CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L · created by perfumers Olivier Cresp, Dora Baghriche and...

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Comment Inside CONFIDENTIAL I n terms of niche acquisitions, the focus has been mainly on fragrance over the past year and a half. However, more purchases are likely to come in the color category, especially given the growth of make-up and the number of new, creative brands emerging—many of which have expertise in social media and target the much-talked about millennials. Last week, Shiseido announced that it would take over the Laura Mercier make-up brand (as well as the Révive skincare brand), as part of a strategy to capture a greater share of the fast-growing color market—a key objective for the Japanese group. It is likely that other multinationals are eyeing up middle-sized players, as well as start-ups in the market in a bid to fill gaps in their portfolios. One executive from a major color brand recently told BW Confidential that it is no longer competing with traditional companies, but is trying to keep up with newer brands in the market. Perhaps the easiest way to keep up with these new players is simply to buy them up. Color buys The buzz 2 News roundup Netwatch 6 Social media monitor Interview 7 L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez Insight 9 Japan Show review Luxe Pack New York 12 Cosmopack New York 13 Store visit 14 Yves Rocher, Paris Oonagh Phillips Editor in Chief ophillips@bwconfidential.com www.bwconfidential.com The inside view on the international beauty industry June 9-22, 2016 #132 News headlines daily on www.bwconfidential.com @BWCbeautynews Meet the BW Confidential team at: l World Perfumery Congress, Florida, June 13-15 l Alternative Fragrance & Beauty, Paris, June 16-18

Transcript of CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L · created by perfumers Olivier Cresp, Dora Baghriche and...

Comment Inside

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

In terms of niche acquisitions, the focus has been mainly on fragrance over the past year and a half. However,

more purchases are likely to come in the color category, especially given the growth of make-up and the number of new, creative brands emerging—many of which have expertise in social media and target the much-talked about millennials. Last week, Shiseido announced that it would take over

the Laura Mercier make-up brand (as well as the Révive skincare brand), as part of a strategy to capture a greater

share of the fast-growing color market—a key objective for the Japanese group. It is likely that other multinationals are eyeing up middle-sized players, as well as start-ups in the market in a bid to fill gaps in their portfolios. One executive from a major color brand recently told BW Confidential that it is no longer competing with traditional companies, but is trying to keep up with newer brands in the market. Perhaps the easiest way to keep up with these new players is simply to buy them up.

Color buys The buzz 2News roundup

Netwatch 6 Social media monitor

Interview 7 L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez

Insight 9 Japan

Show review Luxe Pack New York 12Cosmopack New York 13

Store visit 14 Yves Rocher, Paris

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry June 9-22, 2016 #132

News headlines daily on www.bwconfidential.com @BWCbeautynews

Meet the BW Confidential

team at:

l World Perfumery Congress, Florida, June 13-15l Alternative Fragrance & Beauty, Paris, June 16-18

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Strategy

Shiseido Americas is to acquire US-based Gurwitch Products, which markets prestige make-up and skincare brand Laura Mercier and luxury skincare brand RéVive. Gurwitch Products is a wholly owned subsidiary of Alticor Inc. In 2015, Gurwitch generated net sales of $175m. Financial details of the transaction were not disclosed. The deal will be funded with existing cash and loan facilities and is expected to close in the third quarter of 2016. Shiseido said the move is in line with its Vision 2020 strategy to accelerate global growth, and is expected to enable the group to strengthen its foothold in the fast-growing prestige make-up market.

US-based Johnson & Johnson Consumer is to acquire US-based haircare company Vogue International for $3.3bn in cash. Vogue International markets haircare and other personal-care products. The acquisition will include the company’s OGX collection of hair, bath and bodycare products, the FX line of hair styling products and the Maui Moisture and Proganix haircare lines. Its products are sold in the US and in 38 countries. The acquisition is expected to close in the third quarter of 2016. J&J said that the deal is not expected to impact its 2016 sales and earnings forecasts. The deal follows the announcement in April that Johnson & Johnson Consumer is

to acquire dermocosmetics specialist NeoStrata Company.

US-based Revlon has acquired nailcare brand Cutex’s international businesses from Coty. The international businesses are mainly in Australia and the UK. Revlon already owns Cutex’s US business and the addition of international operations under Revlon management is aimed at expanding the brand’s geographical reach and moving into new categories. Coty stated that the deal ties in with its strategy of focusing on fewer brands.

Brazilian direct-seller Natura has begun selling its Sou line in vending machines. The vending machines are located in metro stations, a university and at the Congonhas Airport, São Paulo. Natura has also launched an app for the Sou line, which lets consumers order the products online to receive them at home. This move into vending machines and apps is part of Natura’s strategy to diversify its distribution and be less dependent on direct sales. The company began selling Sou through pharmacies in March 2016. n n n

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

n Shiseido to acquire Laura Mercier, RéVive

n Johnson & Johnson to acquire Vogue International

n Revlon acquires Cutex’s international business from Coty

n YSL launches new fragrance

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UK-based retailer The Perfume Shop opened a pop-up fragrance cocktail bar at London’s Mahiki nightclub last month in a move designed to showcase its fragrance expertise. The Perfume Bar was open from May 24-26, and interested consumers were invited to apply to win tickets to the event. Mixologists created six cocktails infused with notes from a selection of perfumes, which the retailer said would enable consumers to taste their favorite fragrances. The cocktails included a Marc Jacobs Daisy Margarita, a Thierry Mugler Angel Colada and a Chloé Signature Martini.

Sephora has launched The Beauty Board platform on its French website. The Beauty Board, which already exists on the retailer’s US website, is a community feature, which is described as Sephora’s own version of Pinterest for beauty. Clients can create their own social pages on The Beauty Board, post photos, identify the products used to create their looks and share advice and beauty techniques.

France-based L’Occitane en Provence has launched a packaging recycling program at its stores. The brand has partnered with recycling company Terracycle, which will treat the used packs. L’Occitane will offer 10% off purchases when consumers bring three packs to its stores to be recycled.

Data

French women are increasing their annual make-up budget, spending more in this category than on skincare despite the latter’s higher prices, according to a study on cosmetics consumption trends from strategy consultancy Simon Kucher & Partners. The study, carried out among 1,000 French consumers in February 2016 in partnership

with Research Now, found that those surveyed spend an average of €225 per year on make-up compared with €188 on skincare. Some 26% spend less than €100 on make-up annually, while 33% spend less than €100 on facial skincare. While 27% spend more than €300 on make-up, just 19% do so on facial skincare. There are psychological thresholds when it comes to price—50% of women think €10 is

an acceptable price for a lipstick, above €15 is expensive and above €25 is very expensive. Meanwhile, 50% consider around €15 to be an acceptable price for an anti-aging day cream, above €15 to be expensive and above €25 to be very expensive.The study revealed a higher usage rate of make-up items than skincare products: 74%

of consumers use mascara, 65% use nail polish, 64% use lipstick and 61% use eye pencils and eyeliner. In comparison, only 40% of women surveyed said they use day cream, although 90% of those who do, use it every day. More than half of French women buy make-up on impulse, with consumers in this

category less loyal to brands and more responsive to promotions than skincare consumers.

US consumers are spending more on prestige fragrance candles and diffusers and purchasing more of these items, according to market-research company The NPD Group. This category is driving much of the growth in the fragrance category, NPD reports.Candles saw an 18% rise in dollar sales and a 15% increase in unit sales in the n n n

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z News roundupn n n 12 months ending April 2016. Candles represent the largest segment within home scents, and the category has grown by over $11m in the past two years, according to NPD. The average candle retail price increased 2% to nearly $29. Fragrance diffusers saw a 36% increase in dollar sales and a 27% rise in units over the

last 12 months, and sales have nearly doubled in volume during the last two years. Their average retail price grew 7% to nearly $37. Sales for room fresheners grew 26%. The home scents market in the US is worth $49.9m.

People

Shiseido has created the position of chief sustainability officer for the EMEA region and said that Daniel Guillermin will fill the new role from July. Guillermin was previously president of Shiseido International France. Guillermin will be replaced by Hervé Ronsin, who is to become general manager, EMEA operations and president of Shiseido International France, effective July 1, 2016. Ronsin was most recently vp in charge of packaging development, procurement and supply-chain.

L’Oréal USA has appointed Marc-Alexandre Risch to the newly created position of chief retail officer. In his new role, Risch will help to establish omni-channel consumer experiences across L’Oréal USA’s brand portfolio, the company said. Risch joined L’Oréal in 2005. He was most recently general manager of The Body

Shop Canada.

P&G has named David Taylor as chairman of the board, effective July 1. Taylor, who joined P&G in 1980, takes on the position in addition to his role as president and ceo. The appointment follows the retirement of current executive chairman AG Lafley.

Launches

Chanel is adding a new scent to its N°5 franchise this fall. Called N°5 L’Eau, the fragrance was created by in-house perfumer Olivier Polge. According to Chanel, Polge brought out

key facets of the original N°5, for example giving preference to aldehydes with the scent of orange rind, adding green to the ylang ylang and increasing the vibrancy of the zests. Model and actress Lily-Rose Depp is to be the face of the fragrance. Launching in September, N°5 L’Eau retails at €68 for 35ml (a limited edition), €89 for 50ml and €126 for 100ml. n n n

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n n n L’Oréal-owned Yves Saint Laurent Beauté is to launch a new women’s fragrance this summer inspired by Paris. Called Mon Paris, the chypre scent was created by perfumers Olivier Cresp, Dora Baghriche and Harry Fremont of Firmenich. Mon Paris comes in a multi-faceted glass bottle said to pay tribute to a tuxedo jacket. It is adorned with a silk ribbon with leather tails designed to resemble a floppy necktie.The launch is accompanied by an ad campaign featuring Canadian model Crista

Cober and French actor and model Jérémie Laheurte as two lovers in Paris. Mon Paris launches in June, priced at €58 for 30ml EdP, €84 for 50ml EdP and €110 for 90ml EdP.

Interparfums is launching its first scent from fashion accessories brand Coach this fall. Coach the Fragrance is a women’s scent said to capture the energy of New York City. The fragrance was created by Juliette Karagueuzoglou and Anne Flipo of IFF. The bottle is said to reference Coach’s design codes: it features the brand’s horse and carriage motif, a leather and metal handtag and an atomizer inspired by its turnlock handbag clasp. American actress and model Chloë Grace Moretz is the face of the new Coach

fragrance. Moretz is already the face of Coach’s fashion accessories. Coach the Fragrance is launching in September, in both EdP and EdT formats. It is priced at $55 for 30ml, $75 for 50ml and $95 for 90ml. Interparfums acquired the Coach fragrance license last year. The license was previously held by the Estée Lauder Companies.

Hugo Boss (P&G) is launching a women’s version of Boss The Scent in August. The men’s fragrance Boss The Scent launched in September 2015. Inspired by the Boss cufflink, Boss The Scent Boss For Her is intended to capture the juxtaposition of masculine and feminine, according to the brand. The pink juice comes in a bottle that features a cufflink-inspired jewel at the top. The launch is supported by a campaign featuring German model Anna Ewers and British actor Theo James.

L‘Oréal-owned Giorgio Armani Parfums is adding a new scent to its Sì franchise this fall. Called Sì Le Parfum, the scent was created by Julie Massé of Mane. It contains notes of blackcurrant and amber and a chypre accord. Sì Le Parfum is launching in September, retailing at €134.50 for 40ml EdP. The other fragrances in Giorgio Armani Parfums’ Sì line are: Sì EdP, Sì EdT, Sì Intense and Sì Rose Signature.

La Prairie is to launch what it calls the missing link in its key Caviar skincare collection this fall. Skin Caviar Essence In-Lotion is designed to be used as a first step in the skincare regimen and to prepare the skin for the brand’s Skin Caviar Liquid Lift and Skin Caviar Luxe Cream. “Consumers’ skincare regimens have become more complex and there was a missing product in their skincare ritual, which is why we have come out with this lotion,” explains La Prairie managing director France Jean-Baptiste Grosdidier.Key to the new product is the use of caviar water rather than ordinary water in the

formula. The brand said it created a new distillation process to come up with the caviar water. The product also contains caviar extract and the brand’s cellular complex. Caviar Essence In-Lotion will launch in September and is priced at €213 for 150ml. n

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

Social media monitor

Sleep-in or overnight cosmetics products have attracted the interest of bloggers, who would like to see more of these items. Products include Dr Jart+ Night Beauty Balm, which contains breathable colorants, and The Balm’s Time Balm Concealer, which is suitable for wearing overnight.

A limited-edition nail polish launch by KFC Hong Kong is liked for its clever strategy that plays on the ‘Finger Lickin Good’ tagline and is thought to appeal to younger consumers. The two-sku edible nail polish line is inspired by KFC’s fried chicken flavors and is backed by a social media campaign asking consumers to vote on a product to be mass produced.

Hair stenciling is becoming a big trend, according to Instagram users. Using temporary hair color sprays, the designs are said to be easy to produce and offer original effects. Hair tattoo brands are also emerging.

Mixnature has been praised on the blogs for its interesting and easy customizable concept. The brand offers base products for the face, hair and body, and ingredients that can be mixed to create fresh and natural personalized products.

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BW Confidential talks to L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez about the challenges and opportunities facing beauty in the region

Market challenges

How is your business performing in travel retail in the Americas?Business in the region is challenging due to three factors: a strong US dollar, the Latin American crisis, and efforts by the Chinese government to promote purchases within China. Even confronted with these challenges, L’Oréal finished 2015 ahead of a negative market, and we are observing the same dynamic in 2016.

What are your expectations for 2016?Our sources indicate that overall traffic in the Americas will post single-digit growth in 2016. People are still traveling, but are dedicating their available dollars to leisure, not shopping. For this reason, we expect a single-digit contraction in the market this year, driven in large part by the Latin American crisis. The Brazil Central Bank indicated that Brazilian spend abroad declined by 62% in January 2016 versus January 2015. And a recent study from CIR states that more than 50% of Latin Americans plan to buy less in duty free, or to not buy at all. In line with this, we have observed that traffic to stores has declined. Even so, as of the end of March, L’Oréal is performing better than the market.

How do you expect the crisis in Brazil to continue to impact business?Brazilian confidence is down, and consumer purchasing power is affected by the political scandals, prolonged recession, growing unemployment and currency devaluation. The common practice of paying in installments means that some once key duty-free customers are dedicating a considerable portion of their salary to debts acquired a year ago. In 2016, we therefore expect lower average transactions from Brazilians, with fewer visits to duty-free stores, and perhaps fewer items per transaction or a shift to more affordable products.

How can you adapt to such challenging conditions?I have seen this type of crisis several times in travel retail. We must be aware of what’s happening in the markets, adapt to current times, and focus on the opportunities. Our brand portfolio and product assortment is key to surfing the crisis. We have to carefully determine which brands and products to focus on and in which locations. We have to have an open exchange of information with the retailer to help us both address the consumer’s needs. One of L’Oréal’s strengths is our brand portfolio, which allows us to address different segments. For example, both L’Oréal Paris and Maybelline are performing very well in travel retail in the south because of their strong image and accessible price. For the established brands, we are addressing the need for more promotional items through sets and incentives like gwps. We understand that customers are attracted to price incentives, but we prefer to be cautious to protect the DNA of our luxury brands. n n n

L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez

”L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez

In 2016, we expect lower average transactions from Brazilians, with fewer visits to duty-free stores, and perhaps fewer items per transaction or a shift to more affordable products

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w L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez

n n n What other challenges and opportunities are you facing?The Chinese are our second nationality after Brazilians. This year, we expect they will become the first nationality given the traffic forecast from tier-one and tier-two cities. This is a great opportunity, but the environment is becoming much more competitive. We see aggressive promotional activity at airports in tier-one cities, an increase in pre-orders, and the development of new arrival shops in China. Additionally, where the Chinese once traveled more in tours, they are now traveling more independently.

How are you working to better target Chinese travelers in North America?We have a Chinese tracker tool that allows us to understand where and how they are traveling, their motivations while shopping and which category they are looking for. We have recently witnessed an increase of the penetration of fragrances while traveling in Europe and in America. We are also closely following the best sellers in the markets of reference. Only by systematically following the trends throughout the world are we in a position to take advantage of the opportunities ahead. By doing so, we can better adjust our offer and our brand expression at the pos. As an example, while La Vie est Belle is the most strategic fragrance for Lancôme in the Americas, Miracle is key on the West Coast given its success in Asia.

How can you encourage shoppers in the region to buy in travel retail?Even if shoppers in duty free have been historically driven by price, the brand’s expression, the product offering and service are equally important. During a recession, we need to keep price competitiveness because it becomes definitive in the purchase decision, mainly when travelers are hyper-connected. We have adapted our counters to better serve our global shoppers with tools that facilitate the dialogue despite language barriers and passengers with time limitations.Our beauty advisors are constantly trained on the products, and on the most relevant

trends worldwide. We have improved service by addressing the customers’ needs according to information obtained from global shopper studies: who they are, how they travel, their interests, the categories they are looking for and the best sellers in the markets of reference. If we want to increase penetration of duty free, we need to listen to what consumers are looking for and become consumer-centric.

How are you addressing the millennial consumer?Millennials are key for the group. Kiehl’s and Urban Decay are relevant brands for this segment. […] YSL is [taking] important steps in attracting millennials, while Lancôme also had relevant initiatives with the recent launches Juicy Shaker and Energie de Vie. Specifically in travel retail, we don’t have enough data to dimension their importance, sales-wise. Their behavior varies based on the travel destination. In some locations, millennials are purely interested in the trip, dedicating their traveling budget exclusively to leisure purposes. In other locations, we have seen millennials integrating shopping as key part of their journey, with a high average ticket and openness to the advice of our BAs. n

s Launches such as Juicy Shaker from Lancôme are hoped to appeal to millennials in travel retail

”L’Oréal travel retail Americas strategic business development director Gabriela Rodriguez

The Chinese are our second nationality after Brazilians. This year, we expect they will become the first nationality given the traffic forecast from tier-one and tier-two cities

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Boosted by an increase in inbound tourism from neighboring countries, beauty players in Japan are optimistic about renewed growth in what has otherwise

been a difficult market in recent years. However, even last year in spite of the flow of tourists, retail beauty and personal-care sales fell by 0.4% to $32.15bn, according to figures from Euromonitor International.Economic measures such as the removal of taxes for foreigners on consumer

products like cosmetics, the devaluation of the yen and a relaxation of visa requirements have contributed to pushing monthly visitor numbers to Japan to record highs over the past 12 months. February 2016 saw a 36.4% year-on-year increase in visitor numbers to 1.89 million, led by the Chinese (498,900), South Koreans (490,800) and Taiwanese (349,00), according to data from Japan Macro Advisors. It is estimated that around half of all visitors purchase cosmetics during their stay. Mintel beauty analyst Hinako Sugioka says Chinese visitors tend to engage in

‘bakugai’, or shopping sprees, purchasing cosmetics in bulk during their stay. She says both department stores and drugstores have benefited from the influx of overseas consumers. For prestige beauty brands, the influx of cashed-up inbound tourists has driven

renewed growth in key department store doors, and offset domestic consumption patterns that have been weakened by hikes in consumption n n n

Tourism continues to give the Japanese beauty market a much-needed boost

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n n n taxes and an aging population. “Beauty is growing extremely fast again in Japan and this has been the case for a good two years now. Department stores specifically are growing very fast. The Chinese impact has been tremendous,” comments Estée Lauder svp general manager international Justin Boxford.Most of the major Japanese companies’ domestic sales over the past year or

more have been buoyed by the tourist impact. The market’s number-one group Shiseido for example, saw a 4.5% increase in sales in Japan for its first fiscal quarter. The company said that inbound sales for the first quarter were around ¥10bn ($91.7m), or around twice as much as last year. It expects inbound sales to increase by 30% year on year to around ¥34bn ($31m). Meanwhile, Japanese beauty company Kosé, whose Sekkisei brand is the

number-one cosmetics brand among Chinese visitors according to Mintel research, reported a 17.1% increase in net sales for 2015. This was due in part to increased sales to tourists in Japan.

Adapting to new consumersIndustry players are looking to adjust their business in light of travelers to Japan, and especially the Chinese. Shiseido for example, said that it had aggressively opened counters at downtown duty-free stores. “To respond to this drastic change in the dynamics of consumers in Japan, brands and retailers have adopted tax-free checkout cashier’s sections in their stores,” says Sugioka. “Also, if you go to stores, we see multiple languages of signage explaining product features, and multilingual staff to help those tourists.”In addition to Chinese language merchandising and staffing, which is relatively

new, Boxford says that Estée Lauder, which is present in 135 doors plus e-commerce, is tailoring its product assortment to tourists and adding services like personalized monogramming on lipsticks or two-minute touch-ups.“We want to make sure that our leading lines in China, like Advanced Night Repair or Nutritious, are in those China-driven doors,” says Boxford. He says that the Japanese tradition of high service standards is also a “great way to engage with tourists so that when they go back to their country they purchase your brand there as well.” Foreign tourists, and

especially the Chinese, are more likely to prefer Japanese brands and products, say industry observers, providing a lift to local brands both at home and abroad. “Many companies are starting to claim ‘made in Japan’ on their brands as n n n

Japan beauty sales* by category 2015 $bn Category Sales

$bn% change 2015/2014

Skincare 14.10 -0.5Color cosmetics 5.73 -0.2Men’s grooming 1.67 -0.7Fragrance 0.41 0.0Premium beauty & personal care

12.35 -0.2

Mass beauty & personal care

16.85 -0.8

Total beauty & personal care

32.15 -0.4

Source: Euromonitor International *Retail sales priceFigures do not add up to total as some categories are not included

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n n n visitors prefer products made locally,” says Sugioka, noting that Shiseido recently added “Ginza Shiseido” to its packaging and created skincare sets packaged in signature red to appeal to Chinese consumers.

The local challengeHowever, while inbound tourism is providing a much-appreciated boost to growth, capturing the business of domestic consumers in a country that is home to some 127 million people remains a challenge. Boxford notes that the impact of tourism is generally restricted to select doors in tourist hubs like Tokyo. Outside these areas, retailers and brands are increasingly focusing on adding services to appeal to domestic consumers. Nippon Menard France, owner of Japanese skincare brand Menard, general

director Junko Sumyia says: “Some cosmetics companies have discounted prices to boost sales, but luxury brands don’t do that. In Japan, many cosmetics firms are focused on advice, with beauty advisors listening to the consumer’s skin problems, advising on treatment and introducing new products”.Estée Lauder’s Boxford agrees that service is key for capturing domestic

consumers. He says that department stores are seeing good growth from young Japanese consumers buying color cosmetics such as lipsticks. Department-store chains like Isetan are introducing new specialty-multi open-sell environments that have an emphasis on make-up in a bid to attract younger consumers away from mass channels. In addition, retailers are working hard to leverage their e-commerce sites to capture sales. “We find that where there isn’t a big key store for the Japanese consumer, then they are buying our brands on these retailer sites in a big way,” he says. Mintel’s Sugioka notes that brands and retailers are increasingly moving

towards omni-channel retailing. She points to Seibu Department Store Ikebukuro launching a new concept in a subway concourse, which enables consumers to browse and purchase some 10,000 cosmetic products across 92 brands from the retailer’s e-commerce site. Japanese consumers still very much prefer local brands and products, believing

that they are better suited to their needs. Whitening products in particular remain popular with Japanese consumers, notes Menard’s Sumyia. Sugioka agrees, adding that men of all ages are becoming more interested in anti-aging skincare. To this end, Japanese company Kanebo last year launched its first prestige men’s skincare line in Japan, dubbed Lissage Men. Korean beauty brands have struggled to gain the traction in Japan that they

have seen in other markets. Sugioka says that because they are often single items, Korean products don’t offer the skincare regimen that is so important to Japanese consumers. “The challenge for them is to establish and nurture loyalty,” she says. “[Korean] product innovation definitely impacts the Japanese market, and domestic companies make copycat products, but with comprehensive messaging in Japanese.”Industry players say the beauty market in Japan remains very much dominated

by Japanese brands. It is also a market where mass and masstige brands play a key role. Prestige players say the opportunity lies in trading up Japanese consumers and recruiting those who buy mass products. n

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Luxe Pack New York Took place: May 11-12Visitors: 3,768, +4.6% vs 2015Exhibitors: 240

This year’s Luxe Pack New York packaging event, which took place in Manhattan from May 11-12, showcased a string of new trends. Exhibitors

highlighted the importance of environmentally friendly packs, including applicators that reduce waste, and multi-functional packs.Cooling and heating technologies were also showcased. Cosmogen for

example presented its Attract One Expert product, an applicator that has a removable roller ball that can be frozen or warmed up before use. Its closed system also means that when the applicator is cleaned, water cannot contaminate the tube. Packs to protect more potent ingredients were also much in evidence. Fusion Packaging for example, unveiled airless applicators for skincare with new anti-microbial additives that are included during the injection molding to provide additional surface protection. There was also a focus on new decoration techniques with HCP Packaging USA showcasing a new air-sputtering decoration technology. The technology gives packs a fireworks display effect due to a spray that is applied and then blown to create an explosion of color cascading from the center outwards. Metallization was also a focus at the show, with SGD showcasing its Metal In

technique, which gives the illusion of metal floating inside a bottle. Exhibitors also pointed to the growing trend for specific packs for the travel-retail channel. As to the market, exhibitors said that the US is seeing good growth, but that

the performance of beauty’s product categories remains mixed. “Facial fine mists are doing well, but skincare as a whole seems to be flat, while color cosmetics are picking up,” explained Aptar Beauty + Home account manager Caitlin Harris. SGD North America vice president of sales and marketing, perfumery division Sheherazade Chamlou added: “The prestige fragrance market in the US is growing. Last year celebrity fragrances tanked; however, now you can see that designer fragrances in the US are doing better because the prestige market is where the growth is.” This market dynamic was reflected in the show itself. This year the show was

bigger and attracted 3,768 visitors, up 4.6% on the previous year. Some 240 exhibitors attended. Luxe Pack executive director Nathalie Grosdidier told BW Confidential that in addition to a higher number of visitors there was also a good balance between American and European packaging manufacturers, with the split now being 50:50 compared with 80% of European exhibitors in the first few years of the show. n n n

BW Confidential reports on what was seen and heard at Luxe Pack New York, which took place from May 11-12

Packs on show

Luxe Pack New York

Credit: UBRProd

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The Cosmopack New York international business forum & exhibition attracted more than 150 buyers from the US, Canada, Mexico, Chile, Brazil, Guatemala and Peru.

Buyers attended the event to meet Italian beauty suppliers in the areas of packaging and contract manufacturing. The event, which is organized by Cosmoprof in collaboration with Italy’s beauty association Cosmetica Italia and industry cluster Polo Tecnologico della Cosmesi, was held from May 11-12 this year (coinciding with the LuxePack New York show) instead of its usual September date. The event hosted a series of conferences, which put the focus on sustainability and how

companies can continue to bring newness and innovative packaging to the market that is also environmentally friendly. Brand strategist and author Leslie Sherr said that consumers like new and creative packs, but loathe the associated environmental waste, and that this will drive the adoption of more sustainable materials. There is also a move towards a packaging crossover from other industries, such as food, and the creation of small, single-use packs and concentrated formulas that use less water. Design agency Centdegres managing

partner and creative director Elie Papiernik highlighted that social media is exposing brands and said that now “brands are naked”, meaning companies need to put more emphasis on sincerity. This is resulting in packaging moving into what he calls the emotional era. Unique packaging and designs are breaching the emotional bond between brand and consumer, he says. This year’s event also saw the launch

of the Make Up Room, a series of workshops and lectures intended to demonstrate the impact of fashion trends on the beauty industry. The event also hosted an exhibition called

Visionnaire 0.2. Organized in collaboration with Italian contract manufacturer Chromavis, the gallery used objects, words, colors and images to give indications on directions the beauty industry could take in the future. Meanwhile, the Innovation Circle showcased new products from suppliers at the event. n

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Cosmopack New York

Conferences at this year’s Cosmopack New York put the focus on sustainability and branding

Sustainability focus

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Yves Rocher Paris flagship

l Opened: May 2016 l Location: Paris, France l Size: 120m2 (1,291ft2)

l Special features: Four shop-in-shops for skincare,

make-up, perfume and bath. The zones include a beauty lab for skin diagnostic tests, a nail bar

and a mini fragrance lab

France-based Yves Rocher has revamped its Champs Elysées flagship in Paris, which it now likens to a botanical beauty lab that puts the focus on its plant-

based cosmetics heritage. The trademark green banner on the facade of the 120m2 (1,291ft2) store

has been replaced by one decorated with vegetation, while the store’s decor features wood, moss and stone. The store has a large hanging structure made up of 240 light elements shaped like the Y of Yves Rocher and intertwined to resemble a genome. There are also interactive screens and scientific projections. The renovated flagship comprises four shop-in-shops for skincare, make-up,

perfume and bath, intended to clarify the offer for consumers. The skincare shop-in-shop, located on the first floor, includes face, hair, body and sun care products. It also houses a beauty lab, where shoppers can do skin diagnostic tests, as well as a nail bar. The make-up shop-in-shop features a make-up wall, and consumers will be

able to take part in beauty sessions with advisors. The perfume area is home to a mini fragrance lab, where visitors can test scents and learn more about the composition of the juice, while the bath shop-in shop showcases the store’s new bath collection, which was launched for the opening. Gift sets and travel formats are available at checkouts. Yves Rocher worked with retail design company Workshop to complete the

store renovations. n

Yves Rocher puts its plant-based heritage on show at Paris flagship

Yves Rocher revamps Champs Elysées store

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s The skincare shop-in-shop features a beauty lab for skin diagnostics and a nail bar

s The store is divided into four shop-in-shops for make-up, skincare, perfume and bath

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