12 Carrousel du Louvre - BW Confidential

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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
The buzz CONFIDENTIAL News roundup Shiseido is to combine back office functions for its prestige brands in the US into a shared platform. The brands involved include Bare Escentuals, BPI USA, Nars and Shiseido. The company is also to consolidate its US distribution operations at its distribution center in Ohio, US, and will merge its US manufacturing business into its Americas umbrella organization. In line with these changes, the company announced that Pankaj Gupta, who has been executive vice president finance and operations and cfo for Shiseido Americas Corporation since September of last year, will now also become regional cfo. Deanna Chechile, general counsel for Bare Escentuals, will now also serve as regional head of legal and Ginger DeLeo has joined the company as regional head of human resources. The 10 th edition of luxury packaging trade show Luxe Pack New York saw visitor numbers up by more than 10% over the previous year to reach 2,607. The show welcomed 10 more exhibitors than last year’s edition, bringing the total to 141. “We have more exhibitors this year, but we aim to keep the boutique-like atmosphere and stay very selective,” comments Luxe Pack executive director Nathalie Grosdidier. Exhibitors and visitors alike were largely positive, yet some suppliers said that the economic situation continued to cast a pall on the sector. “In Europe we have seen a slowdown in major launches and there are more initiatives using existing bottles and glass. This year is relatively flat versus the stabilization that occurred in 2011. There is still a concern over inventory levels across the supply chain. However, luxury remains quite strong and we are positive for the future of this segment,” comments Bormioli Luigi export sales director glass container division Marco Azzali. Seidel director of customer relations Nancy Lamensdorf agrees: “Brands are now being more cautious and we are seeing more demand for flanker products.” Seen in show • US-based packaging specialist MWV launched two new versions of its Melodie pump at the show. Melodie Delicate features a soft-force actuator that provides a smooth, even and fine mist spray, while the Melodie Forever pump offers a fine particle mist, whose spray pattern forms a cloud, rather than a spritz and doesn’t make droplets. • French supplier Aptar showcased Color Code, a 15ml plastic pump with multicolor possibilities launching in June. • French company Alkos showed its new lip products. Pep Up Your Lips is a pencil that comes in plastic or wooden versions with a transparent formula that changes color depending on the PH of the lips. Three options are available to suit clients from mass, masstige and prestige. The company also showed Beautycare Balm Addict, a lip balm that also reacts to PH levels, Jumbo Twist a retractable lipstick pencil in bright colors and Day to Night Addict lip liner, which is said to provide long hold and no color transfer. • Neopac presented its Beauty Serum Dropper, which dispenses controlled drops of product no matter how much pressure is applied when squeezing the tube. The packaging comes in sizes between 3ml and 50ml with interchangeable caps and decoration options. Neopac has also enriched its line of rollerball tubes with ball heads made of stones including rose quartz, mountain crystal and ceramic. • Germany-based Oeka Beauty launched its Diamond mascara brush, which features a soft inner area to dispense the formula and stiff bristles on top, which are used to shape the lashes. Axel Dumas, currently managing director of luxury group Hermès International will become co-ceo of Hermès alongside current ceo Patrick Thomas in June 2013. Dumas is a sixth-generation member of the Hermès family. Despite the wealth of information about products on the internet, some 76% of shoppers make their purchase decision at the point-of-sale, according to a study by retail marketing company Popai. The study also found that shoppers take less time to make their purchases and also spend more than in the past, and advises that retailers do more to attract consumers’ attention in-store. Popai revealed that when consumers were asked if they remembered merchandising units in the store they visited, 56% said they recalled that displays that were gondolas or island units. The 17 th edition of the China Beauty Expo trade show, which took place from May 4-6 welcomed 222,000 visitors. Of these, 69% hailed from Asia, 11% from Europe and 11% from North America. Some 5,500 exhibitors attended the event, which included a number of well-known Western brands, such as L’Oréal Paris, as well as Asian groups like Japanese player Kosé. www.bwconfidential.com - June 14-27, 2012 #56 - Page 3
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