BW Confidential - Issue #2 - May/June 2010 - (Page 24)

Insight: skincare Industry viewpoint The service factor We ask two brands and two retailers about the development of the skincare business and how the category could be better sold in-store Barneys New Y ork vp divisional merchandise manager for cosmetics & fragrances “The high-end and high-performance skincare lines are doing well for us and anti-aging is where the growth is. In terms of brands, ReVive, 3Lab and Clé de Peau have all been performing very well. Our customers have not really been trading down and the expensive items have continued to do well. If the customer thinks that the product is working, then she will stay with the brand and will go back to it regardless of the price. Customers will continue to invest in skincare and the category is outperforming color for us. We never really got in on the doctor trend, but we recently brought in the Colbert MD brand, which is a five-sku line and is doing well. There is a buzz around the whole package of the brand—the doctor has a book out and this is generating interest. As a retailer we are perhaps a little more cautious now about taking on things that will work. The brands too are generally becoming more targeted. It is not that they are cutting skus, but they are being more thoughtful about the products they are putting onto the market. They are launching fewer skus, as this costs a lot of money and they are becoming more careful about their collections. The brands need to find a balance between newness and their older products, as it is new products that get the press interested and get people talking about them. Services are important for selling skincare and this is something that can always be improved. It is about doing complimentary facials, following up with the clients, intervening with the products and basically about going back to basics. We have seen a positive response to our facials—they are seeing a good following.” “I believe that the skincare category will continue to perform well as it is an affordable luxury and everyone is always looking for the elixir of youth. House of Fraser has a strong skincare clientele who are not averse to buying premium product at high price points. There is certainly no price resistance at our store. The skincare category has two key customer profiles: one that will purchase skincare to slow the signs of aging and the other who uses high result products to maintain recent cosmetic treatments/procedures. Anti-aging is still the area experiencing the most positive growth, due to continual innovation in terms of new ingredients. This attracts positive press attention and therefore new customers. In terms of improving the experience in-store and service, the only way forward is to train and educate staff. This is going to progress through the involvement of industry organizations such as the Cosmetics and Perfumery Retailers’ Association (COPRA), which are increasing their generic fragrance consultants’ training to include skincare. To boost the category I believe House of Fraser the brands need to focus on more training and education at a store level. I think that in terms senior beauty buyer of skincare, the knowledge of the beauty consultants is just as important as the innovation T racy van Heusden and ingredients.” 24 May-June 2010 - N°2 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #2 - May/June 2010

- Brand and retail news recap
Take note
- Market facts, figures and trends
The latest fragrance, skincare and make-up launches
Best of BW
- Market highlights
- Clarins Fragrance Group president Joël Palix
Insight : skincare
- Category overview
- Industry viewpoint
- Trends
- Training in spas
- Spa case studies
Market watch : Asia
- Regional analysis
- Japan
- China
- South Korea
Focus : Fragrance creation
- Fragrance regulations
- Perfumer roundtable
- Six up-and-coming beauty brands
Travel retail
- Asia regional roundup
- Interview with Korea duty-free
Last word
- Morning Star equity analyst Erin Swanson on beauty’s threats and opportunities

BW Confidential - Issue #2 - May/June 2010