BW Confidential - Issue #7 - July/September 2011 - (Page 12)

Best of BW highlights 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 www.bwconﬁdential.com The inside view on the international beauty and wellness industry September 2-15, 2010 #21 CONFIDENTIAL Comment Inside The buzz The essential news roundup The retail view Wellness focus Changing channels 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 2 4 4 5 6 I Netwatch The beauty blog review Interview Clinique vp & gm Europe, ME & Africa Jean-Christophe Jourde Beauty insight Market outlook 8 11 Store visit House of Fraser’s Apothecary Subscribe www.bwconfidential.com on p.13 or go to Beauty insight Pop-up stores The store that is not a store has become a marketing phenomenon. The pop-up store is now part of common parlance for beauty brands, with P&G, Clarins and Henkel launching their own versions. “Temporary retail is a wonderful way in which brands, particularly beauty brands, can showcase and educate consumers about their products,” comments Christina Norsig, founder of US specialist Pop-Up Insider. “You can test brands and neighborhoods before making a finite decision.” The UK market Beauty in the UK has shown resilience. Total category spend rose 8.5% to £16.8bn ($27.07bn) in 2010— going beyond pre-recessionary levels, says Mintel. Senior retail analyst at Mintel Neil Mason says consumers are looking to save on everyday products and are splashing out more on special items and treatments. “This year could be tougher for consumers than 2010 because average wage growth is trailing the RPI pay scale, VAT rose to 20% in January and public spending cuts will have an impact through the year.” BA training Retailers’ training initiatives are frequently problematic given high staff turnover, especially in perfumery chains. While most perfumeries claim staff turnover rates of 10 to 20%, these can be as high as 90% in some chains. “The BA may be allowed to attend three seminars in a season, but there are probably 50% of the people in the room every time who have never heard your message before,” says Beth Zurn, svp global education and special events at Estée Lauder. 12 German beauty Despite slightly negative sales in 2010, German cosmetics players are in a positive frame of mind, and are expecting growth in 2011. Lower levels of unemployment and increasing disposable income mean that German consumers are spending again after a tough few years. According to the German Cosmetic, Toiletry Perfumery and Detergent Association IKW, personal-care sales fell 0.3% to €12.79bn in 2010. The IKW is predicting growth of between 0.5% and 1.5% for 2011. July-September 2011 - N°7 - BW Confidential http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #7 - July/September 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- Chalhoub Group co-ceo - Patrick Chalhoub
Insight: Haircare
- Category overview
- Prestige retailing
- The latest trends
Wellness
- Wellness & spas
- Spa case studies
Retail
- New store concepts
Market watch: US
- Analysis: Market overview
- Department stores
- Sephora
- Drugstores
Radar
- Six up-and-coming beauty brands
Packaging
- Make-up market analysis
- Make-up trends
Last word
- G-group managing partner Judy Galloway

BW Confidential - Issue #7 - July/September 2011