BW Confidential - Issue #1 - April 2010 - (Page 7)

Recap: brand news Joe Corre, founder of lingerie brand Agent Provocateur, bought a minority stake in UK-based make-up brand Illamasqua. The brand launched in 2008 and is sold in department stores in the UK and Ireland, at Bloomingdale’s Dubai and at Sephora outlets in the US. Estée Lauder Companies will expand distribution of the Coach fragrance line to North American department stores in March and to international markets later this year. The line, which launched in 2007 and until now was only sold in Coach stores, will be supported by a print media and web campaign. Coty Prestige has chosen French singer and actor Marc Lavoine as the face for its Cerruti 1881 fragrance. Lavoine will appear in a new ad campaign for the fragrance from June. US-based Revlon said there were opportunities to develop the Almay and Mitchum brands outside the US and to find additional distribution for marketspecific lines Gatineau and Ultima II. The group does 42% of its business internationally. Revlon’s share of the color cosmetics category in the US (excluding Wal-Mart) remained unchanged from 2008 at 12.7%, according to AC Nielsen. The brand remains strong in the lip category, with a 22.3% market share in the US. Inter Parfums signed a 10-and-ahalf-year fragrance license with luxury pen brand Montblanc. The Montblanc fragrance license, which was previously held by P&G, comes shortly after Inter Parfums inked a deal with luxury shoemaker Jimmy Choo. Spanish group Puig signed a multiyear fragrance license with Italian fashion label Valentino. The contract takes effect from February 2011. The Valentino license was previously held by P&G. Update Major beauty groups continue to talk up emerging markets. At Estée Lauder Companies, China currently represents 3% of sales and the group expects this figure to reach 8% in the next five years. The group is increasingly focusing on skincare to boost sales in Asia, a move that is reflected in its ad spend. “We can be more efficient by transferring our ad spend from many small initiatives in fragrance to fewer bigger initiatives, mostly in skincare. Being more efficient also means using print better, adding TV where appropriate, such as in emerging markets and then adding digital marketing everywhere,” ceo Fabrizio Freda recently told analysts. L’Oréal meanwhile, said that ‘new markets’ will account for 50% of sales in the next 10 years. New markets made up 33% of 2009 sales and grew by 7.2%, compared with declines of 6.3% in Western Europe and 3.4% in North America. P&G too says it can reach another billion people in emerging markets over the next decade. Vice chairmain global beauty and grooming Ed Shirley points out that if P&G could bring the per-capita beauty spend in India and China up to the levels of Mexico, it would generate an additional $15bn in annual sales. German company Beiersdorf reported a 32.9% drop in net profits in 2009 to €380m. Group sales reached €5.75bn, down by 3.7% or 0.7% on a like-for-like basis. At the group’s consumer division, which includes the La Prairie, Nivea and Eucerin brands, sales dropped 2.2% to €5.01bn. Nivea saw a sales increase of 1.3% for the year, while La Prairie reported an 8.7% decline for the period. US natural beauty brand Burt’s Bees is entering mainland Europe (initially France, Italy and Portugal) in June through a one-year exclusivity deal with LVMH retailer Sephora. The brand will roll out 22 of its 102-sku offer, with a focus on beeswax-based products. Burt’s Bees is focusing on international growth through prestige channels. This year the brand is launching in seven new markets throughout Europe and Asia. April 2010 - N°1 - BW Confidential 7

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