12 Carrousel du Louvre - BW Confidential

The buzz
CONFIDENTIAL
News roundup
Elizabeth Arden has acquired the fragrance licenses for
musicians Justin Bieber and Nicki Minaj from US-based
Give Back Brands. Singer Justin Bieber’s first scent Someday
(pictured) launched in spring 2011 and became the numberone
women’s fragrance launch in US department stores that
year, according to NPD. A second fragrance for Bieber will
launch this summer. The first Nicki Minaj fragrance will launch
this fall. The addition of the new two licenses comes barely a
week after Arden announced it would acquire the fragrance
licenses for the Ed Hardy, True Religion and BCBGMaxAzria brands from US-based
New Wave Fragrances. Both the Ed Hardy and True Religion fragrances launched
in 2008, while a BCBGMax-Azria fragrance was introduced to the US in 2011.
Make-up brand Urban Decay’s announcement that it is to begin selling its
products in China has seen an outcry from its consumers given the brand’s
anti-animal testing stance and China’s product registration process which
involves testing on animals. Urban Decay posted a statement on its Facebook
page saying that while the Chinese government reserves the right to conduct
animal testing on cosmetics before approval, the authorities have not told the
brand if they have exercised this right with their products. It sought to explain
that Urban Decay does not test on animals, but the Chinese government may
conduct such tests. The company added that the move to China could help
change the government’s stance on animal testing.
Amid falling profits and stagnating sales, Switzerland-based organic beauty
and pharmaceutical company Weleda has reorganized its management
structure. Corporate restructuring specialist Ralph Heinisch has been appointed
ceo, former director of the cosmetics business unit Andreas Sommer has been
named chief commercial officer and Samir Kedwani, who was director of
production and pharmaceutical processes, is now coo.
Former ceo Patrick Sirdey is joining the management board of Weleda France.
Weleda also announced that it would embark on a series of layoffs as part
of its cost-cutting measures. The company reported a loss after interest and
tax of €8.3m in 2011. In the first quarter of 2012, sales reached €84.8m,
an increase of 5% on the first quarter of 2011.
A study by French market research company Yuséo on how French consumers
perceived shopping on the websites of perfumery retailers Sephora,
Marionnaud and Nocibé found that in terms of product selection 76% of
Sephora shoppers were satisfied, while only 55% of Nocibé shoppers and 48%
of Marionnaud customers were happy with the choice of available products.
Customer service was appreciated by 32% of Marionnaud’s web clients, versus
25% for Nocibé and only 19% for Sephora. When it comes to fostering loyalty
among online shoppers, 35% of Marionnaud and Nocibé customers see quality
and reliable service as reasons to shop again at the sites, versus 24% for
Sephora. At Sephora, 55% of customers say they would return because they are
“sure to find what they are looking for”, while this number drops to 52% for
Nocibé and 46% for Marionnaud.
According to industry
sources, LVMH-owned beauty
retailer Sephora is said to
be gearing up to enter India
with two stores in the country
before the end of the year. It
is thought that the retailer’s
first doors will open in
Mumbai and Delhi. Sephora
would not comment or
confirm the news.
Swedish direct-sales
company Oriflame is
expanding in East Africa
through the acquisition of
its franchisee operations
in Kenya, Tanzania and
Uganda. The company
says the strategy is in line
with its plans to develop
cosmetics direct sales on the
African continent. The
operations will be run as
three separate entities
managed from Kenya.
French grocery operator
Système U has acquired
the 139 stores of beleaguered
German drugstore
operator Schlecker in
southern France. Schlecker
employs a staff of 750 in the
stores. Schlecker filed for
bankruptcy in January and
said that it would shutter
more than 2,000 of its
5,400 stores.
Beauty sampling subscription
service Glossybox launched
in the US in May, bringing
its presence to more than
15 countries. Glossybox
sells monthly sampling sets
of five products women.
www.bwconfidential.com - June 14-27, 2012 #56 - Page 2