BW Confidential - Issue #8 - October/December 2011 - (Page 18)

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 The Argentine market On the surface, Argentina’s cosmetics market is booming. According to market research firm Euromonitor, cosmetics and toiletries sales in the country grew by 19.4% to €2.59bn last year. Argentine industry association CAPA said 2010 growth stood at 4% in volume terms and 21.6% in value compared with 2009. But underneath this lies an uncertain political situation and massive inflation, and both are affecting consumer sentiment. Cosmetics players warn that precaution is necessary. The next market trends Expect to see more mergers and acquisitions over the next six months. A few of the big multinationals have admitted that they are on the lookout for buys, such as L’Oréal, which certainly has the cash to do so. But perhaps most of the M&A activity will come from the industry’s ‘mid-sized’ players, which are almost obliged to look for external growth to build critical mass and avoid being squeezed by the distribution and their larger multinational competitors. Pricing in spas Spa operators need to be careful about pricing, as a poorly thoughtout strategy can put off clients. “When a consumer looks at a menu, they start calculating where they can get more treatment for their money. Instead spas should ask the guest how much time they have and then charge depending on the time. The more time the guest spends in the room the less it costs the spa,” comments spa operator The Organic Spa president Joerg Demuth. 18 The move to wellness Trend watchers say that spas that begin to offer a wellness experience will see an increase in business. “The smart spa operators are going to shift into wellness. We have clients who are taking this route and are seeing growth. I am seeing many more wellness clinics and integrative medicine centers opening today than day spas,” comments USbased company InSPAration Management founder & ceo Dori Soukup. October-December 2011 - N°8 - BW Confidential http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #8 - October/December 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
- Estée Lauder Companies group president international Cédric Prouvé
Insight: Fragrance
- Category overview
- Retailer roundtable
- Retailing strategies
- Rare fragrance brands
- Launch roundup
Wellness
- Spa chains
- Spa case studies
Retail
- E-commerce
- Store concepts
Travel retail
- Sector analysis
- Hainan & China Duty Free Group
- Retail concepts
- Passenger habits
Digital
- Industry experts on harnassing the power of social networks
Radar
- Six up-and-coming beauty brands
Market watch: Russia
- Country overview
- Prestige retailing
- Industry viewpoint
Packaging
- Market outlook
- Sustainabilty
- Trends
Last word
- Buyology Inc president & co-founder Donna Sturgess

BW Confidential - Issue #8 - October/December 2011