confidential confidential confidential · of 50,946 soft toys dressed by rochas in marionnaud’s...

Comment Inside

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Are changes in how consumers shop finally impacting the ways in which brands work with retailers? An interesting

move on this front is L'Oréal's recent collaboration with French retail group Casino to create a new store concept in Paris. The partnership between the two companies aims to produce a format that caters to time-pressed city dwellers and includes a range of L'Oréal and non-L'Oréal brands, as well as services such as free wi-fi, dry cleaning and parcel pick-up. L'Oréal says the initiative is based on changes in how consumers spend their time and is an indication of how

vendor relationships with retailers can be reinvented. It is no secret that the internet has changed how people live and shop, and maybe

combining the expertise of the brand with that of the retailer is one way to confront the disruption that has hit the industry. However, such examples are still few and far between, despite ongoing calls to better share data and have conversations based on attracting shoppers and growing the category as a whole, rather than just on commercial terms and margins. Disruption has perhaps not yet hit the market hard enough for such conversations to become more widespread and for those conversations to be translated into action.

Disruption, distribution and collaboration The buzz 2News roundup

Netwatch 6 Social media monitor

Interview 7 Shiseido Travel Retail vice president marketing and innovation Elisabeth Jouguelet

Insight 9 Voice & beauty

Show review 12 World Perfumery Congress

Store visit 14 Lush Naked Shop, Milan, Italy

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry June 28 - July 11, 2018 #171

News headlines daily on www.bwconfidential.com @BWCbeautynews

NEWGet the essential beauty news of the week in one quick-read email

every Friday with BW Confidential's

ALSO IN VIDEO

THIS WEEK IN BEAUTY

A video highlight of the week's key news

headlines in just under a minute

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - June 28 - July 11, 2018 #171 -

News roundup

The

buz

z

At a glance...

Strategy

French fashion and beauty brand Chanel published its results for the first time, revealing that it generated sales of $9.62bn in 2017, an 11% increase over 2016. Growth came mainly from Asia and Europe. The secretive company's move to release its sales were in part to show that it is robust enough to resist being taken over. There have been ongoing rumors that the company would be put up for sale.

Private-equity firm TPG Capital is to take a minority stake in US-based prestige make-up brand Anastasia Beverly Hills. The deal is intended to help Anastasia Beverly Hills boost its e-commerce operations and expand internationally. Anastasia Beverly Hills was founded in 1997 by Romanian-born entrepreneur Anastasia Soare. The brand has 17 million Instagram followers. Earlier this year, TPG Capital acquired a minority stake in US-based skincare brand Rodan + Fields.

Private-equity firm Tengram Capital Partners has acquired US-based make-up and hair color brand Lime Crime. Founded in 2008 by Doe Deere and Mark Dumbleton, Lime Crime is a digital-native beauty brand offering cruelty-free and vegan products. The brand has 44 million social media followers. Stacy Panagakis, previously general manager of cosmetics brand Fresh, has joined Lime Crime as ceo.

Anglo-Dutch consumer goods group Unilever is to acquire a 75% stake in Italian natural personal-care and wellbeing company Equilibra. Equilibra was founded in 1987 by Franco Bianco. Its product range includes skincare, haircare and nutritional supplements. Unilever said that Equilibra has a strong position in the wellbeing space in Italy and in natural personal care. The deal is intended to allow Equilibra to strengthen its presence in Italy and expand internationally. Equilibra will be run as a standalone business with the continued presence of the Bianco Family and current management. Franco Bianco will be honorary chairman, and Marco Bianco will lead the company as ceo.

Italian dermocosmetics company Istituto Ganassini is to acquire UK-based organic beauty brand The Organic Pharmacy.The Organic Pharmacy was founded in 2002 with the idea of creating cosmetics based on homeopathic and herbal medicine. The brand is sold in its own stores and in third-party retailers and pharmacies around the world. The acquisition gives Istituto Ganassini a presence in the fast-growing organic market. n n n

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

n TPG Capital takes minority stake in Anastasia Beverly Hills

n Tengram Capital Partners acquires Lime Crime

n Amazon launches Indie Beauty store

BW Confidential 17 rue Louis Rouquier 92300 Levallois-Perret

[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]: Monica [email protected]: Sophie Douez, Alex Wynne,

Renata Ashcar, Mayu Saini, Raphaëlle Choël, Corinne Blanché, Naomi Marcoulet, Kevin Rozario Subscriptions

1 year: beauty insight (20 issues) + magazine (4 issues) + This Week in Beauty + daily news + collector’s guide: €549/US$769

[email protected]@bwconfidential.comBW Confidential is published by Noon Media513 746 297 RCS NanterreCopyright © 2018. All rights reserved. Reproduction in whole or in part withoutpermission is strictly prohibited.

News roundup

The

buz

z

n n n Firmenich-owned Agilex Fragrances has acquired US-based perfumery house Fragrance West from the Horn Company. Founded in 2008 and based in LA, Fragrance West supplies to the small- and mid-market across body, home and air care. Agilex says the deal will make it the only fragrance company in the middle market to have manufacturing capabilities on both the East and West coast of the US. Firmenich has also launched what it claims is the industry’s first tool to holistically

measure a fragrance’s sustainability footprint. Called EcoScent Compass, the tool for fine fragrance and bodycare aims to respond to increased consumer demand for transparency and for more information about what is inside products. Ecoscent Compass assesses fragrances against three pillars for which they will receive an A to E rating. The pillars are: green properties, environmental footprint and social impact. Firmenich says that the tool’s metrics will be relayed in an easy-to-understand way for consumers.

Dior has named Jennifer Lawrence as the face of its new women’s fragrance. Created by in-house perfumer François Demachy, the scent is set to be a major launch for the brand.

Amazon is in talks with Brazilian cosmetics companies, including Grupo Boticário and Natura Cosméticos, to sell beauty products through a new e-commerce platform, according to Reuters. The platform is said to be under development, and Reuters stated that talks between the companies are in the early stages.

Design and innovation company Seymourpowell has developed a new beauty service that uses AI to curate and deliver tailored collections of beauty products that anticipate the consumer’s day or week ahead. Called Mespoke, the app-based service uses algorithms to analyze big data such as climate and style trends, and personal data such as a consumer’s schedule and exercise patterns. This data is then used to select the right products for them. Each week, users could have delivered seven daily packs based on algorithms. Products could be packaged in single-use modules and collated into biodegradable injection-molded fiber boxes for regular delivery.

Retail

French retail group Casino, via its Franprix nameplate, and L’Oréal France have teamed up to launch a new retail concept in Paris focusing on the needs of urban consumers. Called Le Drugstore Parisien, the store spans the beauty, wellness and parapharmacy categories, and will also offer products such as sewing kits n n n

STAY INFORMED WITH OUR

DAILY NEWS SERVICE

News headlines daily on www.bwconfidential.com

BW Confidential, the inside view on the international beauty industry

• All major news on the industry published every day on our website

• News headlines complement analysis and interviews in our Beauty Insight and print magazine

• BW Confidential is the destination for keeping up-to-date with what’s going on in the industry and staying ahead of the competition

@BWCbeautynews

The website - daily news•Beauty Insight - every two weeks •This Week in Beauty• The print magazine - four times a year •The Collector’s Guide - once a y ear

The

buz

z News roundupn n n and healthy snacks. Several of L’Oréal’s brands will be stocked at the store,

including L’Oréal Paris, Maybelline, Garnier, NYX, Essie and Sanoflore. Exclusive, expert brands will also be sold there. Le Drugstore Parisen features a range of services with the urban consumer in mind, including free wi-fi and mobile phone recharging stations. There are also self-service sinks and make-up tables, a dry cleaning service and a parcel pick-up point. Casino stated that the concept is based on changes in how consumers shop and use their time. L’Oréal added that the collaboration with Casino shows how vendor relationships with retailers can be reinvented. The first two stores opened on June 23. They will be open seven days a week, until midnight Monday through Saturday and until 8pm on Sundays. Each month, a one-off opening for 24 hours will see the store offer animations and well-being services.

Amazon has launched its Indie Beauty online store. The online store features six sections under the headings: Skincare, Color, Natural, Global, Men’s and Innovative. Brands featured on the site must be at least 50% owned by an independent company and not be available at major retailers such as Target, Walmart or Ulta, according to sources.

Microsoft Corp is said to be working on technology focused on cashier-less stores, similar to that used at the Amazon Go store, according to news agency Reuters. Reuters reported that Microsoft is developing systems that track what shoppers add to their carts and is in talks with retailer Walmart about a potential collaboration.

Italian fragrance brand The Merchant of Venice (Mavive) has opened three new boutiques in Rome, Dubai and Venice. The brand now has 10 stand-alone boutiques. The Rome store is located near the city’s Piazza di Spagna and was created by theater set designer Pier Luigi Pizzi. The Dubai boutique, in the Dubai Mall, is key to the growth of The Merchant of Venice brand, according to the company. The new Venice store is a pop-up at the Hotel Excelsior in The Lido, and will be open from June until September. The Merchant of Venice stores sell the brand’s fragrances, bodycare, home scent collections and accessories. They also offer a personalized layering service and allow consumers to create their own scents.

French perfumery chain Marionnaud presented a €100,000 check to the Cosmetic Executive Women (CEW) association. The donation will go towards dispensing beauty treatments to cancer patients in French hospitals. The €100,000 was raised from the sale of 50,946 soft toys dressed by Rochas in Marionnaud’s French stores during the 2017 Christmas season.

Travel retail

Estée Lauder Companies opened what it calls its first mega multi-brand pop-up store in travel retail at Hamad International Airport, Doha, Qatar in the departures area in Qatar Duty Free (QDF). The 180m2 (1,938ft2) pop-up—the biggest of its kind in the airport—features the Estée Lauder, Clinique, La Mer and Tom Ford brands. The pop-up coincided with Eid al-Fitr, and offered special services and gifting features for the holiday period, including The Digital iMatch tool for the Estée Lauder brand that helps n n n



News roundup

The

buz

z



n n n shoppers find their shade of foundation, an engraving service for the cap of the Crème de La Mer jar, and specialists who demonstrate how to curate a personal fragrance collection from Tom Ford Beauty’s The Private Blend Collection.

French fragrance brand Atelier Cologne (L’Oréal) has opened its first pop-up store in Americas travel retail. The 10m2 (108ft2) pop-up is located at the DFS store in Los Angeles International Airport’s Tom Bradley International Terminal. There are two Perfume Artists on hand to help consumers find their personal fragrance and offer an engraving service for the leather cases. L'Oréal also announced that its L’Oréal Paris brand is launching its

first media campaign in airports. The brand will launch a campaign for its Color Riche Shine lipstick on a 24-meter-long overhead screen in terminal 2E Hall K at Paris Charles de Gaulle airport for three months. The campaign will also include advertising panels at Singapore Airport.

Data

Instagram says it counts 200 million beauty fans globally, with nearly half of them under 24 years old. The data is part of a report on usage and trends on the social-media platform. The report states that more than a quarter of Instagram users globally follow a make-up account. The US counts the highest number of beauty fans on the platform, with more than 13 million users listing beauty and cosmetics as a top passion, followed by Brazil and Indonesia.

Awards

The Cosmetic Victories awards ceremony, which recognizes innovative projects in beauty, was held at the Le Bristol hotel in Paris on June 19. The awards, which are now in their third year, are organized by French industry cluster Cosmetic Valley with the support of the Essec business school. The Industry Prize, (for entrepreneurs, start-ups and small-to-medium sized companies)

went to French entrepreneur David Maleville for the Eclypse project, which creates inks that make tattoos or permanent make-up invisible and a cream that allows the tattoo or permanent make-up to re-appear. The Academic Prize (for young graduates, researchers and Ph.D. students) went to Vincent Gauthier, researcher and Ph.D. student at Cergy-Pontoise University in France for the La Peau Intelligente (Intelligent Skin) project. The project centers on a biosensor that enables the impact of the environment on the skin to be monitored. The winners received a check for €10,000 and will also be provided with support from Cosmetic Valley and visibility at the Cosmetic360 trade show, which takes place in Paris in October. n

Top-10 countries with the highest number of beauty fans on Instagram

Rank Country 1 US 2 Brazil 3 Indonesia 4 UK 5 Mexico 6 Turkey 7 India 8 France 9 Germany10 South Korea

Source: Instagram

Top-5 most-followed beauty-related hashtags

Rank Hashtag1 #Makeuptutorial2 #Makeup3 #Anastasiabrows4 #Dipbrow5 #slave2beauty

Source: Instagram

Net

wat

ch

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

Social media monitor

The 'Fenty effect' has become a major topic of conversation on social media. Bloggers have commended efforts by brands such as Dior, ColourPop and CoverGirl, which have announced the launch of 40+ sku foundation lines.

Under-arm masks have become the new obsession among social-media users. According to influencers, masks can be effective for cleansing, softening underarm skin or neutralizing odors.

Rose gold shades have been trending online. Current product favorites include Huda Beauty's new Rose Gold Palette Remastered (pictured), Kevyn Aucoin's Molten Lip Color in Rose Gold and the Becca Shimmering Skin Perfector Pressed Highlighter in Rose Gold.

Sephora's Classes for Confidence initiative has been praised by commentators, and is said to confirm the retailer's position in keeping up with social issues. A recent new class includes Bold Beauty for the Transgender Community.

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

THIS WEEK IN BEAUTY

This Week in Beauty spotlights the most important

news of the week in the international beauty market

in an easy-to-read, digest format

The week’s key news headlines in under a minute

NEW

Get the essential beauty news of the week in one quick-read email every Friday

ALSO IN VIDEO

https://www.bwconfidential.com/wp-content/uploads/2018/06/bw-confidential-this-week-in-beauty-18-22-june-2018.mp4



Inte

rvie

w

Shiseido's Elisabeth Jouguelet tells BW Confidential how the company is using digital to boost business in travel retail

Digital drive

What are the objectives for travel retail in Shiseido’s new three-year plan?We have entered the second phase of Vision 2020, which we call the growth acceleration phase. [Ceo] Uotani-san’s Vision 2020 aims for travel retail to contribute around 20% of the group’s incremental revenue growth between 2017 and 2020, and that would require a CAGR of 22%. It’s forecast that travel retail will be Shiseido’s fastest-growing region over this period; it’s a strategic channel.Shiseido Travel Retail’s target for 2020 is to be ranked in the top-four beauty companies

in the channel. In 2016, we were sixth according to Generation Research. Part of Vision 2020 is to master the value chain in terms of organization and capability. [It’s about having] traveler-centric marketing, a focus on retail and operational excellence. Probably because of the success of our brands, we face some challenges with supply and logistics, so this is a key test for us.

How are you progressing with plans to reach more younger consumers? Millennials are becoming key influencers in the beauty and travel markets—we expect them to become more important to our business, especially as their incomes increase. Younger travelers are hyper-connected and tech-savvy. They seek authentic experiences

and expect it to be customized. For our recent #BeautyofTravel campaign for Shiseido’s Essential Energy, we used digital elements such as motion-sensing digital signage and screens, iPads and specially-designed apps, and interactive photo booths where customers can customize luggage tags to create engaging animations. For the first time, we launched an interactive mobile game for the same campaign.Digital is the way to go to keep millennials engaged, and we are exploring how to

incorporate digital into our animations in creative and fun ways to encourage interaction and social sharing.

What areas do retailers need to focus on when it comes to digital?We have been fine-tuning our go-to-market strategy with retailers in digital. We are also partnering retailers’ loyalty programs and leveraging their digital and social-media platforms and exploring innovative ways to incorporate digital into our retail animations, whether as a traffic-stopper or to encourage interaction.

How do you see in-flight sales given the improvements in on-board wi-fi?It seems like a logical opportunity, but the in-flight opportunity has long failed to materialize to the extent of the ground-based outlets, despite the captive nature of the audience. My concern is that the multi-sensory experience and brand ambassador interaction for categories such as skincare and fragrances would still be missing. n n n

Shiseido Travel Retail vice president marketing and innovation Elisabeth Jouguelet

”Shiseido Travel Retail vice president marketing and innovation Elisabeth Jouguelet

Open collaboration between retailers and brands is key to taking the industry through digital transformation to ensure we are competitive against other channels, including e-commerce and m-commerce

“

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALwww.bwconfidential.com - June 28 - July 11, 2018 #171 -

Inte

rvie

w

n n n Shiseido has made investments in various technologies recently, such as AI specialist Giaran or e-commerce company Violet Grey. How can this help your business in travel retail? We have a number of projects in the pipeline that are enriched by Shiseido's Digital Centre of Excellence in New York. Digital is a journey. The Digital Centre of Excellence has set the foundation by sourcing digital technologies and CRM tools to support the organization in our transformation into a digital conversant. The next step is to be digitally proficient, and in time we will get to being digitally native. Travel retail presents a great opportunity in the omnichannel and phygital spheres.

There is much talk about data sharing and how this could increase conversion. Can you see operators becoming more willing to share data given the competitive bidding process for tenders? Sharing data requires mutual trust and commitment from both retailers and brands, and so enhancing our retailer partnerships is a top priority. When data is shared, it helps us create more tailored marketing campaigns—this applies not just to the beauty category, but across the channel. The opportunities presented by the integration of digital into marketing campaigns makes data sharing even more imperative. There is definitely a digital mindset that still needs to be nurtured in travel retail. Digital

transformation is now a necessity, and together we must invest in building our collective CRM capabilities to better understand and target travelers. Every stakeholder should aim to collect and use customer data to glean insights into customer needs and behavior, and create relevant content and deliver tailored experiences. Open collaboration between retailers and brands is key to taking the industry through digital transformation to ensure we are competitive against other channels, including e-commerce and m-commerce.

How do you see e-commerce sales developing for travel retail in Asia? E-commerce is commonly thought of as a threat to travel retail, but they can complement each other well if properly harnessed through a targeted omnichannel strategy. We can see the two channels growing strongly together, compared to the domestic market. That said, the travel-retail industry is still in its infancy in terms of offering an omnichannel shopping experience. Most travel retailers lag behind in their ability to leverage mobile and digital technology as a communications tool—according to [market-research company] m1nd-set, nine out of 10 global travelers use their mobile devices to access the internet at the airport, but only three out of 10 shoppers will consult duty-free retailer websites.The industry’s digital architecture is not as sophisticated

as that of the domestic markets and the online offering of retailers is often not consistent with the in-store experience of design, product range, information, customer service and payment. There needs to be a better integration of the virtual and physical touchpoints to provide consumers with a more holistic and personalized shopping experience. n

Shiseido Travel Retail vice president marketing and innovation Elisabeth Jouguelet

”Shiseido Travel Retail vice president marketing and innovation Elisabeth Jouguelet

The industry’s digital architecture is not as sophisticated as that of the domestic markets, and the online offering of retailers is often not consistent with the in-store experience [...]. There needs to be a better integration of the virtual and physical touchpoints

“

s Shiseido's #BeautyofTravel campaign used digital elements such as motion-sensing digital signage and screens, iPads, apps and interactive photo booths to attract millennials



Insi

ght

An analysis of how voice technology is impacting beauty marketing and selling

Speaking out Voice & beauty

Beauty brands and retailers are beginning to embrace voice

technology as a new way to reach and connect with consumers. While voice is still a nascent market, and brand initiatives remain relatively thin on the ground, there are moves to integrate the technology into broader digital strategies in a bid to gain a first-mover advantage in the space. Companies are using voice technology to offer tips, recommendations, provide

more personalized interaction with consumers and to sell products. And the number of initiatives and ways of using voice is set to grow in line with the rise in smart speaker sales and as consumers become more attached to these devices. Smart speaker sales are expected to grow at a compound annual growth rate of 33.2% to $10.6bn between 2017 and 2022, according to Juniper Research, with the lion’s share of the market concentrated in the US. L2 predicts that in the US, the number of people using a voice assistant device will grow 129% this year to 36 million.The bulk of the market is currently controlled by Amazon, through its Alexa

devices, which have an estimated 70% share of the smart speaker market, but Google’s share is growing. Additionally, Google’s more open eco-system that can be used on a variety of different types of hardware presents certain advantages in terms of adoption, as consumers in the future will not necessarily have to buy a dedicated device, observers say.Beauty companies that have taken their first steps in voice include Coty, Estée

Lauder Companies, Beiersdorf-owned Eucerin, Wunder2 and Douglas. One of the key issues with voice for brands is the potential it offers to be directly in touch with its consumers and even bypass retailers. “Historically, brands have been somewhat disconnected from the end shopper,” says Sampo Parkkinen, ceo of Finland-based virtual beauty advisor developer Revieve. “What voice offers them is the ability to go direct to consumer, to be closer to customers and understand the end customer a lot more. Voice can be a perfect solution that saves [consumers] a lot of time. You can do it from the comfort of your own home, have a quick short dialog and buy products directly from there. From a beauty brand and retailer standpoint, voice has tremendous potential," he states. However, he adds that while brands are keen to look at voice for product recommendations and personal advice, the model for generating revenues with voice is not quite there yet.

Big player, big advantageBigger brands have an advantage when it comes to voice. This is particularly the case in terms of search for example. Search capabilities through voice are relatively restricted and designed to offer only the most relevant response rather than a broader selection of choices offered on traditional search engines. This n n n

credit: istock

”BeautyMatter founder and ceo Kelly Kovack

[Voice] is going to be the purview of big brands that at least initially have the money to play

“


www.bwconfidential.com - www.bwconfidential.com - June 28 - July 11, 2018 #171 - - Page 10CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - June 28 - July 11, 2018 #171 - Page 10

Insi

ght Voice & beauty

n n n means that bestsellers and high-ranking brands are more likely to be suggested, according to research group L2.Additionally, bigger companies that have invested in their digital infrastructure,

notably with a specific voice strategy, are likely to be the winners. “We think Alexa or Google are going to reward organically those early adopters of skill development that create great experiences,” says Michael Dobbs, senior vice president of SEO at search and digital agency 360i. “It is going to be the purview of big brands that at least initially have the money to play,” says Kelly Kovack, founder and ceo of consultancy BeautyMatter. “I think this may be that tech tipping point where indie brands are not going to have the competitive advantage.”Early adopters will have a distinct advantage, suggests Dobbs. “There are some

interesting cases where we’re seeing beauty brands get in early, and I think that’s a smart move on those brands’ part to figure out what works and what doesn’t, even with probably low usage. As the ecosystem gets healthier, particularly on the skills front, then having already learned how to deploy a skill on these platforms, learn what some of the analytics are that you can get from these tools and what platforms you want to build on, they’re going to be in a better position.”

Blurred vision One major sticking point for beauty brands when it comes to voice, however, is the visual nature of the category. “When you talk about voice, you’ve removed the experiential quality [of the interaction], you’ve removed the visual component, so it’s almost in some ways taking things back to storytelling and recommendations,” says Kovack. Newer devices on the market like Amazon’s Echo Show, which features a screen, as well as Google’s capability of linking voice with a screen—the search giant has also partnered with Lenovo to launch a device that combines screen and voice that is due out in July—are likely to open up opportunities for brands to combine voice with visual content. “Audible is not going to be enough, there has to be a visual component to really emotionally resonate with users who are going to be talking to a skill,” says Dobbs. “The thinking about beauty around smart voice user interfaces is that visuals as part of that design are going to be a critical component for the beauty sector.”The importance of visual and experiential aspects to the beauty brand

discourse touches on another potential challenge—brands must ensure that their conversations with consumers through voice are as natural as possible, rather than purely advertising-based. As such, offering more than just product recommendations to build engagement is key. The growing popularity of podcasts is one potential area that brands can harness. This strategy was followed by L’Oréal last year when it sponsored publisher Hearst’s My Beauty Chat skill, which offers tips and content from beauty editors across its magazine portfolio, and is updated twice daily.While it may still be some time before voice reaches critical mass and becomes a

revenue generator for brands, there is no doubt that it will continue to gain importance as part of companies' overall digital strategy. Barriers to consumer adoption remain significant, notably when it comes to purchasing a dedicated device, while awareness about skills is still low. But brands investing early in this space are expected, in the long term, to reap the rewards. n n n

”Revieve ceo Sampo Parkkinen

Historically, brands have been somewhat disconnected from the end shopper. What voice offers them is the ability to go direct to consumer, to be closer to customers and understand the end customer a lot more

“

Insi

ght Voice & beauty



n n n Case studies: Raising your voice

Coty's Let’s Get Ready In January, Coty debuted the Let’s Get Ready voice skill in partnership with Amazon specifically for Echo Show, the e-tail giant’s first Echo device with a screen. The service features on-demand, occasion-based look planning with personalization capabilities from Coty’s Consumer Beauty brands Clairol, Rimmel, Max Factor, Bourjois and Sally Hansen, and is available in the UK. “Digital innovation with a focus on voice and virtual

assistants is a key part of our digital strategy as we aim to bring consumers frictionless beauty experiences,” stated Jason Forbes, Coty’s chief digital and media officer about the launch. The skill was developed with Amazon by Beamly, Coty’s in-house agency, and OPearlo, an Amazon development partner.

Wunder2's Beauty TipsLast November, UK-based Wunder2 launched its Beauty Tips skill for Amazon Echo and Amazon Alexa, aiming to allow consumers to keep up with beauty trends, learn make-up tips and find products. With daily updates, users ask their

device “Alexa, what is the beauty tip of the day?” The digital native brand, reportedly a leader in the brow category on Amazon, is one of the first indie labels to invest in the voice category. The brand also plans to release connected videos that users can follow up with on a screen, potentially removing one of the barriers to acceptance of voice technology in the beauty category.

Estée Lauder's Nighttime ExpertEstée Lauder chose the Google platform for its voice technology debut last December. The Estée Lauder Nighttime Expert app, accessible on Google Assistant on Google Home, offers a chat experience to give users personalized nighttime skincare routine advice, and refers them to a free service at counter with the brand’s Advanced Night Repair Synchronized Recovery Complex II. Further activations beyond Nighttime Expert are planned for this year, says the brand. "Adding voice experiences will unlock the next level of personalization and help us reach a new generation of consumers," stated Estée Lauder vp of global consumer engagement Tricia Nichols. "Through our collaboration with Google, we are expanding our omnichannel efforts to go beyond stores and online to in-home, at the moment." n

Show

rev

iew World Perfumery Congress

BW Confidential reports on what was seen at heard at the World Perfumery Congress, which took place in Nice, France from June 5-7

Fragrant futures?

Fragrance executives came out in force to attend the 2018 edition of the World Perfumery Congress (WPC). The biennial

event welcomed what organizers called record numbers this year, with 1,860 attendees, including 300 perfumers. Most of the major fragrance houses took booths this year, with ceos and top management in attendance. The overall mood was positive, with most optimistic about the

growth prospects for fragrance, especially with the development of markets in Asia. At a keynote speech on the first day of the conference, Euromonitor International beauty and fashion research manager Hannah Symons said fragrance had seen a strong performance in 2017, with global sales up 5.5% to $49bn. This figure is forecast to grow to $57bn by 2022. Symons went on to describe key trends in the industry, which include: a demand for clean, vegan scents with safe ingredients; increased consumer interest in the scent itself and its ingredients more than in the marketing around the product; demand for fragrances that match hormones or are mood enhancing and based on well-being; fewer consumers adopting signature scents, which is giving rise to smaller sizes and new ways of testing multiple fragrances; the rise of body sprays (with more premium brands going into this area) and the co-creation of scents with consumers.

Raw materials crisisBut while most were positive about the state of the industry, a key talking point was the raw materials crisis facing the market. This year fragrance houses have been up against a series of force majeure at ingredients suppliers (including a fire at BASF at the end of last year and closures of factories in India and China), which caused major problems in ensuring supply of some ingredients. While some fragrance houses said that the worst is now over, there have been clear concerns from their clients on whether shipment of their product would be delayed, if they would have to reformulate their fragrances and of course about possible price increases. Other issues under discussion at the event were growing demand for naturals (most

of the major houses showcased new naturals at the show), transparency and the importance of ensuring sustainable supply of ingredients, which is seeing more tie-ups between majors and suppliers of local ingredients. At the show, Swiss company Firmenich announced a joint venture with Guatemala-based Nelixia, which produces cardamom, Peru balsam, styrax and patchouli. Talk also centered on the rash of M&A that has taken place in the industry over the past

year. Just a month ago, IFF announced a merger with Frutarom to create a $5.3bn company, while Givaudan acquired Expressions Parfumées last year and took a 40% stake in natural ingredients company Naturex in March. Industry players say more M&A is set to come. n n n




www.bwconfidential.com - www.bwconfidential.com - June 28 - July 11, 2018 #171 - - Page 13CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - June 28 - July 11, 2018 #171 - Page 13

Show

rev

iew World Perfumery Congress

Seen in show Swiss company Firmenich showcased Beyond Muguet, which it claims embodies a new approach to floral notes. Firmenich put the focus on the Hivernal Neo in the Beyond Muguet group, which it says has clean, crisp green notes and a cold effect. Also on show was Z11 via White Biotech (the original Z11 molecule was invented in the 1960s). This woody amber note is Firmenich's third bio-based ingredient, and claims to combine the best of white biotechnology and green chemistry to create a renewable ingredient with stable quality. Firmenich also presented two naturals: Rose Centifolia Pays ABS and Oud Assafi. The oud has been registered for use in perfumery for the first time by Firmenich.

IFF presented four natural ingredients. They included what the company claims to be the first lavandin absolute with an organic certification (Ecocert); Pepper Sichuan Absolute, which is described as having a sparkling effect; Patchouli oil from the company's sourcing platform in Bali, which has higher patchoulol content than traditional oils (34% compared with 30% in traditional oils), and Oakwood, which uses inner wood from 200-year-old oak trees that are said to impart rich, creamy, cognac-like undertones.

Symrise showcased its A World Tour Through Scent project. The company sent 13 perfumers to 11 countries to create fragrances based on influences from each destination. The perfumers were joined by journalists from olfactory magazine Nez and photographers. The result was a coffret of 12 scents and 11 accompanying booklets that highlight in words and photos the inspirations and influences of the fragrances' creation. Symrise also presented 14 natural raw materials under the Ultimate Naturals umbrella. Its naturals included pink pepper, geranium and ylang ylang from Madagascar, and passion fruit and cloves from the Amazon. The company also showed five new De Laire bases.

Givaudan presented ingredients from its new creative program Delight, which aims to translate the pleasure of certain tastes or flavors to fragrance. Ingredients on show included Quince Rum, Key Lime Cream and Fruit Fizz.

France-based Mane announced that it will open up to the industry two specialties created with its captive molecules—the first time it has done so. They are Mane Bigaflower, described as imparting addictive floral notes and adding complexity and roundness to soften harsh notes, and Mane Driftwood, which is created with the company's Ambramone molecule and is said to have ambery-woody tonalities. Mane also presented Gnidia Flower Absolute from Madagascar, which has notes of narcissus and tuberose.

Cosmo International Fragrances used four mannequins to represent the ingredients it presented in a bid to furnish each material with a strong visual aspect. The mannequins were dressed by students of the Ecole de Condé in Nice and were adorned with vegetal headdresses representing each ingredient by Grasse-based creative florist Patricia Pecchioli. The ingredients on show were: Cacao Blanc, a white cocoa from Peru, Ma-Kwaen, a pepper from Nepal, Blood Orange and Carnation.

French company Albert Vieille showcased its Ciste SEV Absolute, which it describes as having strong, smoky, amber facets. It is obtained in two stages. Firstly by extraction using solvents to produce a concrete, which is then distilled to obtain the absolute. n


Stor

e vi

sit

UK-based Lush Cosmetics is eyeing a future without plastic with the opening of its Naked shop in Milan this month. The 100m2 (1,076ft2) store, in the city's via Torino,

is the first Lush shop to sell only solid and naked products, meaning without packaging. A selection of products are exclusive to the new store, including the Amazon Primer facial oil, Waves solid shampoo and a range of solid shower gels.Shoppers can take their products home ‘naked’ or can purchase a reusable tin or cork

pot. The pots, exclusive to the Naked Shop, are made with cork oak bark sourced from Portugal and are 100% natural and biodegradable. Instead of using a bag, customers can purchase a Lush Knot-Wrap, a reusable gift wrap inspired by the Japanese tradition of Furoshiki, made with organic cotton or recycled fabric.The store design brings attention to the materials used, with signage throughout

providing information about the décor. Furniture is made from recycled plastic and paper and window illustrations are in recycled paper.To further its cause to eliminate the need for labels and packaging, Lush has created a

smartphone app, the Lush Lens app, which can be used to provide details and ingredient information about a scanned product thanks to artificial intelligence and product recognition. The app is currently being trialed by Naked Shop staff, and Lush hopes to roll the technology out to global customers soon.The Naked Shop is set on two levels, with an event space on the first floor that hosts

meetings, talks, round tables, workshops and film screenings, with the aim to inspire conversations on a plastic-free world. Events this summer include talks on ocean conservation, beach cleaning and sea animals and a photography exhibition.The store opened alongside Lush’s global campaign on ocean plastics, which launched

online to coincide with World Oceans Day on June 8 and in shops on June 18. Apart from the sale of naked products, the campaign includes texts and talks with tips on ocean-friendly practices and encourages consumers to join the conversation online with the hashtag #PlasticFreeGoals. n



Lush goes packaging-free and digital-friendly with its latest store concept

Decent exposure

Lush Naked Shop l Location: Milan, Italy

l Opened: June l Size: 100m2 (1,076ft2)

l Special features: ‘Naked’ products; Lush Lens app for

product information; exclusives; event space for talks and

film screenings

s The Milan store is the first Lush shop to sell only solid and naked products, meaning without packaging

s The store is currently trialing its new Lush Lens app, which eliminates the need for labels and can be used to provide ingredient and product information (left). Naked products include a range of solid shampoos (right)

Stor

e vi

sit



BW ConfidentialThe inside viewon the internationalbeauty industry

Please complete this form and return it:

• by post: BW Confidential - Subscription Department 17 rue Louis Rouquier - 92300 LEVALLOIS-PERRET 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%

2018

- O

ffer v

alid

unt

il Au

gust

31,

201

8

Yes, I want to subscribe to BW Confidential

News headlinesevery day

bwconfidential.com

The print magazine

Four times a year

#

Every two weeks

Beauty Insight

The Collector’s Guide

Once a year

Every week

This Week in Beauty

r 2 year subscription: €879 or US$1,199 • Beauty Insight (40 issues) • daily news on www.bwconfidential.com • This Week in Beauty • the print magazine (8 issues) • the Collector’s Guide (1 issue per year)

r 1 year subscription: €549 or US$769 • Beauty Insight (20 issues) • daily news on www.bwconfidential.com • This Week in Beauty • the print magazine (4 issues) • the Collector’s Guide (1 issue)

confidential confidential confidential · of 50,946 soft toys dressed by rochas in marionnaud’s...

Documents