001 Le marché des parfums et cosmétiques

World: The top 50 consumer brands groupsLSA, 22 Jun 2006, p.56-62,64,66-67:-According to the annual survey carried out by OC&C Strategy Consultants, the world's top 50 manufacturers of consumer brands made a total turnover of US$ 733.586bn ( EUR 580.97bn), averaging a 6.2% increase. The top three in terms of ranking are the American company Altria Group, the Swiss company Nestlé, and the American company Procter & Gamble. Four French groups were in this ranking: L'Oreal ranked 8th, Danone ranked 12th, Pernod Ricard ranked 36%, and LVMH ranked 42nd. These groups' return on capital rose 0.5 points, and reached 21.1%. The groups are maintaining the internal growth goal through innovations. In their annual reports, 98%mention the impact of new products on sales. Only 36% of manufacturers increased their advertising spending, compared with 47% in 2004. The advertising media which are increasing the most are the Internet, direct marketing, brand stretching (extension of brand territory), and co-branding. More than 60% of the multinationals are adjusting their pricing strategy, either by opting for upmarket positioning or by lowering prices, and they are striving to win back market centres. These groups are also working to capture new distribution channels, particularly discount chains, where 20% are already present. Of this top 50 group, 61% have opted for international expansion, with China, Russia, and India as the principal targets. The number of acquisitions dropped from 28 in 2004 to 25 in 2005, but the amount of investments rose from US$ 26bn ( EUR 20.59bn) in 2004 to US$ 88bn ( EUR 69.69bn) in 2005. The most active sector is that of beverages, representing 83% of the total amount. In 51% of the cases, acquisitions were made to penetrate new geographical markets. The amount spent on acquisitions rose from US$ 6.8bn ( EUR 5.39bn) in 2004 to US$ 7.9bn ( EUR 6.26bn) in 2005. Lastly, 86% of the companies were carrying out cost reduction programs: 61% closed more factories than they opened, and 30% invested to improve productivity, effectiveness, and to make their production facilities more flexible. According to OC&C Strategy Consultants, the companies will have to continue their investments in countries with potential, step up their control of retail channels, and study the possibility of manufacturing for own brands, and they must win back the core or the market. ©Esmerk 2006

Europe: TNS Worldpanel's report on anti-ageing usageCosmetics International, 18 Aug 2006, p.11:-According to a report published by TNS Worldpanel, around 14% of French women aged between 11 and 74 are using anti-ageing products on a weekly basis, followed by 8% recorded in Italy, 7% registered in Spain, 6% in Germany and 5% in Great Britain. The average of all countries stood at 8% over the period of between April 2005 and March 2006. ©Esmerk 2006

Indonesia/India: Statistics on consumer goods salesJakarta Post, 04 Sep 2006,:-Releases from a study by AC Nielsen revealed that in the year 2005, India took the lead in Asia in its consumer sales with a growth of 21% as against a mere 5.5% growth in the year 2004. Indonesia followed next with an 18% sales growth in the year 2005 as against a 14% sales growth in the year 2004. The research was carried out in 15 countries in the region. For the January-June 2006 period, Indonesia posted a consumer goods sale of Rp 60.1tn (US$ 6.63bn EUR 5.17bn). This translated to a 10% growth year-on-year. By end-2006, the consumer goods sales of Indonesia are seen to expand by a minimum of 15%. ©Esmerk 2006

India: ColorBar Cosmetics to expand in north and westThe Hindu Business Line, 02 Sep 2006,:-ColorBar Cosmetics Pvt Ltd, which is under KK Modi Group, plans to invest some Rs 80mn (US$ 1.72mn EUR 1.34mn) for expansion in eastern and western India. The firm intends to foray into eastern India by December 2006 via Westside, Pantaloons, Shopper's Stop and other chain stores. The firm aims to have presence in around 2,000 stores in western India by 2008. ColorBar Cosmetics

aims to grab a minimum of 10% market share in the national organised colour cosmetics segment, according to the managing director Samir Modi. Currently, the firm captures 10% of colour cosmetics segment in the northern India. The firm will allocate 20% of its revenue for brand promotion. Eight new product lines will be introduced, according to ColorBar Cosmetics Pvt Ltd. The new products include Lip Glide liquid lip colour, Day Proof lipstick, Extra Durable lipstick and Soft Touch lipstick. ©Esmerk 2006

Japan: Cosmetic shipment rose 5.9% to ¥ 1.5tnAsahi Shimbun, 15 Aug 2006,:-Shipment of cosmetic products in Japan exceeded ¥ 1.5tn (US$ 13.04bn EUR 10.15bn) during 2005, up by 5.9% as compared to 2004. Cosmetic shipment via drugstores accounted for some 26% of total cosmetic shipment during 2005, Fuji Keizai Co said. Cosmetic shipment via pharmacies affiliated with cosmetic producers accounted 14% of total cosmetic shipment. ©Esmerk 2006

Brazil: Sales of toiletries, cosmetic products to growGazeta Mercantil, 12 Sep 2006,:-The personal hygiene products business is thriving in Brazil. Sales of these products are expected to grow from R$ 15.4bn in 2005 to R$ 16.9bn (US$ 7.93bn EUR 6.19bn) in 2006. Sales went up 12.3% in the first half of 2006. Will these sales expectations be met, Brazil will turn into the world's third largest market for that particular industry, after Japan and the US but above France. Manufacturers of these products sold R$ 7.78mn in the first half of the year. Sales of hair care products may grow 13% in 2006 to R$ 4.4bn. Sales of skin care products could reach R$ 1.62bn in 2006, up 23% on the previous year. L'Oreal puts Brazil as its tenth largest market worldwide. The French company hopes that it reaches the third place in 10 to 15 years. Finally, imports of toiletries and cosmetic products are expected to grow by 20% in 2006. Exports could reach US$ 489mn. ©Esmerk 2006

Brazil: Great success of specific cosmetics for menValor Economico, 24 Aug 2006,:-Cosmetics manufacturer, Niasi, has revealed that two of its products, hair tincture and nail polish for men are selling especially well in the North-East of the country, where men are renowned for being somehow more male chauvinists than average. The nail polish is sold in a low shine and in a matte finish and it has been promoted through manicure centres, although it is sold through retailers and cosmetics shops. The hair tint, which is used mainly to cover white hairs under the brand Biocolor, claims it achieves the desired effect in five minutes. The hair tint sector generates R$ 1bn per year, of which between 2% and 3% from products directed towards men and the firm claims that it has great growth potential. ©Esmerk 2006

UAE: Identical items priced differently in supermarketsGulf News, 30 Aug 2006,:-A few parallel items retailed in the United Arab Emirates (UAE) are priced differently in different emirates. Sharjah emirate's Carrefour outlet retailed a 200-millilitre bottle of Pantene hair shampoo for Dh 6.25 (US$ 1.7 EUR 1.33); Dubai's Dh 6.20; and Abu Dhabi's Dh 6.10. Sharjah emirate's retailed a 210-millilitre tin of Brylcreem hair cream for Dh 7 and Dubai's Dh 7.20. Sharjah emirate's retailed two rolls of 244 x 276-millimetre Kleenex kitchen paper for Dh 4.75; Dubai's Dh 5.05; and Abu Dhabi's Dh 6.30. Sharjah emirate's retailed 500 grams of Matok ground coffee for Dh 18.95; Dubai's Dh 17.95; and Abu Dhabi's Dh 19.50. Sharjah emirate's retailed 128 grams of Lafash-kiri cheese cubes for Dh 3.05; Dubai's Dh 2.95; and Abu Dhabi's Dh 3.15. Sharjah emirate's retailed 170 grams of Nestle cream for Dh 2.45; Dubai's Dh 2.50; and Abu Dhabi's Dh 2.25. The above is revealed by UAE's Ministry of Economy. ©Esmerk 2006

Saudi Arabia: Women spent big on luxury productsTrade Arabia, 09 Sep 2006,:-Saudi Arabia's women bought SR 1.8bn (US$ 479.95mn EUR 374.78mn) worth of imported cosmetics totaling 91,913 tonnes in 2005, according to the newspaper Al Watan. Figures from the Ministry of Commerce show that the country imported SR 6.4bn in previous stones, gold, pearls, and jewels totaling 9,032 tonnes in 2005. ©Esmerk 2006

Middle East: Advertising expenses increased by 15.6%Trade Arabia, 27 Aug 2006,:-In January-June 2006, advertising expenses in the Gulf reached US$ 2.49bn (EUR 1.94bn) (+15.6% year-on-year). Of the total expenses, 54.65% was in printed advertising, with radio and cinema at 1.2%, billboards at 3.06% and television at 41.09%. Among the Middle Eastern countries, Pan-Arab spent US$ 1.484bn (+26.08%) in advertising during the six-month period. The United Arab Emirates (UAE) spent US$ 508.42mn (+10.43%) and Saudi Arabia spent US$ 480.16mn (+7.24%). Advertising spending made by Qatar, Oman, Kuwait and Bahrain were US$ 101.53mn (+61.13%), US$ 64.29mn (+46.16%), US$ 243.44mn (+16.14%) and US$ 51.94mn (+0.53%) respectively. Expenses made for advertising the property and insurance segment has dropped 20.91% during the period. Spending on food, beverages and tobacco, however, increased 13.87%. Expenses on personal hygiene, household and cosmetics products have also hiked 15.69%. The figures were revealed by the Arab Studies and Research Corporation (PARC). ©Esmerk 2006

Middle East/Asia: Clarins to expand, targets 30% shareThe Star, 23 Aug 2006, Starbiz p.B11:-France-based cosmetics company Clarins, which has recently set up a regional office in Dubai, United Arab Emirates, wants to expand in the Middle East by introducing more products. Its Clarins Men skin care range snatched an 11% market share in the region, while in other countries, the range only garnered 6%. The company intends to roll out more innovative products that match customer demand in a bid to garner a 30% market share in the Asian skin care segment by 2010. This was revealed by Chief Executive Officer Christian Courtin-Clarins. Paris-based Clarins achieved a turnover of US$ 1.5bn ( EUR 1.17bn) in 2005, and the region, including Taiwan, Singapore, South Korea, Malaysia, Japan, China and Hong Kong, accounted for 12% of the total turnover. More skin care products containing natural ingredients may be launched soon. ©Esmerk 2006

Russia: Saturation of low mass cosmetics marketCosmetics International, 18 Aug 2006, p.5:-During 2005 the Russian cosmetics market achieved a 13% growth, down from 14% in the previous year. This included colour cosmetics sector, which accounted for a 17.7% share, hair care products, which had an 18% market share, male grooming products with an 8% market share and perfumes with a market share standing at 12%. As far as distribution channels are concerned, department stores had the biggest share in 2005 sales, followed by specialist retailers and direct sale companies. Experts claim that the market growth in 2005 was lower than a year before due to mass market saturation. They claim that cosmetics manufacturers should now focus on the development and introduction of luxury cosmetics as Russian consumers are willing to invest in high-quality, more expensive products. ©Esmerk 2006

Russia: Drugstore sales of beauty aids increaseFarmatsevtichesky Vestnik, Aug 2006, Issue 26 p.31:-Drugstore sales of beauty aids against wrinkles, gray hair, and hair fall amounted to US$ 26.2mn (EUR 20.41mn) with sales growth exceeding 50% in the last two years. According to the marketing research centre Farmekspert (Pharmexpert), drugstore sales leaders of anti-wrinkles cosmetics in Russia in 2005 became the following companies (data for 2005 (sales growth against 2004)): Vichy - 63.47% (+116%); Lierac - 23.76% (+29%); Galenic - 4.03% (+9%); Biorga - 2.7% (+185%); La Roche-Posay - 2.02% (+54%). Price segmentation of the market was as follows (retail price (sales share in 2004-2005)): under US$ 20 - 10% (12%); US$ 20-30 - 11% (6%); US$ 30-40 - 42% (47%); US$ 40-50 - 13% (24%);

áîëåå US$ 50 - 24% (11%). About 17% of overall demand for skin care preparations fall at anti-ageing ones in Russia. ©Esmerk 2006

Russia: On medicated cosmetics for hair salesFarmatsevtichesky Vestnik, Aug 2006, Issue 26 p.31:-According to the marketing research centre Farmekspert (Pharmexpert), the Top5 producers of cosmetics against loss of hair and gray hair by sales volume via drugstores in Russia in 2005 included the following companies (company - share in total sales, % / growth or fall against 2004, %): Vichy - 70.94 / +36; Lierac - 11.19 / +124; Ducray - 9.75 / +49; Klorane - 5.3 / +42; Santeri - 2.44 / -51. ©Esmerk 2006

Russia: 60% of perfumery market falls at fake goodsTrud, 11 Sep 2006, p.4:-According to experts 30-60% of toilet water distributed in Russian market is counterfeit at present. At that up to 40% of crimes in area of perfumery falsification are committed in Moscow. Experts note that introduction of a law oriented to tightening of governmental control in domestic perfumery market may lead to shutdown of many legal small producers that will not be able to pay for licenses. Market insiders forecast prices for all legal perfumery products to increase considerably in autumn 2006. Then, goods manufactured by Russian firms will be superseded in the market by counterfeits produced in China, Turkey, East European countries. ©Esmerk 2006

Russia: On perfumery market in 2005Kosmetichesky Rynok Segodnya, Aug 2006, p.13:-According to experts of the company Euromonitor, the Russian perfumery market grew by 16.9% in 2005 year-on-year, to RUR 40.705bn (US$ 1.52bn EUR 1.19bn). Out of it, about RUR 26.857bn (US$ 1.01bn EUR 0.78bn) fell at perfumery positioned in the mass market segment, RUR 13.848bn (US$ 0.52bn EUR 0.4bn) - at premium perfumery. Largest market players accounted not more than for 20% of sales. In particular, the company Oriflame Cosmetics (the brand Oriflame) had 9.2% of the total sales. Then follow: Avon Products (Avon) - 3.6%, Coty Russia (Chanson de Vie) - 1%, Revlon Russia (Charlie) - 0.9%, Yves Rocher (Yves Rocher) - 0.9%, Christian Dior (J'adore) - 0.8%. Quoting experts, now perfumery of the middle and mass market segments leads the Russian market in volume. At that, de luxe perfumery development trend is observed. The segment growth is due to increasing population incomes and rising investments into advertising by perfumery producers. Overall, Russians are oriented at novelties - about 25% of perfumery sales falls at new aromas. ©Esmerk

2006

Russia: Makeup market structure availableKompaniya, Sen 2006, Issue 32 p.31-35:-According to the Russian company Staraya Krepost (Old Fortress), the makeup market turnover in the country amounts to US$ 1.23bn (EUR 0.96bn). Eye cosmetics occupies 34.6% of sales, lip products - 28.3%, nail cosmetics - 19%, face care products - 17.5%, and cosmetic kits - 0.6%. The following foreign companies are the leaders in the local market: L'Oreal - 8.9%, Procter&Gamble - 7.2%, Ruby Rose - 4.2%, Revlon - 3.4%, and Bourjois - 3.1%. Russian producers' share in the market does not exceed 15%. According to experts, high demand for foreign-made products provides, first of all, quality of goods and large advertising budgets. For example, L'Oreal invests into its products' promotion in Russia US$ 200mn (EUR 156.09mn) per year. ©Esmerk 2006

Russia: Retail cosmetics market faces redistributionInterCharm, 28 Aug 2006,:-According to experts, at present the Russian perfumery and cosmetics market faces redistribution. Small players start squeezing perfumery chains of traditional format to the market periphery. In particular, the drogerie chain All!Good expanded by 58 stores in the last 1.5 years. The chains Yuzhny Dvor (Southern Yard) and Dlya Dusha i Dushi (For Bath and Soul) develop similarly. At that, large

chains such as Arbat-Prestizh, Ile de Beaute, L'Etoile, Douglas develop slower. Experts of the marketing research company Staraya Krepost say that large players will not leave the market in the near future but may give ground to small chains. The Russian perfumery and cosmetics market may double in the next five years, from US$ 7bn (EUR 5.46bn) per year currently (retail chains account for about 23.7%). Average population expenses for cosmetics will grow by 13-15% annually. Now, each Russian spends on cosmetics about US$ 50 (EUR 39.02) per year. ©Esmerk 2006

Russia: On body care products market in January-AprilKosmetichesky Rynok Segodnya, Aug 2006, Issue 15-16 p.18:-According to the research conducted by the company ACNielsen in 24 largest Russian cities in January-April 2006, the share of hand care cosmetic products in the total skin care products sales amounted to 50% in volume and 44.3% in value. Body care products accounted for 27.3% in volume and 31.5% in value, feet care - 13.1% and 12.4%, respectively, universal products - 9.6% and 11.8%. ACNielsen reports the market leaders were the following companies: Beiersdorf, Unilever, Kalina, Krasnaya Linia (Red Line), Nevskaya Kosmetika, and Svoboda. In January-April 2006 these producers controlled 53.9% of the market for body care products in volume and 50.9% in value. Main distribution channels were non-food stores (50.4% of sales in volume and 56.1% in value), mixed type stores (24.6% and 24.3%, respectively), and open markets (25% and 19.6%). ©Esmerk 2006

Russia: On male consumer behaviour in MoscowPR è Ðåêëàìà â Ðîññèè, 08 Sen 2006,:-According to the survey on consumer behaviour of Moscow middle-class men carried out by the agency Symbol-Marketing in August 2006, the average capital's middle-class representative is married, middle-aged (mainly 35-44 years old), has higher or incomplete higher education, his income amounts to RUR 18,000-24,000 (US$ 672.93-897.25 EUR 525.18-700.24) per month. Middle-class men prefer foreign brands when choosing clothes and shoes. At that, they are hardly aware of the classical style clothing trade marks and prefer sport goods. Acquisition is made mainly in clothing stores or in the specialised markets. Married men spent on clothes less money, their readiness for maximum expenses for clothes decreases. Almost 95% of perfume and cosmetic products bought by men falls at foreign trade marks. Shampoo brand leaders by their awareness are Shauma (57%) and Head & Shoulders (53%). They are followed by Timotei, Pantene PRO-V, and Sunsilk. Married men buy shampoo more often (two or three times a month) than single (once a month). ©Esmerk 2006

Russia: Selection criterion when buying lipstickKompaniya, Sen 2006, Issue 32 p.31-35:-According to the survey of the Russian makeup market carried out by the agency Magram Market Research, colour is the main criterion when choosing lipstick for over 80% of women-buyers. Product's quality is important for 54%, lipstick fixity - for 42%. Some 40% of women look at the price and use their own experience when buying lipstick. Flavour and product's consistence are important for 30%, brand credibility - for 25%, and taste - for 20%. Less than 10% pay attention to the country of production, handy packaging, and trade mark's prestige. Some 5% of respondents follow fashion lines, novelties, and recommendations of a consultant. ©Esmerk 2006

Russia: On teenager preferences in cosmetics marketKosmetichesky Rynok Segodnya, Aug 2006, Issue 11-12 p.18:-According to experts having surveyed consumer preferences in the market for teenage cosmetics, the most active buyers of such cosmetics in Russia are girls aged 14-15. At that, many of them say they have various cosmetic products at home including make-up but often use just lip gloss. The most popular trade marks are the following: Anytime, Bourjois, Fleur, Max Factor, Pupa, Rimmel, Lumene, and Maybelline. Analysts point out teenagers do not like it when marketing specialists clearly position products by age categories. Many young consumers use cosmetics intended for adults. In particular, teenagers aged 12-14 use anti-acne cosmetics developed for 16-25-year-olds. ©Esmerk 2006

Russia: Unilever on ethyl alcohol turnover lawInterCharm, 05 Sep 2006,:-

Representatives of the company Unilever, one of the largest cosmetics and perfumery producers, have commented on the law on state regulation of production and distribution of ethyl alcohol, alcohol drinks and spirit-containing products. Under the law, all perfumery and cosmetics companies should buy production licenses, as well as install the Unified State Automatic Information System (EGAIS). In particular, Unilever points out the Russian market still has no clear schemes of introducing rules and norms for spirit-containing products' turnover. Besides, producers need more definite comments and explanations. Unilever's experts say market insiders should directly participate in legislation development. The company is ready to cooperate with all administrative bodies. ©Esmerk 2006

Russia: Three cosmetics types to be exempted from EGAISBiznes, 17 Aug 2006,:-Manufacturers and suppliers of alcohol containing perfumery may be exempted from licensing and implementation of the Unified Stated Automated Information System (EGAIS) that have recently become obligatory. Relevant amendments to the federal law On state regulation of production and turnover of ethyl alcohol, alcoholic and alcohol containing products will be considered by the Russian State Duma in autumn 2006. Three categories of cosmetics are suggested to be taken out of operation of the law - heavy textured preparations (creams, balsams), sprays in metal packaging (hair sprays, mousses), and perfumery (perfume, toilet water) in packaging with the volume of at most 50ml. The issue remains open for industry sector manufacturing dietary supplements. ©Esmerk 2006

Russia: Muscovites prefer chain Arbat PrestizhSostav.ru, 24 Aug 2006, :-According to a telephone survey of Muscovites carried out by the company ROMIR Monitoring in July (1,028 respondents aged older than 18 were questioned), Moscow residents most often purchase products in the following retail perfumery stores: Arbat Prestizh - 26% (26% bought products within the last three months), L'Etoile - 8% (12%), All!Good - 1% (3%) and Ile de Beaute - 1% (2%). Quoting one half of the polled, they did not use services of perfumery stores within the last three months and 44% were not able to name the chain they attend most often. 44% of Moscow residents choose a perfumery store because of quality of products, 34% - prices, 31% - its location, 28% - a wide assortment, 25% - availability of products they look for, 22% - professionalism of salespeople, 19% - discounts, bargain sales, 17% - products' arrangement on shelves. A list of top ten chain by consumer awareness looks as follows: Arbat Prestizh - 73%, L'Etoile - 58%, Ile de Beaute - 13%, Rive Gauche - 8%, Malenky Parizh (Small Paris) - 8%, All!Good - 8%, Douglas Rivoli - 7%, Arbor Mundi - 5%, Sephora - 4% and Brocard - 3%. ©Esmerk 2006

Poland: Body Shop will open first outlet in autumnGazeta Wyborcza, 23 Aug 2006,:-The UK cosmetics retail chain Body Shop has announced its plans to open its first shop in Poland in autumn 2006. The firm has refused to provide any comments concerning its appearance on the Polish market. It is only known that the first shop will be launched in a new retail centre, Zlote Tarasy, which is soon to be opened in the Polish capital city of Warsaw. It has also been reported that Body Shop has decided to launch its activities in Poland as it considers the Polish cosmetics sector to be very promising. According to analysts from PMR, its value in 2006 will reach Zl 9bn (US$ 2.98bn EUR 2.32bn), up from Zl 8.4bn in 2004. Body Shop also counts that the Polish government will soon abolish a 10% excise duty on cosmetics, which will lead to a 10% - 20% decrease of cosmetics' prices. ©Esmerk

2006

Poland: Cosmetics market to accelerate post-excise taxBeauty Business News, 04 Sep 2006, p.3:-According to a report by Polish Market Review (PMR) entitled Non-food retail Poland 2006, growth in the Polish cosmetics market should accelerate from 3.5% in 2006 (giving a total value of Zl 9bn (US$ 2.9bn EUR 2.3bn)) to 4-5% in 2007 if the current 10% excise tax is abolished in January as expected. ©Esmerk 2006

Poland: Cosmetics market grows 6% in H1 2006Rzeczpospolita, 28 sie 2006,:-According to data published by MEMRB, which monitors the sales of cosmetics in supermarkets and hypermarkets, as well as at pharmacies and chemists, in the first half of 2006, the sales of cosmetics at these outlets in Poland amounted to Zl 2.5bn (US$ 0.82bn EUR 0.64bn), which is an increase of 6% in comparison with the same period of the previous year. MEMRB estimates that the annual sales of cosmetics in Poland could increase between 3.5% and 8% in the coming years, due to the increased purchase power of Polish consumers. An exceptional feature of the Polish cosmetics market, in contrast with other countries in the central and Eastern European region, is that Polish-owned companies have a significant market share, and compete successfully with international firms. This is due to their lower price, as well as their competitiveness in terms of quality and packaging. ©Esmerk 2006

US: Nail colour and care sector sees sales decreaseCosmetics International, 18 Aug 2006, p.3:-Research has shown that between the year of 2000 and 2005, the sales of nail care and colour products dropped by 9% in the US. In 2005, the value of the nail care sector amounted to US$ 754mn (EUR 0.59bn), down from US$ 830mn five years before. This included the sales of nail polish removers, which fell by 18%, as well as the sales of nail accessories, polishes and treatment products, which went down by 13%. According to research this trend will continue until 2010 unless producers take interest and invest in ethnic products. The only faithful group of customers in the nail care and colour sector are teenage girls. Reportedly, four in five of them use nail polish. ©Esmerk 2006

US: Crest Pro-Health to gain share from Colgate?Wall Street Journal, 11 Aug 2006,:-Consumer products giant Procter & Gamble (P&G) hopes that its new Crest Pro-Health toothpaste will dominate the market in the same way as rival Colgate's Total brand launched in 1997. P&G and arch-rival Colgate are almost exactly equal in terms of market share in the toothpaste sector. Information Resources reports that P&G had a 35.7% share of the market in the year ending 16 July 2006 while Colgate's share was 35.3%. Despite this, advertising spending by the two companies was quite different. Crest doubled what it spent in 2000, spending US$ 219mn (EUR 170.59mn) on advertising in 2005 while Colgate spent around US$ 69mn in 2005 compared to US$ 81mn in 2000. However, Colgate has upped its advertising spending in 2006 to combat the launch of Pro-Health. Colgate points out that it leads Crest worldwide by a large margin and that Colgate's US sales only account for 8% of its overall sales. P&G looks set to expand its Pro-Health brand and in due course integrate Oral B acquired in its Gillette takeover in 2005. Pro-Health may be used as the unifying sub-brand if P&G launches more products such as toothbrushes and floss. ©Esmerk 2006

US: Lip balms are popular all year with men and womenHappi, Aug 2006, p.32:-According to Kline & Co, in 2003 lip balm sales were US$ 239mn (EUR 186.62mn). Sales are particularly high in winter as the balms help prevent dry lips, but they are popular with both men and women all year round. Despite concerns that some people find them addictive and apply them frequently, manufacturers say that they are safe and although phenol and menthol are among the ingredients, they do not cause exfoliation or thinning because they are used in such small quantities. However it is possible to make balms which do not include these ingredients. ©Esmerk 2006

US: Duty-free alcohol and perfume sales fall on banWashington Post, 12 Aug 2006,:-Duty-free alcohol and perfume sales fell an estimated 10-15% following the ban on carrying liquids aboard airplanes that was put in place after UK authorities said they had foiled a bomb plot, according to the International Association of Duty Free Stores. Alcohol and perfume sales account for 20-50% of all duty-free sales each year. Duty-free sales are said to be worth about US$ 26bn (EUR 20.25bn) worldwide each year. ©Esmerk 2006

US: FDA may ban OTC sale of skin-whitening productsWall Street Journal, 30 Aug 2006,:-

FDA, the Food and Drug Administration, has proposed to ban over-the-counter (OTC) sales of creams and other products designed to whiten the skin. The products usually contain hydroquinone, a chemical linked to cancer and ochronosis, a disfiguring condition. They will still be allowed for sale with a prescription and medical supervision. ©Esmerk 2006

Mexico: Growth in sales of men's cosmeticsExpreso, 18 Aug 2006,:-Sales of men's cosmetics and personal care products in Mexico has grown by 231% since 1996, according to Euromonitor. The cosmetics association, CANIPEC, reports that sales grew by 7.5% from 2003 to 2004. Around 90% of the products are sold by foreign companies that have local offices, or by franchises that import the products. The growth has been greatly driven by the removal of trade barriers over the years which has allowed for an influx of foreign products. The growth of spas in Mexico has also increased sales of personal care products for men. The spa sector accounts for 10% of sales for these products. Independent direct sellers accounts for 30% of sales in the sector. Around 20% of Mexican men purchase personal care and cosmetic products, compared to 80% for women. Additionally, men account for 20% of industry sales in Mexico, compared to 30% in Argentina, and 25% in Brazil. ©Esmerk 2006

002 Vie des marques : Alliances et partenariats

India: Premium Pond's skin-care products availableThe Economic Times, 06 Sep 2006,:-In India, Hindustan Lever (HLL) is launching premium skin-care products under the Pond's cosmetic brand, which is part of Unilever. Targeting at females in mid-20s, the premium products are priced between Rs 350 (US$ 7.52 EUR 5.87) and Rs 850. The three variants are Sandal, Magic and Dreamflower. The number of distributor outlets selling the premium products is likely to hit 200 by end of 2006, up from the current 100 outlets. Pond's aims to have direct interaction with consumers by concentrating on personalising customers interface via outlets. ©Esmerk 2006

India: Ozone unveils expansion plans, Rs 50mn campaignThe Hindu Business Line, 24 Aug 2006,:-By the end of fiscal 2006/2007, Ozone Ayurvedics (Ozone) plans to increase the number of its retail outlets to 400,000 from 300,000 presently. The company also plans to provide its products greater visibility and space at the retail stores of Reliance Retail and is negotiating with the latter, according to Ozone's Sales and Marketing President Mr Sandeep Ghosh. In the coming two months, body contour oils and hair care products targeted at customers of premium products will be launched using the "Ozone" brand. The company, which has a range of skin care products under its No Marks brand, will enter the anti-ageing segment with the same brand. Some Rs 50mn (US$ 1.07mn EUR 0.84mn) has been allocated for a pan-India advertising campaign themed kuch ho sakta hai to increase awareness of the No Marks brand in the anti-mark creams market. ©Esmerk

2006

Asia: Coty tests Lancaster skincare brandBeauty Business News, 28 Aug 2006, p.5:-In the fall of 2006, Coty Prestige will test its Lancaster skincare brand in Asia by opening four doors in Shanghai, Beijing and Guangzhou. The brand has one door and Singapore and could open others in Taiwan and Hong Kong, bringing its number of doors to eight to ten by the end of 2007. In Japan, the company has created a joint venture with Bluebell, a local distributor. ©Esmerk 2006

Brazil: Coca-Cola and Avon create new joint campaignGazeta Mercantil, 22 Aug 2006,:-Coca-Cola and Avon is creating a promotion called "Double the beauty" (Beleza em dobro), which will allow consumers to acquire kits with beauty products of Avon and Coca-Cola exclusive bowl. The campaign is a follow up to a similar promotion last year, when the companies registered a better than expected rise in sales. ©Esmerk 2006

US: Grooming Lounge to house Biotherm Homme productsCosmetics International, 8 Sep 2006, p.2:-It has been reported that Grooming Lounge, the US company, which provides grooming services for men, has signed a partnership agreement with Biotherm Homme. In line with the agreement, Grooming Lounge will distribute Biotherm products in its boutiques. The first two outlets to house Biotherm products are based in Washington DC. The next outlet to offer Biotherm products will be launched in Florida at the beginning of 2007. ©Esmerk 2006

US: P&G and Avis put a smile on airline travellersHouston Chronicle, 15 Aug 2006,:-Avis Rent A Car and Procter & Gamble (P&G) have teamed up to provide airline travellers with toiletries. The move comes as a result of many travellers being told to hand in the toiletries contained in their hand luggage due to increased security at airports. The "smile packs" will be left in vehicles at Avis outlets in 25 airports across the US. They will contain full-size Crest dental floss, mouthwash and toothpaste. Initially, around 25,000 packs will be delivered. ©Esmerk 2006

003 Vie des marques : Investissements

India: HLL to ramp up production facilities in eastBusiness Standard, 06 Sep 2006,:-Fast moving consumer goods major Hindustan Lever (HLL) may beef up the production capacity of all its facilities in eastern India to transform the region into a sourcing base for Southeast Asia. At present, its Haldia facility produces 40,000 tonnes per annum. The annual production levels of personal care products at its facilities at Garden Reach and Doomdooma are at about 50,000 tonnes and 25,000 tonnes respectively. Within three years [by 2009], the company anticipates Rs 25bn (US$ 0.54bn EUR 0.42bn) contribution from the eastern region, compared to Rs 18bn now. ©Esmerk 2006

Colombia/Venezuela: Expansion plans of NaturaPortafolio, 23 Aug 2006,:-Cosmetics firm Natura is to enter Colombia in 2007, and not in 2006; and Venezuela in September 2006, according to some information divulged by the newspaper O Liberal. ©Esmerk 2006

Brazil: Natura to build R$ 13mn soap factory in ParaValor Economico, 17 Aug 2006,:-Brazilian cosmetics manufacturer Natura has chosen to Benevides (Para) as the location for its second factory, which will receive investments of R$ 13mn (US$ 5.95mn EUR 4.63mn) and will process the raw materials for the manufacture of vegetable soaps. The project includes a partnership with 2,500 families in the region for extraction of the oils. The unit will have a production capacity of 18,000 tonnes of soap base, which is used to make up 95% of the finished soap, with the remaining 5% made up of colouring and scents. The final stage will be carried out by Sinter Futura, which currently accounts for Natura's whole soap production process. The new factory will use palm oil and oil from the seeds of passion fruit, cacao, babassu and buriti. Natura is to invest R$ 210mn in so-called capacitation projects in 2006, including the new factory. Agropalma will continue supplying between 10% and 20% of the vegetable oils used by Natura. ©Esmerk 2006

Brazil: L'Occitane to produce new line in the countryJornal do Commercio, 28 Aug 2006,:-French cosmetics firm, L'Occitane, is to produce a range of cosmetics in Brazil with local ingredients, which will make the country the only one to do so, apart from France. Production will be sold on the domestic market as of 2007 and will be exported to several continents as of March 2008. The project requires US$ 1mn (EUR 0.78mn) investments and it is expected to raise market share from a current 3.8% to 6%. Production will take place through alliances with local laboratories. L'Occitane has 19 outlets of its own in Brazil and 125 franchises and plans to open three new shops and launch two new product ranges, still produced in France, by the end of 2006. The Brazilian subsidiary generates US$ 14.5mn turnover per year and plans to lead growth among the Latin American subsidiaries and increase turnover by threefold, in four years. ©Esmerk 2006

L. America: Johnson & Johnson growing at fast rateEl Nacional, 29 Aug 2006,:-Johnson & Johnson has revealed that of all its business worldwide, trade is growing fastest in Latin America. Brazil and Venezuela are the top leading countries in terms of sales. Seven years ago Venezuela occupied fourth place but now it has double digit growth. This has been linked to both successful business strategy and the increased purchasing power of the Venezuelans in terms of personal care products. Those products which have generated the largest revenue are skin care products, sweeteners, baby care products and sanitary protection products. For 2007 the firm's commercial goals in Venezuela will focus on expansion with the launches of two new products in each of the above categories. It is predicted that growth of Johnson & Johnson in Venezuela will continue in double figures. ©Esmerk 2006

UAE/Egypt: Emami set up unit, to set up production baseGulf Today, 11 Aug 2006,:-In the United Arab Emirates (UAE), a new unit called Emami International FZE (EIF) was established by India-based cosmetics firm Emami. The unit will examine nations such as Morocco, Egypt, Jordan, Lebanon, Syria, Qatar, Saudi Arabia and the UAE. For the unit's operations in the Gulf, North Africa and Levant markets, it would mainly outsource contract production facilities in the nation. In the coming two to three years [by 2009], Emami is thinking of establishing a production base in Egypt. ©Esmerk 2006

Middle East: VLCC Group to expand in GCC nationsAME Info, 31 Aug 2006,:-India's VLCC Group plans to expand in the Gulf Cooperation Council (GCC) via its unit VLCC International LLC in two phases. Internal accruals and debts will fund the Dh 62.5mn (US$ 17.02mn EUR 13.28mn) required for the programme. The first phase, involving the establishment of VLCC hubs in Abu Dhabi and Sharjah, will be completed by the close of 2006; the second, in all GCC nations, by 2008. The beauty service and slimming solution provider presently has an outlet at Jumeirah and another in Dubai. ©Esmerk 2006

Russia: Gamma Kosmetik invests into developmentKompaniya, Sen 2006, Issue 32 p.31-35:-One of the largest Russian contract makeup enterprises Gamma Kosmetik (part of the holding Edinaya Evropa) implements capacities boost project. Quoting Aleksei Gribkov, member of the holding's Board of Directors, flexible production will be established at the enterprise. It will be able to manufacture batches of any volume - from 1,000 to tens of millions of makeup names. Investments will amount to US$ 7mn (EUR 5.46mn). At present, the annual Gamma Kosmetik's production growth reaches 40-45% that shows its formative period and market demand. Not only local firms are the enterprise's clients. Some 20% of portfolio of orders is made by foreign companies. According to experts, the Russian makeup market growth dynamics (13-15% per year), new brands entering the market, and launch of private lable products by the trade chains stimulate development of specialised contract enterprises in the country. In particular, such production capacities are useful for new products pilot lot manufacture. Besides, placing of orders inside the country allows cosmetic companies to react on changes in consumer demand faster as it saves product delivery and customs procedures time. ©Esmerk 2006

Turkey/Poland: Greek Sarantis to expand operationsReporter, 11 Eyl 2006,:-Greece's Sarantis [the company involved in the retail of cosmetics, household cleaning products, and pharmaceuticals] is reported to be planning to strengthen its presence in Turkey and Poland through acquisitions. Turkey, Ukraine, Hungary and Russia will be the strategic markets for the Greek company, which aims to expand its operations in CE Europe. ©Esmerk 2006

US: Coty closes one plant and expands anotherBiz Journals, 03 Sep 2006,:-

Cosmetics firm Coty has decided to close down its plant in New Jersey, specifically in Mt. Olive, and will increase its Sanford operations, adding 100 new jobs there. The New Jersey plant employs 350 workers. The move will mean that the firm's only production facility in the country will be located in Sanford. It has been indicated that come of the workforce from the plant that is being shut down will be moved to Sanford, however, majority of the extra jobs will be filled through the hiring of new personnel. The new jobs span a range of areas, including management, distribution and production. The closure of the New Jersey plant is part of an effort to simplify the firm's supply chain, with a desire to locate distribution and production in the same place. The estimated completion time for the transition is by 2007's second or third quarter. The Sanford plant will see the addition of four production lines, while distribution capacity will also be increased. Coty's activities are 79% made up of toiletries and fragrances and most of the firm's lotions, creams and perfumes for sale in the US are made at the Sanford plant. ©Esmerk 2006

004 Vie des marques : Nominations

Italy: Schiapparelli appoints new Managing DirectorMilano Finanza, 06 Sep 2006, p.10:-Schiapparelli, the Italian cosmetics firm, has appointed Alessandro Miani to the post of Chairman and Manuela Giorgetti as Managing Director. The decision came after the resignation in August 2006 of Gianni Mazzoli, Schiapparelli's former Managing Director, and the subsequent re-election of the boar of Directors. ©Esmerk 2006

Italy: Schiapparelli's Managing Director to resignMilano Finanza, 31 Aug 2006,:-Schiapparelli, the Italian cosmetics firm, has announced the resignation of the company's Managing Director, Gianni Mazzola who detained a 28.3% stake in the firm. Mazzola has resigned for being unable to fulfil his role has designated by the Board of Directors during the general meeting of May 2006. As a consequence, Schiapparelli's Board will have to be re-elected during the shareholders meeting on 2 September 2006. ©Esmerk 2006

US: Limited Brands announces retirement of CFOHouston Chronicle, 15 Aug 2006,:-Limited Brands, which owns Limited Stores, Bath & Body Works and Victoria's Secret, has announced that Ken Stevens, its Chief Financial Officer, is to retire. He will be replaced by Martyn Redgrave, the company's Chief Administrative Officer, who will perform the new role in addition to his existing role. ©Esmerk 2006

US: New CEO at Molton BrownWWD, 01 Sep 2006,:-Molton Brown, a brand owned by Kao Corp, has appointed Sara Halton as chief executive officer (CEO). Ms. Halton will replace Charles Denton from 1st September 2006. ©Esmerk 2006

US: Appointment at Beauty AvenuesWWD, 01 Sep 2006,:-Charlie McGuigan has been appointed president of Beauty Avenues, the product development and sourcing division of Limited Brands' personal care and beauty businesses. Previously, Mr. McGuigan was senior vice president at Limited Technology Services. ©Esmerk 2006

US: Thia Breen promoted at Estee LauderFDC Reports - The Rose Sheet, 21 Aug 2006,:-With immediate effect, Estee Lauder has promoted President, Estee Lauder Americas Thia Breen to President Estee Lauder Americas and Global Business Development. Breen's additional responsibilities include international business, financial control, and oversight of the new launch management function of the flagship Estee Lauder brand. She reports to Group President John Demsey. ©Esmerk 2006

005 Vie des marques : Résultats

Italy: Stream-lined Limoni expects EUR 358.4mn salesMilano Finanza, 22 Aug 2006,:-After its acquisition by UK-based private equity fund Bridgepoint Capital Group in May 2006, Italian perfumery retailer chain Limoni, started the streamlining of its control chain. Therefore, at the end of June, the merger by incorporation was approved of Limoni Holding into Limoni Due, to be followed by the merger of Limoni Due into its 100% controlled firm, Limoni (SpA). After the merger, to be retroactively dated on 1 January 2006, only a shareholding company, Limoni (SpA), will exist and its targets to the end of 2006 will include to attain sales of EUR 358.4mn (US$ 460.08mn), an Ebitda of EUR 53.4mn, and net profits of EUR 4.8mn. Moreover, on 14 July, Limoni Holding and Limoni Due announced that they were set to reimburse earlier than due their total loan of EUR 150 loan received by the banks on 15 November 2005. ©Esmerk 2006

Asia-Pacific: Estee Lauder income, net sales rosePress Release (The Estee Lauder Companies Inc), 16 Aug 2006,:-The Estee Lauder Companies Inc (Estee Lauder), a US-based cosmetic company, posted a 26.8% year-on-year hike in operating income in Asia-Pacific for the 12 months ended 30 June 2006 to US$ 70.1mn (EUR 54.61mn). Operating profit in China improved. It was lower in Taiwan and a double-digit gain was recorded in Japan and South Korea. Net sales in Asia-Pacific for the 12 months ended 30 June 2006 rose by 6.1% year-on-year on a reported basis and 7.0% in local currency term to US$ 869.7mn. Local currency sales in South Korea was strong, a double-digit growth was registered in Hong Kong and China, and a single-digit increase was posted in Japan. ©Esmerk 2006

Asia/Middle East: L'Oreal posted stronger first halfPress Release (L'Oreal Group), 31 Aug 2006,:-Like-for-like sales growth in the Asia zone by the French cosmetics giant L'Oreal Group (L'Oreal) in the first half of 2006 was 6.3% to EUR 740mn (US$ 0.95bn) driven by rapid expansion in China and Indonesia, despite a more contrasting situation in Japan. Professional Products sales growth was double-digit, thanks to the excellent performance of hair colorants and the Kérastase brand. The growth in sales of Consumer Products outstripped the expansion of the market, and was boosted by the success of the L'Oréal Paris brand in China and all the ASEAN countries, thanks in particular to Revitalift and UV Expert skincare products, and in China the launch of Garnier Skin Natural which will be more extensively distributed in the second half of 2006. Luxury Products sales are growing strongly in China thanks in part to the contributions of Biotherm and Blanc Expert from Lancôme. The Division continues to face a more competitive market in Japan. The successful launch of Lift Activ Pro by Vichy is bolstering the growth of the Active Cosmetics department in this zone. Growth is very strong in the Middle East, but above all in India where very rapid sales growth has been underpinned by the Garnier brand in hair colorants with Color Naturals and in skincare with Garnier Light, and by the L'Oréal Paris brand in skincare and make-up with Volume Shocking. ©Esmerk 2006

CIS: Oriflame boosts profit through market growthSostav.ru, 11 Aug 2006,:-Sales in Russia, the Baltic countries and the CIS accounted for about 51% of total revenue generated by the Swedish cosmetic company Oriflame in the second quarter of 2006. Overall, the company's results according to IAS exceeded forecasts. Analysts attribute revenue growth to rapidly increasing cosmetics markets in the former USSR. Oriflame's revenue in Russia and the CIS went up by 49%, to EUR 109.3mn (US$ 139.76mn) in the period. Quoting experts, the cosmetics market in the CIS will increase by 7% annually on the average in the next five or six year, the make-up segment - by 9% against about 2% per year in Europe. ©Esmerk 2006

Poland: Irena Eris increases revenue 30% in H1 2006Rzeczpospolita, 28 Aug 2006,:-

Poland's largest producer of cosmetics, Dr Irena Eris, has announced that in the first half of 2006, it increased its revenues by 30%. The company estimates that in the whole of 2006, its revenues will rise by up to 25%, reaching up to Zl 128mn (US$ 42.04mn EUR 32.81mn). The company attributes the rise in revenues to an improvement in the cosmetics market, as well as its launching of as many as 50 new products on to the market. ©Esmerk 2006

US: OraLabs revenues up 73% in second quarterPress Release (OraLabs Holding Corp), 18 Aug 2006,:-US oral care product company OraLabs has announced second quarter 2006 revenues of US$ 4.4mn (EUR 3.43mn), 73% up on a year earlier, while net profit was came in at US$ 0.45mn, compared with US$ 2,926 in the second quarter of 2005. The company said that the increase in revenues was a result of higher customer demand and higher retail sales. ©Esmerk 2006

US: 1Q loss posted by ParluxHouston Chronicle, 29 Aug 2006,:-Fragrance and accessories producer Parlux Fragrances has posted a first quarter loss of US$ 14.1mn (EUR 11.0mn) in the three months to the end of June compared to a profit of US$ 3.8mn in the same 2005 period. Heavy stock option costs were partly to blame for the loss. Turnover rose from US$ 33.8mn to US$ 40.8mn ,a rise of 21% over the same time comparison. Although net sales to US department stores rose 15%, sales were affected by a delay in setting up distribution channels for Paris Hilton handbags and watches. ©Esmerk 2006

US: Full-year profit edges down at Elizabeth ArdenHouston Chronicle, 17 Aug 2006,:-In New York, Elizabeth Arden, the beauty products company, has reported a fiscal 2006 profit of US$ 32.8mn (EUR 25.55mn), down slightly from US$ 37.6mn the year before. Turnover rose to US$ 954.6mn from US$ 920.5mn. The company is forecasting a 20% increase in advertising and marketing expenses for 2007, largely due to the launch of several new fragrances from celebrities such as Hilary Duff and Mariah Carey. Sales are also forecast to climb in 2007, to between US$ 1.10bn and US$ 1.13bn; profit for the year is expected to fall slightly on higher interest payments and other expenses. ©Esmerk 2006

US: Limited Brands' profits climb 39% in Q2Washington Post, 16 Aug 2006,:-Limited Brands saw its profits rise 39% during the second quarter (ending 29 July 2006), to reach US$ 113.1mn (EUR 88.1mn). The firm, which owns Limited Stores, Victoria's Secret and Bath & Body Works, increased its profits from US$ 81.5mn in the year-earlier period. Turnover increased from US$ 2.3bn to US$ 2.5bn. Same-store sales increased by 5%. The company expects third quarter results to be around the same as its results of the year-earlier period, when it broke even. Quarterly sales increased by 14% at Victoria's Secrets, to reach US$ 1.2bn, while sales at Bath & Body Works rose 13% to US$ 580.5mn. ©Esmerk 2006

US: Hain Celestial reports profit of US$ 8.8mnHouston Chronicle, 06 Sep 2006,:-Cosmetics and organic food manufacturer Hain Celestial had reported a net profit of US$ 8.8mn (EUR 6.87mn) in its fourth quarter (ending on 30 June 2006), compared to a loss of US$ 2.7mn a year earlier. Turnover was US$ 194.8mn, up 29% from US$ 151.3mn a year earlier thanks to higher demand for organic products. In the full financial year, the company had a net profit of US$ 37.1mn, compared to US$ 21.9mn a year earlier. Turnover was US$ 738.6mn, compared to US$ 620mn a year earlier. ©Esmerk 2006

US: Estee Lauder's Q4 profits drop to US$ 44.5mnHouston Chronicle, 16 Aug 2006,:-Cosmetics firm Estee Lauder saw its profits drop to US$ 44.5mn (EUR 34.66mn) in its fiscal fourth quarter. The quarter ended on 30 June 2006 and its turnover during the period reached US$ 1.6bn. This compares with a US$ 66.6mn profit and US$ 1.53bn turnover in the year-earlier period. The reduction in profits during the 2006 quarter has been attributed to a tax settlement and charge for

restructuring. The firm's brands include Bobbi Brown, Clinique and Aveda. The travel retail part of the firm made up around 7% of sales during fiscal 2006 and the firm does not envisage this business being affected by recent restrictions to air travel. The firm forecasts a growth in first-quarter sales of 5%-7% and profits of between US$ 0.15 and US$ 0.20 per share. It has been highlighted that the shutting down of shops in 2005 as a result of the May-Federated Department Stores merger will hurt results. Profits for fiscal 2007 are expected to reach between US$ 2 and US$ 2.10 per share, while growth in sales is expected to reach 5%-7%. ©Esmerk 2006

006 Vie des marques : Stratégie

Netherlands: No more divestments for UnileverHet Financieele Dagblad, 29 Aug 2006,:-Following the sale of its frozen foods activities, excluding its US, Italian and ice cream activities, to Permira for EUR 1.7bn (US$ 2.18bn), a spokesperson for Anglo-Dutch Unilever has reported that no more divestments are planned. Also, it is not studying the possibilities for other units. Analysts has expected to continue divestments with a number of cleaning product brands as potential divestment candidates. ©Esmerk 2006

India: SFP forays into Madurai marketThe Hindu Business Line, 29 Aug 2006,:-Perfumes and cosmetic products manufacturer, SFP Sons (India) Pvt Ltd (SFP) has forayed into the Madurai market following the opening of its distribution outlet. The move is in line with the high expectation from the Indian Council of Market Research (ICMR) to Tamil Nadu, particularly the Madurai market. In the meantime, as revealed by Jagadish C-Patel, the director of SFP, the company aims to expand its market and to produce products at affordable prices in order to be approachable to all range of customers. ©Esmerk 2006

India: Emami to venture into ayurvedic operationsThe Economic Times, 25 Aug 2006,:-Emami Ltd is thinking of venturing into operations of herbal and ayurvedic clinics and spas in the global and Indian markets. The Indian firm has allocated Rs 200mn (US$ 4.3mn EUR 3.36mn) to Rs 300mn for making Boroplus skincare brand an international brand. Within one year, the firm is expected to introduce its maiden spa. In addition, negotiations with several leading firms from the UK, Thailand and Indonesia are being conducted by the Indian firm. According to RS Agarwal, the Chairman of Emami, a location for the new venture has been found in Dubai, the United Arab Emirates (UAE). Meanwhile, in fiscal 2006/2007, the firm will merge with JB Marketing, its marketing firm. ©Esmerk

2006

India: JL Morison to introduce Baby Dreams sub-brandThe Hindu Business Line, 22 Aug 2006,:-India's JL Morison, which is involved in the personal care and health care segments, is planning to re-enter into the country's baby care sector, by introducing a new sub-brand, Baby Dreams. The firm will be offering products like oil, soap, talc, lotion, shower creams and creams, and has set its sight on acquiring firms involved in food and personal care. Apart from that, the firm has hired Grey Worldwide to manage communication for the new brand. The brand's soap would cost Rs 32 (US$ 0.69 EUR 0.54) for 100 grammes and its nappy rash cream is priced at Rs 75 for 50 grammes. ©Esmerk 2006

India: Consumer goods firms shift focus to healthcareThe Financial Express, 04 Sep 2006,:-Consumer goods companies in India are venturing into the health and personal care market. Hindustan Lever, for instance, has rolled out a skin cream designed for men and a water purifier, while ITC, a tobacco firm, launched fragrances and food. ITC is also spending over US$ 1bn ( EUR 0.78bn) on its distribution centres and rural shops. The second largest branded tea manufacturer, Tata Tea Ltd is planning to acquire a 30% stake worth US$ 677mn in Energy Brands Inc, which produces Glaceau vitamin water. Meanwhile, Godrej Industries Ltd, hair oil major Marico Ltd, Emami and Dabur India are all geared up

to enter the health and personal care segment, including ready-to-eat food and men's grooming. The branded retail sector here is expected to grow at between 25% and 30% annually in the next four years [by 2010]. The segment, worth US$ 6bn, currently accounts for 3% of the total market. ©Esmerk 2006

India: VVF to extend reach of its soap brandsThe Hindu Business Line, 17 Aug 2006,:-VVF Ltd plans to make its soap brands, comprising Doy Princess, Doy Care Creme, Doy Care Aloe Vera, Jo and Shiff available throughout India. The company is in the midst of extending its distribution network to the South, particularly to Tamil Nadu. It intends to boost its distribution network to all towns and metros as well as to rural markets and smaller towns. VVF is looking at purchasing domestic and international brands. It had drafted some vigorous growth strategies, and an inorganic route is one of the strategies, according to the company's Vice President (Personal Care), Piyush Jindal. VVF, which manufactures personal care products and produce oleochemicals, is considering tapping into the country's liquid toilet soap market. ©Esmerk 2006

India: High-end FMCG market thrivingThe Economic Times, 16 Aug 2006,:-India's high-end fast moving consumer good (FMCG) market is thriving. Marico plans to launch more premium products in the packaged food sector while HLL will have its Taj Mahal tea brand expanded with premium variants. ITC is purported to be venturing into the premium colour cosmetic and skincare segments. ©Esmerk 2006

India: Marico gets shareholders' approval for plansThe Hindu Business Line, 23 Aug 2006,:-India-based Marico Ltd will issue securities to generate Rs 5bn (US$ 107.48mn EUR 83.88mn). Marico's authorised share capital will be raised from Rs 0.6bn to Rs 2.15bn. Additionally, a borrowing limit of Rs 5bn has been approved by stakeholders. The stakeholders' approval is obtained through a postal ballot. The firm offers healthy foods, hair care products and skin care. products ©Esmerk 2006

India: ITC might increase prices of some cigarettesThe Hindu Business Line, 09 Sep 2006,:-Tobacco giant ITC is rumoured to be increasing the retailing prices of cigarettes, under some of its brands in the coming 10 days [by 19 September 2006] across India. As a result of the rumour, huge volumes were traded on the company's counter on 8 September 2006. ITC is also reportedly to be considering acquiring biscuit and other brands under the ready-to-eat food sector. Moreover, it is learnt that the company is planning to roll out its maiden product in the country's personal product segment. ©Esmerk 2006

India: Capgemini to expand workforce, buy Indigo stakeThe Hindu Business Line, 08 Sep 2006,:-Capgemini India (Capgemini) plans to expand its workforce to 10,000 people by the close of 2007, and will buy 51% of Unilever India Shared Services Ltd (Indigo) from Hindustan Lever Ltd (HLL) under a deal that is slated for completion in October 2006. Indigo provides Sarbanes Oxley compliance services, business process outsourcing services and financial shared services to the Unilever Group. Capgemini is involved in technology, outsourcing, consulting, and local professional services. ©Esmerk

2006

India: L'Oréal targets 50% growth in 2006Beauty Business News, 28 Aug 2006, p.4:-French beauty group L'Oréal is targeting growth of 50% in India in 2006. It hopes to dethrone Hindustan Lever, the current leader on the mass market segment. In 2005, the Indian beauty market grew 12%, and the market leader generated growth of 4-5%. L'Oréal has achieved annual growth of 50% over the past few years. ©Esmerk 2006

Japan: Fuji Photo to sell healthcare products

Crisscross News, 13 Sep 2006,:-To diversify from the declining photo film segment, Japan's Fuji Photo Film Co (Fuji Photo) will make a foray into the supplement and cosmetic business in 2006. According to president Shigetaka Komori, the company will release a range of nine dietary supplements and three skin care products on 28 September 2006. ©Esmerk 2006

South Korea: Amore, LG compete in green tea marketKorea Times, 05 Sep 2006,:-Two South Korean companies, which lead the cosmetic market, are vying to snatch a bigger share in the green tea segment in the country. Amore Pacific (Amore) has launched its all-natural green tea, sold under the brand name Sulloc for general consumers. The company has garnered a 50% market share in the segment at present. Meanwhile, LG Household & Health Care (LG) has marketed Lu, its first and 100% green tea product in July 2005. The premium product is aimed at high-end consumers. The company intends to expand sales of the products in convenience stores and supermarkets across the nation. ©Esmerk 2006

Saudi Arabia: US$ 7bn IPO from Kingdom Holding expectedKhaleej Times, 21 Aug 2006,:-According to the UK's Sunday Times report, Saudi Arabia-based Kingdom Holding Company will be floating 30% of its stakes for US$ 7bn (EUR 5.45bn) via an initial public offering in either October or November 2006. The investment company's Kingdom Hotel Investments (KHI) was listed on the London Stock Exchange and Dubai International Financial Exchange (DIFX) with an IPO of around 25% stakes in the beginning of 2006. Kingdom Holding has equity investments in businesses such as UK business centre Canary Whaft, Disneyland Paris, US financial services provider Citigroup, US-based media firm News Corporation, US imaging and photography company Kodak, Apple Computer Inc and communications equipment firm Motorola. [Its investments also include US fast food chain McDonald's, hotel chains like Four Seasons Hotels & Resorts, soft drink giant Coca Cola, aircraft maker Boeing, car producer Ford, e-commerce giant Amazon and fast-moving consumer goods (FMCG) company Procter and Gamble (P&G).] ©Esmerk 2006

Middle East: Inamco to set up facility in SharjahGulf Today, 28 Aug 2006,:-Inamco Group of Companies will enter United Arab Emirates (UAE) by building a facility in Hamriyah Free Zone in Sharjah. The US-based manufacturer of diagnostic kits and drugs will produce and market a series of diagnostic test kits to detect pregnancy, drug abuse, and infectious diseases in the Middle East. It operates in the region under the name of Inamco Inc. By end-November 2006, Inamco will introduce in the Middle East 12 herbal cosmetic products, as well as 24 and 34 dietary supplements and prescription medicines respectively. They include Green Hope, which can boost HIV-infected patients' immunity and Livomin, which has the ability to regenerate and protect damaged liver cells. The Dh 7.34mn (US$ 2.0mn EUR 1.56mn) facility in Hamriyah Free Zone will be the second of its kind in the Middle Est and the first in the UAE. Production is slated for the first week of November 2006. ©Esmerk 2006

Russia: Cosmetics series InPharma launched onto marketSostav.ru, 22 Aug 2006,:-The Russian cosmetics holding Infinum has presented a new series of sunscreen cosmetics InPharma Sun in the domestic market. The assortment includes sunscreen cream for face and body with different sunscreen factors, as well as a lotion for aftersun shower. All products are positioned in the middle up price segment. Packaging design has been developed by the agency IMA-Design. ©Esmerk 2006

Russia: Unilever presents new body lotion DoveInterCharm, 28 Aug 2006,:-The concern Unilever expanded its line of cosmetics products under the trade mark Dove. The novelty is a moisturizing lotion with slight tan colour Siyaniye Leta. The assortment of the new product includes two kinds of lotion: for light and dark or tanned skin.

Sales of a new product from Unilever will be supported by an advertising campaign in TV and press. The action starts in autumn 2006. ©Esmerk 2006

Russia: Cosmetics corporation to register 32 brandsInterCharm, 21 Aug 2006,:-The Russian perfumery and cosmetics corporation Kalina plans to register 32 new trade marks. Relevant bids have been submitted to the authorities. According to the company, trade marks are registered to protect brand names or the corporate images against usage by others if necessary. Kalina launched over 75 novelties onto the Russian market in the first six months of 2006. ©Esmerk 2006

Russia: New cosmetics line of goods for saunaSostav.ru, 06 Sep 2006,:-One of the leading Russian producers and suppliers of cosmetics products made of natural raw materials, the company Arnika, developed a new line of goods for sauna. The novelty will be promoted at the market under the brand Simple Recipes from Grandfather Yevlampy. A personage, which will be placed on the series packaging, will be developed by the advertising agency Angel. ©Esmerk 2006

Russia: Cosmetic company Fratti NV offers noveltiesKosmetichesky Rynok Segodnya, Aug 2006, Issue 15-16 p.2:-The Russian cosmetic company Fratti NV has presented a body care products' range under the trade mark Tsvetochny Vernisazh (Flower Vernissage) in the domestic market. The assortment includes 11 products, among them face and body scrubs, hand and feet balm gels, and face creams. The range contains natural essential oils, coffee, honey, and wax. Recommended retail price totals RUR 25 (US$ 0.94 EUR 0.73) per item. ©Esmerk 2006

Russia:Experts on investment plans of UnileverAdvertology, 01 Sen 2006,:-Quoting experts, the UK-Dutch concern Unilever will spend funds received from sales frozen products of the European divisions (EUR 1.73bn (US$ 2.21bn)) on expansion of business at developing markets, including Russia. According to Corporative Relations Director of Unilever in Russia, Belarus and Ukraine, Denis Gurinovich, the company is likely to focus on production and sales of tea Lipton and perfumery lines Dove and Rexona. Insiders of the Russian market consider that first of all the company will develop high-profitable positions, in particular, tea Lipton and detergents. A possibility that the company will try to activate its operation in the segment of ice cream and frozen products is not excluded. ©Esmerk 2006

Russia: Freshline to develop franchising projectInterCharm, 30 Aug 2006,:-The Greek natural cosmetics chain Freshline having already announced launch of its retail outlets in Moscow will be developed via franchising by the company Krit-Line. The first four stores will be opened in Moscow trade complexes in September 2006. Stores will operate in the self-service format and offer the whole range Freshline including over 200 names of natural soap, face and body care products, face masks, bath line, male line, anti-cellulite cosmetics, and aromatherapy products. Freshline does not contain chemical preservatives, parabens, and silicon. The trade mark will be positioned in the upper medium price segment. Average check will total RUR 1,500-1,800 (US$ 56.08-67.29 EUR 43.76-52.52). The brand's target audience is consumers preferring natural cosmetics and hand-made soap. In future, the company plans to launch a bonus loyalty program and special promo actions. According to experts, currently several retail chains including Lush, L'Occitane, The Body Shop operate in the natural cosmetics niche in Russia. At the same time, the segment is far from saturation, and it is to early to speak of competition. ©Esmerk 2006

Russia: Beiersdorf may acquire new assetsInterCharm, 12 Sep 2006,:-

The German cosmetics manufacturer Beiersdorf (key brand - Nivea) considers possibility of new assets acquisition in Russia if they comply with the company's strategy, member of the Directors Board of Beiersdorf Pieter Nota reports. Quoting Mr. Nota Russia is among four regions where the company would like to acquire production capacities. Moreover, Beiersdorf studies opportunity of creation of new regional brands especially for distribution in Russian market. Mr. Nota also reports that the company's sales volume increases at dual speed in the country and will continue growing in prospect. ©Esmerk 2006

Russia: New hair care range Taft Complete availableKosmetichesky Rynok Segodnya, Aug 2006, Issue 15-16 p.3:-The company Schwarzkopf & Henkel has launched novelties in the range of hair care products Taft onto the Russian market. Thus, the line Taft Complete 3 in 1 includes hair spray, styling foam, and styling cream. All products ensure hair volume, shine, and softness. The line Taft Look now has 13 products. Among new ones are volumizing spray Boost Up Look, gel Action Look, spray gel Designer Look for long hair, modelling paste Play Look, and styling mousse Model Look. ©Esmerk 2006

Russia: Min o Min to open 200 haircare storesDagens Industri, 08 Sep 2006, p.20:-Swedish haircare company Min o Min is planning to open 200 haircare stores in Russia over the next four years. Five of these will be opened in major Russian cities this autumn. Founder Jan Ernstberger says he hopes sales in Russia will amount to SEK 20mn (US$ 2.75mn EUR 2.15mn) for the first 12 months and the venture will achieve breakeven in Russia within the first two years. The chain is also planning to expand on its domestic market in Sweden, from current 8 units to 20 within the next four years. ©Esmerk 2006

Russia: Actress Oksana Lavrenteva to promote EgomaniaInterCharm, 21 Aug 2006,:-The novice model and actress Oksana Lavrenteva has become the new face of the brand of Israeli hand-made cosmetics Egomania in Russia. All products in the range are based on natural ingredients of the Dead Sea. Cosmetics is made according to ancient formulas. ©Esmerk 2006

Russia: New commercial of shaving products ArkoSostav.ru, 31 Aug 2006,:-The agency Movie adapted for the Russian market an advertising commercial for promoting shave products Arko, produced by the Turkish Evyap. Demonstration of a 30-second commercial was already started at the federal channels. Slogan of the advertising campaign is: Clean Shave is Pure Delight. ©Esmerk 2006

Russia: Avon CEO on strategySostav.ru, 15 Aug 2006,:-Quoting Ferenc Der, head of Avon Russia, the company plans to remain a leader in the cosmetics direct sales market in the country. The top manager points out competition on the part of retailers is high, particularly in the Russian capital, but Avon's sales in Moscow and regions are steadily growing. He adds the company still considers Russia the most dynamically developing Eastern European market. Mr. Der estimates the domestic cosmetics market growth at 13-15% per year. The market is expected to reach about US$ 8bn (EUR 6.23bn) in 2006 and US$ 15bn (EUR 11.68bn) by 2016. In future, Avon plans to set up perfumery production at its own plant in Naro-Fominsk (Central Russia) currently making shampoos and creams. The company will hold a grant contest jointly with the British charity fund CAF among state oncologic medical institutions for the best project of free mass mammological tests. Contest winners will receive medical equipment worth about US$ 900,000 (EUR 0.7mn) free of charge. At present, the market for cosmetics and perfumery direct sales in value is structured as follows: Avon (29.5%), Oriflame (28.5%), Faberlic (14%), Mary Kay (9%), and other companies (19%). At that, make-up accounts for 40.4% of sales, skin care products - for 21.9%, perfumery - 9.7%, and other products - 28% (data given by the agency Staraya Krepost). ©Esmerk 2006

Russia: Johnson & Johnson to promote RoC

InterCharm, 04 Sep 2006,:-The US company Johnson & Johnson will continue investing into promotion of its pharmaceutical cosmetics trade mark Roc in Russia, Director of the Active Cosmetics Department of the company Tatyana Vetrova reports. Quoting Ms. Vetrova launch of the brand onto Russian market has been a long-term strategic decision for Johnson & Johnson. Investments into project are not disclosed. Products under the brand Roc are meant for skin ageing signs correction. The trade mark is developed under the slogan RoC Always Keeps Its Promises. ©Esmerk 2006

Poland: International growth for Dr Irena ErisBeauty Business News, 04 Sep 2006, p.4:-Dr Irena Eris is expecting a 20% sales increase to EUR 30mn (US$ 37.88mn), according to CEO Cezary Kolodziejczyk, who attributes this in part to strong Polish GDP growth. The company is the second biggest facial skincare manufacturer in Poland (direct sales not included) after L'Oréal and in the retail skincare market it is topped only by Beiersdorf and L'Oréal. A total of 93% of business is domestic, but January to July 2006 saw a 50% increase in its international market, 70% of which comes from Eastern Europe. The brand won an award for best cosmetics introduced to the UK in 2004 from Sunday Times' Style Magazine when it was launched in 200 Boots the Chemists outlets. It is also available in Singapore, Taiwan and the US and there are plans to build on the Western market. ©Esmerk

2006

US: Elizabeth Arden takes over Sovereign SalesCosmetics International, 8 Sep 2006, p.2:-US cosmetics producer Elizabeth Arden has taken over Sovereign Sales, the US company specialising in the distribution of prestige fragrances on the North American market. The value of the acquisition amounted to US$ 101mn (EUR 78.87mn). ©Esmerk 2006

US: Alticor takes over Gurwitch ProductsCosmetics International, 18 August 2006, p.3:-Household goods and personal products firm Alticor has taken over the luxury US cosmetics and bath brand Laura Mercier through the acquisition of Gurwitch Products, which is Laura Mercier's licensee. In line with the take over agreement, Gurwitch Products will keep its existing retail distribution channels and will be still operating as a standalone. The value of the deal has not been mentioned. ©Esmerk 2006

US: Parlux plans sale of non-core linesPress Release (Parlux Fragrances Inc), 07 Sep 2006,:-Parlux Fragrances of the US has announced that it is planning to dispose of certain non-core product lines in order to provide additional funding for new fragrance ventures, with GLMAC to assist the company in the disposal process. ©Esmerk 2006

US: FDA approves Procter & Gamble drug ActonelThe Cincinnati Enquirer, 15 Aug 2006,:-Procter & Gamble, a manufacturer of health care, baby care and household products, has said that the FDA (Food and Drug Administration) has approved osteoporosis drug Actonel for any man with osteoporosis. The drug was already approved for men with steroid-induced osteoporosis and postmenopausal women. The recent move doubles the number of men who may take Actonel. ©Esmerk

2006

US: Parlux to sell Perry Ellis rights to VictoryHouston Chronicle, 16 Aug 2006,:-Parlux Fragrances, a manufacturer of perfumes and beauty products, has said that it will sell rights to Perry Ellis fragrance to Victory International. Victory will pay US$ 140mn (EUR 109.06mn), including US$ 20mn for inventory and US$ 120mn for the rights. ©Esmerk 2006

US: Dap brand signs basketball star IversonFDC Reports - The Rose Sheet, 11 Sep 2006,:-

Barelle Development has signed NBA basketball star Allen Iverson as spokesman for Dap Body Spray for Men. The deal has been concluded for three years. Dap Body Sprays are available in three scents online at www.dapcircle.com. Crew, True and Chill retail together for US$ 19.99 (EUR 15.61). The sprays will launch in Dr. Jay's clothing stores situated in the New York metro area in November 2006. ©Esmerk 2006

US: P&G to launch premium Folgers coffeesWall Street Journal, 23 Aug 2006,:-Folgers, a coffee brand owned by Procter & Gamble (P&G), is planning to launch a range of premium coffees with flavours like caramel drizzle and espresso roast. The range will benefit from a new packaging and a US$ 20mn (EUR 15.58mn) advertising campaign designed by Saatchi & Saatchi. ©Esmerk 2006

US: Special Olay kiosk to run for two monthsThe Cincinnati Enquirer, 16 Aug 2006,:-Procter & Gamble (P&G) customers will have the opportunity to test or buy Olay brand products and have their skin tested at a special kiosk in Kenwood Towne Centre until the middle of October when the kiosk will be taken away. No further US kiosks are planned and the move is not a radical retailing experiment. Instead P&G views it as a way to study consumers as they think about an Olay purchase and then use the findings to market the Olay brand. ©Esmerk 2006

007 Vie des marques : Actualité des acteurs

UK/Netherlands: Unilever in covert job cutsSunday Times, 13 Aug 2006,:-Unilever has during the last 10 months covertly reduced its workforce by 10%, with 25,000 jobs lost at the Anglo-Dutch group. The reductions across the European operations under the One Unilever Programme have trimmed the workforce to 200,000 and indicates chief executive Patrick Cescau's eagerness to make the business more efficient. Logistics units at Crawley in the UK, along with German and Dutch operations, have been relocated in the latest move to a new centre just outside Zurich, at Schaffhausen. Hundreds of jobs have been removed as Unilever looks to enhance its buying power and at the same time cut inventory. ©Esmerk 2006

Netherlands: Job guarantee for Unilever financial staffHet Financieele Dagblad, 29 Aug 2006,:-Following 14 days of strike action by a group of 30 employees over six week period, Anglo-Dutch Unilever has offered a measures to guarantee as many jobs as possible. The financial department in Vlaardingen, the Netherlands, was concerned over jobs as the departments activities were to be outsourced. ©Esmerk 2006

India: Paras Pharma to receive US$ 42mn from ActisThe Hindu Business Line, 07 Sep 2006,:-About 25% shares in India-based Paras Pharmaceutical Ltd have been acquired by Actis of the UK. Accordingly, US$ 42mn (EUR 32.8mn) will be invested by the UK firm in the Indian personal and health care firm. Actis is into private equity investment. ©Esmerk 2006

Poland: Kolastyna reveals purpose of its share issuePuls Biznesu, 07 Sep 2006,:-Kolastyna, the Polish cosmetics producer specialising in the production of sun protection lotions, has announced that the money gained from its share issue, which is expected to take place by the end of the second quarter of 2007, will be allocated in the development its brand products, strengthening its market position, as well as the expansion of its export activities. At present, most Kolastyna's products is exported to Russia, Belarus, Lithuania, Ukraine and Kazakhstan. ©Esmerk 2006

Poland: Kolastyna reveals more share issue details

Puls Biznesu, 24 Aug 2006,:-Polish cosmetics producer Kolastyna, which specialises in the production of sun protection lotions, has revealed that the value of its share issue, which will take place by the end of the second quarter of 2007, will reach between Zl 20mn and Zl 30mn (US$ 9.85mn EUR 7.69mn). The company has refused to reveal what it is going to invest the money earned on the stock exchange in. ©Esmerk 2006

Poland/Germany: Valuation allowances at Dr. SchellerPress Release (Dr. Scheller Cosmetics), 10 Aug 2006,:-Due to the negative sales development of the Polish subsidiary in June 2006, the Board of Management of Dr. Scheller Cosmetics AG decided on and carried out a special audit at the premises. In addition to the loss of sales, it was found that a valuation allowance had to be recorded for the warehouse. Valuation allowances were also recorded for receivables to smaller customers that had been incorrectly posted. Together with the accumulated loss incurred on account of the low sales figure, a total of around EUR 260,000 (US$ 328,303.55) must be included as a loss in the consolidated balance sheet of Dr. Scheller Cosmetics AG. As a result, the consolidated result of Dr. Scheller Cosmetics AG will amount to somewhere in the region of minus EUR 150,000 as of 30 June 2006. ©Esmerk 2006

US: Two cosmetics firms to launch IPO on NasdaqWall Street Journal, 31 Aug 2006,:-Two cosmetics companies have applied to launch IPOs (initial public offerings) on Nasdaq in summer 2006, Physicians Formula Holdings and Bare Escentuals. It is the first time in nine years that a cosmetics company applies for an IPO. Bare Escentuals is seeking to raise US$ 288mn (EUR 224.76mn) while Physicians wants to raise US$ 115mn. ©Esmerk 2006

US: Share purchase approved by Parlux FragrancesMiami Herald, 06 Sep 2006,:-The share price of Parlux Fragrances increased by 18% after two brothers, Glenn and Stephen Nussdorf, increased their stakes in the company from 5% to 15%. Approval for the increase, which is required under Delaware law, was given by the board of Parlux. ©Esmerk 2006

US: Coty to close New Jersey facilityInternational Cosmetic News, Jul/Aug 2006, p.7:-Coty of the US has announced plans for the closure of its Mount Olive plant and distribution centre in New Jersey, with operations to be transferred to the Sandford facility in North Carolina, which is to be expanded. ©Esmerk 2006

US: P&G aims for eventual 5,000 job cutsThe Cincinnati Enquirer, 30 Aug 2006,:-Procter & Gamble (P&G) has axed around 2,800 jobs in the fiscal year to the end of June 2006 according to its most recent filing with the US Securities and Exchange Commission. Having acquired Gillette in autumn 2005, P&G aims eventually to shed at least 5,000 jobs but many of these will not take place until autumn 2006 or early next year. P&G is pleased at how many Gillette staff it has retained, stressing job losses would come from both companies, not just Gillette. ©Esmerk 2006

008 Distribution : Santé financière

Russia: Arbat Prestizh increases turnover by 40%RBC Daily, 16 Aug 2006,:-In the first six months of 2006 turnover of the Russian perfumery and cosmetics chain Arbat Prestizh grew to US$ 140.1mn (EUR 109.13mn). In comparison with 2005 growth totalled 40%. At present the chain Arbat Prestizh unites 25 specialised stores in Moscow, Moscow Region, St. Petersburg and Kazan. Shareholders of the company Arbat Prestizh are Vladimir Nekrasov (60%) and Troika Dialog (40%). ©Esmerk 2006

US: Sears Holdings reports 83% increase in Q2 profitWall Street Journal, 18 Aug 2006,:-Sears Holdings has reported an 83% increase in profit in the second quarter, which ended on 29 July 2006. Profit increased from US$ 161mn (EUR 125.41mn) in the same period in 2005 to US$ 294mn as a result of cost reduction. Turnover fell from US$ 13.19bn in the same period in 2005 to US$ 12.79bn, a 3% fall. Same-store sales fell 3.8% because of weak demand. ©Esmerk 2006

US: Bon-Ton Stores reports loss of US$ 19.8mnBiz Journals, 25 Aug 2006,:-Department store operator Bon-Ton Stores has reported a net loss of US$ 19.8mn (EUR 15.45mn) in its second quarter 2006, compared to a net loss of US$ 1.4mn a year earlier. Turnover was US$ 746.8mn, up from CA$ 274.3mn a year earlier. The loss increased because of costs related to the purchase of Carson Pirie Scott. The purchase also increased sales by US$ 464.7mn. ©Esmerk 2006

US: Saks registers US$ 51.9mn loss in Q2Washington Post, 15 Aug 2006,:-Saks, the luxury department store operator, has registered a total loss of US$ 51.9mn (EUR 40.43mn) in the second quarter (ending 29 July 2006). This compares with a year-earlier US$ 8.2mn profit. The results have been largely attributed to a steep drop in turnover after the firm sold the Northern Department Store Group. Quarterly turnover dropped by 37% and reached US$ 760.1mn, a drop compared to turnover of US$ 1.21bn in the comparable quarter in the previous year. Same-store sales increased by 2.9% during the period. The firm's Saks Fifth Avenue Enterprise unit improved its performance during the quarter, narrowing its operating loss from US$ 42.8mn to US$ 33.3mn. Same-store sales in the division increased by 3.4%. Saks' first-half profit reached US$ 26.04mn in 2006, up from US$ 24.36mn in the year-earlier period. ©Esmerk 2006

US: Dillard's reverses Q2 loss to US$ 15.7mn profitWashington Post, 14 Aug 2006,:-Dillard's, the department store company, has registered a US$ 15.7mn (EUR 12.23mn) second-quarter net profit (ending 29 July 2006). The profit was reportedly unexpected and has been partly attributed to good furniture sales in regions that were hit by hurricanes in 2005, as well as buoyant demand for upscale clothing that has high margins. The year-earlier period saw the company making a US$ 12.3mn loss. There were a number of extraordinary items included in the results of the 2006 results. Net sales during the quarter reached US$ 1.688bn, a slight fall compared to US$ 1.692bn in the year-earlier period. It has been indicated that the company probably reaped benefits from disruption to Federated Department Stores, caused by that company's move to convert May Department Stores outlets, which it recently purchased, to Macy's. ©Esmerk 2006

009 Distribution : Fusions et acquisitions

Japan: Matsuzakaya pays ¥ 3.1bn for 2.47% stakeThe Japan Times, 16 Aug 2006,:-Matsuzakaya Co is buying back around 2.47% of its outstanding stock via a tender offer that closed on 14 August 2006. The Japanese department store chain announced on 15 August 2006 that 4.23mn of its shares were bought back for around ¥ 3.1bn (US$ 26.94mn EUR 20.98mn). ©Esmerk 2006

Japan: Daiei unveils plans to cut down on debtsThe Daily Yomiuri, 06 Sep 2006,:-Troubled Japanese supermarket giant Daiei Inc is targeting to cut its total of outstanding debts, which currently sit at ¥ 413bn (US$ 3.56bn EUR 2.78bn), by about 50% to ¥ 200bn. To achieve this, the firm may look at offloading its department store business, its pachinko parlor chain unit Pandora Inc, some of its supermarkets as well as a stake in its consumer credit service division OMC Card Inc. Daiei is currently being placed under trading house Marubeni Corp for rehabilitation. ©Esmerk 2006

010 Distribution : Alliances et partenariats

India: India Post eyes partnership with retailersThe Economic Times, 16 Aug 2006,:-Close to 12 retail outlet chain operators from personal care, health and food industries are talking to India Post for a possible partnership. India Post is initially eyeing firms focusing on third-tier and second-tier cities. If the deal is pushed through, postmen can deliver the products to consumers' doorsteps. India Post is expected to use its 160,000-post office network to help marketing products from the said retail outfits across India. ©Esmerk 2006

US: Vera Wang to design clothes for Kohl's storesDallas Morning News, 28 Aug 2006,:-Department store operator Kohl's has announced that it has formed a partnership with dress designer Vera Wang, which involves the design of a range of clothes under the label Very Vera. The new label will be available in all Kohl's stores during the autumn of 2007. ©Esmerk 2006

011 Distribution : Management et ressources humaines

US: President and COO resigns at SaksWall Street Journal, 22 Aug 2006,:-Having joined the company in February 2004, Andrew Jennings, the President and Chief Operating Officer of Saks Fifth Avenue Enterprises unit, has resigned and will not be replaced in the near future. However, he will stay on in post for a further month. ©Esmerk 2006

UK: Executive appointment at Sally BeautyInternational Cosmetic News, Jul/Aug 2006, p.9:-Sally Beauty Company of the US has announced the appointment of Michael Spinozzi as president of Sally Beauty Supply for the US and Canada, reporting to group president Gary Winterhalter. He joins from Borders, where he was executive vp and chief product officer. ©Esmerk 2006

012 Distribution : Investissements

Netherlands: AS Watson to close 13 Trekpleister storesHet Financieele Dagblad, 16 Aug 2006,:-AS Watson, based in Hong Kong, is to close 13 stores with poor profits from its Dutch Trekpleister health and beauty chain. AS Watson has also reported that the trial introduction of its UK discount chain Savers in the Netherlands was unsuccessful. Some 13 stores had been converted to the Savers formula. ©Esmerk 2006

Italy: El Corte Ingles to open first Italian outletIl Sole 24 Ore, 28 Aug 2006,:-During the shareholders' meeting of Spanish department store chain, El Corte Ingles, Isidoro Alvarez, the Chairman, illustrated the 2005 financial report of the firm, which included revenues of some EUR 15.86bn (US$ 20.29bn). This allowed El Corte Ingles to overtake a number of its analogues in Europe, including German Karstadtquelle, Marks & Spencers of the UK, and France's Galeries Lafayette. Moreover, the Chairman confirmed that El Corte Ingles was targeting expansion in Portugal and Italy. As far as Italy is concerned, the first Italian premises will be opened in Rome, according to sources close to the group. However, according to financial daily, Cincos Dias, the first Italian outlet will be opened in Milan, where El Corte Ingles is already looking for a suitable location. ©Esmerk 2006

India: Shoppers' Stop to undertake expansion planBusiness Standard, 25 Aug 2006,:-India's departmental store chain Shoppers' Stop is set to embark on a Rs 10bn (US$ 214.96mn EUR 167.76mn) nationwide expansion plan. Under the initiative, the retail chain will establish four new Home Stop stores, 40 Mother Care outlets, 24 Shoppers' Stops, 20 Hypercity stores and 45 Crossword stores. ©Esmerk 2006

India: HLL, Arya to set up 100 therapy centres by 2008The Economic Times, 30 Aug 2006,:-By end-2006, Hindustan Lever Ltd (HLL), a fast-moving consumer products company from India, and Arya Vaidya Pharmacy (Arya) will increase the number of their jointly-opened Ayush Therapy centres (ATCs) from the current 26 to 40. According to Dalip Sehgal, Executive Director of HLL's New Venture and Marketing Services, in the coming two years [by 2008], there will be 100 of such centres in India. New value-added services would be the focus of the therapy centres, while there are also long-term plans to expand to the US, the Far East and Europe. ©Esmerk 2006

Japan: Amore Pacific eyes 12 more cosmetics outletsThe Korea Times, 21 Aug 2006,:-The South Korean cosmetics major, Amore Pacific, proposes to set up some 12 outlets for the coming three years [2007-2009] at leading department stores across Japan. A counter will be set up in Isetan department store in Tokyo come 23 August 2006, according to industry sources. ©Esmerk 2006

Brazil: Casas Bahia closes five branches in southValor Economico, 21 Aug 2006,:-Brazilian electro-electronic products retail chain Casas Bahia has revised its operations in the south of the country, and has decided to close five branches in the last two months. The Casas Bahia outlet in the city of Concordia (Santa Catarina) was closed in the last week of July 2006, eight months after its inauguration. The other branches closed were in Campo Bom and Caxias do Sul (Rio Grande do Sul), and in Maringa and Cascavel (Parana). The decision to close was taken as the units are not producing the results expected, due to the crisis in the south caused by the prolonged drought and the Russian embargo against Brazilian pork, affecting customer incomes. Casas Bahia operates 77 branches in the south of the country. The President of the Federation of Retail Leaders of Santa Catarina (FCDL), Roque Pelizzaro, commented that the situation is difficult in the region, and sales grew timidly in July 2006 by only 3.75% relative to July 2005. The retail market has commented that the decision by Casas Bahia to close some stores is also related to problems other than the region's economic crisis, such as the absence of a consumer habit to make purchases in installments with interest rates in some cities, and the problems some large Casas Bahia branches have experienced in achieving their turnover aims even in cities with over 50,000 inhabitants. ©Esmerk 2006

Brazil: Carrefour finances construction of Natal storeGazeta Mercantil, 22 Aug 2006,:-French supermarket chain Carrefour and Brazilian construction company Ecocil have developed a new business model for a shopping centre in Natal (Rio Grande do Norte). Carrefour has provided R$ 9.5mn (US$ 4.35mn EUR 3.39mn) in rent for Ecocil to build a hypermarket in a build-to-suit model, which will be one of the anchor stores of the future undertaking. The hypermarket was opened on 21 August 2006, and received total investments of R$ 30mn from Carrefour, including works, stock and equipment, and was ready within 90 days. It is the second Carrefour store in Natal and the seventh in the northeast. The advanced rent provided by Carrefour to Ecocil enabled communal areas of the shopping centre such as car parking to be ready for the hypermarket's opening. Ecocil is now to continue building the rest of the undertaking with R$ 30mn in resources, of which R$ 22.4mn was financed by Banco do Nordeste and R$ 7.6mn came from its own funds. The shopping centre is expected to be completed in November 2007. ©Esmerk 2006

UAE: Syed Junaid Alam on expansion, new productsAME Info, 05 Sep 2006,:-Syed Junaid Alam, the perfurme maker and retailer in UAE, has announced its plan to open more outlets to add to the existing 10. It also launched four new Arabic fragrances recently, namely Tuyoob, Hajar, Nazeeh and Al Afeef. ©Esmerk 2006

Middle East: KOJ set for expansionAME Info, 17 Aug 2006,:-United Arab Emirates (UAE)-based cosmetics retailer Kamal Osman Jamjoom Est (KOJ) is set to expand and expand its business in the Middle East, by using Oracle E-Business and Retail solutions. KOJ will introduce several modules of US-based software firm Oracle's Retail and E-Business

applications for managing retail activities like supply chain, planning, demand forecasting, point of sales, retail intelligence, data warehouse, store inventory and merchandising. Apart from that, the applications will also be used for activities related to property management, training, project management, payroll, human resources and finance. In addition, KOJ, which owns the Milyajy make-up brand and the Nayomi lingerie brand, also plans to have more than 1,000 outlets by 2009, up from 260 outlets it operates in the region at present. ©Esmerk 2006

Middle East: The Face Shop plans expansionInternational Cosmetic News, Jul/Aug 2006, p.8:-Budget cosmetics retailer The Face Shop of South Korea has opened its first two outlets in the Middle East, located in Jordan, with plans calling for the company to establish operations in Lebanon, Syria, Kuwait and Saudi Arabia by 2007. ©Esmerk 2006

Russia: Drogerie stores to be opened in PetersburgInterCharm, 18 Aug 2006,:-The Russian retailer Mak-Dak, manager of the drogerie chain All!Good, intends to develop its stores on franchising terms in St. Petersburg. The first outlet of the chain will be opened in late August this year. Before the end of 2006 the number of stores will be increased to five. Investments into launch of each store are estimated at US$ 80,000 (EUR 62, 317.43). St. Petersburg's market entry is in line with development strategy of the retailer All!Good envisaging establishment of four or five regional retail clusters in Russian cities. At present, the chain numbers 57 outlets including 46 in Moscow. ©Esmerk 2006

US: Federated faces the problem of duplicate storesWall Street Journal, 05 Sep 2006,:-Analysts say that the US department store chain Federated Department Stores is facing the problem of cannibalisation as it looks to convert over 400 acquired stores to its Macy's chain. The company will convert Robinsons-May, Marshall Field's and Filene's stores to its Macy's chain on 9 September 2006 and plans to become the biggest department store chain in the US with over 800 Macy's stores in 45 states. However, analysts say that the company will have duplicate Macy's stores in 85 malls in places such as Houston and Columbus following the conversion. Federated says that the duplicate stores will increase its display space and that it will be able to stock home furnishings, children's clothing and other less-available merchandise. ©Esmerk 2006

US: Federated sells 63 storesThe Cincinnati Enquirer, 08 Sep 2006,:-Federated Department Stores, the operator of a chain of upscale department stores, has said that it has sold 63 stores. The company previously said that it wanted to divest 80 stores following the takeover of May Department Stores. ©Esmerk 2006

013 Distribution : Stratégies développées

Netherlands: Hema expands insurance rangeHet Financieele Dagblad, 22 Aug 2006,:-Dutch department store Hema has expanded its range of insurance policies with motorbike insurance and funeral insurance with effect from 21 August 2006. This will join its car, travel, home and legal aid insurance products which have been available since November 2004. The products are sold online or through a call centre with information brochures available in store and further help available through the call centre. For competition reasons, Hema will not give details over the success of the products ©Esmerk 2006

Japan: Female drinkers pushing sparkling wine sales upAsahi Shimbun, 18 Aug 2006,:-The Toyoko store of Tokyu Department Store Co in Japan's Shibuya Ward has expanded the varieties of its 375-millimetre bottled sparkling wine by 30%. Sparkling wine and champagne sales in the country are going up record-high in 2006 mainly fanned by female drinks in their 30s. The Toyoko

store intends to expand sparkling wine section floor space by 50% in September 2006. Turnover of the Nihonbashi outlet of Takashimaya Co in Chuo Ward for the first six months of 2006 has also increased 40% year-on-year. Female drinkers are purchasing premium beverages just to drink them alone and for special occasions. ©Esmerk 2006

Middle East: Imedeen now available at BootsGulf News, 31 Aug 2006,:-Boots, the UK-based pharmacy and beauty products retailer, will sell Imedeen premier skincare products at its outlets in the Middle East. Boots, which entered the Middle Eastern market via Kuwait earlier in 2006, is now also present in the United Arab Emirates (UAE). ©Esmerk 2006

Russia: On automatisation of retail chainsSostav.ru, 24 Aug 2006, :-The agency Cnews Analytics made a rating of the largest Russian retail chains by the level of automatisation (such indices as managing of a warehouse, managing of supplies, CRM, automatisation of calculated front offices, automatised commercial system/EPR, IT-services, management of IT-infrastructure, servicing of plastic cards, Internet-trade). A list of ten outlets looks as follows: supermarkets Perekrestok - 1 (the 3rd place in 2005), Pyaterochka - 2 (1), Sedmoi Kontinent - 6 (4), hypermarkets - O'Key - 9 (5), production discounters Kopeika - 5 (10) and Dixis - 8 (8), the mobile phone retailer Evroset - 3 (2), stores selling consumer electronics and household appliances Tekhnosila - 4 (11) and M.Video - 7 (15) and a chain of stores selling cosmetics and perfume L'Etoile (it was out of the rating in 2005). ©Esmerk 2006

Russia: Stockmann to open Nike storesPress Release (Stockmann), 15 Aug 2006, p.1:-Finnish Stockmann has agreed on a partnership with Nike Russia to open Nike Stores in Russia. The first Stockmann-operated Nike store will open at the beginning of 2007. Stockmann is planning to open several Nike stores in Russia in the future. Association with selected partners in retail is part of Stockmann's expansion strategy in Russia, while Nike aims to inspire consumers through innovative retail in a NikeTown or in a shop-in-shop, in the wholesale business or in a Nike Store. Cooperation with Stockmann will further enhance this aim. ©Esmerk 2006

US: Saks same-store sales up 3.3% in August 2006Wall Street Journal, 31 Aug 2006,:-Luxury department-store operator Saks has said that same-store sales increased by 3.3% in August 2006. Analysts expected a 3.3% increase. Turnover was US$ 227.5mn (EUR 177.55mn), down 36.5% from a year earlier. ©Esmerk 2006

US: Kohl's same-store sales up 5.2% in August 2006Wall Street Journal, 31 Aug 2006,:-Department store chain Kohl's has said that same-store sales increased by 5.2% in August 2006. Analysts expected a 3.5% increase. Turnover reached US$ 1.14bn (EUR 0.89bn) in the four weeks ending on 27 August, up 13.1% from a year earlier. ©Esmerk 2006

US: JC Penney same-store sales down 0.5% in AugustWall Street Journal, 31 Aug 2006,:-JC Penney, the operator of a chain of drugstores and department stores, has said that its same-store sales declined by 0.5% in August 2006. Analysts expected an increase of 1.8%. Total sales increased by 0.7% in August, to US$ 1.58bn (EUR 1.23bn). ©Esmerk 2006

US: Federated reports rise in August salesWall Street Journal, 31 Aug 2006,:-The US department store chain Federated Department Stores has reported a 3.8% increase in same-store sales during August 2006, while sales rose 61.6% to US$ 1.73bn (EUR 1.35bn) in the four

weeks ending 26 August 2006. A 3% to 5% increase in same-store sales has been forecast by the company for September 2006 and for the third quarter. ©Esmerk 2006

US: Dillard's same-store sales down 1.1% in August 2006Wall Street Journal, 31 Aug 2006,:-Dillard's Department Stores has said that same-store sales declined by 1.1% in August 2006. Analysts expected an increase of 0.7%. Turnover in the four weeks ending on 26 August reached US$ 557.3mn (EUR 434.93mn), down 2% from a year earlier. ©Esmerk 2006

US: JC Penney to release strategic plan for 2007-2011Washington Post, 29 Aug 2006,:-JC Penney, the operator of a chain of drugstores and department stores, has said that in spring 2007 it will unveil '07-Eleven, a new growth plan. The plan will give a larger role to the jcp.com website and will target a higher operating profit at JC Penney department stores. The company also wants to open 50 new stores every year from 2007 to 2009. ©Esmerk 2006

Mexico: Liverpool to open its own bank?El Diario de Monterrey, 15 Aug 2006,:-The Puerto de Liverpool department store chain, based in Mexico, is said to be considering applying for a banking license, although no firm decision has been made, according to company sources. There is a growing trend in Mexico for retailers to operate their own banks. ©Esmerk 2006