going well beyond engraving initials or messages on product

packaging. Today’s consumer wants fragrances she can mix and match, skincare tailored to her needs and lipstick shades that match her outfit. Personalization has been highlighted as a major trend. This has seen the industry’s big

groups come out with products that consumers can adapt to their own needs to a certain extent, and also the emergence of new companies that put customization forward as the basis of their brand. They include France-based Codage, which aims to replicate the concept of hand-mixed products found in the early pharmacies, and US-based Skin Inc, which uses consultations to come up with customized skincare products. There have already been acquisitions of brands with a customization premise (such as Estée Lauder Companies’ (ELC) purchase of fragrance company Le Labo, which makes hand-blended scents), and more could come as this area grows.

Mixing and matchingA string of brands are coming out with products where the formula can be enhanced by boosters or changed by adding pigments. In make-up, transforming lipsticks are gaining traction, whereby special effects are added to a lipstick base. For example, US-based cosmetics brand Jouer recently introduced its Long-Wear Lip Topper, designed to add a layer of shimmer to any lipstick. ELC-owned Clinique recently launched BIY Pigment Drops, which turn skincare into

make-up. Consumers can create a BB cream or fuller coverage foundation by adjusting the number of drops mixed with a moisturizer. Similarly, UK-based Lush allows its consumers to create their own tinted moisturizer with its Colour Supplement, a base that can be mixed with any moisturizer. L’Oréal-owned Urban Decay introduced a Self-Adjusting Complexion Primer. The brand claims that the product’s formula contains suspended micropigments, which adapt to the complexion of the user when they come into contact with the skin.This trend of skin tone matching is set to intensify. Indeed, the demand for these n n n

Personalizing products and services will improve marketing as it will mean that brands have more direct contact with consumers

More brands are offering the opportunity to customize skincare and fragrance, including Clinique, Le Labo and Codage

s

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 11 - Page 11CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 11

Insi

ght Personalization

n n n products was one of the reasons for Shiseido Americas’ acquisition of MatchCo, which uses technology to provide consumers with customized foundation. The MatchCo app takes five different skin scans before blending a foundation for the user. The bottles are labeled with the user’s name and the date it was made. Shiseido said that it expects to develop the model beyond foundation.Going further, brands are set to explore matching formulas to the consumer’s DNA

for the ultimate in customized products. Australian brand SkinDNA offers users skincare products based on a DNA test (a swab on the inside of the cheek). Once the test is complete, the user’s skin is assessed on categories such as wrinkling and sun damage. UK-based Geneu also offers skincare based on DNA testing. Consumers can undergo an in-store U+ DNA skin test to identify their natural collagen breakdown and antioxidant protection levels, as well as a lifestyle assessment with a scientific advisor. Based on the combined results, two anti-aging serums are produced. And in fragrance, online retailer Unique Fragrance gives consumers the opportunity to

play perfumer via its online fragrance creation tool. It boasts a selection of 50 different notes and also allows its users to personalize the bottle with a name or special message. Also in fragrance, brands such as Jo Malone have been playing on layering for years to

enable the consumer to come up with their own scent, but this trend is now hitting the mainstream. UK-based retailer Superdrug (AS Watson) recently launched a line of body mists that can be layered to create a unique scent. Retailing at £2.99 (€1.17) for 100ml, these products are intended to make the personalized trend more accessible.

Tech advancesAnalysts say, however, that these advances are baby steps compared to what will be possible in the future due to advances in technology. They add that technology will be key to the development of personalized beauty and in scaling it to the masses. While there are already a range of tools aimed at analyzing the skin to offer products based on consumers’ specific needs, they are set to become more sophisticated. Recent innovations include Kanebo Cosmetics’ partnership with Japan-based mobile

operator NTT DoCoMo to launch a smartphone app Called Smile Connect. The mobile moisture check, the core function of the app, works with a small skin moisture sensor that plugs into a smartphone earphone jack. The sensor begins measuring moisture levels and records data in the user’s profile as soon as it touches the skin. With repeated use, the app can chart daily or seasonal changes in the skin. Smile Connect links to Kanebo counters in department stores to track the customer’s purchase history, make reservations and browse data from skin analysis sessions performed at the counter.Another example is US-based company Modiface, a provider of augmented reality

technology for the beauty and medical industries, which recently revealed its new Skin AI technology. Created with dermatologists, it is designed to detect individual skin concerns such as dryness, uneven skin and fine lines, as well as assessing each specific concern. The user can see simulations of changes to their skin in real-time video, and compare the before and after looks. As well as skin assessment, the technology will also be available as an app module providing product visualizations on live video. Meanwhile, Hong Kong-based Internet of Things company actiMirror launched a

connected smart mirror platform that aims to help brands create an emotional connection with consumers, as well as gather consumer data. When shoppers approach the smart mirror in-store, sensors activate a display showing personalized content in real-time, n n n

Technology will be key to the development of personalized beauty and in scaling it to the masses

n n n based on factors such as age. Content such as interactive product demonstrations or tutorials designed to suit the person’s needs can then be shown. actiMirror can also provide companies with anonymous consumer data, including product sales per consumer type and trending color schemes by age group.All this technology not only taps into the consumer’s desire for more custom-made

items, but provides a wealth of data to brands about their customers’ profiles, how they shop and what they are looking for. This will enable better targeting of consumers and create more personal marketing experiences. Through the use of data, US-based brand Ardency Inn, for example, can send

consumers personal video messages. In short, personalizing products and services will improve marketing as it will mean that brands have more direct contact with consumers. In addition, these personal experiences, skin analysis, or individualized make-up looks

are content that consumers like to share on social media and so play an important role in generating product awareness and sales. For example, the actiMirror allows before and after pictures or recordings of the tutorial to be emailed users and shared on social media. Unlike in the past when anything custom-made was reserved for the elite, today thanks

to technology and digital, personalization is now a way of spreading the word and reaching more consumers. n

Personalization

Insi

ght

Beauty in Travel Retail

more than 100 pages of insight and analysis of

the beauty category in travel retail

Everything you need to know about beautyin the travel-retail channel:

• Global shopper habits • Digital strategies • Online sales • Reaching millennials • Creative retailing strategies • Pricing • Performance by beauty segment • New product trends • Packaging...

Plus all the latest data, industry predictions and listingson the channel’s main players

Collector’s Guide

order your copy by email [email protected]

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Show

rev

iew

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 13

This year marked the 50th anniversary of the Cosmoprof Worldwide Bologna show. The event

welcomed what the organizers called a record number of international attendees, with a 16% increase in foreign visitors compared with last year. Overall, the show recorded more than 250,000 visitors from 150 countries and 2,677

exhibitors from 69 countries, around the same number as in 2016. This year, there were 29 country pavilions. For the first time, Argentina, Chile, Japan, Latvia and the United Arab Emirates were included.This year saw the launch of a new area, Cosmoprime, a hall combining key features

of the Cosmoprof show, including The Extraordinary Gallery, dedicated to niche and high-end brands; the international buyers lounge; Be Organic, devoted to organic beauty products, and Premium Perfumery showcasing masstige and prestige brands. The hall was also home to the Perfume Factory, a special event for the show’s 50th anniversary. The idea of the Perfume Factory was to shed light on the industrial process of making a fragrance. Industrie Cosmetiche Riunite (ICR), an Italy-based company specialized in the creation and production of fine fragrances and cosmetics, displayed the steps in the supply chain production process. An exclusive anniversary fragrance was created by perfumer Luca Maffei of fragrance house Atelier Fragranze Milano (AFM). The bottle was produced by glassmaker Bormioli Luigi, the cap by Candiani and the nozzle by Aptar. To mark the event’s 50th birthday, the organizers held an exhibition called Cosmoprof

50 Anni Belli, which featured images from both Italian and foreign magazines, highlighting the changes in cosmetics, make-up and hairstyles from the 1960s to today.Key trends at the show included stick formats,

products with multi-step applications, vegan beauty and kitchen-fresh cosmetics. Metallic and glitter finishes, matte lips, inclusive beauty (with more skin tones offered in foundations and powders) and brow products were also popular. Playful textures such as those similar to modeling clay and chalk were also spotted. In addition, there was an emphasis on atypical product uses and application. An example was Italy-based manufacturing company pinkfrogs’ Sleeping Metallic Mask, a sleeping mask that does not need to be removed after use. n n n

Seen and heard at the 50th edition of Cosmoprof Worldwide Bologna and Cosmopack, held from March 16-20

50 shades of beauty

Cosmoprof Worldwide Bologna

Cosmoprof Worldwide Bologna Took place: March 16-20, 2017 in Bologna, Italy (Cosmopack, dedicated to packaging, took place from March 16-19, while Cosmoprof took place from March 17-20)Exhibitors: 2,677, +6.6% vs 2016Visitors: more than 250,000, flat vs 2016

Cosmoprof’s international ambitions As previously announced, Cosmoprof Bologna has partnered with Iran Beauty & Clean, and will be the exclusive international agent of the 24th edition of the show which is to be held at the Tehran International Fairground from April 24-27. “In September, BolognaFiere Cosmoprof will start working with beauty and health trade show Belleza y Salud in Bogotá, Colombia, opening up interesting perspectives for Latin America. And then we are working to develop a project that in 2019 will cover India,” said Franco Boni, president of BolognaFiere, the organizer of Cosmoprof.

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Cosmoprof Worldwide Bologna

Show

rev

iew

n n n Seen in showUK-based Dr Russo, which was founded by cosmetic and dermatologic surgeon Dr Luca Russo, showed monodose versions of its suncare (cleanser and moisturizer). The brand aims to help its consumers integrate suncare into their daily skincare routines. The product is presented in small packets that open when snapped in half and are said to contain just the right amount for one application. The consumer can buy either seven or 28 mini doses of day moisturizer. The monodose products are said to be ideal for testing products and traveling. They will launch in Harrods in London in May. The brand also plans to launch a foundation primer and three tinted moisturizers in the second half of this year.

Genie-S presented its new launch for its fragrance spray brand Travalo, called Perphone. Perphone is an iPhone case that holds perfume and which is refillable. A cartridge on the back of the case can be snapped off and filled with the user’s fragrance. Once it is attached to the back of the phone, it can be twisted upwards to spray the scent. The cartridge has a capacity of around 5ml (about 65 sprays). The company is targeting distribution channels including luggage stores and perfumery chains. The case will launch this summer.

German shoe retailer Birkenstock, which recently expanded into beauty, used the show to present its new cosmetics line called Birkenstock Natural Care. The certified natural line is composed of 28 products, split into five series: Naturally Pure, Naturally Ageless, Naturally Fresh, Natural Man and Natural Footcare. Cork (the material used in the footbed of Birkenstock shoes) is a key ingredient of the line. According to Birkenstock, cork oak extract has anti-aging properties.

Cosmeceutical brand Vitabrid C12 (owned by Korea biotech firm Hyundai IBT) presented its new anti-acne topical skincare products featuring vitamin C. Called AC Control (a powder) and AC Control Essence, they aim to deliver stabilized vitamin C deep into the skin for 12 hours and can be used either one after the other or mixed together. They are also said to have anti-inflammatory properties and are claimed to strengthen the skin barrier as well as ease skin redness. The Vitabrid C12 products are currently sold in Korea, Japan, China and the US.

MiLi, a technology firm owned by China-based company Hali Power Co, debuted the MiLi Pure line. The MiLi Pure device tests the user’s skin moisture levels before and after the use of skincare products to assess their efficacy. The accompanying MiLi Pure app helps the user to track their moisture level statistics throughout the year. Brands can customize the app to send push notifications—for example, after a period of two months to remind the consumer to buy the product again. MiLi also offers a smart bottle that uses bluetooth to detect how much of the product the consumer is using. The third product in the line is the MiLi Pure Spray (pictured), which features sensors that detect skin moisture levels, and is designed to deliver a fine mist to the skin. n n n

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 14

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 15 - Page 15CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Show

rev

iew

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 15

Cosmoprof Worldwide Bolognan n n US-based Anisa International highlighted its latest synthetic alternatives to animal hair brushes. Its new, patent-pending SQ Plus collection is designed to mirror Japanese-inspired brushes, as well as the delicate fibers and quality associated with squirrel hair. Anisa International says that it will no longer use animal hair in its brushes by the end of 2017.

France-based Albéa showed a new three-step way of applying mascara to create a voluminous, false lash effect. Called Excess Lashes, it consists of applying mascara with the Excess brush. The user then applies loose fibers using either the company’s Ecstasy or Spice brush. According to Albéa, these fibers stick to the lashes without irritating the eyes. Another coat of mascara is applied over the fibers to fix them in place.

German group Geka presented its new sweetCANDY collection, which comes in a pouch with five products. They include a dual-ended lipgloss, which is designed to provide a matte texture for the top lip and a glossy formulation for the lower lip (an on-trend look, according to Geka). The classicLIPS applicator claims to adapt to all shapes of lips, while the flexiKISS is said to help create streak-free results. The outer packaging of flexiKISS features a marble effect.

Italy-based Chromavis (Fareva group) showed its products in an off-site, dream-like exhibition space. There, the company presented New Vision Eyes & Lips, a new round palette with a circle of lip color in the center, surrounded by an outer ring of face or eye powder. The palette’s design means there is no physical barrier between the lip color and the powder, which is intended to cut down on packaging waste.

France-based Alkos presented a travel-friendly make-up removing stick called Stick With Me Travel Cleanser. Also shown was Sundrops Tinted Lotion (pictured), a lotion designed to create a glow without streaks. This can be worn alone or blended with moisturizer or foundation.

Subcontracting company IL Cosmetics showed its Meringa line, nail polish designed to give a crackled texture like a meringue or macaroon. A matte color is first applied, followed by a top coat, which creates the cracked effect. The company says that the nail polish market is recovering, and that high-color products are in demand.

Germany-based Faber-Castell Cosmetics showed its Magic Lips crayon. The crayon looks blue, but is pink when applied and changes shade according to the user’s skin pH level. The company also added two new textures in its Slim Plastic Pencil range: matte in the form of the True Velvet eyeliner, and metallic with the Metallic Bling eyeliner and lipliner. n

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Stor

e vi

sit

Drogaria Onofre l Location: São Paulo, Brazil

l Opened: March l Size: 209m2 (2,249ft2)

Brazilian pharmacy chain Drogaria Onofre, part of US drugstore group CVS Health, unveiled a new concept at the beginning of March with a strong

focus on convenience and based on the idea of being easy to shop. The first store with the new concept is located in one of the most prestigious

areas of São Paulo city, at Rua Oscar Freire. While the former concept of Onofre concentrated more on prestige, this new model aims to offer accessibly priced products and make it easier for consumers to find items more quickly. There is clear signage throughout the store designating each product section. The 209m2 (2,249ft2) store stocks 11,000 skus in four different sections: Feel

Good (sentir-se bem) devoted to health and prescription drugs; Take Care of Yourself (cuidar de você), which caters to personal hygiene, beauty and dermocosmetics products for men and women; Live Better (viver melhor), which houses vitamins and items intended for the elderly, and Parents and Children (Pais e filhos), devoted to pregnant women and babies. “Our purpose with this new concept is to offer a pleasant experience and give

autonomy to our customers. The layout, furniture and visual communication of product categories were planned taking into consideration the profile and behavior of our customers,“ says Elizangela Kioko, Drogoria Onofre’s director general. Onofre plans to open five new stores based on the new concept. It forecasts a

20% increase in sales this year. Currently, Onofre has 37 stores in three states in Brazil. n

Brazil’s Drogaria Onofre puts the focus on convenience with its new store concept

Clear and simple

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 16

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - March 30 - April 12, 2017 #147 - Page 17

s The store was designed with clear signage to make shopping easy and convenient

s The store is divided into four sections corresponding to lifestyle or product group

Stor

e vi

sit

BW ConfidentialThe inside viewon the internationalbeauty industry

News headlines every day

bwconfidential.com

The print magazine

Four times a year

Please complete this form and return it:

• by post: BW Confidential - Subscription Department 4 avenue de la Marne - 92600 ASNIERES France• by fax: +33 (0) 1 53 01 09 79• by email: [email protected]

Subscription order form

+ Free: each subscription includes full access to the entire contents of BW Confidential’s archives on www.bwconfidential.com

Payment method r € r US$

r CB, Visa, Mastercard/Eurocard l_l_l_l_l l_l_l_l_l l_l_l_l_l l_l_l_l_l Expiration date: l_l_l_l_l Security code l_l_l_l

r American Express l_l_l_l_l_l l_l_l_l_l_l_l l_l_l_l_l Expiration date: l_l_l_l_l Security code l_l_l_l_l

r Please bill me

Contact information

Company:............................................................................

First name:..........................................................................

Last name:..........................................................................

Job title:..............................................................................

Address:.............................................................................

Postal code:........................................................................

City:....................................................................................

Country:..............................................................................

Email (required):..................................................................

VAT number (required for European Union):..................................

Signature & date:

Subscribe for 2 years and save 20%

#

2017

- O

ffer v

alid

unt

il Au

gust

31,

201

7

Every two weeks

The electronic publication

Yes, I want to subscribe to BW Confidential

r 2 year subscription: €879 or US$1,199 • the electronic publication (40 issues) • daily news on www.bwconfidential.com • the print magazine (8 issues) • the collector’s guide (1 issue per year)

r 1 year subscription: €549 or US$769 • the electronic publication (20 issues) • daily news on www.bwconfidential.com • the print magazine (4 issues) • the collector’s guide (1 issue)

The Collector’s Guide

Once a year