BW Confidential - Issue #4 - October/December 2010 - (Page 20)
The inside view on the international beauty and wellness industry September 2-15, 2010 #21
BW Confidential delivers an electronic publication by email to subscribers every two weeks, with a focus on analysis of major issues facing the international industry, interviews with key players and insight into new trends. Here we bring you excerpts of some of our reports. To see the articles in full, log on to our website www.bwconfidential.com
The essential news roundup The retail view Wellness focus
f the industry needed any more proof that retail models are changing and consumers are buying differently, it only needs to look at the launch of the new Mary J Blige fragrance. US company Carol’s Daughter, which developed the scent, took the brave step of launching the fragrance exclusively on TV shopping channel HSN, and so without the US’s traditional launch-pad, the department store. The company can’t be disappointed with the results: in just six hours of airtime the fragrance had sold 60,000 units and broken HSN records for fragrance volume sales. Brands looking beyond traditional distribution is nothing new, but what is interesting is how successful new channels are becoming. Alternatives in the US, such as Sephora and Ulta, may not have the same footprint as department stores, but they are increasingly popular, and their websites are attracting more consumers who may not have a brick-and-mortar version nearby. As for TV shopping, it also has broad reach, provides brand awareness and is considered a lot more cost-efﬁcient than the department store. One brand manager recently told BW Conﬁdential that companies can simply no longer afford to pay for staff at department stores and all the other extras they ask for. And perhaps more worrying for the department store is that brands are now less afraid of upsetting these retailers by dabbling in other types of distribution. Oonagh Phillips Editor in Chief ophillips@bwconﬁdential.com
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The beauty blog review
Clinique vp & gm Europe, ME & Africa Jean-Christophe Jourde
House of Fraser’s Apothecary
on p.13 or go to
Personalization & services
Accessible treatments and services in beauty stores are to become more popular, says forecasting agency GDR Creative Intelligence senior consultant Amy Hedger. In the US prices are relatively accessible, but in Europe in-store treatments are still expensive. Make-over clubs are something to watch. At Make Up & Go in Los Angeles, a $250 monthly membership includes weekly makeovers, beauty advice, and hair styling. It’s a pampering environment and the didactic experience is a good way of getting customers to buy the product afterwards.
Building excitement in-store
The retailer needs to create an exciting program that is not just about gwps, which degrades margins, explains Asia Pacific cosmetics specialist Simone Pedersen. She says that retailers need to do more to understand the brand and to coach them in the opportunities in store and on the kind of experience that they want to develop. Often the retailer will wait for brands to come up with ideas, but Pedersen says the store needs to have a marketing director who comes up with ideas, rather than just leaving it up to the marketing assistants to work with the brands.
Clarity and making the product more interactive is the road that retail is taking, comments UK retail design company Checkland Kindleysides founder Jeff Kindleysides. Retailers need to focus on taking out some of the loops to get consumers closer to the product more quickly. It’s about creating a logical layout so that they can see what they’re looking for. Sometimes having fewer products is better.
Often stores are lacking in terms of appearance and interaction with the client, says retail design and manufacturing company The Royal Promotion Group president Bruce E. Teitelbaum. People want to touch and play with the products and that creates interaction. In cosmetics there are so many skus, so retailers need to be skilled in presenting them.
Wellness data & issues
Spas & the internet
A survey by Coyle Hospitality Research notes that 62% of US respondents go online to look for a bargain, so spas need to offer regularly updated deals on the web. The survey ranks the top-five websites where consumers look for information on spas: SpaFinder (44%), search engines (43%), Facebook (25%), Groupon (22%) and Citysearch (19%).
Driving spa retail sales
To boost retail sales, spa operators are being urged to think of the spa as a product and not just a service destination. “Expecting all our retail sales to come as the result of services is an outmoded idea. We must embrace the idea that some of our clients are going to be retail, rather than service clients,” US-based consulting company Wynne Business ceo Peggy Wynne Borgman wrote on SpaTrade.com.
Spa menus should not try to be everything to everyone. Operators need to take advantage of their brand partners’ know-how when building the menu as most brands offer their expertise as part of the agreement, which also means fewer consultancy fees. Spa menus should also be changed if they are not working.
The spa industry is set to become more specialized as the market matures. “The trend in spas is similar to beauty retail: in the past you could find everything in a single store, but retailers are becoming increasingly specialized with more edited offers,” says Paris day spa Thémaé founder Guillaume Lefevre, whose spa concept is based on tea.
October-December 2010 - N°4 - BW Confidential
Table of Contents for the Digital Edition of BW Confidential - Issue #4 - October/December 2010
- Brand & retail news recap
- Digital digest
- Companies on the move
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- BPI president Rémy Gomez
- Category overview
- Industry viewpoint
- New opportunities
- Launch roundup
- Airport Spas
- Spa case studies
- New store concepts
- Market overview
- Retail strategies
- Interview: World Duty Free & Aldeasa
- TFWA World Exhibition
- Six up-and-coming beauty brands
Market watch: India
- Country overview
- Industry roundtable
- Retailing analysis
- Sector outlook
- Mintel head beauty consultant Nica Lewis
BW Confidential - Issue #4 - October/December 2010