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When beauty subscription boxes hit the market about five years ago many questioned whether brands would

embrace them, whether consumers would like them and whether they would stand the test of time. So far, these boxes seem to have proved their worth. One of the main players in the market, Birchbox says it has 800,000 subscribers, sales of $100m and has expanded its retail model to include brick-and-mortar stores. Meanwhile, Germany-based Glossybox now has more than 200,000 subscribers in 10 countries. Recent initiatives also seem to lend credibility to the beauty-box

model. In August, LVMH-owned beauty retailer Sephora announced that it would make its foray into the beauty-box market in the US. The move is significant given Sephora’s weight in the beauty category, its strong relationships with brands (which will likely mean a superior product offer in its boxes compared with competitors), its marketing might and its wealth of consumer data on what sells and what doesn’t. Meanwhile, just last week, beauty subscription service Ipsy revealed that it had raised $100m from investment firms TPG Growth and Sherpa Capital to boost its expansion. Ipsy has 1.5 million subscribers to its monthly Glam Bag sample service in the US and Canada.Beauty boxes are hailed as being a good way of creating consumer excitement about a

product, generating online content and providing feedback to brands. However, perhaps the biggest plus for brands is the boxes’ ability to get the products into the hands of the consumer—something that is increasingly difficult given the declining traffic in perfumeries and beauty stores.

Inside the box The buzz 2News roundup

Netwatch 7Social media monitor

Interview 8Aveda global president Dominique Conseil

Insight 10Poland’s beauty market

Show review 14Beyond Beauty Paris

Store visit 16Cosmopolitan, Brazil

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry September 24-October 7, 2015 #117

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team at:

l Cosmetic 360, Paris, Oct 15-16 l TFWA World Exhibition, Cannes, Oct 18-23l Luxe Pack Monaco, Oct 21-23 l Cosmoprof Asia, Hong Kong, Nov 11-13

News headlines daily on www.bwconfidential.com @BWCbeautynews


www.bwconfidential.com - September 24-October 7, 2015 #117 - CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

News roundup

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Strategy

Avon saw its share price rise by more than 11% on September 10 following reports the direct seller is in talks to sell a stake to private-equity companies. It was reported that Avon was in discussions with Platinum Equity and Cerberus Capital Management. Analysts say that a buy-out by a private-equity company would give Avon the space to work on turning around the company.

German group Beiersdorf is to exit travel retail in Europe for its Nivea brand and focus on expanding the brand in the channel in other parts of the world. The company said that the purchase behavior of shoppers in Europe in the travel-retail channel is not as favorable as other regions. It now plans to focus on expanding Nivea’s presence in the Middle East, North Africa and India from its MENA travel-retail base in Dubai. Beiersdorf said, however, that it will continue to monitor the travel-retail channel in Europe and could re-evaluate its decision. Nivea entered European travel retail in 2010 with the creation of a

Switzerland-based global travel-retail division and a partnership with operator Gebr Heinemann.

Symrise is expanding its Scent & Care activity with the acquisition of US company Pinova Holdings. The acquisition includes the Pinova and Renessenz businesses, and is intended to complement Symrise’s ingredients activity, especially in fragrance and cosmetics. Pinova Holdings is the leading supplier of ingredients from natural and renewable sources, Symrise said. The acquisition is for $397m plus a $20m premium dependent on certain conditions

being met within 12 months. Pinova recorded sales of $287m in 2014. The deal, subject to regulatory approval, is expected to close at the beginning of 2016.

British luxury fragrance brand Clive Christian has been acquired by EME Investments 5, incorporated by a consortium of private investors including Sir Brian Souter, Ann Gloag, EME Capital and Perscitus Advisors. Brand founder Clive Christian has sold a majority stake in his eponymous company to EME, which plans to accelerate the brand’s expansion. He will remain creative director of the company. Amy Nelson-Bennett, who was previously global president and ceo of Molton Brown, has been named Group ceo of Clive Christian. n n n

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

n Avon said to be in talks to sell stake to private-equity companies

n Nivea to exit European travel retail

n Clive Christian sells majority stake to EME Investments

n Sephora signs new partner for India



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n n n Beauty subscription service and online community Ipsy has raised $100m in Series B funding from investment firms TPG Growth and Sherpa Capital. The investment will allow the firm, founded in 2011 by renowned beauty Youtuber Michelle Phan, to continue to grow.Ipsy has 1.5 million subscribers to its monthly Glam Bag sample

service in the US and Canada, and claims through its online content to reach 20 million women each month. The firm, which had previously only received investments totaling $3m, has revenues of more than $150m, and has already been profitable for more than three years.

Results

France-based Interparfums SA saw net profit increase 3% for the first half of 2015 to €13.9m, while sales rose 2% to €147.1m. The company said that gross margin was up 9% to €91.3m, due to favorable exchange rates. In the first half, Interparfums increased its marketing and ad spend by 8.5%. Interparfums said it is well positioned for the second half due to

the new fragrance launch Illicit from Jimmy Choo. It added that the signature of the license with Coach and the acquisition of the Rochas brand should enable the company to speed up its growth from 2016.

French fragrance house Robertet said its first-half 2015 performance was above expectations and that the group benefited from a positive exchange rate. Sales for the period rose 10.1% to €217.26m (+4.6% on a constant currency basis). Net profit was up 25% to €19.70m. The company forecasts a positive trend for the full year 2015, even though the rest of the

year will come up against tough comparisons with a strong second half in 2014.

Retail

LVMH-owned Sephora has signed up a new partner for its Indian business, its third since it entered the market around three years ago. Sephora has inked a deal with textile and clothing group Arvind to manage its three stores in Delhi and one store in Pune. Arvind says it expects to open 40-45 stores for Sephora in the next four years. Sephora

had previously partnered with Genesis Luxury and DLF Brands for its Indian operations.

French brand Hermès opened its first ever standalone perfumery in September. The 82m2 (833ft2) store, in Manhattan’s Brookfield Place complex in New York, offers the brand’s fragrance and home fragrance collections, as well as its Le Bain Hermès toiletries line.The store setting is designed to be reminiscent of a home, with a garden area at its

entrance and different “room” areas to showcase the brand’s products. See our next issue for a full report on the boutique. n n n

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n n n Data

French cosmetic exports grew 6.2% in the first half of 2015 to reach a trade surplus of €4.6bn, according to data from French beauty industry association Febea. The industry maintained its place as France’s second largest export sector, after aeronautics. The EU remained the largest market for French cosmetics, representing 47.7% of

exports and a trade surplus of €3bn. Asia accounted for 15.9% of exports. The US, meanwhile, saw the highest growth, with exports growing by 25.7% year-on-year, according to Febea. Exports to the Near and Middle East climbed 19% and those to Latin America

increased 12.3%. Sales to European countries outside the EU, however, fell 11.3%, the organization said.

People

Lynne Greene is to retire from the Estée Lauder Companies (ELC) in June next year. Greene, who is currently group president in charge of the Clinique, Aveda, Origins, Ojon and Darphin brands and the recently created Men’s Skincare Group, joined the firm nearly 40 years ago as an account executive.Details of the company’s succession plan will be announced soon, ELC said.

French group L’Oréal has created a general management structure for France, which will be headed by Hervé Navellou, president of the Western Europe Zone for the consumer products division. Navellou will also take on the role of general manager of the consumer products division in France. The L’Oréal France general management team will supervise the country management committee comprising the general managers of the group’s four divisions in France.Navellou joined L’Oréal in 1986 and has

spent most of his career working within the group’s consumer products division.

Sephora ceo Christopher de Lapuente has expanded his role at LVMH and is now also ceo of LVMH Fragrance Brands (Givenchy, Kenzo, Fendi), Guerlain, Benefit and Make Up For Ever.

LVMH has also appointed Ian Rogers as chief digital officer of the group. Rogers was most recently senior director of iTunes at Apple. He was previously ceo of music software companies Topspin Media and Beats Music. n n n

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n n n Shiseido has created a global travel-retail marketing team to support its expansion in the channel, which is part of its Group Vision 2020 strategy.The new division, which is based in Singapore, is headed by marketing director

Elisabeth Jouguelet. In the team, Pauline Ong is in charge of brand management for the Shiseido,

Clé de Peau Beauté and Auprès brands, while Michelle Tong will head up the Nars, Bare Minerals and Serge Lutens brands.

Launches

P&G is to launch what it calls a major new fragrance for its Hugo Boss brand this fall, called Boss The Scent. The new fragrance features a top note of spicy ginger, an exclusive ingredient from Africa, maninka fruit in the heart and a base of leather notes. The amber juice comes in a cylindrical glass bottle enclosed in what the brand describes as a silver cage. Boss the Scent will launch in September and will retail at €65 (50ml EdT), €89 (100ml EdT) and €119 (200ml EdT).

French fragrance brand Carven (Groupe Jacques Bogart) is to launch a new women’s scent, called Carven L’Absolu, this fall. The fragrance is described as an intense floral. It was composed by Takasago perfumers Francis Kurkdjian and Jérôme di Marino. Priced slightly higher than the brand’s other fragrances, L’Absolu remains nonetheless

accessible both in the scent and pricing, says international operational marketing manager Agathe Mentzer. L’Absolu is Carven’s third women’s

fragrance since Group Jacques Bogart acquired the brand’s fragrance activity in 2010. The fragrance will launch in Europe in September and in the US in spring 2016 and retails at €50 (30ml EdP), €70 (50ml EdP) and €90 (100ml EdP).

Trade shows

Trade event organizer Beauteam said that its MakeUp in New York event, which was held from September 9-10, put in a record performance this year. The number of exhibitors rose 20% to 110, while visitors to the show were up 15% to 2,500. Organizers said that the number of US visitors saw a sharp increase (+20%), indicating that the show has become a true “American event”. In terms of foreign visitors, key countries were Canada, France, South Korea, Japan and Brazil. n

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

Social media monitor

Neutrogena has created quite a media buzz following a collaboration with Brazilian magazine Caras, which offered readers samples of the brand’s Deep Clean wipes to remove the make-up from actress Giovanna Ewbank’s image on the cover of the magazine. The concept has been a clever way to attract attention, say bloggers.

Welsh bath and body brand Miss Patisserie has been a hit in the blogosphere. The Paris-inspired brand is liked for its fun, novel patisserie-like designs, which include cupcake bath bombs and food-inspired scents.

Shoe designer Christian Louboutin has been a topic of discussion following the launch of the brand’s $90 lipstick. Despite the stunning design, many bloggers doubt the product is worth the price and question who will buy it.

Sweat-resistant cosmetics have been a growing trend on beauty blogs. Along with product lines, like Bobbi Brown’s Long Wear collection, which includes sweat- and humidity-resistant products, more brands are targeting active women or are looking to a sports positioning.

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Aveda factfilel Global market share: 2%; n°9 professional haircare brand

globally (source: Kline & Co.)l Sales by region: North

America: 70%; rest of world: 30% l Sales by product category: haircare and color: 65%; skincare

and make-up: 35%l Distribution: In 30 countries.

9,000 salons globally, including 5,500 in North America. 188 Experience Center standalone

stores worldwide, including 115 in North America; around 100 department stores worldwide

Aveda global president Dominique Conseil

Estée Lauder Companies-owned Aveda is continuing to see strong growth in a challenging global salon haircare market. Company global president Dominique Conseil talks to BW Confidential about the brand’s strategy

Salon specifics

How is your business progressing?Over the past 14 years, Aveda haircare has grown [on average] 9% per year in a global market that was seeing growth of around 4% and a global salon haircare market that was growing between 1-2%. In North America, we have gained market share even in the downturn. This has been driven by the success of our high-performance haircare strategy [a strategy that focuses on haircare targeting specific hair and scalp needs, rather than basic products] over the same period. Aveda high- performance haircare grew more than 15% per year. We still have fantastic potential in North America and I have no doubt that we can double the business there. Outside North America, the [overall] growth rate is much higher—in the double-digits. We are still slightly underdeveloped internationally.

What are your plans for international expansion?Developing international is a priority. We have seen some early successes in travel retail, which can be an important awareness builder for us, and can help our salon network around the world. We have around 23 [travel retail doors]. We started in South Korea four or five years ago. We are already present at São Paulo airport, and in the next few years you will see us dip our toes in the Brazilian market. We will also start to plant seeds down the road in India and Indonesia.

How will you continue developing the North American business?Our average penetration of salon transactions in North America is around 10%, but we have some areas that are penetrated up to 58%. In Minneapolis, around 40% of salon transactions are happening in Aveda salons. This measurement is very consistent with market share. I’m not saying every urban area in North America could have 40% of Aveda transactions, but that somewhere between 15 and 58 is the average tomorrow; there’s a lot to do. This means that we progress in haircare, but it also means that we support our customers with other parts of their businesses like professional skincare.

Apart from geographical expansion, what is your focus?We have not necessarily supported the professional skincare part of the business, and many of our salons are mainly for hair, but have a secondary professional skincare activity. We have a duty to support that part of the business as well, so you will see us catch up there. In some markets we have an equal awareness in skincare and haircare—in markets like South Korea skincare is doing very well. In the first half of 2015, for our basic skincare line, Botanical Kinetics, we launched two hydrating creams and a new energizing eye contour, and the franchise grew by more than 40% year-on-year. n n n

”Aveda global president Dominique Conseil

“We have not necessarily supported the professional skincare part of the business [...]. We have a duty to support that part of the business as well, so you will see us catch up there



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w Aveda global president Dominique Conseiln n n How are you growing your business outside the hair salon channel?We don’t opportunistically do business in a number of channels independently. We have formalized an approach that we call the eco-system, made up of online activity and retail activity, which supports the center of the eco-system, the salon channel. The Aveda experience is the experience delivered in salons. We use online and retail to refer customers and to put them in seats in salons. We don’t open a non-salon venue unless it’s going to benefit the salon network. I would estimate that 2-3% of the total business [is from perfumeries and department stores]; the only countries where we are [in these channels] are the UK, South Korea and Germany.

What role does e-commerce play in your strategy?In dollars, it’s very small; depending on the market it accounts for between 2 and 4% of business. But how do you qualify the education, the networking, the peer reviews, the referrals? All of this is not quantified in the 2-4%, so for us it is a much more important part of the business.We were the first professional brand in North America [to launch] e-commerce—

nobody dared as they were terrified of channel conflict. When we started [in 2005], we called it e-salon. It’s designed to refer customers to a concept salon and the potential is huge as 70% of the online shoppers do not yet go to an Aveda salon. In early 2015, we were rated number one with genius status by the L2 Digital IQ haircare and color survey. Last year we calculated how many referrals our stores and online had given to concept salons and it was in excess of 12 million people in North America; in Japan the number is even higher. We know that an Aveda customer in a salon is also an Aveda customer online and in store; he’s our best customer overall, and he’s also our best customer in the salon.

What is your ratio of retail sales to services in salons?The percentage of retail revenues versus service revenues varies between 20% in the worst case, to 60%. We don’t have this as a benchmark, because what makes the salon successful is the service business. We measure retail per customer transaction, as a salon owner I could register a high level of retail revenue against service revenue and kill my business. Once you have focused as a salon on growing your services, an interesting benchmark is what percentage of your service guests are buying retail. It’s very low in the industry. Some 75% of guests in North America want a recommendation from their stylist for take-home products, but only 25% are getting it. Two thirds of salon guests, who believe that professional products are better, come out of the salon frustrated that they don’t get a product recommendation. Where do they go? To the beauty supply store or to drugstores. We are doing this to ourselves as an industry by not answering the needs of guests. n

”Aveda global president Dominique Conseil

Some 75% of guests in North America want a recommendation from their stylist for take-home products, but only 25% are getting it. As an industry [we are] not answering the needs of guests

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s Aveda says it has seen some early success in travel retail, which it regards as an important awareness builder for the brand



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An analysis of how the Polish beauty market is performing and how it is set to evolve

Slowly but surelyPoland

Poland has one of the most stable economies in Eastern Europe, and the potential of its beauty market has long been discussed. However, growth

in the category has been slow in recent years. In prestige, sales have been seeing smaller increases than for mass, and prestige brands only account for an estimated 11-12% of beauty sales in Poland. “The market for luxury perfumes and cosmetics in Poland is relatively small, and has been growing very

slowly,” says a spokesperson for Dr Irena Eris Group. “Nevertheless, we have seen interest among consumers in premium-sector products.”The prestige cosmetics market

is anticipated to grow by 6% between 2014 and 2017, to reach PLN525m ($141m), according to KPMG’s latest report on the luxury market in Poland. Growth for 2015 is expected to come in at around 2-3%, according to industry sources. In 2014, the market saw growth of 1.9% for sales of $4.48bn, according to Euromonitor International. n n n

Poland beauty sales* by category 2014Category Sales $m % change

2014/2013 Skincare 824.3 +3.3Haircare 813.4 +1.2Fragrance 586.5 -1.4Color cosmetics 489.5 +6.6Men’s grooming 465.4 +2.8

Premium beauty & personal care

398.3 +2.1

Mass beauty & personal care

3,414 +2.0

Total beauty & personal care

4,480 +1.9

Source: Euromonitor International, *Retail sales; all categories not included.

Spending a lot of money on luxury goods is far beyond the Polish mentality

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”Quality Missala Perfumery co-owner Michal Missala



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n n n “The Polish market is developing, but it will never be a big market,” says Warsaw-based niche perfumery chain Quality Missala Perfumery co-owner Michal Missala. “We are still not rich as a society, so the Poles as a whole do not spend a lot on luxury goods.”But despite these slow growth predictions, industry players continue to believe

in the market’s future. “Poland has lots of potential in the short term; it’s part of the EU, people are educated, the state is organized and stable, and you have plenty of room for growth as the market catches up,” says Sisley regional director for Eastern Europe and Benelux Yann Masson. “We believe that within five years, we can double our sales. It is one of the countries where we think we have real potential.”

Discounts hit fragranceThe selective market in Poland is dominated by fragrance, which accounts for around 70% of sales, according to industry estimates. But the fragrance market is plagued by discounting. The two leading prestige retail players, Douglas and Sephora, continue to fight with drugstores offering prestige scents at deep discounts and the internet, which has grown to represent a significant proportion of sales (most of the major selective brands have their own e-commerce sites in Poland and KPMG estimates that one in five Poles with higher than average income buy luxury goods online). “Until three or four years ago, there was only one week per quarter where stores offered discounts,” says Masson. “Today, every month there is a special offer, and consumers are now waiting for discounts to buy.” He adds: “The market is very sensitive to price, and the consumer has been educated that way. The only alternative for the market—for the two [retail] leaders and the independents—is to put a focus on advice and to offer a brand assortment that is sold as little as possible on the gray market.”Fragrance was also the only beauty

category to witness a sales decline in 2014, according to Euromonitor data—sales were down 1.4% to $586.5m. Industry players say that this is largely due to the discounting phenomenon.Given this situation in fragrance, both

brands and retailers in prestige are focusing more on the skincare and make-up categories. Make-up saw the strongest growth in 2014, according to Euromonitor, with sales up 6.6% to $489.5m. Polish consumers are heavy make-up users, and responsive to n n n

”PMR retail analyst Bartosz Bolecki

The cosmetics [retail] market is close to saturation, so we do not expect any new market entries. In the next few years we should rather expect [retail] consolidation

“

Poland retail roundup

Douglas: 120 doorsDouglas is the market leader in the prestige category, with an estimated 50% share (not including figures from selective-product sales in drugstores and discount outlets), according to industry sources. The retailer, which operates large stores in Poland, has been focusing on expanding skincare and introducing areas that allow brands a greater possibility to express their identity. It has less of a discount focus than rival Sephora, sources say.

Sephora: 94 doorsLVMH-owned Sephora controls around 40% of the prestige market in Poland. Its newest store, in Torun’s Atrium Copernicus Shopping Center, opened in August, and another, in a new mall opening in Bydgoszcz, is scheduled to open in November. The retailer is seeing strong results for its Polish e-commerce site, launched in 2014, according to a Sephora Poland spokesperson. As in other markets, Sephora Poland is focusing on exclusive brands, with introductions this year from Marc Jacobs Beauty, Too Faced and Urban Decay. It has also launched new services, such as its foundation matching system.

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n n n the prestige offer in the category, according to Masson. The category represents 40% of the brand’s Polish sales, one of its highest ratios in Europe.Skincare, meanwhile, is seen as offering strong potential in prestige as it

has little competition from drugstores and discount retailers, and because it is a more difficult category to sell online. “We are investing in our product demonstrators in stores, and benefiting from higher store traffic during discounting periods to capture customers,” says Sisley’s Masson. “By increasing our level of customer service, we have seen our average skincare basket increase over the past few years.” The brand has also implemented mobile skincare cabins that travel to large perfumeries offering services, a strategy that is paying off, he adds.Dr Irena Eris Group has also seen growth for its eponymous prestige brand,

which ranks in the top 10 skincare brands alongside international names like Chanel, Lancôme and Clinique, according to a company spokesperson. The brand saw 30% growth in 2014.In general, consumers are loyal to brands in skincare and make-up, sources

say, whereas in fragrance, they are more fickle, and sensitive to launch activity. Sephora Poland’s bestsellers in early September were Dior Sauvage for men and La Vie est Belle from Lancôme for women, according to a spokesperson for the retailer.

Independent retailers continue to lose shareSince Marionnaud left the Polish market in 2014, Douglas and Sephora have little competition in the prestige segment. Independent perfumeries have steadily lost market share over the years, and now represent only 10% of sales, according to sources. Some 1,500 independent perfumeries closed between 2007 and 2011.In such a context, many believe that there is little room for new players. “The

cosmetics market is close to saturation, so we do not expect any new market entries,” says research firm PMR’s retail analyst Bartosz Bolecki. “In the next few years we should rather expect [retail] consolidation.”However, discount chains and drugstores have steadily grown their share of

the beauty market. Drugstore operator Rossmann is the market leader, with more than 1,000 stores, and is where 64% of Polish consumers tend to buy cosmetics, up from 54% in 2013, according to a PMR survey. Jeronimo Martins-owned Hebe, which entered Poland in 2011, is especially active in discounting prestige beauty products, according to sources. It is estimated that while Douglas has 50% of the market and Sephora 40% in the selective retail sector, drugstores and discounters are said to account for 20% of the prestige market when all distribution is taken into account.Some players nevertheless believe that increased competition would stimulate

the top end of the market. There are still no high-end department stores in Poland, and most shopping is done in malls. Among the independents, Quality Missala Perfumery has four wholly owned stores and three franchises, and offers a broad selection of niche brands. Another high-end store, Mon Credo, opened its first store in 2012 in new

luxury mall VitkAc, and has since opened a second outlet in the Union n n n

”Sisley regional director for Eastern Europe and Benelux Yann Masson

Until three or four years ago, there was only one week per quarter where stores offered discounts. Today, every month there is a special offer, and consumers are now waiting for discounts to buy. The market is very sensitive to price

“


www.bwconfidential.com - September 24-October 7, 2015 #117 -


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n n n Square mall. According to sources, while the stores offer a high-end environment and an edited selection of brands, footfall for the moment remains low.But with wealthy consumers on the rise—the number of rich and affluent

Poles is expected to hit one million for the first time in 2016, according to KPMG—opportunities for prestige brands are expected to grow too. Wealthy consumers are increasingly educated about brands and their tastes are becoming more sophisticated as they focus less on the brand and more on the product itself. “More people are beginning to perceive brands that were regarded as luxury in the nineties, as popular ones now,” Quality Missala Perfumery co-owner Michal Missala comments. “That means awareness of luxurious, artistic and unique products is growing.” But in spite of this, brands need to take into account that even at the top end of the market, value remains a business driver. “Spending a lot of money on luxury goods is far beyond the Polish mentality,” Missala adds.In the future, prestige beauty is unlikely to see very high growth rates. As

such, a slow, steady approach to the market, an increased focus on product education and exclusivity, all while taking into account the market’s value-conscious mentality, is likely to be a winning strategy. n

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As Beyond Beauty Paris opened its doors, attendees were keen to see the results of show organizer Informa’s attempts to turn around the event with a new format that

focused largely on fragrance and skincare. The show had a much smaller format than previous editions, and visitor numbers were flat compared with last year. However, the conferences drew 3,700 visitors, a 20% increase on year, according to Informa.Certain companies expressed doubts about the smaller exhibition and the quality of

both exhibitors and visitors. Some 205 companies were present in an exhibition space of 5,000m2 (53,820ft2)—down from 361 last year. “An exhibition organizer today must no longer talk in terms of square meters, but in terms of the content and the opportunities it offers its exhibitors,” said Claudia Bonfiglioli, international director of Informa’s beauty division. “Beyond Beauty needed to reposition,” she said, adding that this year’s format would be a one-off, with an announcement due mid-October about the show’s future positioning.As in previous years, the show featured separate areas for finished products and

suppliers under the Cosmeeting and Creative Beauty banners. Cosmeeting includes the Zoom section for promising young brands. A new area within Cosmeeting housed a selection of around 20 niche fragrance

companies in a bid to fill what the organizers see as a gap in the market for a Parisian event for such brands. However, some questioned the wisdom of hosting it so soon after fragrance show PittiFragranze, which was held from September 9-11 in Florence, Italy. Several conferences and masterclasses addressed the niche fragrance market in depth.The enhanced Beyond Beauty Talks program consisted of some 50 conferences,

roundtables and masterclasses, including sessions on skincare, influences from Asia, instrumental beauty and personalization. As always, there were several promising new brands on show in the Zoom section,

although some had yet to secure production, let alone distribution, meaning that while there were many interesting concepts on show, their business potential has yet to be proven.

BW Confidential reports on what was seen and heard at Beyond Beauty Paris, which took place from September 15-17

Rethinking beauty

Beyond Beauty Paris

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”Informa beauty division international director Claudia Bonfiglioli

An exhibition organizer today must no longer talk in terms of square meters, but in terms of the content and the opportunities it offers its exhibitors. Beyond Beauty needed to reposition

“

Seen in showEsthechoc Cambridge is a British company offering chocolate with skincare benefits, backed by research from the University of Cambridge. On sale online and at Harrods since April and already available in Poland, Italy and Scandinavia, the brand was looking to meet international retailers from the premium, professional and drugstore channels. The brand’s chocolates, which contain 38 calories, are designed to be eaten once a day and are available as a three-week treatment for €50. Their skincare benefits stem from a combination of cocoa polyphenols and astaxanthin derived from algae, according to the company. The brand took home the Grand Prize at the Beauty Challenger Awards, held during the show.

Beyond Beauty Paris Took place: Paris from September 15-17, 2015 Exhibitors: 205Visitors: 7,050

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n n n Sardinia-based Soha taps into the growing trend for local cosmetics, basing its skincare on the Cannonau grape, reputed as the reason for Sardinian people’s longevity, as well as other local ingredients like obsidian stone. Soha launched earlier this year with a boutique in upscale resort Porto Cervo and in Sardinian pharmacies and hotel spas, and is now looking for international distributors, starting with the UK and US, brand director André Baradot said. Soha’s products are priced between €25 and €75.

Make-up brand NYX Cosmetics, acquired by L’Oréal in June 2014, chose Beyond Beauty as its launch platform for the French market. “We want to meet consumers and make-up artists,” said NYX general manager for France Elise Ducret, adding that make-up artists are the brand’s target to build its awareness. NYX has been available in France on the Beautyst website for the past two years, but has otherwise yet to build its business there. “It is still a small start-up, but young people know the brand, and it is successful thanks to digital,” Ducret commented.

First-time exhibitor Germany-based Wonderstripes has built its business since the end of 2013 by importing adhesive anti-aging strips for the eyelids from Japan. The company has since launched a toner and bio-cellulose mask and adhesive tattoos, and will soon add a serum that encourages eyelash and eyebrow growth, as well as an anti-aging patch for the décolleté area to its offer. Already stocked in Douglas stores in several markets, in France at Mademoiselle Bio and online at Beautyst and Birchbox, and in Australia and New Zealand, Wonderstripes is now looking for distributors in the UK and the US. The brand’s products are priced between €19 and €69.

Dubai-based fragrance brand Kajal Perfumes stands out for its distinctive embossed star-shaped caps. Launched three years ago in Dubai, the brand is now rolling out internationally. It recently entered Harvey Nichols and Bloomingdale’s in Saudi Arabia, and is targeting high-end doors in the UK, France, Germany and Russia. The company just launched its first men’s scent, Kajal Homme, priced at €135, while high-end women’s fragrance Secrets de Kajal will hit the market next year.

Launched in 2009, Dutch make-up brand Ellis Faas is looking to build its business in Europe. The brand, which features bullet-shaped packaging and pigment-packed formulas, ships its products to consumers throughout Europe from its base in Amsterdam, but has yet to attract retailers in the region. “We have a lot of web orders from Europe; the market is out there and asking for [our products], but it’s almost as if the retailers are behind the consumers now [when it comes to brand awareness],” comments European account manager Angelique Kuijpers. The brand is currently shipped to 30 countries and is well-known in the UK and the US.

French sampling specialist Sicofor attended the show for the second time to build its awareness after emerging from liquidation under new management two years ago. “We need to make ourselves known again,” said Agnès Maillard, business manager for the company, which has been in operation for 40 years. The firm is notably growing its business through increased demand for nomad and individually packaged products like saleable masks, she said. “Some 80% of our business now comes from sampling, and 20% from products,” she added. n

Beyond Beauty Paris



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Cosmopolitan l Opened: June 2015

l Location: Brasilia, Brazill Size: 150m2 (1,615ft2)

l Special features: entrance by appointment only,

guided visits

A first boutique devoted exclusively to niche fragrances opened its doors in Brazil in June, called Cosmopolitan. Entrepreneurs and distributors Cristiane

Vilar and Evanete Santos launched the 150m2 (1,615ft2) store located in the wealthy Lago Sul area of Brazil’s capital city Brasilia with the idea of creating a store dedicated entirely to rare fragrances in a luxury environment. “The growing appreciation for niche fragrances inspired us to develop a unique perfumery concept,” explains Vilar.The store is intended to resemble an art gallery or a fragrance gallery, with

each fragrance showcased in its own niche-like podium. Each niche features the brand name and a soft light to highlight the fragrance as if it were jewelry. The boutique is decorated with wooden walls and soft grays and natural tones. The assortment covers an edited selection of fragrances aimed at perfume

connoisseurs and includes M.Micallef, Frapin, Mark Buxton Perfumes, Teo Cabanel, Au Pays de la Fleur D’Oranger, Les parfums de Rosine and Rouge Bunny Rouge. In line with the idea of appealing to fragrance experts and to give an exclusive appeal, entry to the store is on an appointment-only basis. Consumers can also avail of guided visits of the store’s collections. The store began selling through its website nationwide a few weeks after the opening. n

A new niche fragrance boutique has opened in Brasilia, modeled on the format of an art gallery

Brazil gets niche fragrance boutique



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s Each fragrance is displayed on its own special podium, which is enclosed in glass

s The decor and features of the store are intended to resemble a fragrance gallery

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