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The number of new fragrance launches continues to rise and stood at 1,620 in 2014, according to the latest

edition of fragrance guide Fragrances of the World 2015 by industry expert Michael Edwards. However, the pace of new introductions slowed somewhat last year. In women’s fragrance, the number of launches in 2014 dropped to 925 compared with 968 in 2013. The niche category, which is fast becoming saturated, also saw a slight decline in launches with 448 new products in 2014, against 540 in 2013.

But the number of flankers continues to rise—a total of 275 were introduced last year—as brands looked to capitalize on existing ranges rather than take the risk of introducing a completely new franchise. While most bemoan the number of launches, the newness factor is unlikely to go away.

No matter what the industry, from mobile phones to tablets, consumers are looking for the latest new thing. The only difference is that in many other sectors the latest product often boasts a new technological feature or interesting update, while in fragrance, consumers will be offered a lighter or more intense version of a scent that came out a year earlier. The question is whether version x of a well-known scent is compelling enough for consumers to part with their cash and make a purchase.

Version X The buzz 2News roundup

Netwatch 6Social media monitor

Interview 7Gebr Heinemann purchasing & logistics executive director Kay Spanger

Insight 9European perfumeries

Store visit 13Yves Rocher, France

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry March 5 - April 1, 2015 #108

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l Cosmopack, Bologna, March 19-22 l Cosmoprof Worldwide, Bologna, March 20-23l Duty Free Show of the Americas, Orlando, March 22-25 l Esxence, Milan, March 26-29l in-cosmetics, Barcelona, April 14-16l Luxe Pack Shanghai, April 15-16l MakeUp in Seoul, April 15-16l BeautyEurasia, Istanbul April 30 - May 2l TFWA Asia Pacific, May 10-14News headlines daily on www.bwconfidential.com @BWCbeautynews


www.bwconfidential.com - March 5 - April 1, 2015 #108 - CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

News roundup

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At a glance...

Strategy

Unilever is to acquire UK-based natural skincare brand Ren. The brand, founded in 2000, is sold in 50 countries, mainly in specialty stores and pharmacies. Unilever says that Ren has potential for further growth, given that the naturals category is one of the fastest growing in skincare globally. The acquisition is to close in May 2015.

Brazil’s national surveillance agency of health, ANVISA, has updated regulations on cosmetics sold in the country. The new regulations mean that a number of cosmetics categories will be exempt from registration. Brands will only be required to notify health authorities that their products will be put on the market. The new regulation aims to simplify and speed up the process of bringing products to market in Brazil. However, the exemption does not apply to what are considered high-risk products, such as hair-straightening items, sunscreen, insect repellent, antiseptic gel and children’s products.

Fragrance house Firmenich has sold its fragrance-themed website Osmoz to French digital agency The Twelve. The agency was in charge of Osmoz’s update two years ago, and has been managing the site since then. Launched in 2001, Osmoz is present in more than 15 countries and has 234,000 active members, according to Firmenich.

Retail

Private-equity company Advent is preparing to list German perfumery chain Douglas on the stock market, says Reuters. Advent is looking to either an IPO towards the end of the year or to selling Douglas, say sources. Advent acquired a majority stake in Douglas in 2012 and took the group private. Douglas has since looked to focus on its perfumery business by buying French retailer Nocibé and selling its jewelry stores Christ and confectionery stores Hussel. It also plans to sell its Thalia book stores division.

Budget brand E.l.f. Cosmetics opened its first standalone store outside of the US last month, in Aix-en-Provence, France. The 50m2 (538ft2) boutique sells the brand’s color cosmetics range and has a make-up artist on staff, in addition to its beauty advisors. The brand also moved into skincare last month. The line, priced between $8-$12, will debut with 11 skus and includes a primer, night cream, exfoliating scrub and BB cream. n n n

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

n Unilever to acquire Ren

n Brazil exempts some beauty categories from registration

n Advent looks to IPO for Douglas or sale of chain

n Fragrance launches reach 1,620 in 2014



News roundup

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n n n World Duty Free Group (WDFG) has extended its contract with Kuwait International Airport for five more years, with the option of an additional year. The travel retailer, which works with local partner That Es-Salasil in Kuwait, has held the concession since 2006. WDFG will continue to operate two stores in the departures area, one of which is dedicated to beauty and jewelry. The contract took effect on March 1.

Sephora is launching a click-and-collect service in France in May. Shoppers can order and pay online and then pick up their purchase in Sephora stores three hours later.

A French court has rejected worker unions’ demands to close AS Watson-owned Marionnaud’s flagship store on the Champs-Elysées at 9pm. The store will be allowed to remain open until midnight.

Beauty subscription box player Glossybox turned a profit for the first time last year. The Germany-based company claimed it made a seven-digit profit. Present in more the 10 markets, the company also said that its consumer base increased by 25% last year, while marketing costs were reduced by 33%.

People

The US-based Personal Care Products Council (PCPC) appointed Thia Breen, group president of North America for The Estée Lauder Companies, as board chair last month. Breen was previously vice chair of the council and replaces Elizabeth Arden chairman, president and ceo E. Scott Beattie, who had served as PCPC chair since 2012.

LS Travel Retail Pacific has named Ken Tse as head of operations duty free and luxury. Tse was previously managing director of Nuance-Watson’s Singapore operation.

Sisley has named Jim Maki president of Sisley USA. Maki joined Sisley in 2012 as executive vice president of the US division.

Joy Chen, formerly ceo of skincare brand Yes To Inc, has been named president and ceo of Pola Orbis-owned skincare brand H2O+.

Faber Castell Cosmetics has named Christina Zech as managing director.

Data

Last year, 1,620 new fragrances launched on the global market, according to the 31st edition of fragrance expert Michael Edwards’ Fragrances of the World 2015. This compares to 1,610 new launches in 2013. Some two categories saw fewer launches in 2014: women’s scents (925 versus

968 in 2013) and niche, with 448 new scents in 2014, compared to 540 the previous year. Despite an ailing celebrity fragrance market, there were 79 new fragrance launches in the category last year, compared to 58 in 2013. n n n

New fragrance launches 2014Category 2013 2014Feminine 968 925Masculine 328 353Unisex 314 342Niche 540 448Limited editions 245 263Flankers 245 275Celebrity 58 79Total 1,610 1,620

Source: Fragrances of the World 2015

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n n n The sale of prestige skincare serums saw contrasting results in Europe for the month of January, according to NPD Group. In France serum sales were up by 5%, and in the UK they increased by 8%. In Italy, however, the segment reported a decrease of 1%, while in Spain sales fell by 7%.

Close to six million fewer women bought beauty items last year in the US, a 4% decrease over the previous year and the lowest level of beauty shoppers in the country since 2008, says NPD Group’s Annual Beauty Consumer Economic Indicator. Consumers reduced their spending on make-up and fragrance items 1.5 times as

often as on skincare and haircare, as respondents say make-up and fragrance are “for special occasions”. Yet if women were given an extra $100 to spend on beauty, says the report, the majority say they would buy make-up or fragrance items. About half of women say that beauty would be the first product category they would

stop buying if finances were tight, but almost the same percentage say they would continue to buy these products because they boost their self esteem. In terms of pricing, nearly 50% of women polled say they usually buy discounted products, yet the remaining 50% claim that price is not the most important factor when buying beauty.

Launches

Hermès is adding a fifth fragrance to its Les Jardins collection, which was introduced in 2003. Called Le Jardin de Monsieur Li, the EdT, created by Hermès in-house perfumer Jean-Claude Ellena, was inspired by plants found in Chinese gardens, including prune trees, jasmine and Szechuan pepper bushes. Le Jardin de Monsieur Li launched mid-

February in Hermès boutiques, and will roll out to department stores and perfumeries worldwide in March. The EdT comes in 30ml (€48), 50ml (€70) and 100ml (€100). The line includes shower gel, body lotion, hand and body gel and a three-soap coffret.

BPI is launching a limited-edition EdT fragrance for Issey Miyake’s L’Eau d’Issey franchise this month. Called L’Eau d’Issey City Blossom, the new women’s scent is a woody floral by Alberto Morillas of Firmenich. It features top notes of pink pepper and citrus, a heart of osmanthus, freesia and magnolia and a base of white cedar, ambrox and white musk. Parisian street artist Mademoiselle Maurice

designed the visual identity of City Blossom. L’Eau d’Issey City Blossom will retail at €69

(50ml EdT) and €97 (90ml EdT). n n n

Prestige serum sales* in Europe % change Jan 2015 vs Jan 2014Country % change Jan 2015

vs Jan 2014France +5%Italy -1%Spain -7%UK +8%

Source: NPD Group *Value sales



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n n n Givenchy (LVMH) is to launch a new men’s scent in its Gentlemen Only franchise this spring. Called Gentlemen Only Casual Chic, the fragrance is the third in the line, following Gentlemen Only in 2013 and Gentlemen Only Intense in 2014. The fresh, spicy, woody fragrance comes in the same shaped bottle as the original, but with a touch of orange. It will be backed by an ad campaign featuring actor Simon Baker. Gentlemen Only Casual Chic will launch exclusively in France at Sephora in

March before rolling out to other distribution. It is priced at €62.50 (50ml EdT) and €87 (100ml EdT).

Italy-based Mavive has come out with a new men’s fragrance for the Police brand called Icon. The scent, aimed at 25- to 40-year-olds, comes in a striking multi-faceted blue-toned glass bottle in the shape of a falcon. Icon is described as a woody, ambery fragrance with fruity and spicy top notes,

a woody heart and a base of vanilla and labdanum. It was created by Céline Ripert from Mane. The fragrance will launch internationally in March and retails at €29 (40ml EdP),

€38 (75ml EdP) and €48 (125ml EdP).

Perfume Holding-owned fragrance brand Atkinsons is launching three new fragrances in its Legendary Collection, which are reinterpretations of scents from the brand’s catalog from the 1920’s. The Excelsior Bouquet, a scent for men created by Benoist Lapouza of Drom, features notes of grapefruit, sage, nutmeg, Szechuan pepper and vetiver. Amber Empire, by Maurice Roucel from Symrise, is a unisex EdT with Oolong tea, Chinese magnolia, sandalwood, incense, vanilla and white musk notes. The third fragrance, Love in Idleness, is a women’s EdT with violet, iris, heliotrope and patchouli notes. It was created by Firmenich perfumery Fabrice Pellegrin. The three fragrances each retail for €130.Atkinsons was relaunched in 2012 with a more premium positioning. The brand is sold

in 200 doors today, and has a long-term target of 450 points of sale.

French skincare brand Ioma is launching Collagen Renew in March, its first ingestible anti-aging product. Ioma claims that Collagen Renew is the first encapsulated product to fight wrinkles by building up collagen in the skin. “Topical products are the traditional route to anti-aging, but oral products are the more potent route,” comments Ioma ceo Jean Michel Karam. The supplements contain omega 3 extracts, isoflavones, lycopene and vitamins C and E.

Collagen Renew targets women 35 and over. The box of 105 pills, for a five-week regimen, costs €89. The brand recommends taking the supplements for 15 weeks.Ioma also launched a feature on its Ioma Amoi app called My Coach. The app illustrates

the new product’s effect on the skin and puts consumers in touch with a beauty expert to answer questions about the treatment.

Nail brand Ciaté is to launch its first color cosmetics collection this spring. The range will include a Skinny Shadow Stick, an eyeshadow stick featuring a washable latex tip, which the company claims ensures precise application.The line-up also features mascaras and eyeliners. In France, the make-up collection will

launch exclusively at Sephora from mid-April. It ranges in price from €9 to €16.90. n

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

Social media monitor

A new phenomenon on Instagram called #EOTD, an abbreviation of eye of the day, has been taking the social media world by storm. Inspired by #OOTD (outfit of the day) launched by fashion bloggers, #EOTD involves posting eye make-up looks on the site, and is now referred to as the go-to source for the latest make-up trends.

Cinderella-themed color collections inspired by the upcoming remake of the Disney film, including ranges from MAC and nail brand Morgan Taylor, have struck a chord with bloggers. They praise the fairytale concept and visuals, as well as the shades and packs.

Bloggers are applauding UK retailer Tesco’s online beauty consultation sessions that connect consumers with beauty bloggers via Google+ hangouts. The free service, which is a video chat that lasts 15-20 minutes, is liked for its convenience. More retailers are expected to launch similar initiatives.

The new Sephora + Pantone collection, based on Pantone’s Marsala color for 2015, is said to have sold out online. Bloggers say the products are suitable for all skin colors and types. The highlighting and contouring Multi-Stick, formulated to have a cooling effect on the skin, is a particular favorite in the collection.

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w Gebr Heinemann purchasing & logistics executive director Kay Spanger

Travel retailer Gebr Heinemann has cemented its growing international reach. This year it captured the contract for all airside retail space at Istanbul New Airport with Unifree Duty Free, and started operations at Sydney airport. But Heinemann‘s Spanger sees a lack of innovation in the beauty segment and says improvements are needed to drive growth

Hard talk

How is beauty performing at Gebr Heinemann? Over the past few years, the perfume and cosmetics category has been developing in line with or slightly below the average trend at Gebr Heinemann. Only three years ago it was a totally different picture as it had always been above average. One reason for this is the change in the passenger structure. For example, Asian consumers have been traveling less for a couple of years now, and buy fewer products from this category as gifts because of new regulations and restrictions in Asia. Another factor within the past 12 to 18 months has been the decrease in the number of Russian customers due to the political situation, as well as the enormous depreciation of the Russian ruble. The impact of these factors is massive as the buying power of these two groups is significantly higher than that of other nationalities. Generally, skincare and make-up develop and perform better than fragrance. However,

luxury fragrance brands or luxury niche brands (for example, Hermès, Tom Ford and Elie Saab) are performing well, as are trendy make-up brands such as MAC and Urban Decay as well as new brands like Kérastase for haircare and Vichy for dermaceuticals, which should keep the perfumes and cosmetics category at its level. Having said that, it is essential to be patient; results will not come on a short-term basis. Other positive contributors to the segment are special lines from brands, such as Chanel Les Exclusifs, Armani Privé and the Oriental Collection by YSL. We still see good results with travel exclusives, but beauty is not very innovative here. The liquor segment has now created more attractive travel exclusives and limited editions. The industry should not underestimate its customers—a fragrance with a shower gel is not a travel exclusive, it is nothing other than a simple package of two products.

Which stores are performing best for you in terms of beauty? What are you doing to improve the in-store experience? There is no specific store that performs better than any other; it always depends on the mix of passengers. We know that success comes as a result of well-trained and highly motivated staff, and these values create our top-level service. We now expect more innovative ‘retailtainment’ initiatives from the industry, which are not only designed for the brand; there has to be something special in it for the customer. A good example was our Carousel of Beauty promotion with L’Oréal in Copenhagen airport, where n n n

”Gebr Heinemann purchasing & logistics executive director Kay Spanger

With travel exclusives, [the beauty industry] is not very innovative. [....] The industry should not underestimate its customers—a fragrance with a shower gel is not a travel exclusive, it is nothing other than a simple package of two products

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n n n different fragrances decorated a Christmas tree. We also expect the industry to do more cross-category promotions to attract the

customer with segments such as confectionery or accessories. Our cross-category promotion with Gucci in Istanbul, for example, presented fragrances and sunglasses together. The perfume and cosmetics industry is quite inflexible—everyone talks about having understood the message, but due to their own complicated structures they don’t offer more innovations. We expect more ideas for promotions in the category, especially with brands that can easily combine the three pillars of fragrance, skincare and make-up.

What are the main challenges for the beauty category? We have been telling the industry for years that they should try to bring back luxury and quality to domestic markets, mainly in Europe. Gebr Heinemann and all retailers have constantly improved the quality and visibility of the beauty category over the past five to eight years, but the customer does not seem to notice it. This is a shame, but quite understandable as these efforts have not been seen in domestic markets; in general, it is the opposite—quality and visibility have deteriorated there. This is a problem for the whole category. The young generation no longer sees perfume as a luxury item; it isn’t number one on

the wish list anymore. Bags, sunglasses and watches seem to be more attractive to the consumer. The erosion in perception of luxury is a result of far too many products on the market. It is a shame that no one tries to further develop ‘classics’ and create more classic fragrances out of novelty scents. Lack of innovation is one of the main challenges.

How can you compete with the domestic market in light of discounting on the high street? Permanent discounts in most European countries are a huge problem, and we will not stop counter-attacking these discounts with our own price offers like -30 %, Special offers for Heinemann Retail Brands, special prices like €29.90 or €39.90 and duo sets (2x50ml and 2x30ml). Nevertheless, we can’t compete with discounts on the domestic market, which have obviously increased in the past few years, especially due to e-commerce.

What digital initiatives are you putting in place to better target consumers? E-business is quite a challenge. We have already implemented a lot of ideas where we offer fantastic possibilities to our customers outside our shops. A couple of years ago, our business was limited to the stores, but today we are already connected to 250,000 customers online and we will surely create additional business on top of that. For every retailer, and for travel-retailers, e-business is crucial for the future.Overall, we have never stopped improving

our performance and despite our positive results, sometimes challenge is good because it keeps you on your toes and opens your mind to new paths. n

”Gebr Heinemann purchasing & logistics executive director Kay Spanger

We expect the industry to do more cross-category promotions [....] with segments such as confectionery or accessories. The beauty industry is quite inflexible—everyone talks about having understood the message, but due to their own complicated structures they don’t offer more innovations

“Gebr Heinemann purchasing & logistics executive director Kay Spanger

s Gebr Heinemann is looking to more retailtainment, like the Carousel of Beauty promotion with L’Oréal in Copenhagen airport, where different fragrances decorated a Christmas tree



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Fresh retail concepts and a renewed focus on service both online and offline may help to turn the European perfumery market around

Time for renewalEuropean perfumeries

The European perfumery landscape was marked by another round of consolidation last year when Germany-based Douglas Holding acquired French chain Nocibé. The

deal, which was finalized in June 2014, created the largest perfumery network in France in store numbers. When the deal was announced, Douglas had 179 stores in France and Nocibé operated 466 doors. In January, Douglas sold 13 doors to retailer Athénaïs.In terms of sales ranking, Nocibé/Douglas now is second only to Sephora in France,

while AS Watson-owned Marionnaud takes third place. Douglas Perfumeries ceo Dr Henning Kreke told BW Confidential last month that all Douglas stores in France have now taken on the Nocibé nameplate. Beauty company Groupe Bogart fragrance marketing manager Fanny Alexandre Aimetti comments: “It was necessary for Nocibé and Douglas to get together to have sufficient weight to compete with Sephora in France. While Nocibé is more geared towards alternative product offers and lower price points, I think they can be quite successful by clearly differentiating their product mix from what Sephora offers.”The Douglas acquisition has forced other players to partner up to gain scale. In October

2014, French perfumery franchise retailer Beauty Success signed an alliance with Passion Beauté, a group of independent perfumeries. The new structure, Beauty Alliance France, is 50% owned by each player, and will allow the two entities to negotiate more favorable terms. The alliance takes fourth position in the perfumery market with 450 perfumeries and an 11% market share. It aims to have a 15% market share by 2019.Industry watchers are expecting further consolidation in Europe. Italian retail

chain Limoni, which was bought by private-equity company Orlando Italy in 2012, is expected to change hands again after this year. Advent is also said to be either looking to list Douglas on the stock market, or sell the chain before n n n

European retailers by store numbersDouglas 1,070 Marionnaud 1,000Sephora 929Nocibé more than 600

Limoni 370Ici Paris XL more than 290The Pefume Shop more than 260

s Douglas is testing a new store format focusing on younger, trendy brands



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n n n the end of the year. This recent round of retail consolidation, and forecasts of more to come, are a worry

for suppliers, given the spectre of dwindling negotiating power and further pressure on margins. There is also the issue of where retailers will make cuts to fund their expansion and pay the costs of integrating new businesses. Brands worry that training budgets, generally the first item to go when cuts need to be made, will be sacrificed, and that they will have to shoulder more of these costs. It is also feared that more consolidation will mean that retailers will be more focused

on integration and cost-cutting than on the shopping experience and the consumer. According to sources, since private-equity company Advent International acquired Douglas in 2012, there have been a significant number of staff departures and morale is said to be low as management looks to further cut costs.

The traffic challenge The consolidation trend is unlikely to help perfumeries with one of their biggest problems: the decline in store traffic. According to a study by Kantar Worldpanel published last year, in France the selective channel has lost 1.6 million shoppers since 2011. Industry watchers attribute some of this to the growth of online shopping, which now accounts for between 5 and 10% of retailers’ sales depending on the market. But it is also due to poor service and a shopping experience that is in need of renewal. Analysts say escalating prices are a key reason why consumers are not visiting

perfumeries and are looking to other channels or retailers, especially given the fragile economic context in many European markets. “Consumers could be visiting stores less because retailers are asking for more investment from brands, which means that we have to raise our prices. But this kind of policy only alienates consumers and creates an open door for budget brands like Kiko,” bemoans French brand Black Up general manager Lionel Durand. This is especially tough for smaller brands, which don’t have the negotiating power of large beauty groups. Price hikes also provide more of an incentive for retailers to discount. Service is another issue. “Retailers have clearly slacked on service. They need to look

closely at what is working in beauty retail, such as online sales or vertically integrated players like Yves Rocher, where service is a much more of a priority,” says Durand.Industry players say retailers need to make an effort to offer what their consumer wants.

“Perfumery retail buyers in Europe generally come from mass retail and they have that mass mindset. In other words, they don’t look at what the consumer might be interested in, but at what flies off the shelf today. The result is an increasingly banal retail offer, which doesn’t help build traffic in the store,” says Perfume Holding vice president of marketing Brigitte Wormser. French brand Sisley ceo Philippe d’Ornano agrees. “The main problem facing perfumeries is how they are approaching their consumer. Are retailers looking at the consumer as a short-term sale to meet budgets or are they working to build a long-term relationship? If they don’t put the consumer at the center of their strategies, they’ll lose her to other sectors,” he comments. To reverse the decline in traffic, brands say they are n n n

”Perfume Holding vice president of marketing Brigitte Wormser

Perfumery retail buyers generally come from mass retail and they have that mass mindset. In other words, they don’t look at what the consumer might be interested in, but at what flies off the shelf today. The result is an increasingly banal retail offer, which doesn’t help build traffic

“

s Marionnaud is looking to improve its service with its 4Skin program in Italy, which focuses on specialist skincare advice

n n n having to do all the work. “The bottom line is that perfumeries are losing traffic. To counter this trend, some brands propose animations or new offers that will drive consumers into stores, but they aren’t always accepted by the retailer, and if they are, often they are at the brand’s expense,” says Wormser.

Retailers embark on new projectsHowever, retailers are looking at various strategies to up their game. One idea is to shake up the product mix in perfumeries with more niche brands, given the pull this category has with today’s consumer. Sephora has been doing this for some time and other retailers have followed suit. Some retailers are now even considering dedicated spaces for the category, but lack of space remains an obstacle. And retailers are unlikely to want to cut space given to brands that generate more sales than small niche players. One interesting initiative is AS Watson-owned Marionnaud 4Skin Program, which

launched in Italy this year. The program aims to offer consumers personalized skincare advice both in-store and online. The program will focus on four segments: eye-contour, bodycare, facial skincare and suncare between March and July of this year. Each Marionnaud store in Italy will have a dedicated skincare specialist and the retailer also launched a 4Skin Program website. The site includes video tutorials and a forum where four specialists are on hand to answer questions. “More than 500 hours of training for our staff has allowed us to select a skincare specialist for each store in Italy. She is able to offer custom advice on skin problems, the perfect mix of products and their best use,” comments a Marionnaud spokesperson. This initiative, says the company, will make Marionnaud a venue dedicated not only to

beauty, but also to prevention, health and wellbeing. In France, Marionnaud is currently revamping its store network. The new concept includes two tables dedicated to product discovery, as well as spaces for services, such as quick make-up application and skincare diagnoses. Marionnaud also wants to personalize the stores by offering a “story” or theme for different areas. “The concept is meant to be more cozy, and less cold. The layout is more spacious and consumers can easily find what they are looking for,” comments Marionnaud France ceo Eileen Yeo. As of early March, 10 stores had been refitted and 60 more will be revamped this year, followed by 60 locations in 2016.Douglas, meanwhile, is innovating with new

retail formats. It launched a new concept in November 2014 at two stores, in Dusseldorf and in Warsaw, Poland. The boutiques have a stronger Douglas identity in terms of visual merchandising and a focus on younger, trendy brands, such as Urban Decay. The new concept also includes a feature called Catwalk, an area where new launches, promotions and special offers are prominently displayed, the retailer says. n n n

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www.bwconfidential.com - March 5 - April 1, 2015 #108 -

European perfumeries

”Douglas Holding president & ceo and ceo of Douglas Perfumeries Dr Henning Kreke

In-house brands are and will remain an important factor for success for perfumery retailers. […] However, our customers also expect attractive products from major brands. Our challenge is to find the right balance between these two categories

“

Going omnichannel Retailers are looking to create more links between physical and online stores. Douglas’ Kreke says that the company is intensifying its e-commerce activity for both Douglas and Nocibé. “We are accelerating the links between distribution channels—online and bricks-and-mortar—to be as flexible as possible,” he says. Douglas launched a Click & Collect service for its stores in

Germany and now allows consumers to book their appointments for beauty services online. Sephora, too, plans to launch a Click & Collect service at its French stores this spring. Meanwhile, Ici Paris XL, owned by AS Watson, launched its Click & Collect initiative four years ago. The retailer says that although the service was meant to drive traffic to its stores, feedback from the chain’s beauty advisors show that it is not always easy to upsell to these customers, as when they pick up their purchases they often are not in the frame of mind to spend time looking for new products. Some 5% of the retailer’s customers who buy online select this delivery method, according to the retailer. UK-based The Perfume Shop, meanwhile, has launched its same-day delivery service in 90 minutes or less.

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n n n Douglas is also looking to partner with other retailers and launched its first shop-in-shop concept within a department store in Germany. In January, it opened a 400ft2

(37m2) store in Ahrens department store in Marburg, north of Frankfurt, which offers a full range of products and services. It plans to expand the concept to other department stores and fashion retail stores.In addition to new concepts, the major perfumery chains continue to focus on their

private-label lines. Nocibé opened what is meant to become a chain of stores devoted to its private-label offer and walk-in beauty services last year, called Les Bellista by Nocibé. Two doors opened in France in 2014 and Douglas is currently testing the concept in Germany, where it opened one store at the end of last year. “In-house brands are and will remain an important factor for success for perfumery retailers. These offers give Douglas a specific profile that sets us apart and contributes to consumer loyalty. However, our customers also expect attractive products from major brands. Our challenge is to find the right balance between these two categories,” Kreke tells BW Confidential.Sephora has created new partnerships within its private-label business, such as a tie-up

with jewelry brand Shourouk this spring. Although not strictly private label, in Europe, the retailer is also developing the presence of the Formula X and Kat Von D brands, which are owned by LVMH stablemate Kendo Brands. Private labels’ lower prices may bring consumers to the stores, but it also puts more

pressure on brands, which are already paying for the space they occupy in store. n

The inside viewon the internationalbeauty industry

www.bwconfidential.com N°16 November-December 2013

ISSN: 2104-3302

InterviewCoty ceoMichele Scannavini

Travel retailData, digital &the CIVETs

Market watch: BrazilThe ins & outs of doingbusiness in the country

PackagingSector outlook &luxury trends for 2014

Insight: FragranceGlobal market analysis

The inside view on the international beauty industry

BWCONF_oct2013-def2.indd 1 24/09/13 18:00

www.bwconfidential.com N°17 March-April 2014

ISSN: 2104-3302

InterviewGuerlain ceoLaurent Boillot

Travel retail:Brazilian travelersHow they shop & how to reach them

Market watch:What’s next for Mexico,Argentina & Colombia?

PackagingDecoration techniques& trends

Insight: Make-upDoing color better


BWCONF_fev2014.indd 1 06/02/14 15:16

www.bwconfidential.com N°19 September-October 2014

ISSN: 2104-3302

InterviewFerragamo Parfums ceoLuciano Bertinelli

Travel retail: EuropeHow the region is faring &the continent’s top airports

Market watch: AfricaThe potential & challenges ofthe next big region for beauty

PackagingHow make-up packsare evolving

Insight: fragrance creationWhat’s next for the industry?


BWCONF_septembre2014.indd 1 22/07/14 12:04

In-depth coverage of the global beauty market

...TFWA World Exhibition Cannes • Beauty World Middle East Dubai • PCD Paris Cosmoprof Worldwide Bologna • China Beauty Expo Shanghai • HBA Global Expo New York Duty Free Show of the Americas Orlando • Intercharm Moscow • Exsence Milan Luxe Pack Monaco • Beyond Beauty Paris • Luxe Pack Shanghai • In Cosmetics Paris Luxe Pack New York • Cosmoprof Asia Hong Kong • Pitti Fragranze Florence • Make Up in Paris Elements Showcase New York • Mondial Spa Beauté Paris • TFWA Asia Pacific Singapore...

Distribution at all the major international events

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Botanical Beauty Lab l Opened:

January 2015l Location: Boulogne, France

l Services: Skincare treatments, quick makeovers, manicures, hand-care services

l Special features: Trylab for testing products,

perfume organ, gift bar

French brand Yves Rocher opened a new store concept in Boulogne, a suburb of Paris, in January. Called Botanical Beauty Lab, the store is conceived as a test bed for new

retail features and services and was designed by French agency Workshop. “This store is a way for us to experiment with new concepts that we can then integrate into our retail network, but it won’t necessarily be replicated in its actual form,” an Yves Rocher spokesperson tells BW Confidential. The store was designed to reflect the company’s natural roots, with materials including

cork, glass and birch wood. The brand name is also a central part of the design, which features Y-shaped furnishings and lighting fixtures.In the center of the store is the Trylab, a Y-shaped table where shoppers can test and

play with new products, or receive a quick makeover or skincare diagnosis from a sales advisor. Make-up takes a central space in the store, with a large mural on the right-hand wall, at the end of which a Beauty Bar offers manicures and other hand-care services. Yves Rocher’s fragrance heritage is also highlighted; a perfume organ presents 12 vintage-looking glass vials containing the ingredients most used in the brand’s fragrances, including essence of bergamot, vanilla absolute and patchouli. Consumers can sample each ingredient and learn more about which ingredients are used in each of the brand’s fragrances.Personalization is also part of the Botanical Beauty Lab concept. A gift bar is placed near

the cash register and shoppers can either choose from ready-made gift baskets, or create their own sets and wrap them in the gift paper of their choice.As well as makeovers and manicures, the store houses a beauty institute whose

treatments are displayed in the front window in a light box highlighting the services currently on offer. In addition to traditional cash registers, Botanical Beauty Lab is testing mobile checkout. n

The brand is testing new features and designs in its latest retail concept

Yves Rocher opens Botanical Beauty Lab

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL


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s Make-up has a central position in the store. At the end of the color mural, a Beauty Bar offers hand-care services

s Trylab, a Y-shaped table (left), is meant for testing new products. Yves Rocher is highlighting its fragrance heritage through a perfume organ where consumers can sample raw fragrance materials (right)

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