BW Confidential - Issue #8 - October/December 2011 - (Page 13)

News recap Strategy Courting caution & emerging markets Major multinationals are taking a cautious view of the rest of the year in light of continued softness in the West and partly due to this summer’s turmoil in the financial markets, which raised fears about a double-dip recession. Commenting on the market during a conference call for its fourthquarter performance, P&G ceo Bob McDonald said: “We’re expecting essentially no growth in developed markets on a volume basis, with any value growth driven by higher pricing.” Similarly, Unilever ceo Paul Polman said recovery in developed markets will be “long and drawn out.” Like many others, both companies are banking on growth in emerging markets. Polman told the press that he believes developing countries will account for 75% of Unilever’s business in 10 years, up from 54% today. P&G’s McDonald also underlined that there would be more focus on emerging markets and that he wants to move “the center of gravity of the company towards Asia and Africa”. In addition, he highlighted the importance of a strong innovation program, and said the company spent $2bn on R&D and $9.3bn on marketing last year. Meanwhile, French group L’Oréal announced that it would create a new position of managing director of the Africa and Middle East zone, as part of its strategy to push ahead in emerging markets. The group’s former managing director human resources Geoff Skingsley is to take up the new position. Update In brief Unilever divests VO5 in US Anglo-Dutch group Unilever is to sell the Alberto VO5 brand in the US and Puerto Rico to private-equity firm Brynwood Partners. It will also sell the Rave hairspray brand’s global business to the private-equity company. Unilever took over the Alberto VO5 brand as part of its acquisition of Alberto Culver, and was required to divest the brand in the US by competition authorities. The Alberto VO5 brand will remain in Unilever’s portfolio in other markets. Perfumania & Parlux? US-based retailer Perfumania is in talks to acquire fragrance company Parlux, according to press reports. Parlux holds the fragrance license for the Hilton and Jessica Simpson brands, among others. Macy’s online genius US-based department store Macy’s took the top spot in a Digital IQ Index of 64 specialty retail brands, compiled by think tank L2 in collaboration with Buddy Media. Macy’s made the ‘gifted’ category of retail brands (there were only two others, Victoria’s Secret and Nordstrom), due to its strong mobile component and social media content. Sephora ranked fourth in the index, putting it in the ‘gifted’ category. ADA to distribute Aveda Germany-based manufacturer of hotel cosmetics ADA Cosmetics is to take over the distribution of Estée Lauderowned Aveda’s bodycare products in hotels in Europe, Australia, Hong Kong, Singapore and Japan from September. 13 Kanebo to launch new brand for China Kanebo Cosmetics is to launch a new brand for the Chinese market targeting the cosmetics specialty store channel. Called Aqua Lunash, the new brand will be manufactured locally and will launch in around 500 specialty cosmetics stores in the inland cities of Sian and Chengdu. It will then roll out to around 1,000 stores by the end of 2011. The group, which is already present in department stores and pharmacies in China, sees the cosmetics specialty store as a third major distribution channel in the country. It reports that these stores are growing in regional inland cities, where it says their number has grown to around 200,000. The Aqua Lunash brand will target women in their twenties “entering the cosmetics category for the first time” and claims to offer solutions for dull complexions. It will launch in September with 45 skus and will be accessibly priced at around RMB100 ($16); some 28 of the range’s items will retail at between RMB12-210 ($1.90$33). The brand will have dedicated counters at specialty stores and be supported by press and TV ads. In other news, Kanebo announced that Eiichi Yoshizaki is to become president of Kanebo Cosmetics Europe, based in Switzerland. Yoshizaki was previously deputy head of the international business division in Japan. Amore Pacific to boost Goutal in Asia South Korean cosmetics group Amore Pacific acquired luxury fragrance brand Annick Goutal, part of the Tattinger Group, from US-based investment company Starwood Capital in August. Amore Pacific, which runs the Lolita Lempicka fragrance brand through its subsidiary Pacific Creation, aims to develop Goutal’s business in Asia, where the brand launched in 2009. Amore says it will focus on Japan and China. Founded in 1981, around 80% of Annick Goutal’s sales come from fragrance (it has a portfolio of 46 scents), with the remainder in skincare, bodycare and candles. The brand is sold in department stores worldwide and operates 10 standalone boutiques in France, one in the UK and one in Belgium. This is the third time that Annick Goutal has changed hands: it was bought by the Tattinger Group in 1985, and Tattinger was then taken over by Starwood Capital in 2005. October-December 2011 - N°8 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #8 - October/December 2011

- Brand & retail news recap
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- Estée Lauder Companies group president international Cédric Prouvé
Insight: Fragrance
- Category overview
- Retailer roundtable
- Retailing strategies
- Rare fragrance brands
- Launch roundup
- Spa chains
- Spa case studies
- E-commerce
- Store concepts
Travel retail
- Sector analysis
- Hainan & China Duty Free Group
- Retail concepts
- Passenger habits
- Industry experts on harnassing the power of social networks
- Six up-and-coming beauty brands
Market watch: Russia
- Country overview
- Prestige retailing
- Industry viewpoint
- Market outlook
- Sustainabilty
- Trends
Last word
- Buyology Inc president & co-founder Donna Sturgess

BW Confidential - Issue #8 - October/December 2011