BW Confidential - Issue #1 - April 2010 - (Page 26)

Insight: make-up Viewpoint Selling color We ask two brands and two retailers about the performance and evolution of the make-up category and how they think color cosmetics can be better sold in-store he make-up category continues to perform very well and innovation is coming from exclusives, such as the Chanel Tattoos and limited-edition products. Selfridges has generated a waiting list two months ahead of the launch of many of these products. Personalizing beauty products and regimes provides an additional element, with customized lashes at the Shu Uemura Tokyo Lash Bar, Yves Saint Laurent’s engraving machine, Kiehl’s Selfridges personalized Crème de Corps beauty director labels and customized nails at the David Walker-Smith Wah Nails pop-up shop. In terms of how make-up could be better sold in store, we introduced innovative counter concepts in 2009 with over 14 brands. We worked with brands on original concept ideas and ways to improve customer interaction to enable multiple levels of shopping. Retail theater adds uniqueness to each counter. Activity, such as bringing in a professional make-up artist, like Giorgio Armani’s Fred Letailleur or additional on-counter services, such as complimentary body art by Illamasqua, provides the theater necessary to engage the customer. Also, counters with a larger customer capacity, such as Bobbi Brown and MAC bring customers into the depth of their space giving an all-encompassing experience of the brand. To avoid customer confusion, the key is the layout-adjacencies. The layout of the Selfrdiges beauty hall is based on putting similar brands adjacent to each other, for example, MAC near Bobbi Brown and Shu Uemura. Make-up services do work. These experiences have been so successful in our beauty hall that we have extended them to others areas of the store, with pop-up shops, such as the preChristmas Shu Uemura Lash Bar on 3rd Central. T ccording to marketresearch group NPD, sales in the make-up category in France were down by 1.2%. Make-up’s performance has been difficult due to a very weak level of innovation from brands—apart from Dior and some professional brands—and this will probably continue. Another reason for the decline is Printemps beauty that new launches have collection director not been successful. In Delphine Hervé-Turra addition, there haven’t been any revolutionary launches, like there were in mascara, which succeeded in pushing the category forward. Foundation and mascara are the two segments that are working best, both in terms of sales and in terms of innovation. However, there have not been any great successes in either of these categories, apart from launches by Dior. We are seeing nice growth in the nailcare category, but this is still largely a minor product segment. In terms of how make-up can be better sold in-store, I think that the application of the product is still the most important thing that can be done to ensure sales. Sampling is also very important, especially for items like foundation and lip products. As for in-store services, I think there will a much more “measured” implication from brands, as these services cost a lot for them and the return is quite weak. Possible developments in the future for the color cosmetics category could for example lie in the customer’s demand for make-up lessons or make-up schools, and also for personalized advice, and service, which are well adapted to a nonsales environment. There could also be more personalized sampling for foundation. A 26 April 2010 - N°1 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #1 - April 2010

Update - Brand and retail recap
Take note - Market facts, figures and trends
Launches - The latest fragrance, skincare and make-up launches
Best of BW - Market highlights
Interview - Sephora international & development md Olivier Schaeffer
Insight: make-up - Category overview
 - Industry viewpoint
 - Trends
Wellness report - Overview
 - Industry roundtable
 - Spa case studies
Travel retail - Europe: little chance of a rebound
Market watch: Western Europe - Regional analysis
 - Germany
 - France
 - UK
 - Spain
 - Italy
Radar - Six up-and-coming beauty brands
Packaging special -  Industry analysis
 - Innovation
Last word - UBS analyst Nik Modi's outlook for 2010

BW Confidential - Issue #1 - April 2010